Private Sector Funding for Federal R&D & New Capability

posted in: Other Transactions, Podcast | 0
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In this episode Strategic Institute discusses why private sector funding of government R&D and in the development of new capability is not only permissible using Other Transactions but also why it makes a lot of sense. With so many dollars (debt) being created out of thin air, funneling their way into asset classes across the board, does it really makes sense for taxpayers to take on all the risk and be on the hook to fully fund programs that could be funded by other parties with greater interest? Private sector money is desperately searching for investment and yield more than ever. Government dual-use and other programs can be highly attractive for investment, if the government can be a good business partner. Given that accepting outside funding and resources can jump start early innovation and help bridge “the valley of death”, why has DoD and other agencies failed to figure out how to accomplish, what is otherwise common sense (and common place) business practices? At some point, affordability will become an issue. The exploration of business practices that encourage affordability, along with greater speed and better solutions seem like a no brainer.

 

*Apology in advance. User error caused the audio to split, lesson learned.

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