This report focuses on the ways that a federated defense approach can strengthen strategic partnerships and deliver more innovative defense technologies at a lower cost—by better harnessing global supply chain networks to expand the military supplier base and increase the net capability available to the network of partners and allies.

Technology innovations in the U.S. Department of Defense (DoD) have delivered unmatched national security capability for the United States for the greater part of the last seven decades. Federal research and development funding is at the heart of the U.S. high-technology advantage. Continuing to push the technology envelope is central to maintaining U.S. preeminence in military capability. As Secretary of Defense Ashton Carter made clear in his Silicon Valley speech in April 2015, “threats...

This study identifies five alternative strategies and, using CSIS’s Force Cost Calculator, builds a cost-capped force structure, modernization program, and readiness profile for each strategy. It then stress-tests each strategy against four sets of simultaneous conflict scenarios, which the authors devised. The study explores potential ways to mitigate the fiscal pressure forcing these strategic tradeoffs. It concludes by making recommendations for the FY 2017 defense budget and the next Q...