Report: Defense Innovation in 2025

Overview

Defense innovation is at a critical turning point. Geopolitical tensions are rising, battlefields are becoming more distributed, and technology cycles are now led by the civilian sector.

This reports draws on discussions with over 300 industry experts. Including real-world practices from rising players like Anduril, Palantir, and Baykar, and contrasting them with reforms underway at incumbents, we report the contours of a modern defense innovation model: one that is agile, modular, user-driven, and mission-aligned.

• The flaws of the traditional defense innovation model (and how to overcome them)
• How software-defined systems, digital twins, and AI are accelerating time-to-field
• 5 in-depth case studies showcasing transformation in action
• A readiness assessment to benchmark your organization’s innovation maturity