Competition and Innovation under Complexity

Abstract : The products of the Department of Defense (DoD) acquisition process are perceived as becoming increasingly complex, emphasizing multifunction and multimission system configurations. Such weapon systems utilize network capabilities and systems-of-systems engineering and integration methodologies throughout their life cycles. The management and oversight of these complex programs have similarly become more complex. Changes may be needed in the organizations and procedures used to manage the development, production, and sustainment of these complex weapon systems. This chapter discusses how "complexity" may affect the conditions under which competition and innovation yield the desired benefits. Competition and innovation are not ends in themselves, but rather are a means to attain certain benefits in the context of weapon system design, development, production, and support. What are those benefits? What are the conditions under which competition and innovation yield the desired benefits? Have those conditions changed in ways that affect either the role of competition and innovation in defense programs or the benefits derived from that application? The following discussion defines what is meant by "complexity" in the context of weapon system acquisition. It next describes the traditional view of competition and innovation in the acquisition environment prior to and through the 1990s. Given the changes commonly associated with complexity as defined here, the discussion then examines the implications of this for competition, innovation, and acquisition policy.