For decades, the defense sector globally led cutting-edge innovation that shaped military and commercial applications (for example, GPS or the internet), but now the defense industrial base competes with commercial industries that lead to technological breakthroughs and attracts world-class talent.

As geopolitical threats and tensions with Russia and China continue to grow, Western allies are reimagining their innovation ecosystems. Through new organizations and processes, governments have sought to streamline technology development and capability acquisition while also supporting a robust ecosystem of government, industry, and research stakeholders. 

The remolding of defense innovation ecosystems is a global phenomenon, with implications stretching beyond the borders of any single nation. In particular, the evolving objectives, advancements, and challenges experienced by individual members of the Five Eyes (FVEYs) intelligence sharing alliance — Australia, Canada, New Zealand, the United Kingdom, and the United States — present important lessons for each other. 

As part of the Canadian Department of National Defense’s MINDS program, Avascent Canada ULC (an Oliver Wyman Company) examined the defense innovation ecosystems of three of Canada’s FVEYs partners: the UK, Australia, and New Zealand, following a standalone analysis of the US defense innovation ecosystem in 2021. 

The Minds: Five Eyes Defense Innovation Ecosystem report analyzes the current state of defense innovation in Australia, New Zealand, and the United Kingdom. The report explores their common and distinct defense innovation priorities, successes, and challenges experienced to-date, as well as specific organizations, processes, and programs each country has employed to improve their defense innovation ecosystems. It also provides perspectives on lessons learned for Canadian industry and government policymakers to improve outcomes.