News

Executive Summary The fifth generation of mobile network technologies, known as “5G,” promises greater speed, security, and capacity. 5G will underpin the internet economy and provide the backbone for the next generation of digital technologies. So, it is unsurprising that there is intense competition among companies and countries for 5G leadership. 5G will determine the direction the internet will take and where nations will face new risks and vulnerabilities. Who makes 5G technologies will affect security and innovation in an increasingly competitive technological environment. Decisions made today about 5G will affect national security and economic performance for decades to come. This is a competition among companies and groups of companies but also a competition between market-based and state-directed decisionmaking. The United States has relied on the former, China on the latter, and Europe falls somewhere in between. American technology remains essential for 5G mobile telecommunications. American companies have been strong performers in developing 5G technologies, but the United States and its allies face a fundamental challenge from China. The focus of competition is over 5G's intellectual property, standards, and patents. Huawei, for example, has research programs to develop alternatives to American suppliers, and U.S. trade restrictions have accelerated China's efforts to develop its own 5G industry. While American companies lead in making essential 5G technologies, there are no longer any U.S. manufacturers of core telecommunications network equipment. Four companies dominate the market for the core network technologies needed for 5G networks. None of these companies are American. 1The choices are between European security partners (Ericsson and Nokia) and China (Huawei and ZTE). Telecom is a strategic industry and having two companies with close ties to a hostile power creates risk for the United States and its allies. A secure supply chain for 5G closes off dangerous areas of risk for national security in terms of espionage and the potential disruption to critical infrastructures. China's aggressive global campaign of cyber espionage makes it certain that it will exploit the opportunities it gains as a 5G supplier. One way to envision this is to imagine that the person who built your house decides to burgle it. They know the layout, the power system, the access points, may have kept a key, and perhaps even built in a way to gain surreptitious entry. Major telecom “backbone” equipment connects to the manufacturer over a dedicated channel, reporting back on equipment status and receiving updates and software patches as needed, usually without the operator's knowledge. Equipment could be sold and installed in perfectly secure condition, and a month later, the manufacture could send a software update to create vulnerabilities or disrupt service. The operator and its customers would have no knowledge of this change. The United States can manage 5G risk using two sets of policies. The first is to ensure that American companies can continue to innovate and produce advanced technologies and face fair competition overseas. American and “like-minded” companies routinely outspend their Chinese competitors in 5G R&D and hold 10 times as many 5G patents. Chinese companies still depend on the western companies for the most advanced 5G components. The second is to work with like-minded nations to develop a common approach to 5G security. The United States cannot meet the 5G challenge on its own. When the United States successfully challenged Chinese industrial policy in the past, it has been done in concert with allies. Another task will be to find ways to encourage undecided countries to spend on 5G security. Huawei's telecom networks cost between 20 to 30 percent less than competing products. Huawei also offers foreign customers generous terms for leasing or loans. It can do this because of its access to government funds. Beijing supports Huawei for both strategic and commercial reasons. Many countries will be tempted by the steep discount. Not buying Huawei means paying a “premium” for security to which economic ministries are likely to object. The United States will need to encourage others to pay this security premium while at the same time preparing for a world where the United States unavoidably connects to Huawei-supplied networks and determine how to securely connect and communicate over telecom networks in countries using Chinese network equipment. The United States does not need to copy China's government-centric model for 5G, but it does need to invest in research and adopt a comprehensive approach to combatting non-tariff barriers to trade. 5G leadership requires a broader technology competition policy in the United States that builds the engineering and tech workforce and supports both private and public R&D. The United States also needs to ensure that U.S. companies do not face obstacles from antitrust or patent infringement investigations undertaken by other countries to obtain competitive advantage. In the twentieth century, steel, coal, automobiles, aircraft, ships, and the ability to produce things in mass quantity were the sources of national power. The foundations of security and power are different today. The ability to create and use new technologies is the source of economic strength and military security. Technology, and the capacity to create new technologies, are the basis of information age power. 5G as the cornerstone of a new digital environment is the focal point for the new competition, where the United States is well-positioned to lead but neither success nor security are guaranteed without action. This report is made possible by general support to CSIS. No direct sponsorship contributed to this report. https://www.csis.org/analysis/how-5g-will-shape-innovation-and-security

Spending rose by nearly 5 percent in 2018 to reach USD1.78 trillion, driven by budget increases in North America and Europe December 18, 2018 03:00 AM Eastern Standard Time LONDON--(BUSINESS WIRE)--Global defence expenditure grew by 4.9 percent in 2018, the fastest growth rate since 2008, according to the annual Jane's Defence Budget report, released today by business information provider IHS Markit (Nasdaq: INFO). Global defence spending grew for the fifth consecutive year to reach a total of USD1.78 trillion in 2018, significantly exceeding the post-Cold War record of USD1.69 trillion in 2010, according to the report. Fueling this global growth was a 5.8 percent boost to NATO spending, which totaled USD54 billion, largely due to higher defence spending in the US. Jane's by IHS Markit forecasts that overall NATO defence expenditure will exceed USD1 trillion in 2019. “Following a challenging period for NATO members in the wake of the global financial crisis, countries have begun to increase defence spending again, in response to emerging threats,” said Fenella McGerty, principal analyst, Jane's by IHS Markit. “This has slowed the rebalance in defence expenditure toward emerging markets.” Jane's by IHS Markit projects that global defence spending growth will moderate to a level of around 2 percent per year over the next five years as budget increases in Europe and North America slow and emerging markets again become the key source of growth. “In 2018, we've seen a reversal of recent trends with Western states driving growth,” said Craig Caffrey, principal analyst at Jane's by IHS Markit. “Going forward we still see Asia and the Middle East as the key sources of sustainable increases in defence spending.” NATO members increase spending In 2010, NATO member spending accounted for two thirds of global defence expenditure. As emerging markets expanded and developed economies implemented cuts over the decade, the balance of global defence expenditure shifted dramatically. The NATO share of expenditure steadily declined to just 55 percent in 2017 with non-NATO spending on track to surpass NATO expenditure by the early-2020s. “As 24 of the 29 NATO members increased their defence budget in 2018, the decline in the NATO share of global spending has stalled,” McGerty said. “The recommitment to defence in Western states means the global balance of expenditure between NATO and non-NATO markets is now more likely to shift from the mid-2020s.” Nine NATO members will reach the 2 percent of GDP benchmark for defence expenditure in 2019 – compared to just four members in 2014. These countries are the US, Greece, Estonia, Lithuania, United Kingdom, Poland, France, Latvia and Romania. US continues to invest in modernisation US defence spending increased by USD46 billion in 2018 to reach USD702.5 billion as the Pentagon sought to improve military readiness and bolster missile defence capabilities. The 7 percent boost to the Pentagon's budget represents the largest increase in US defence spending since 2008. “Modernisation accounts will reach USD244.1 billion in FY19 – the highest level of investment funding since the period FY07-10, which experienced the maximum Overseas Contingency Operations and maximum US Department of Defense (US DoD) spending levels,” said Guy Eastman, senior analyst at Jane's. “The funding levels for FY18 and FY19 have enabled the US DoD to start on the road to improved readiness and acquire improved warfighting capabilities.” Eastern European budgets continue to expand, while Germany's 11 percent spending boost will bolster Western Europe's total Six of the ten fastest growing defence budgets in the world in 2018 were situated in Eastern Europe. Defence spending in the region grew by almost 9 percent in 2018 with Poland, Romania and the Ukraine driving increases. Notably, spending on military equipment has more than doubled in the region since the annexation of Crimea in 2014. Western European defence spending increased for the third consecutive year in 2018 to reach USD248 billion – 2.4 percent higher than 2017. In 2019, regional spending should exceed pre-financial crisis levels as growth accelerates to 3.6 percent driven by a major 11 percent increase in the German defence budget. “As fiscal balances have improved, countries are able to respond to a markedly poorer security environment and address the capability gaps that have emerged,” McGerty said. “European defence cooperation is also a driving factor as countries look to bolster domestic capabilities but also partner on new technologies, all of which requires greater investment.” While the outlook for defence spending growth in Europe appears on an upward trend, this hinges on a stable UK defence budget and therefore upon the outcome of Brexit negotiations and the impact on the UK economy. Strong economic conditions in Asia-Pacific drive accelerated growth Growth in Asia-Pacific accelerated to 3.6 percent in 2018 but remains below the average 4.8 percent rate seen over the past decade. Total regional spending reached a record high of USD465 billion in 2018. Despite security concerns, economic growth continues to be the primary driver of defence budget growth in Asia. “Strategic drivers are undoubtedly becoming more important, but trends continue to be dictated by economic and fiscal conditions. Strong underlying economic fundamentals mean that Asia is where we expect the majority of the sustainable long-term growth will come from,” Caffrey said. “From a budgetary perspective, we're still seeing very few indicators that an arms race is underway in Asia.” Saudi surpasses France as fifth largest defence spender Higher oil prices over the course of 2018 contributed to an uptick in growth in the Middle East and North Africa with total spending in the region reaching USD180 billion. Saudi Arabia increased its defence outlay by 7 percent to hit USD56 billion, making the Kingdom the fifth largest spender on defence globally. “The large increase in Saudi Arabia's defence budget drove trends in MENA,” Caffrey said. “With oil prices falling again in the latter part of the year, regional growth is likely to remain relatively conservative in the short term.” Brazil dominates defence spending in Latin America Latin America's defence spending grew by 10.4 percent in 2018, reaching a new high of almost USD62 billion. Brazil's allocation of USD29.9 billion accounted for 48.3 percent of this total. “The recovery in Latin American defence budgets continued this year, but aside from Venezuela, where hyperinflation necessitated massive spending supplements, growth was markedly slower than in 2017,” said Andrew MacDonald, senior analyst at Jane's by IHS Markit. Top 20 defence budgets - 2017 and 2018 (USD billion) Position Country 2017* Position Country 2018* 1 USA 656.7 1 USA 702.5 2 China 191.2 2 China 207.6 3 India 61.2 3 India 62.1 4 UK 57.0 4 UK 58.4 5 France 52.5 5 Saudi Arabia 56.0 6 Saudi Arabia 52.1 6 France 53.6 7 Russia 50.9 7 Russia 51.6 8 Japan 48.3 8 Japan 45.1 9 Germany 43.5 9 Germany 44.5 10 South Korea 38.0 10 South Korea 39.1 11 Australia 32.1 11 Australia 32.0 12 Brazil 28.9 12 Brazil 29.9 13 Italy 26.7 13 Italy 27.2 14 UAE 19.3 14 UAE 21.4 15 Canada 16.5 15 Iran 17.4 16 Israel 16.4 16 Canada 16.1 17 Iran 16.2 17 Israel 16.0 18 Taiwan 14.6 18 Spain 15.3 19 Spain 14.4 19 Taiwan 14.5 20 Pakistan 12.0 20 Turkey 13.0 *Figures in constant 2018 USD billions. The intelligence cutoff for this report is 13 December 2018. About IHS Markit (www.ihsmarkit.com) IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world's leading financial institutions. IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved. About the Jane's Annual Defence Budgets Report The Jane's Defence Budgets team produces the annual Jane's Defence Budgets Report every December. The report examines and forecasts defence expenditure for 105 countries and captures 99 percent of global defence spending. The Jane's Annual Defence Budgets Report is the world's most comprehensive, forward-looking study of government's defence budgets. Tracking 99 percent of the global defence expenditure from 105 of the world's largest defence budgets, data is compiled from Jane's Defence Budgets online solution platform. It includes five-year forecasts, historical data, budget charting, trend evaluation and in-depth analysis by country. In this study, values are based on constant 2018 US dollars. Contacts Freya Lewis IHS Markit +44 203 159 3255 freya.lewis@ihsmarkit.com Press Team +1 303 858 6417 press@ihsmarkit.com https://www.businesswire.com/news/home/20181218005033/en/NATO-Members-Drive-Fastest-Increase-Global-Defence

By: Todd South The Marines are looking to big data analysis and potentially an IBM Watson-like machine or software to help conduct complex wargaming and plan for future battles in an immersive environment. The Corps' Program Manager for Wargaming Capability, Col. Ross Monta, told Marine Corps Times that a recent program announcement seeks to “bring advanced analytics, visualization, models and simulation together to create an environment that enables senior leaders” to make a host of decisions. Those range from capabilities for the future force and ways to test operational plans, develop concepts of operations and help provide information to prioritize resources. The announcement is the service's second round of information gathering in four technology areas that include modeling and simulation, wargame design, data services and visualization. The Marines are reviewing white papers submitted from industry in January, February, March and July. They're aiming to have testing begin as early as October. At the 2017 Modern Day Marine Military Expo, then-Lt. Col. Monta spoke on how the Corps was developing a three- to five-year plan for a wargaming center at Marine Corps Base Quantico that would allow planners to conduct 20 wargames a year, including two large-scale, 250-participant exercises. The simulation they sought at the time would provide, “accurate representation of future operating environments, simulate friendly and enemy capabilities” and perform “rapid, in-depth analysis of game-derived data or insights.” The then-head of Marine Corps Systems Command, Brig. Gen. Joseph Shrader, said that wargaming had to get beyond “moving yellow stickies on a map.” At that time the center was capable of conducting about 11 wargame scenarios a year, Monta said. They were looking at partnering advanced simulation capabilities, such as the one they're seeking in the fbo.gov posting, with flesh and blood experts from the Ellis Group think tank to better see high-order, long-term warfighting needs. The head of training systems command, Col. Walt Yates, told Marine Corps Times that the aim was to have ways of using artificial intelligence to run simulations as many as 1,000 times. With those numbers, planners can learn probabilities of victory, casualty expectations and the logistics required to accomplish the mission. Simulation capabilities would allow commanders to run scenarios against future threats to gauge what equipment and tactics are most needed to succeed. These factors would inform planning for everything from buying the next piece of combat gear to how best to deploy forces, Yates said. The big data analysis is just one of a list of items the Corps has been working in recent years to push their wargaming from squad to Marine Expeditionary Force-level, leveraging advances in computing, data analytics, virtual reality, augmented reality and gaming. Beginning this past year, Marines at each of the Corps 24 infantry battalions began fielding Tactical Decision Kits, a combination of laptop, VR goggles and drones that allow small unit leaders to map battle spaces and then run operations plans in VR to rehearse missions. Earlier this year, MARCORSYSCOM officials sought industry input on pushing weapons simulations for live training, force-on-force shooting past the decades old laser technology still in use today. They want shooting systems that more realistically replicate how bullets and other projectiles move and the types of damage they cause. The system that would be able to simulate all weapons and vehicles typically seen in a battalion, which would include at least: M4/M16; M9 or sidearm, the M27 Infantry Automatic Weapon; hand grenades; rocket propelled grenades; Light Anti-Tank Weapon; 60mm mortars; 81mm mortars; Claymore antipersonnel mine; Mk-19 grenade launcher; Russian machine gun; AK-47 variants; M41 TOW; Javelin missile and the Carl Gustaf recoilless rifle. It would also allow for immediate after-action review so that trainers and commanders could see where their Marines were aiming, when and how much they fired to strike a target and what damage their opponents caused. https://www.marinecorpstimes.com/news/your-marine-corps/2018/12/18/marines-look-for-ibm-watson-like-artificial-intelligence-to-plan-large-scale-wargames

By: Justin Lynch The Pentagon has received more power to conduct cyber operations in the past 18 months. But for the top Army commander in the Middle East and Central Asia, the new authority is not enough. The head of U.S. Central Command, Gen. Joseph Votel, wrote in a Dec. 18 paper that the Pentagon must “normalize” electronic warfare and cyberattacks and incorporate them into daily operations. “Normalizing the cyberspace domain means broader authorities that are more responsive than current bureaucratic processes,” Votel wrote in the Army's Cyber Defense Review. “It also means we need simple and streamlined organizations and processes to increase lethality and enhance performance.” The paper was coauthored by Votel, Maj. Gen. Julazadeh and Maj. Weilun Lin. “Our failure to operationalize and normalize the cyberspace domain effectively cedes it to our adversaries, gives them a competitive advantage and, ultimately, creates an increased attack vector against our objectives,” the authors said. President Trump gave the Pentagon new authorities to conduct cyber operations in August and minimized the process where other agencies can object to cyberattacks, known as “deconfliction.” Secretary of Defense Jim Mattis can conduct hacking operations without approval from the White House so long as they do not interfere with the American “national interest,” according to four current and former White House and intelligence officials who were either part of internal deliberations or briefed on the changes. Yet some current and former U.S. officials are skeptical that the new authorities will mean more effective hacking operations for the Pentagon, because it does not solve the nuances of cyberattacks. But the new mandates do not go far enough for the three officer authors, who argued that cyberwarfare should be under the same authorities as other types of operations. “We must not see cyberspace as drastically different and separate from other domains that we create new processes to prepare, plan and fight in this new domain. We continue to seek processes that smooth and simplify operations, reducing friendly friction and accelerating decision-making.” Current and former Pentagon officials have pointed to conducting cyberattacks against enemies that use networks of neutral or partner nations as an area where the Pentagon has changed its decision-making process in recent years. Those officials also pointed to how the Pentagon was able to use hybrid warfare tactics during the 2016 liberation of Mosul, Iraq, as a textbook example of future hybrid operations. Votel, Julazadeh and Lin echoed the sentiment of other Pentagon officials who have advocated for cyberattacks, electronic warfare and other information operations to be integrated earlier in military operations. “We need to proactively execute cyberspace and information operations early in 'Phase 0 / steady state' of the planning process — well before operation execution. Only then can we shape the [information environment], hold our adversaries' capabilities at risk and execute at the speed of war,” the three wrote. For example, Pentagon officials say they closely monitored Russia's 2014 hybrid war in Ukraine and learned from Moscow's tactics. Votel, Julazadeh and Lin shed light on the changes, writing that information operations were previously “integrated as an afterthought.” Yet over the last two years, Central Command has incorporated cyberattacks, electronic warfare and military deception at the “strategic level.” And this hybrid warfare has driven new acquisition demands in the Pentagon. “We need technology and capabilities to keep pace with the operational environment and continue to build the partnerships to do so,” the three officers wrote. In recent years, Central Command has bolstered its hybrid warfare through new contracts. The centerpiece of that effort is a July 2017 contract worth $621 million to Science Applications International Corporation for IT support to Central Command that could last seven years. In August 2018, Vistra communications was also awarded a $22 million contract to support offensive and defensive cyber operations for Central Command. https://www.fifthdomain.com/dod/2018/12/18/centcom-chief-the-future-of-warfare-demands-more-cyber-authorities

By: Mark Pomerleau The military services are exposing networks to “unnecessary cybersecurity risks” thanks in part to a lack of visibility over software application inventories, according to a Department of Defense Inspector General report. The IG investigated whether DoD components rationalized their software applications by identifying and eliminating any duplicative or obsolete applications. Rationalizing software applications seeks to improve enterprise IT by identifying all software applications on the network; determining if existing applications are needed, duplicative or obsolete; and determining if applications already existing within the network prior to purchasing new ones. The audit — which focused on Marine Corps, Navy and Air Force commands and divisions — found that the groups examined did not consistently perform this rationalization process. By not having visibility into software application inventories, these organizations were unable to identify the extent of existing vulnerabilities within their applications, the report found. Moreover, such a process could lead to cost savings associated with eliminating duplicative and obsolete applications. Fleet Forces Command was the only command the IG reviewed that had a process in place for eliminating duplicative or obsolete applications. The Air Force did not have a process in place to prevent duplication when purchasing new applications. The report placed blame on the DoD chief information officer for not implementing a solution for software rationalization in response to Federal Information Technology Acquisition Reform Act requirements. The IG made three recommendations for the CIO, who did not provide a response to draft recommendations: Develop an enterprisewide process for conduction software application rationalization throughout DoD; Establish guidance requiring DoD components to conduct rationalization and require DoD component CIOs to develop implementation guidance outlining responsibilities for rationalization. Such a policy should also require components on at least an annual basis to validate the accuracy of their owned and in use software applications inventory; and Conduct periodic review to ensure components are regularly validating the accuracy of their inventory and they are eliminating duplicative and obsolete applications. https://www.fifthdomain.com/dod/2018/12/18/dod-ig-military-networks-are-exposed-to-unnecessary-cyber-risks

By: Andrew Chuter LONDON — Britain is to rebuild weapon stockpiles, strengthen Joint Forces Command and earmark cash to rapidly innovate as part of a long-awaited defense modernization review revealed Tuesday by Defence Secretary Gavin Williamson. The defense secretary told Parliament on Dec. 18 that the review, known as the Modernising Defence Programme, would improve the lethality, reach and mass of the armed forces. However, he stopped short on detailing where the cash would coming from and who the long-term winners and losers might be in regard to capabilities and programs as priorities change. Although Williamson told lawmakers he would do “everything within my power to make sure that the U.K. remains a tier-one military power,” his statement disappointed some in the defense sector for its blandness. Labour, the main opposition party in Britian, called the statement “waffle” and said Williamson had done nothing to address a funding shortfall of between £7 billion and £15 billion (U.S. $8.8 billion and $18.9 billion) in equipment budgets over the next 10 years. Some analysts also felt the yearlong review had failed to deliver. “It's an announcement about future announcements, it's the [Ministry of Defence] keeping lots of option open, “ said Jon Louth, the director of defense, industries and society at the Royal United Services Institute think tank in London. “It's all about seeing what can be achieved in next year's governmentwide departmental spending review." Howard Wheeldon, a British-based defense commentator, said the review had “hardly a specific detail of anything that really matters other than some minimal strategic intentions to be found amongst the prose. Perhaps the best that can be said is that while it contains many strategic positives, loads of ambition and intent, at the very least it doesn't contain any new specifics in relation to planned cuts.” Alex Ashbourne-Walmsley of Ashbourne Strategic Consulting said the review was an “anti-climax.” “We have waited all year for this, and what we have is a very thin document. It's hard to fault the aspiration, but making it a reality is a different matter. Where's the money coming from?” she said. Ashbourne-Walmsley and Louth agreed the MoD's success, or otherwise, in securing additional funds when the government's departmental medium-term spending plans are agreed sometime next year is the key. “For the MoD, it's all about next year's departmental spending review. It's unfortunate that the moment the review came on the horizon, that invalidated most of the things that the modernizing defense review could have hoped to achieve,” Ashbourne-Walmsley said. “A lot of these plans are hostage to fortune in terms of the spending review [known as the comprehensive spending review], economic damage from Brexit and even a change of government,” she added. The MoD has secured an additional £1.8 billion in funding this year from the Treasury for spending on items like the nuclear deterrent, anti-submarine warfare and cipher capabilities, but the department still has considerable work to do to balance the books on a total budget slated to top £39 billion next year. The National Audit Office, the government's financial watchdog, reckons the MoD is at least £7 billion overcommitted on its 10-year, £186 billion equipment plan. But, the office admits, it could be a lot more. Williamson acknowledged the MoD had to create “financial headroom for modernization,” but told Parliament this could be achieved through efficiencies. “Based on our work to date, we expect to achieve over the next decade the very demanding efficiency targets we were set in 2015, including through investment in a program of digital transformation,” he said. Analysts here reckon that's an optimistic target without capability cuts; although there was no mention of any reductions in the statement. “We all know that you cannot [achieve efficiency targets] without taking the knife to something. So what we may be able to deduce or fear is that hidden out there somewhere is a chapter of probable announcements of what might yet be to come,” Wheeldon said. One thing appears: Spending priorities are set to change as the MoD reacts to the growing threat from potential adversaries. That includes rebuilding depleted weapons stockpiles. “To improve the combat effectiveness of our forces, we will re-prioritize the current defense program to increase weapon stockpiles. And we are accelerating work to assure the resilience of our defense systems and capabilities,“ Williamson said. “We will improve the readiness and availability of a range of key defense platforms: major warships, attack submarines, helicopters and a range of ISTAR platforms,” he added, without concrete details. Williamson also said Joint Forces Command capabilities are set to be upgraded. “A major new step will involve an improved Joint Forces Command that will be in a better position so that defense can play a major role in preventing conflict in the future and improve our cyber operations and capabilities across the armed forces, but also across government as well,” he said. “Our adversaries and competitors are accelerating the development of new capabilities and strategies. We must keep pace and conceive of our joint force as consisting of five domains — air, land, sea, cyber and space — rather than the traditional three,” he told lawmakers. The review might have been short on details, but the MoD is pledging to drive the military modernization effort with funding, albeit a small amount, for innovation. Britain already has a small defense innovation fund, which this year has £20 million to put toward projects in areas including unmanned air systems, virtual reality training and enhanced digital communications. The fund will grow to £50 million in the next financial year. New “Spearhead” innovation programs will apply cutting-edge technologies to areas including subsurface threats to submarines; intelligence, surveillance and reconnaissance capabilities; and command and control in the land environment. For now, the MoD is investing £160 million to create a transformation fund, but additional money may be available in the upcoming comprehensive spending review if Williamson can make the case for it. “I will ring-fence £160 million of MoD's budget to create this [transformation] fund available for innovative new military capabilities. I will look to make a further £340 million available as part of the spending review. This fund will be available for new innovative military capabilities, which allows us to stay one step ahead of our adversaries," Williamson argued. https://www.defensenews.com/global/europe/2018/12/18/britain-eyes-a-more-lethal-force-in-newly-revealed-defense-modernization-review

Defence Secretary Gavin Williamson has provided a final update on the Modernising Defence Programme to the House of Commons. In July, I made a statement setting out headline conclusions from six months of work on the Modernising Defence Programme (MDP). Since then, work has continued apace. Firstly, I would like to welcome the extra £1.8 billion of funding for Defence, including the additional £1 billion that was in last month's Budget. Today, I want to provide an update on the MDP, and set out the work that will be ongoing. I have placed a full report on the MDP in the library of the House. First, I should put the MDP into context. The 2015 Strategic Defence and Security Review was the right plan for Defence at that time. The Government put the Defence budget on a firmer footing, increasing throughout the life of the Parliament. Defence is much stronger as a result of that. NATO is growing in strength and the UK is a leader. More allies are meeting the 2 per cent spending guideline, or have developed plans to do so. We are the second largest defence spender in NATO, one of only a small number of allies to spend 2 per cent of our GDP on defence, and invest 20 per cent of that in upgrading equipment. We can be proud of what we have achieved since 2015. But we have to also be vigilant. National security challenges have become more complex, intertwined and dangerous since 2015 and these threats are moving much faster than anticipated. Persistent, aggressive state competition now characterises the international security context. In response to the growing threats the MDP was launched in January. And, in the last year, our Armed Forces have demonstrated their growing capability, engaged globally, and supported the prosperity of the UK. The Royal Navy has increased its mass and points of presence around the world. We have taken steps to forward base the Army, enhancing our global posture. The Royal Air Force has continued to innovate, and has celebrated a proud past its RAF100 years since its creation. Progress has also made in cyber and space, as the changing character of warfare makes both domains increasingly important. We have reinforced the UK's position as a leading voice in NATO and on European security. And, our Armed Forces have led the way for Global Britain, tackling our adversaries abroad to protect our security at home and nurturing enduring relationships with our allies and partners. Through the work over the past year the MDP has identified three broad priorities, supported by the additional £1.8 billion invested in Defence. Firstly, we will mobilise, making more of what we already have to make our current force more lethal and better able to protect our security. The UK already has a world-leading array of capabilities. We will make the most effective use of them. We will improve the readiness and availability of a range of key Defence platforms: major warships, attack submarines, helicopters and a range of ISTAR platforms. We are adjusting our overseas training and deployments to increase our global points of presence, better to support allies and influence adversaries. To improve the combat effectiveness of our Force, we will re-prioritise the current Defence programme to increase weapon stockpiles. And we are accelerating work to assure the resilience of our Defence systems and capabilities. We can mobilise a full spectrum of military, economic and soft power capabilities. And, where necessary and appropriate we will make sure we are able to act independently. We will also enhance efforts with our allies and partners, aligning our plans more closely with them, acting as part of combined formations, developing combined capabilities, and burden-sharing. And we continue to invest in, and grow, our global network of Defence personnel and the education and training we offer in the UK and overseas. Secondly, we will modernise, embracing new technologies to assure our competitive edge Our adversaries and competitors are accelerating the development of new capabilities and strategies. We must keep pace, and conceive of our joint force as consisting of five domains, air, land, sea, cyber and space, rather than the traditional three. We must modernise, targeting priority areas. A major new step will involve improved Joint Forces Command that will be in a better position so that defence can play a major role in preventing conflict in the future and improve our cyber operations and capabilities across the armed forces but also across government as well. This year Defence's Innovation Fund put £20 million towards projects in areas including unmanned air systems, virtual reality training, and enhanced digital communications for the Future Commando Force. The fund will grow to £50 million next financial year, increasing the scope, ambition and value of the projects it can support. We will launch new ‘Spearhead' innovation programmes that will apply cutting-edge technologies to areas including sub-surface threats to our submarines, our intelligence, surveillance and reconnaissance capability, and command and control in the Land Environment as well. And to drive innovation and change through the Department I am launching a Transformation Fund. Next year, I will ring-fence £160 million of MOD's budget to create this fund available for innovative new military capabilities. I will look to make a further £340 million available as part of the Spending Review. This fund will be available for new innovative military capabilities which allows us to stay one step ahead of our adversaries. Together these and other steps will enable the acceleration of our modernisation plans. Thirdly, we will transform, radically changing the way we do business in Defence. We need to improve markedly the way we run Defence. To sustain strategic advantage in a fast-changing world, we must be able and capable of continuous and timely adaptation. We will embrace modern business practices and establish a culture that nurtures transformation and innovation. We also need to create financial headroom for modernisation. Based on our work to date, we expect to achieve over the next decade the very demanding efficiency targets we were set in 2015, including through investment in a programme of digital transformation. We will develop a comprehensive strategy to improve recruitment and retention of talent, better reflecting the expectations of the modern workforce. We will access more effectively the talents of our ‘Whole Force' across all three Services, Regulars, Reserves, Civil Service and industrial partners. Looking ahead, dealing effectively with persistent conflict and competition will increasingly hinge on smarter, better informed long-range strategy. To help achieve these goals we will establish a permanent Net Assessment Unit, as well as a Defence Policy Board of external experts, to bring challenge to Defence policy and to Defence strategy. Our achievements under the MDP have made Defence stronger. The capability investments and policy approaches set out, with the £1.8 billion worth of Defence funding, will help us keep on track to deliver the right UK Defence for the challenging decade ahead. Without a shadow of a doubt, there is more work to be done as we move towards next year's Spending Review. We must sustain this momentum if we are to realise our long-term goals of increasing the lethality, reach and mass of our Armed Forces. I will do everything within my power to make sure that the UK remains a Tier-One military power in the decade ahead, and that we continue to deliver the strong defence and security that has been the hallmark of the government. I commend this statement to the House. The Modernising Defence Programme https://www.gov.uk/government/speeches/modernising-defence-programme-update

Detail of outcome The Defence Secretary launched the Modernising Defence Programme in January 2018 with the aim of further strengthening and modernising defence in response to a more complex and challenging international security situation. This report ‘Mobilising, modernising and transforming defence' describes a set of policy approaches and capability investments that will help to keep us on track to deliver the right UK defence for the coming decade. Supported by the additional £1.8 billion funding announced in the Autumn Budget, defence will: mobilise, making more of what we already have to ensure our armed forces are best placed to protect our security modernise, embracing new technologies and assuring our competitive edge over our adversaries transform, radically changing the way we do business and staying ahead of emerging threats As we move towards the 2019 Spending Review, we must sustain this momentum. The Defence Secretary will continue to work with the Prime Minister, the Chancellor and the National Security Council to explore how these aims should be fulfilled alongside our other national security priorities. https://www.gov.uk/government/consultations/modernising-defence-programme-public-consultation

MOORESTOWN, N.J., Dec. 18, 2018 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) was awarded a $585 million contract by the Missile Defense Agency (MDA) to design, develop and deliver its Homeland Defense Radar-Hawaii (HDR-H) in Oahu, Hawaii. The HDR-H radar will provide autonomous acquisition and persistent precision tracking and discrimination to optimize the defensive capability of the Ballistic Missile Defense System (BMDS) and counter evolving threats. "Lockheed Martin will leverage the development of our Long Range Discrimination Radar (LRDR) to provide the lowest risk and best value HDR-H solution to MDA, which includes open, scalable architecture for future growth," said Chandra Marshall, program director for Lockheed Martin's Missile Defense Radars market segment. LRDR is currently under construction in Clear, Alaska, and is scheduled for an on-time delivery in 2020. The system's open architecture design will enable future growth to keep pace with emerging threats. "LRDR completed a key milestone in August, successfully searching for, acquiring and tracking numerous satellites, known as a closed loop track, confirming our design is complete, mature and ready for full rate production in 2019," said Marshall. The work for HDR-H will be performed in Moorestown, New Jersey, and Oahu, Hawaii. As a proven world leader in systems integration and development of air and missile defense systems and technologies, Lockheed Martin delivers high-quality missile defense solutions that protect citizens, critical assets and deployed forces from current and future threats. The company's experience spans missile design and production, hit-to-kill capabilities, infrared seekers, command and control/battle management, and communications, precision pointing and tracking optics, radar and signal processing, as well as threat-representative targets for missile defense tests. About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. This year the company received three Edison Awards for ground-breaking innovations in autonomy, satellite technology and directed energy. SOURCE Lockheed Martin https://news.lockheedmartin.com/2018-12-18-Missile-Defense-Agency-Awards-Lockheed-Martin-Contract-to-Design-Manufacture-and-Construct-Homeland-Defense-Radar-Hawaii