Feasibility study of the Department of the Navy investing research and development funds in venture capital firms as a means to identify technology

Abstract

New and ever-changing threats are facing our nation today. The ability of the Navy to develop, identify, and transfer technology to the hands of Sailors and Marines is more crucial now than ever before. Like other government agencies, the Navy is facing an increasing number of budget restraints. This is causing the Navy to look for new ways to leverage and transfer technology from the commercial sector into existing and developing systems. This thesis looks at the venture capital community as a possible source of innovation and technology for the Navy. The venture capital community has proven to be efficient at discovering technology that has strong potential to succeed in commercial markets. This thesis looks at the feasibility of the Navy leveraging commercial sector investments to find dual-use technologies that have application in the Navy. By evaluating current government â ventureâ initiatives and matching them against the Navyâ s goals for venture capital, this research shows that the Navy could benefit by engaging the venture community. Based on the research, this thesis provides recommendations on how to engage the venture capital community and proposes the structure and organization for a Navy venture initiative.