The changing geopolitical landscape means we need a more inclusive approach to defence. Harnessing the creativity and capital of the private sector and deepening AUKUS strategic collaboration are two important ways forward. 

In an international climate marked by strategic competition and volatility, defence postures are being urgently reimagined. Last week’s report by the Congressional Commission on the Strategic Posture of the United States depicts a world where traditional American nuclear primacy may no longer guarantee its security. The commission underscores the need to look beyond traditional defence mechanisms and embrace a more inclusive, wide-ranging strategy. As Australian defence ecosystems are recalibrated and expanded, two areas of action emerge as vital pillars: harnessing the synergistic power of private capital to foster innovation and resilience, and deepening the trilateral strategic partnership between Australia, the UK and the US (AUKUS). 

Financial propulsion 

The complex theatre of potential conflict with which Australia must now contend extends beyond the conventional boundaries of warfare and means that traditional paradigms of defence spending should be shaken up. The private sector, characterized by its agility, resource availability, and risk-tolerant investment behaviour, is a crucial player in catalysing innovation and fast-tracking technological advancement. Private capital offers the financial propulsion necessary to expedite the development of next-generation technologies, particularly in the fields of enhanced artificial intelligence, blockchain, cybersecurity, and quantum computing. Our adversaries understand all too well that technology can outrun conventional military strategy, and are already prepared to direct almost limitless state-funded capital towards advances in defence technology.  

Expanding collaboration between governments and private entities epitomises the strategic fusion of military and economic might that is essential for maintaining a competitive edge. Modern conflict demands more than sheer strength or technological dominance; it requires resilience and adaptability, characteristics that are deeply embedded in a healthy and innovative economic sector. By harnessing the financial and creative resources of private enterprises, the defence sector can spur technological innovation, bolster supply chains, and enhance service deliveries. 

Strategic compass 

The AUKUS pact enhances trilateral cooperation and trust between three English-speaking democracies and serves as a strategic compass to guide efforts in research and development. The AUKUS nations are uniquely positioned to pioneer breakthroughs in critical technological arenas such as artificial intelligence, quantum computing, and undersea warfare. These fields, integral to modern warfare and strategic deterrence, demand rapid innovation and application, areas where private sector involvement can inject momentum and expertise. 

The applications emerging from this collaboration are more than direct military ones. They encompass broader economic and security benefits, contributing to job creation, industrial expansion, and the strengthening of the defence industrial base. In the face of the assertive global postures of autocrats, the strategic convergence of public defence initiatives and private sector dynamism under the AUKUS framework will be a testament to the adaptability and strength of these allied democracies. Their shared commitment is not only to mutual defence but also to the preservation of a rules-based international order. 

The infusion of private capital into defence sectors is about more than technology acquisition or modernisation; it’s fundamentally about leveraging economic strength as a strategic instrument of national power. To that end, AUKUS partners are in a strong position at a critical time to spearhead the establishment of new economic norms on the global stage. 

IP protection and threat finance 

The opportunity for leadership is particularly clear in relation to intellectual property protection and sensitive technologies. In an age where technological research is increasingly cross-border and collaborative, protecting it from theft or malicious replication is essential for the maintenance of strategic and commercial advantages. Through stringent IP frameworks and shared enforcement mechanisms, AUKUS nations can set new global standards, encouraging innovation while protecting both investment interests and national security. 

The alliance can also play a central part in shaping international trade policies and standards that prioritise security, transparency, and fair competition. By leveraging their collective economic and diplomatic influence, AUKUS partners can drive the formulation of policies that mitigate the risks associated with foreign investments in critical technology sectors, thereby preventing adversaries from exploiting the open economic systems of democracies.  

There is also a natural role for the alliance in crafting responses to threat finance, the latest front in modern warfare. Illicit financial networks and practices are used to fund cybercrime, money laundering, cyber warfare, and hostile non-state actors like terrorists and mercenaries. With their robust financial sectors, coupled with advanced technological infrastructures, AUKUS allies have a solid foundation for the development of creative countermeasures. These include investing in advanced financial intelligence, regulatory technologies, and digital forensics. By enhancing real-time intelligence sharing, harmonising regulatory standards, and supporting technologies that underwrite the integrity and security of the global financial system, AUKUS allies can take the lead in countering illicit financial flows, weakening adversarial power structures, and restricting their operational capabilities. 

In addition, there are distinct opportunities for partnerships within the alliance in the space, cyber, and nuclear realms, harnessing the specific power of the private sector with its rapid advancements and decreasing costs. Space has emerged as a strategic domain in national defence, with the most obvious areas for commercial collaboration being in global communication, surveillance, and remote sensors. With cyber, private enterprises have developed nuanced capabilities and can bring a range of solutions, from secure communication channels to advanced encryption technologies that shield critical defence information and assets from adversaries. These partnerships can also help to fast-track next-generation nuclear deterrence capabilities, driving innovation in the nuclear propulsion, missile development, warhead life extension programs, and verification technologies that are integral to maintaining the accuracy and safety of the nuclear arsenal. 

Conclusion 

Implementing the US Congressional Commission’s extensive recommendations, encompassing 131 findings and 81 specific measures, is an ambitious endeavour necessitating a departure from business-as-usual. It calls for a more integrated approach to defence, one that leverages the best of government, industry, and allied cooperation. More specifically, the strategic integration of private capital into Australia’s national security posture, along with the pooling of resources, intelligence, and innovations within the AUKUS alliance, will go some way to fostering the depth and dynamism required by the geopolitical moment. 

A collaborative, forward-thinking methodology will be critical to maintaining global stability and security, particularly with nuclear threats and cyber warfare looming large on the horizon. It is not only a question of mobilising the private sector on the one hand and deepening AUKUS cooperation on the other, but rather the interplay between these two interventions, that will be the difference-maker.  

John James is the co-founder and Managing Director of BOKA Group, a technology company based in both the US and UK, which has significant holdings and investments in the defence and national security deep tech sector.

This article is published under a Creative Commons Licence and may be republished with attribution.