Defense Innovation Unit (DIU)
Abstract
On April 4, 2023, the Secretary of Defense elevated DIU as a direct report, placing the Defense Innovation Unit (DIU) under the Secretary’s authority, direction and control and provided guidance on DIU’s reporting and management structure. This change significantly increased the scope and scale of DIU’s responsibilities and authorities as reflected in the DIU 3.0 strategy. This funding request reflects some of the initial requirements to support these elevated responsibilities. Further resourcing impacts of the codification of DIU in the National Defense Authorization Act of Fiscal Year 2024 and the elevation of the DIU Director as a Principal Staff Assistant (PSA) to the Secretary of Defense will follow based on a full assessment of those needs. This program supports the Department's initiatives to build enduring advantages across the defense ecosystem - the Department of Defense, the defense industrial base, and the array of private sector enterprises and academia that create and sharpen the Joint Force’s technological edge, with a focus on innovation and rapid adjustment to new strategic demands outlined in the 2022 National Defense Strategy (NDS). The DIU mission is to strengthen U.S. national security by accelerating the adoption of commercial technology throughout the military and growing the national security innovation base. DIU partners with organizations across the DoD and the interagency to rapidly prototype, field, and scale commercially derived solutions to meet the most critical operational capability gaps identified by the Department with the focus, speed, and scale required to help deter major conflict and win if forced to fight. With offices in Silicon Valley, Boston, Austin, Chicago, and the Pentagon, DIU is able to attract the best and brightest talent and cutting-edge solutions. For the Department of Defense (DoD) to effectively implement the NDS and counter the pacing challenge of the People’s Republic of China (PRC) while simultaneously addressing the other strategic threats facing the nation, it must leverage commercial technology with the focus, speed, and scale necessary to deter major conflict and win if forced to fight. The Secretary of Defense’s decision to realign DIU as a direct report and empower it to provide leadership, namely through serving as the Advisor to the Secretary on commercial technology innovation and chairing the Deputy’s Innovation Working Group is a reflection of this imperative. Spurred by trillions of dollars of private investment, innovation in many critical areas of technology central to military power is proceeding at a much faster rate in the private sector than in the traditional defense sector. Progress in 11 of the 14 critical technology areas identified by the Undersecretary of Defense for Research and Engineering (R&E) is primarily led by the commercial sector, with the most cutting-edge technology more likely to occur in its research and development pathways, tested and refined through its relentless market-driven requirements. DIU strengthens the Department’s ability to rapidly prototype, acquire and field commercial technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Working across the country, and in collaboration with our allies and partners, DIU is developing new ways of doing business, growing our national security innovation base to include more "non-traditional" companies that had previously not collaborated with the military, working with traditional vendors in novel ways to increase efficiency and efficacy, and challenging innovators to share their knowledge and expertise in support of our nation's defense. Through a competitive prototype process, DIU identifies and provides access to technology companies and products on behalf of DoD partners. Additionally, DIU executes projects to leverage commercial sector technology analogous to military applications thereby increasing dual-use technology agility for the DoD. DIU funds facilitate the award of projects that can augment commercial technologies, existing government-owned capabilities, or concepts for defense application. DIU focuses on six technology areas where commercial industry is the lead: • Artificial Intelligence (AI)/ Machine Learning (ML) – Applying AI/ML learning to accelerate critical decision making and operational impact. • Autonomy – Adopting and countering autonomous systems with a focus on human-machine interaction and scalable teaming. • Cyber – Making enterprise combat information open, accessible, and secure for defense personnel across the globe. • Energy – Leveraging proven advancement in energy and materials technology to enhance capabilities and strengthen resilience across installation and distributed operations. • Human Systems – Optimizing the human system and its enabling platforms through enhanced equipment, innovative training, and novel health applications. • Space – Developing on-demand access to space, persistent satellite capabilities, and broadband space data transfer.
Document Details
- Document Type
- R2 Budgetary Justification
- Publication Date
- Oct 01, 2025
- Source ID
- 0603342D8Z_3_0400_PB_2025
- Change Summary Explanation
- -The program increase of $0.356 million is for Economic Assumptions. A reduction of $0.952 million was applied to meet DoD overall funding reductions, which were spread to mitigate impact. In addition, a programmatic increase of $15 million is to increase efforts in facilitating additional follow-on prototype contract awards.
- Service Agency Name
- Office of the Secretary Of Defense
Entities
Organizations
- Office of the Secretary of Defense
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