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Australia Should Balance Innovation and Sovereignty in Supply-Chain Security

  • harrygeisler2
  • 5 days ago
  • 2 min read


Understanding the Strategic Landscape

By ASPI & Harry Geisler


Australia is currently navigating a complex landscape of strategic competition. This competition primarily revolves around dual-use technologies. These include artificial intelligence, robotics, quantum systems, and space capabilities. The 2023 Defence Strategic Review emphasizes the importance of safeguarding national sovereignty. However, overly strict supply-chain controls can hinder innovation. They can also inflate procurement costs and delay access to essential capabilities.


The Need for a Pragmatic Approach


To address these challenges, Harry Geisler recommends a pragmatic, layered approach. This strategy aims to protect critical vulnerabilities while still embracing global collaboration. By doing so, Australia can enhance its resilience without isolating itself from the global innovation landscape.


Key Measures for Supply-Chain Security


Here are some key measures that can be implemented:


  • Adaptive Procurement Frameworks: Differentiate between high-risk components and those that can be sourced commercially. This flexibility can streamline processes and reduce costs.


  • AUKUS-Wide Innovation Teams: Establish teams that align requirements across allied forces. This collaboration can foster innovation and improve efficiency in defense procurement.


  • Trusted Multinational Venture Funds: Create funds that channel secure capital into dual-use tech ventures. This investment can stimulate growth in critical sectors.


  • A Tiered Defence Industry Security Program: Accelerate approval processes for trusted suppliers. This can help ensure that essential components are readily available.


  • Modernised Export-Control Regimes: Facilitate deeper international collaboration. By updating these regimes, Australia can better engage with global partners.


  • Strategic Domestic Investments: Focus on areas where sovereign capability is essential. This includes sectors like semiconductors, AI testbeds, and secure systems.


The Importance of Innovation


Innovation is crucial for maintaining a competitive edge. By balancing innovation with sovereignty, Australia can ensure that it remains at the forefront of technological advancements. This balance is vital for national security and economic growth.


Conclusion


In conclusion, Australia's approach to supply-chain security must be both strategic and flexible. By implementing the recommended measures, the country can enhance its technological resilience. This will allow Australia to thrive in a rapidly evolving global landscape.


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