Venture capital gives America a strategic edge in the age of technology wars
A broad recognition has taken root in the United States in its competition with China: America’s distinctive innovation ecosystem is increasingly dependent on venture capital. Whereas the Chinese government invests heaps of money into startups of its choice, early-stage hardware startups in the US face a ‘persistent lack of funding.’
This recognition comes as parallel observations are made in European capitals and within alliances like NATO. The Pentagon’s National Security Innovation Capital (NSIC) program is meant to redress the issue but draws from an unduly risk-averse and inflexible investment strategy. Most of the funds the US Congress apportioned to NSIC have not been used. Greater flexibility may be required for homegrown technological innovation and keeping pace with adversaries like China.