High-technology and Cosmopolitan Companies in the Federal Supply Chain

Abstract

Using a combination of USASpending.gov, SAM.gov, and BLS.gov data, the following research investigates two aspects of the defense industrial base. The first, a recognizable yet little operationalized concept, innovation, is often associated with new technologies and has become an important focus of defense acquisition in recent years. Unfortunately, research and policy efforts have been hindered by a lack of rigorous definition and application to present-day industry classifications. To address this shortcoming the author applied a STEM-occupation methodology developed by the U.S. Bureau of Labor Statistics to identify core and peripheral high-technology industries (as a surrogate for innovation). The second concept, newly introduced in this study, describes the existence of companies that perform work for both defense and non-defense agencies. Borrowing a term from biogeology, these contractors are dubbed “cosmopolitan,” as in having a broad operating range as opposed to those contractors that are endemic to only one contracting environment. Key characteristics of these cosmopolitan contractors are presented, and their potential importance to future research is highlighted. Finally, the results of both research efforts are used to produce a report to show how these concepts can serve a practical purpose and potential follow-on empirical research is discussed.