Defense Technology and Innovation
The North Carolina Military Business Center (NCMBC) and our Defense Technology Transition Office echo a clear mandate from National Security and DoW technology and innovation funding sources: Stop inventing in a vacuum if you want federal funding and contracts.
If you want to secure government funding or win contracts you must align your innovation with the established requirements and needs of the government.
DoW Priorities
The Department of War (DoW) recently eliminated a broad list of 14 priorities to target just six hyper-focused Critical Technology Areas (CTAs). If a technology does not explicitly align with one of these funded requirements or support its critical supply chain, a viable path to government funding or a program of record simply does not exist.
The list below outlines funded federal requirements paired directly with North Carolina’s unique regional capabilities, ensuring R&D efforts yield maximum returns:
1. Applied Artificial Intelligence (AAI)
- The Funded Federal Mandate: The Pentagon requires rapid combat decision-making platforms, automated target recognition, predictive maintenance logistics, and trusted human-machine teaming.
- NC Ecosystem Integration: Target your R&D toward algorithm optimization, ruggedized edge computing, and non-GPS navigation models. Leverage high-tech clusters to pivot commercial computer vision software into tactical situational awareness tools.
2. Quantum and Battlefield Information Dominance (Q-BID)
- The Funded Federal Mandate: This category merges advanced microelectronics, Next-Gen Wireless, electronic warfare, and space networks into a single operational layer. The goal is keeping communication lines open in actively jammed or degraded war zones.
- NC Ecosystem Integration: Do not build standard consumer apps. Focus on radiation-hardened components, cryptographic hardware, and mesh networking architectures capable of performing without cellular infrastructure. North Carolina’s strong semiconductor and microelectronics design footprint must be leveraged to capture these hardware-hardening grants.
3. Biomanufacturing (BIO)
- The Funded Federal Mandate: The DoW is heavily funding living cellular systems to engineer specialized battlefield materials, advanced medical countermeasures, and domestic chemical baselines. The explicit goal is eliminating all reliance on adversarial foreign supply chains.
- NC Ecosystem Integration: North Carolina is a national leader in life sciences. Transition your commercial biotech toward synthetic fuel substrates, extreme-weather structural coatings, bio-adhesives for field trauma, and lightweight ballistics.
4. Contested Logistics Technologies (LOG)
- The Funded Federal Mandate: This covers autonomous resupply drones, alternative tactical energy distribution, and on-demand mobile manufacturing architectures built to survive inside actively targeted conflict areas.
- NC Ecosystem Integration: Focus on heavy-payload autonomous unmanned aerial systems (UAS), modular battery storage, and ruggedized additive manufacturing (3D printing) materials. North Carolina’s prominent aerospace and advanced automotive manufacturing hubs provide an ideal foundation to scale dual-use logistics innovations.
5. Scaled Directed Energy (SCADE)
- The Funded Federal Mandate: Funding is flooding into scaling high-energy lasers and high-power microwave systems. The critical priority is fielding multi-domain Counter-Unmanned Aerial Systems (C-UAS) and short-range air defense.
- NC Ecosystem Integration: R&D must focus on the components that make these systems viable: high-efficiency thermal management systems, advanced optics, rugged precision gimbals, and high-density power capacitors capable of enduring heavy vibrations on tactical vehicles.
6. Scaled Hypersonics (SHY)
- The Funded Federal Mandate: Requirements demand air-breathing propulsion mechanisms, high-temperature computational fluid dynamics modeling, and precision hypersonic guidance suites to fast-track weapon mass production.
- NC Ecosystem Integration: North Carolina organizations should focus heavily on the physical layer: ultra-high-temperature ceramic matrix composites, non-destructive testing instrumentation, and localized advanced alloy casting.
Cross-Service Alignment
| DoW Critical Technology | Army | Navy | Air Force | Marine Corps | Funding Level |
| Artificial Intelligence | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | Very High |
| Autonomous Systems | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | Very High |
| Advanced Manufacturing | ★★★★ | ★★★★ | ★★★★ | ★★★ | High |
| Cyber | ★★★★ | ★★★★★ | ★★★★★ | ★★★★ | High |
| Electronic Warfare | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★ | Very High |
| Space Technologies | ★★★ | ★★★★ | ★★★★★ | ★★ | Very High |
| Advanced Materials | ★★★ | ★★★★ | ★★★★ | ★★★ | Moderate |
| Biotechnology | ★★★ | ★★★ | ★★★ | ★★★ | Moderate |
| Quantum | ★★★ | ★★★★ | ★★★★★ | ★★ | Moderate–High |
| Directed Energy | ★★★★ | ★★★★★ | ★★★★★ | ★★★ | High |
Army Priorities
The U.S. Army’s technology priorities center on rapid modernization, “drone dominance,” and autonomous capabilities to ensure overmatch in contested environments. The strategic focus is guided by the Pentagon’s six critical technology areas and the Army’s Transformation Initiative (ATI)
- Applied Artificial Intelligence (AI) & Autonomy: Integrating agentic AI for operational efficiency, decision support, and autonomous systems such as terrain shaping, robotic refueling, and breaching operations.
- Counter-Unmanned Aircraft Systems (C-UAS): Closing crucial capability gaps through advanced sensors, electromagnetic warfare, and kinetic interceptors to detect, classify, and defeat drone threats.
- Next-Generation Platforms & Long-Range Fires: Fielding upgraded hardware like the M1E3 Abrams tank, the Future Long-Range Assault Aircraft (FLRAA), and long-range precision missiles.
- Contested Logistics: Developing low-signature energy solutions, automated triage, and autonomous resupply systems to maintain operational continuity in denied environments.
- Battlefield Information Dominance & Quantum Tech: Upgrading tactical edge networks, Position, Navigation, and Timing (PNT), and secure, cyber-resilient communications.
- Directed Energy & Hypersonics: Deploying high-energy solutions for cost-effective threat neutralization alongside Mach-5+ strike capabilities.
| DoW Critical Technology Area | Army Transformation Initiative | Funding Outlook |
| Artificial Intelligence | AI-enabled command and control, decision support, autonomy | Very High |
| Autonomous Systems | Drones at every echelon, robotic ground vehicles | Very High |
| Advanced Manufacturing | Expeditionary production, additive manufacturing, sustainment | High |
| Cyber | Network resilience, zero trust, cyber defense | High |
| Microelectronics | Secure chips, edge computing | High |
| Space | Positioning, navigation, communications | High |
| Quantum | Navigation, sensing, encryption | Moderate–High |
| Biotechnology | Human performance, medical readiness | Moderate |
| Advanced Materials | Lightweight armor, energy storage | Moderate |
| Directed Energy | Counter-UAS lasers and high-power microwave systems | High |
| Hypersonics | Long-range strike capabilities | High |
Navy Priorities
Highest Priorities
- Autonomous surface vessels
- Autonomous underwater vehicles
- AI-enabled maritime operations
- Counter-hypersonic defense
- Long-range precision weapons
- Undersea warfare
- Naval aviation modernization
- Electronic warfare
- Cyber resilience
- Shipyard modernization
Major Funded Programs
- Autonomous Collaborative Teaming
- Ghost Fleet Overlord
- Large and Medium Unmanned Surface Vessels
- Extra Large Unmanned Undersea Vehicles (XLUUV)
- Next Generation Jammer
- DDG(X)
- Columbia-class submarine
- Virginia-class Block V
- Naval Operational Architecture
Funding Outlook
| Area | Funding |
| Shipbuilding | Very High |
| Autonomous Maritime Systems | Very High |
| Undersea Warfare | Very High |
| AI | High |
| Cyber | High |
| Advanced Manufacturing | High |
| Biotechnology | Moderate |
AirForce Priorities
Highest Priorities
- Collaborative Combat Aircraft (CCA)
- Artificial Intelligence
- Next Generation Air Dominance (NGAD)
- Space integration
- Advanced networking
- Electronic warfare
- Cyber operations
- Autonomous logistics
- Digital engineering
Major Programs
- Collaborative Combat Aircraft
- NGAD
- B-21 Raider
- E-7 Wedgetail
- Golden Dome (integrated air and missile defense)
- Advanced Battle Management System (ABMS)
| Area | Funding |
| AI | Very High |
| Autonomous Aircraft | Very High |
| Space | Very High |
| Cyber | Very High |
| Digital Engineering | High |
| Advanced Manufacturing | High |
Marine Corps Priorities
Highest Priorities
- Small autonomous systems
- Counter-UAS
- Long-range precision fires
- Expeditionary logistics
- Communications
- Electronic warfare
- Mobile sensing
- Lightweight energy systems
Major Programs
- Marine Littoral Regiments
- NMESIS
- Organic Precision Fires
- Tactical Resupply UAS
- Ground-based Air Defense modernization
| Area | Funding |
| Drones | Very High |
| Counter-UAS | Very High |
| Expeditionary Logistics | High |
| Communications | High |
| AI | High |
| Advanced Manufacturing | Moderate |
Common Themes Across All Four Services
There is now remarkable alignment among the Army, Navy, Air Force, and Marine Corps around a common technology stack:
Tier 1 (Highest Demand)
- Artificial Intelligence
- Autonomous Systems
- Counter-UAS
- Electronic Warfare
- Secure Communications
- Cybersecurity
- Sensors
- Precision Strike
- Data Fusion
Tier 2 (Growing Demand)
- Advanced Manufacturing
- Robotics
- Human-Machine Teaming
- Digital Engineering
- Energy Storage
- Advanced Materials
Tier 3 (Emerging)
- Biotechnology
- Quantum Technologies
- Synthetic Biology
- Human Performance Optimization
- Additive Manufacturing at the tactical edge
What This Means for North Carolina
This convergence creates an opportunity for North Carolina to position itself not as service-specific but as a joint technology transition power house with NCMBC as its convening organization. Rather than aligning exclusively with Army priorities, it could support technologies applicable across multiple services, increasing both the addressable market and the likelihood of successful transition.
| North Carolina Strength | Army | Navy | Air Force | Marines |
| AI & Machine Learning | ✓ | ✓ | ✓ | ✓ |
| Autonomous Systems | ✓ | ✓ | ✓ | ✓ |
| Advanced Manufacturing | ✓ | ✓ | ✓ | ✓ |
| Biotechnology | ✓ | ✓ | ✓ | ✓ |
| Textiles & Soldier Systems | ✓ | ✓ | ✓ | ✓ |
| Human Performance | ✓ | ✓ | ✓ | ✓ |
| Power & Energy | ✓ | ✓ | ✓ | ✓ |
| Secure Communications | ✓ | ✓ | ✓ | ✓ |
The strategic takeaway is that joint-use technologies—especially AI, autonomy, resilient communications, electronic warfare, and advanced manufacturing—are receiving the broadest and most sustained investment across the Department of War. For North Carolina, building a transition pipeline around these technologies offers access to multiple acquisition pathways rather than relying on a single service, improving resilience and increasing commercialization opportunities.
For more information contact: TJ Gilroy at gilroyt@ncmbc.us.
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