Abstract

The United States is facing many internal and external challenges. Internally, the productivity growth rate has slowed down significantly; externally, rising powers, such as China and Russia, are challenging American global competitiveness. In this article, we argue that the Defense Advanced Research Projects Agency (DARPA) is a differentiator that enables the U.S. to help address these challenges. DARPA has been a core engine for breakthrough technologies and innovations. We examine how DARPA has delivered breakthrough technologies-many that drive economic growth-and the impacts of DARPA technologies on the U.S. economy. We also compare DARPA's performance against some of the world's leading technology venture capital firms. We conclude that DARPA is a major national differentiator buttressing U.S. strength in innovation, technology, and the economy. Also, based on the observations in this article, we provide a few managerial and organizational takeaways for private organizations.

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