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Congressional Research Servie
September 17, 2019
Defense Primer: The National Technology and Industrial Base
What Is the NTIB?
The National Technology and Industrial Base (NTIB)
consists of the people and organizations engaged in national
security and dual-use research and development (R&D),
production, maintenance, and related activities within the
United States, Canada, the United Kingdom, and Australia.
The NTIB, as established by 10 U.S.C. §2500, is intended
to support national security objectives of the United States,
including supplying military operations; conducting
advanced R&D and systems development to ensure
technological superiority of the U.S. armed forces; securing
reliable sources of critical materials; and developing
industrial preparedness to support operations in wartime or
a national emergency.
Establishing the NTIB
During World War II, shipments of critical wartime
materials to the United States were disrupted. To ensure a
supply of defense articles in future conflicts, Congress and
the executive branch sought to establish a more robust
domestic defense industrial base. Over the next half-
century, evolving U.S. national security objectives led to
new legislation and regulations addressing the defense
industrial base, dual-use critical technologies, and
manufacturing technology. Defense spending, particularly
significant R&D investment, was critical to the
advancement of U.S. military and industrial technology.
Following the end of the Cold War, Congress grappled with
the economic implications of predicted significant cuts in
U.S. defense spending. Responding to the failure of the
Department of Defense to undertake serious technology and
industrial base planning - and the need to maintain a
national technology and industrial base capable of meeting
future national security and economic challenges -
Congress mandated a more active federal government role
in shaping the U.S. technology and industrial base. Through
the FY1993 NDAA, Congress established the NTIB,
formalizing in statute what had been a traditionally close
United States-Canadian defense cooperation relationship,
and consolidated the defense industrial base policies into a
single chapter of the U.S. Code.
DOD and the Global R&D Lands
See CRS Report R45403, The Global Research and
Landscape and Implications for the Department of D
While the U.S. military has historically conce
advanced technological capabilities as a strate
counterbalance to superior force size and geog
advantages of potential adversaries, recent tre
exacerbated concerns regarding the ability of t
Department of Defense (DOD) to maintain thi
cape
Development
in the future. The sharp decline in U.S. defense R&D
spending as a share of global R&D spending from 1960 to
2016, together with the rise of the private sector in driving
innovation, signifies continuing challenges to DOD's
reliance on technology for battlefield advantage. Analysts
and DOD officials increasingly assess that allies and
potential adversaries alike are achieving technological
parity with - and in some instances have already surpassed
certain capabilities of - the U.S. military.
Expanding the NTIB
In the FY2017 NDAA (P.L. 114-328), Congress expanded
the NTIB to include the United Kingdom and Australia.
Congress also directed DOD to create a plan that would
promote closer integration of the technology and industrial
bases of all NTIB member countries. S.Rept. 114-255
describes global R&D as shifting abroad, in part to avoid
U.S. technology transfer and export control rules, raising
concerns that
...innovation may be increasingly conducted overseas
with technology more readily available to potential
adversaries than to the U.S. military because of the lack
of civil-military integration of the [NTIB].
How Does the NTIB Operate?
The National Defense Technology and Industrial Base
Council (10 U.S.C. §2502) is responsible for ensuring
interagency cooperation in promoting the NTIB and
providing advice to the President. The Council consists of
the Secretaries of Defense, Energy, Commerce, and Labor,
and other officials appointed by the President. While the
U.S. government has a governing body to coordinate
activities across agencies, no such structure with
representation of all NTIB member countries exists. The
Secretary of Defense is required to develop a national
security strategy for the NTIB based on a prioritized
assessment of risks and challenges to the defense supply
chain (10 U.S.C. §2501) and to submit to the Senate and
House Armed Services Committees an annual report
addressing NTIB capabilities, performance, and
vulnerabilities (10 U.S.C. §2504). The FY2018 Industrial
Capabilities report spent less than one page discussing the
NTIB and did not provide a clear plan to achieve
integration.
7725se. Statutory Benefits of NTIB Membership
NTIB countries benefit from certain limited statutory
tually used preferences. Procurement of conventional ammunition can
gic be restricted to NTIB sources and must be from the NTIB
raphic in a national emergency or when necessary for industrial
nds have mobilization (10 U.S.C. §2304). Fire-resistant rayon fiber
he in uniforms may only be procured from a non-NTIB
s dominance member if NTIB sources are not available (10 U.S.C.
§2533a). NTIB manufacturers are generally exempt from
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