With senator barbara of maryland. And tributes and speeches from Vice President joe biden. Then at 8 00 p. M. , christmas at the white house. Join First Lady Michelle Obama as she receives the official White House Christmas tree. Tour the white house and see this years decorations. Make christmas crafting projects with children of military families visiting the white house, and, finally, the tree lightening ceremony on the national lawn. At 8 40 p. M. , hear from former House Speaker john boehner on the trump president si and his time in the congress. At 9 40 p. M. Attend the portrait unveiling of harry reid. Speakers include hillary clinton, Vice President joe biden, and charles schumer. On sunday, at 12 30 p. M. Eastern, well hear from retiring member of Congress RepresentativeCharles Rangel of new york. At 2 10 00 p. M. From the shakespeare theater on capitol hill, we take you to romeo and juliet wrongful death . Mock trial. At 6 30 p. M. A look at the career of Vice President elect mike pence. Watch on cspan and cspan. Org and listen on the free cspan radio app. Defense secretary Ashton Carter on the future of Defense Innovation and defense organizations, organizational structure, and military personnel. I can give you a 30 minute introduction or 30 second introduction. Hes not going to take questions from the floor but i have questions on your behalf. If i dont cover them, yell at me later. With your warm applause, we welcome secretary of defense ash carter. Thanks. I want to thank csis for hosting this important conference and commend deputy secretary of defense. In their leadership and hard work. I want to speak about innovation in all the dimensions. Theres no other military that is stronger, more experienced, innovative. Thats where our military edge is second to none. Its a fact every american ought to be proud of. But its also a fact that our militarys excellence isnt a birthright. Its not guaranteed. We cant take it for granted in the 21st century. We have to earn it. Again and again. Right now its imperative we do so. We live in a relentlessly changing and fiercely competitive world. Theres the faster pace of change which sets up a fierce competition between the present and the future. Competition with other nations, not only with us but also with each other. And competition with terrorists and other malefactors for whom we are the game to beat if they can, even if only at one place and one time. Technology is one example of such change and competition that many of us have long been familiar with. When i began my own career in physics decades ago, most technology of consequence originated in america. And much of that was sponsored by government, especially the department of defense. Today, were still major sponsors. But much more technology is commercial. The Technology Base is global. And other countries have been trying to catch up with the breakthroughs that for the last several decades made our military more advanced than any other. And much of the frontier innovation is commercial, leading to additional sources of competitive dynamism outside our five walls. Against this background, your defense didnt is confronting a World Security environment thats also dramatically different from the last generation. And even the generation before that. Indeed, the u. S. Military is at this moment addressing five major, unique, rapidly evolving challenges. Were countering the prospect of russian aggression and coercion, especially in europe. Were managing historic change in the asiapacific, the single most consequential region for americas future. Were continuing to address middle eastern nuclear developments. Were focusing on protecting our friends and allies in the middle east. Were accelerating the certain and lasting defeat of isil, destroying it and its parent tumor in iraq and syria and everywhere else it metastasizes around the world, even as we help protect our homeland and our people. And at the same time as all of this, were preparing to content with an uncertain future, ensuring that we continue to be ready for challenges we may not anticipate today. We dont have the luxury of choosing between these challenges. We have to do them all. And as the world changes and complexity increases, well have to change too. How to invest, how we fight, how we operate as an organization, and how we attract and nourish talent. As we do, we have to be able to move fast, because the advantages we expect to derive from each innovative cycle today will not last as long as they used to. All the commercial and Global Change thats occurred across the Technology Landscape has made repeated and rapid cycles necessary, and made high end tech a lot more accessible to competitors. Think about it. While the cold war arms race was characterized by the inexorable improvement in strength, there are additional variables of speed and agility, such that leading the race depends who can outinnovate faster than everyone else and even change the game. In the area of investment, its no longer a matter of what we buy. Now more than ever it matters how we buy things, how quickly we buy things, whom we buy them from and how rapidly and creatively we can adapt them and use them in different, innovative ways, all this to stay ahead of future threats and future enemies technologically. Thats why ive been so intent as secretary of defense not only to plant the seeds for a number of different technologies that we think will be determinative in giving us a war fighting advantage in the future, more on those in a moment, but also to be more innovative and agile in all aspects of dod, in our operations, in our organization, and in the Talent Management of our allvolunteer forces. In each of these four areas, i along with the chairman and vice chairman of the joint chiefs, the service chiefs, all our excellent Combatant Commanders and the Defense Department civilian leadership have had a lot of help. Weve had help from washington think tanks like csis, from our defense labs and industry partners, and also from many innovative americans who understand the innovation imperative and who arent in our community now, but understand the need for our mission of National Security and want to help. And all of us have been pushing the pentagon to think outside our fivesided box and invest aggressively in innovation. And i want to focus on that in the rest of my remarks, the clear strategic imperative we have to innovate in each area, how we have been innovating so far and how we need to innovate going forward. Given the topic of this particular conference, ill stark with technology. The strategic imperative to innovate technologically is wellknown, to those who have been paying attention, many of you here at csis. Nations like russia and china are trying to close the Technology Gap with the United States. And as i noted, high end military technology is diffused, sometimes becoming available to countries like north korea and iran, as well as nonstate actors. At the same time, our own reliance on satellites and the internet has grown, creating vulnerabilities that our adversaries are eager to exploit. To stay ahead of these threats and stay the best, were pushing the envelope with research and development in areas like biotech, electronic warfare, robotics, artificial intelligence, Machine Learning, and much, much more. And ill repeat yet again, since it keeps coming up, that when it comes to using autonomy in our Weapons Systems, we will always have a human being in decisionmaking about the use of force. Now, were making some serious investments here. Just to remind you, the latest budget weve proposed, a budget i strongly encourage congress to pass when they return to washington next month, will invest 72 billion in research and development in the next year alone. Thats more than double what apple, intel, and google spent last year combined. This budget marked a strategic turning point for the department of defense. The third offset strategy driving a wide range of new, innovative technological investments in order to advance and sharpen our military edge. Were making these investments because we arent yet exactly certain what or where this area of offset is going to come from. It could be one area of technology or several. Remember, previous offset strategies were generational successes. Reflections of the security environments of their eras, and only recognized as such after the fact. Today speed and agility are key. And because of the world we live in, the next offset will not look like the previous ones. It may not even end up what we might consider a traditional offset strategy at all. Thats where were seeding these investments in lots of different technologies, so we can see which they germinate, how they can produce, and how to use them most effectively. In addition to these critical investments, its important to note how dod is innovating technologically how were innovating technologically, by developing technology from within, bringing in technology from without, and repurposing technologies and capabilities we already have, because different entities are focused on each. Within the Defense Department, we have dozens of dod labs and Engineering Centers across the country, each one home to great technologically innovators, both civilian and military, who work closely with very innovative Defense Industry thats long supported us and kept us on the cutting edge. And theyre continuing to do so today across a wide range of critical technologies. For example, our navy labs are developing and prototyping undersea drones in multiple sizes with diverse payloads, which is important, since among other reasons, unmanned undersea vehicles can operate in shallow waters where manned submarines cannot. Also our army labs are working on gunbased missiles defenses which can help defeat incoming missile raids at much more cost per round than intercepters, imposing higher cost on the attacker. In our air force labs, were developing hardware, software, and systems inspired by the working mechanisms of the human brain, which offers the prospect of overcoming limitations of current computer architectures and enabling superiority in air, space, and cyber space. As i said, americas innovative Defense Industry is a key partner in this. Because remember, we dont build anything in the pentagon. Thats not the american way. The soviet union tried that, and it didnt work out very well for them. Today, with more technological innovation happening in the commercial sector, we need to be able to identify and do business with companies outside our traditional defense orbit as well as those within, and welcome them into our Defense Technology community. Thats why last year i created our Defense Innovation unit experimental or diux, to help build bridges and startups and other commercial Technology Firms located in Innovation Ecosystems across the United States and help us more quickly adopt technologies that can help our troops accomplish their missions. Diux opened its doors last august with a west coast office in silicon valley. And since then, we iterated and launched diux 2. 0 in may and opened a diux east coast office in boston and established an outpost in austin, texas. One important area where diux recently solicited proposals was in microsatellites and advanced analytics. Leveraging the revolution in commercial space and Machine Learning to transform how we use spacebased tools and advanced Data Processing to provide critical Situational Awareness to forces around the world, and also have added resilience, by the way, to our National Space architecture. Meanwhile, under the guidance of the Strategic Capabilities Office or s. C. O. W. , were changing and adapting how we use platforms and technologies already in our inventory, giving them new roles and gamechanging capabilities to confound potential opponents. As some of you know, i created s. C. O. W. In 2012 when i was deputy secretary of defense. Putting will roper, by the way, in charge of it. I lifted the veil on several of its projects that were investing in, such as the arsenal plane, the new antiship capability for the sm6 missile, and swarming drones on the sea and in the air. In fact this technology took a large step forward just this week. Youll be hearing more about that in the months to come. A prominent theme of s. C. O. W. s work is spearheading creative and unexpected new ways to use our existing missiles and advanced munitions across varied domains. One example i want to highlight, something that we havent talked about publicly before today, is s. C. O. W. s project to develop a crossdomain capability for the Army TacticalMissile System. By integrating an existing seeker onto the front of the missile, theyre enabling it to hit moving targets both at sea as well as on land. With this capability, what was previously an army surface to surface Missile System can project power from coastal patients up to 300 kilometers into the maritime domain. Going forward, as these and other investments yield new Weapons Systems and war fighting capabilities in the coming years, some of them much sooner than you might think, theyll need to be demonstrated so theyre effective in deterring future conflict. It will be important to ensure theyre allowed to run their course. We have to protect the most promising and integrate those concepts and ideas into our programs, rather than let them be uprooted because because theyre new, which is always a tendency in tight budgets. Of course, how we use technology is just as important as the tech itself, if not more, which is why were also investing aggressively in operational innovation. Our plans and operations must account not only for the evolving challenges we face from our competitors but also the opportunities afforded by new capabilities as they come online. So technological and operational innovation must go hand in glove. Here the tragic imperative is rooted in the fact that while we spent the last 15 years innovating expertly, and im very proud of it, in how we kill terrorists and counterinsurgencies, we did so to some extent at the expense of our expertise in full spectrum war fighting. Other nations have gotten good at that over the years. And in some cases theyve been devising new methods to try to counter our advantages and preempt us from being able to respond, not just by developing high tech weapons, but also by crafting operational approaches such as hybrid warfare techniques. For these reasons weve been reinvigorating our training across the services to return to full spectrum readiness. And weve been rethinking how we operate to find new advantages against potential adversaries, including by changing and adapting how we fight with friends and allies. For example, in europe weve been working with our nato allies to adapt and write a new playbook for a strong and balanced strategic approach to russia, one that takes the lessons of history and leverages our alliances strengths and new networked ways to counter our challenges in cyber and new hybrid warfare, to integrate conventional and nuclear deterrents, and to adjust our posture and presence so we can be more agile and responsive. In the asiapacific, weve been modernizing our alliances, strengthening partnerships and helping to build a principled and inclusive Regional Security network. This rubber meets the road in how were revising our actual plans for potential operations themselves. Were always updating our plans and developing new operational concepts to account for any changes in potential adversary threats and capabilities. But weve also updated our core contingency plans to make sure they apply innovation to our operational approaches, including ways to overcome emerging threats such as cyber attacks, any satellite weapons and any access area denial systems. And at the same time we innovate in our plans to counter these conventional threats, were also ensuring that with respect to potential confrontations with nuclear powers, we continue to sustain Americas Nuclear deterrent as we recapitalize our Nuclear Triad and infrastructure. Overall, were building in modularity that gives our chain of commands senior decisionmakers a greater varieties of choices. We make sure planners take into account how to prevail if they have to execute their plan at the same time another contingency is taking place so they dont fall into the trap of presuming the one theyre planning for would be the only thing we would be doing in the world at that time. Were injecting agility and flexibility into our processes because the world, its challenges, and our potential opponents are not monolithic. We have to be dynamic to stay ahead of them. And were prioritizing transregional and transfunctional integration in our plans, which is imperative to make sure the conflict doesnt segment anymore. The challenges we face today are less likely than before to confine themselves to neat regional our functional boundaries. This is one of the goldwaternichols reforms i suggested. It would be coordinated by our chairman of the joint chief of staff, who were fortunate to have in this job. Recommending him to president obama was one of the best decisions i made as secretary of defense. The result of this is that weve revised all of our war plans to ensure that we have the agility to win