The Arsenal and the Statehouse: New Defense Firms, Venture Capital and State Industrial Policy

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When Anduril announced a $910 million drone production facility in Ohio, it was not politics as usual. The main message came from Ohio’s governor, Mike DeWine, while Representative Mike Carey’s press release thanked the governor. Members of Congress usually take substantial credit for defense industrial jobs, but Carey did not because he could not. Anduril sited Arsenal-1 near Columbus partially because of state subsidies.New defense firms backed by venture financing and state economic development subsidies have given states a political stake in the most innovative portion of federal defense procurement. New entrants promise and sometimes deliver fast, commercial solutions. SubsidiesThe post The Arsenal and the Statehouse: New Defense Firms, Venture Capital and State Industrial Policy appeared first on War on the Rocks.