February 2025 By Marc Giesener, Lauren Mayer,Laura Key, and Mishaal Hassan Boston Consulting Group partners with leadersin business and society to tackle their mostimportant challenges and capture their greatestopportunities. BCG was the pioneer in businessstrategy when it was founded in 1963. Today,we work closely with clients to embrace atransformational approach aimed at benefiting allstakeholders—empowering organizations to grow,build sustainable competitive advantage, anddrive positive societal impact.Our diverse, global teams bring deep industry andBoston Consulting Group partners with leaders inbusiness, the public sector, and society to tackletheir most important challenges and capture theirgreatest opportunities. BCG was the pioneer inbusiness strategy when it was founded in 1963.Today, we work closely with clients to embrace atransformational approach aimed at benefitingall stakeholders—empowering public andprivate organizations to grow, build sustainablecompetitive advantage, and drive positivesocietal impact. Uciam volora ditatur? Axim voloreribus moluptatiautet hario qui a nust faciis reperro vitatiadipsandelia sit laborum, quassitio. Itas volutemes nulles ut faccus perchiliati doluptatur. Estiunt.Et eium inum et dolum et et eos ex eum harchicteceserrum natem in ra nis quia disimi, omniaveror molorer ionsed quia ese veliquiatiussundae poreium et et illesci atibeatur aut queconsequia autas sum fugit qui aut excepudit,omnia voloratur? Explige ndeliaectur magnam,The Munich Security Conference (MSC) is theworld’s leading forum for debating internationalsecurity policy. In addition to its annual flagshipconference, the MSC regularly convenes high-profile events around the world, publishes theannual Munich Security Report, and engagesin manifold other activities to draw attentionto pressing security challenges andpossible solutions. que expedignist ex et voluptaquam, offici bernamatqui dem vel ius nus.Nem faccaborest hillamendia doluptaeconseruptate inim volesequid molum quam,conseque consedipit hillabo. Imaio evelenditiumharibus, con reictur autemost, vendam am ellaniaestrundem corepuda derrore mporrumquat.MSC’s Security Innovation Board is tasked toconnect the worlds of technological innovationand political decision-making in order torecognize the chances and challenges related totechnological progress and come up with clearpolicy priorities earlier and in a morecoordinated manner. functional expertise and a range of perspectivesthat question the status quo and spark change.BCG delivers solutions through leading-edgemanagement consulting, technology and design,and corporate and digital ventures. We work in auniquely collaborative model across the firm andthroughout all levels of the client organization,fueled by the goal of helping our clients thrive andenabling them to make the world a better place.Our diverse, global teams bring deep industry andfunctional expertise and a range of perspectivesthat question the status quo and spark change.BCG delivers solutions through leading-edgemanagement consulting, technology and design,and corporate, public, and digital ventures. Wework in a uniquely collaborative model acrossthe firm and throughout all levels of the clientorganization, fueled by the goal of helping ourclients thrive and enabling them to make theworld a better place. CONTENTS Introduction Ministries of defense (MoDs) are not meeting theirinnovation goals. In 2022, the Munich SecurityConference Innovation Board (MSC) and BostonConsulting Group (BCG) first identified the defense innovationreadiness gap—the gap between ministries’ aspirations forinnovation and their ability to generate results. Since then, thegap has widened. External factors such as heightened geopoliticaltensions play a role, as do supply chain disruptions and thecomplexity of emerging technology. Yet many aspects of the forcesresponsible for expanding the gap lie within MoDs’ control. In this year’s analysis, our fourth in an annual series, wemeasured the current innovation readiness gap and identifiedunspoken barriers to innovation—those that impose outsizedconstraints and yet either receive insufficient focus or persist dueto the unwillingness of MoDs to address them. Although some ofthese barriers may be known at a general level, our researchsurfaced additional aspects that are not fully understood,appreciated, or addressed. As in prior years, we surveyed leaders at 59 ministries of defense,the European Union, and NATO. We benchmarked the results toresults from the prior three years, along with the innovationcapabilities of private-sector counterparts, across 11 keydimensions of innovation. (See Exhibit 1.) We also supplementedthe quantitative findings with interviews of key global public andprivate national security leaders worldwide. Portfolio ambition and consistency and uniqueness of portfolio strategy The results show that the innovation readiness gapcontinues to widen. On average, MoDs scored 59against a