Title page 1

Contents 3

Acknowledgments 2

Executive summary 4

Introduction: SSAs and the US defense advantage 5

Problem statement: US defense strategy-the five fault lines 6

Advantages offered by SSAs 6

Understanding SSA structures, proxy models, and national interest determinations 9

SSAs under fire: Risks and critiques 10

A risk-benefit analysis 12

The SSA model and the future of defense technology 15

Policy recommendations to maximize SSA benefits 16

1. Coordinate export strategies with SSA-governed firms 16

2. Use SSA companies to expand US access to global defense markets 16

3. Counter Chinese and Russian arms sales with SSA-backed defense agreements 16

Streamlining SSA approval processes to encourage more investment 16

1. Establish a clearer and faster SSA approval process 16

2. Elevate SSA-governed companies within US defense industrial strategy 16

3. Expand SSAs to include emerging defense tech companies 17

4. Establish a post-war SSA program for Ukrainian defense startups 17

5. Use SSAs to deepen AUKUS defense collaboration 17

6. Strengthen supply chain risk management for SSA-governed firms 17

Pathfinder projects for further SSA integration 18

1. AI-driven multi-domain ISR: Closing transatlantic intelligence gaps 18

2. Counter-hypersonic defense: Aligning US and allied missile interceptors 19

3. AI-enabled maritime security: Unmanned naval defense networks 19

4. AI-driven cyber and electronic warfare resilience 19

Conclusion: Reforming SSA policy to enable scalable implementation 20

Tables 8

Table 1. US and foreign direct investment positions 2022-2023 8

Table 2. Key differences between SSA companies, proxy companies, and NIDs 9