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1 [1] (June 4, 2026)

handle is hein.crs/goveuml0001 and id is 1 raw text is: Congressional Research Service nforming the legislative debate since 1914 Updated June 4, 2026 Defense Primer: The National Technology and Industrial Base What:IS the NTIB? The National Technology and Industrial Base (NTIB), as outlined in 10 U.S.C. §4801, consists of the people and organizations engaged in national security and dual-use research and development (R&D) (i.e., R&D that has potential commercial and defense applications), production, maintenance, and related activities within the United States, Canada, the United Kingdom, Australia, and New Zealand. The statutory framework associated with the NTIB encompasses a range of U.S. national security objectives, including supplying military operations; conducting advanced R&D and systems development to promote the technical capabilities of the U.S. Armed Forces; securing reliable sources of critical materials; and developing industrial preparedness to support operations in wartime or during a national emergency. Moreover, the aim of the NTIB is to enhance and strengthen the resilience of the U.S. defense industrial base by integrating the defense-related industries of key allies; facilitating collaborative research and innovation among NTIB members; and accelerating the trade of defense items among selected countries. stabishment and xpansion ofthe NTB As the U.S. reduced defense spending after the end of the Cold War, Congress mandated a more active federal government role in shaping the U.S. technology and industrial base. For example, certain provisions in the FY1993 National Defense Authorization Act (P.L. 102-484; NDAA) codified congressional policies and requirements, including those associated with the NTIB. At this time, the NTIB included only the United States and Canada. Through the creation of new programs and policies designed to strengthen and leverage NTIB capabilities (10 U.S.C. §2491), Congress sought to formalize in statute what had been a traditionally close United States-Canada defense- industrial relationship. Some analysts suggest that allies and potential adversaries alike are achieving technological parity with-and in some sectors, exceeding-the United States. In 1960, the United States accounted for approximately 69% of the world's R&D funding. By 2022, the latest data available, the U.S. share of global R&D expenditures was about 30%. The U.S. decline in share of global R&D is not the result of a reduction in U.S. R&D investments-U.S. public and private R&D grew robustly during this period-but rather is the result of even greater increases in the investments of the governments and industries of other countries. Driven in part by concerns that the United States may cede its leadership role in science and technology and the need for the Department of Defense (DOD) to rely increasingly on technologies developed by commercial companies for commercial markets, in the FY2017 NDAA (P.L. 114-328), Congress expanded the NTIB to include the United Kingdom and Australia. DOD is using a secondary Department of War designation, under Executive Order 14347, dated September 5, 2025. In expanding the NTIB, S.Rept. 114-255 accompanying S. 2943 (the Senate draft of the FY2017 NDAA) stated, The committee is concerned about the barriers that current technology transfer rules, laws, and regulations pose to the incorporation of commercial technology into defense items and to the ability of defense contractors in the United States to work with other internal and external corporate entities in Canada, the United Kingdom, and Australia. The committee is also concerned that universities, non- profit research entities, non-traditional and commercial contractors that now conduct the majority of global research and development are increasingly running up against the U.S. technology transfer regime and are choosing to conduct more research overseas so as to not trigger export control rules. If these trends continue 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 national technical industrial base. In the FY2023 NDAA (P.L. 117-263), Congress further expanded the NTIB to include New Zealand. In addition, the FY2026 NDAA (P.L. 119-160) directs DOD to convene a working group to study the feasibility and advisability of including Israel in the NTIB. How Does the NTI Operate? The FY1993 NDAA established the National Defense Technology and Industrial Base Council (10 U.S.C. §4812) to ensure interagency cooperation in promoting the NTIB, among other things. The council consists of the Secretaries of Defense, Energy, Commerce, and Labor, and other officials appointed by the President. While this council coordinates activities across U.S. agencies in support of the NTIB, there is no public intergovernmental structure or governing body with representation of all NTIB member countries. The Secretary of Defense is also required to establish a national security strategy for the NTIB (10 U.S.C. §4811) as part of a biennial report to Congress addressing NTIB capabilities, performance, and vulnerabilities (10 U.S.C. §4814). Statutory Benefits of NTIB Membership NTIB countries benefit from certain statutory preferences. For example, procurement of conventional ammunition can be restricted to NTIB sources and must be from the NTIB