Can America Innovate Faster Than China? Steve Blank & Pete Newell on the Future of Defense

America's national security challenges are evolving faster than ever—and the traditional defense innovation system is struggling to keep pace. In this episode of State Secrets, Cipher Brief CEO Suzanne Kelly sits down with two of the most influential voices in defense innovation: Steve Blank, creator of the Lean Startup methodology and co-founder of Hacking for Defense, and Pete Newell, retired Army officer, founder of BMNT, and co-founder of Hacking for Defense. Together, they discuss how students at leading universities are tackling real-world challenges from the Pentagon, intelligence community, and NASA; why AI is changing the way innovators build solutions; and what it will take for the United States to compete with increasingly adaptive adversaries like China. The conversation explores defense acquisition reform, the Pentagon's innovation ecosystem, startup culture in national security, the rise of defense venture capital, and why the biggest challenge may not be technology—but people.