The U.S and Sweden share many values and interests. The U.S. and Sweden rank among the top countries in terms of their R&D investment as a percentage of GDP; both countries commit substantial resources to the creation and application of new knowledge and technology. Their defense industries value R&D as the primary driver of innovation, product development, and future revenues. That R&D and defense industrial infrastructure can be leveraged in ways that deliver both performance and reduced ownership costs. There is, however, a need for closer linkage between government and industry, supplemented by industry teaming and partnering arrangements among large, medium, and small companies, both domestic and foreign.