Pentagon Woos Tech Startups

Infant tech companies are fast becoming a tributary in the pipeline between the Pentagon and big contractors, the Times reports. And in a new, official initiative, Defense is tasking venture capitalists to harvest ideas and technologies from the fast-moving tech startups they monitor, and small companies are winning coveted contracts.

Or, at least channeling ideas to giants like Raytheon, who are still in the loop. One venture team culled suggestions that led to 15 new military and intelligence technologies; its boss recalls a meeting with former Pentagon chief Donald Rumsfeld. "I can't show you what's in this folder," Rummy told him, "but you solved some problems for us." (More Defense stories.)