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The recent focus on innovation by the U.S. Department of Defense (DoD) illustrates some of the ways in which a large, established public sector bureaucracy has fostered new innovation units. It also highlights how the distinctive organizational cultures of these units can more effectively support key capabilities such as rapid experimentation, novel funding/contracting approaches, and alternative training/skills. ‘Kessel Run’, as one such organization, is a hybrid unit of the U.S. Air Force (USAF), combining acquisition and operations, established and then scaled to bring software solutions to the warfighter.

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