A Framework for Addressing The Missing Middle Challenge In Australia’s Defence Industrial Base

Australia’s defence industrial base faces a critical structural challenge known as the ‘missing middle’ phenomenon: a gap in mid-tier companies capable of complex systems integration that undermines national strategic autonomy and industrial resilience.

This paper argues that collaborative and alliance contracting, when properly designed and implemented, can serve as more than procurement mechanisms; they can become strategic tools for deliberately cultivating the missing middle tier that Australia’s defence industrial base urgently requires.