The defence sector in all major countries has historically been a source of new technologies and innovation. As China and India grow in stature, the strengths of their defence sector ecosystems and the ability to innovate become areas of focus for policymakers. Since defence deals with the security of a nation, all defence ecosystems have some element of government leadership, direction and ownership. Against this must be balanced the need to ensure efficiencies and competitive capabilities, which requires entrepreneurship, private sector companies and the market mechanism.