What’s the alternative? Besides having a permanent for-profit science-fair in the Pentagon metro stop (I’m not actually opposed now that I say it and Metro probably isn’t using the space), by what ritual can you actually burn dollars to produce innovation colored smoke? Further, DoD is not around to be innovative; it’s to execute the military policy of the United States. That isn’t to say that they shouldn’t be innovative (firmly in your camp that they should be), but rather that innovation initiatives should be framed in terms of progress towards specific policy goals. Just accomplishing more with the dollars allotted is a non-priority and in some cases would probably be in violation of legal funding allocation (that fact itself being a broader problem).