Using a perspective external to the Swedish Armed Forces this study examine the Swedish management of capability and technology development focusing on defence equipment. The study analyses a value chain that identifies activities from strategy definition to delivered capability in the case of Swedish management of capability and technology development. In general the study show that Swedish Armed Forces has a structured system supporting each activity in the value chain. However, challenges and potential for improvement can be found throughout the value chain. Especially an effective translator between, what Industries would call Voice of the Customer and Voice of the Engineer, could improve the effectiveness at both the Armed Forces and the Defence Industry.