This bill, titled the DOD Entrepreneurial Innovation Act, aims to integrate promising research from small businesses into the Department of Defense's long-term planning and budgeting. It requires each military department to annually designate a minimum of five eligible Phase III Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs as "Entrepreneurial Innovation Projects." These designations are based on the programs' potential to advance national security capabilities, introduce new technologies or applications, and offer future cost savings. Once designated, these projects receive significant benefits, including mandatory inclusion in the next Future-Years Defense Program (FYDP) and consideration as an integral part of the DoD's Planning, Programming, Budgeting, and Execution (PPBE) process. Each designated program will also be featured under a separate heading in programming proposals submitted to the Secretary of Defense. To facilitate this process, the bill mandates the establishment of Entrepreneurial Innovation Advisory Panels for each military department within 120 days of enactment. These advisory panels, comprising both private sector entrepreneurial experts and government acquisition and military personnel, are tasked with identifying and recommending eligible programs. The panels will initially select at least ten programs, which can then submit detailed five-year program plans. From these, the panels will recommend at least five programs for official designation by the respective Secretary. The Secretary of Defense is also required to submit an annual report to Congress detailing the progress of each designated program.