The defense industry has traditionally been viewed as an exclusive domain for a select group of large corporations, often deemed too costly, unpredictable, or opaque for smaller companies to participate in. However, recent technological advancements, developments in artificial intelligence, changes in geopolitical and economic norms, and the increase of conflicts in various regions, including Europe, have led nations to rethink and enhance their military capabilities, creating new business opportunities.
Since the end of the Cold War, and especially after 9/11, national security has increasingly focused on asymmetric threats. However, recent global geopolitical uncertainties have led to increased peer competition, as seen in the recent national security strategies of key global players such as the United States, France, Germany, Japan, and the UK. These strategies call for new technologies to enhance resilience and effectiveness, particularly those supporting disaggregated and joint all-domain concepts.
As mission requirements evolve across multidomain operations and critical infrastructure for both national defense and national economy is becoming a top priority for protection against symmetrical and asymmetrical threats including cyberattacks at the IT and OT levels, national security customers are looking for new technologies and capabilities from companies beyond the traditional defense industrial base, creating a new landscape with notable opportunities for the broader business ecosystem, including smaller countries like Greece.
In this new reality, the traditional defense industrial base offers strengths to national security customers such as mission understanding, technical expertise, secure data infrastructure, business development, program management excellence, and integration with existing platforms. It is, however, smaller companies, startups, and university research teams that are increasingly integral to the development of competitive advantages that are becoming essential components of defense and weapons systems.
The European Union and the United States have shown interest in these new capabilities. The US Department of Defense has taken measures to access commercial technology through new acquisition and budgeting authorities such as increasing the role of the Defense Innovation Unit and establishing the Replicator initiative. NATO has created DIANA, the Defence Innovation Accelerator for the North Atlantic, to facilitate collaboration with startups and tech companies and announced the €1 billion NATO Innovation Fund focused on dual-use technologies. The European Commission has allocated €1.065 billion to collaborative defense research and development (R&D) projects, under the European Defense Fund (EDF). These new initiatives aim to enhance defense capabilities, promote technological innovation, and improve industrial competitiveness.
Private capital has shown an equally significant interest in defense technology opportunities too, with venture capital investment in these technologies growing faster than overall venture spending in recent years. Traditional defense firms along with corporate leaders from other sectors have expanded their corporate venture funds and growth strategies to capitalize upon emerging defense technologies and developments.
In this new environment, Greek companies can move beyond traditional barriers and create new collaborations that address current and future needs. The intellectual capital and innovative creativity present within our businesses and universities have the potential to initiate significant economic growth. These capabilities can enhance alliances and partnerships, ultimately serving as strategic multipliers that strengthen our country’s regional influence.
It is imperative that we collaborate to ensure this opportunity is not missed.