Europe faces mounting security challenges amidst geopolitical tensions, highlighting the importance of creating a more agile environment to support defense capabilities. The evolving environment underscores the need for enhanced military capabilities to secure sovereignty and national interests. In our latest report, “Win-Wins — Accelerating The Delivery Of Defense Capability,” we detail how public-private partnerships can accelerate the delivery of military capability through strategic investments, government-industry collaboration, and cutting-edge financial strategies.
Agile defense strategies to strengthen Europe’s readiness
It is crucial for European leaders to rethink and adapt defense strategies for quicker and more effective capability delivery. The European Commission's "ReArm Europe" plan highlights the urgency of this shift, focusing on immediate support to Ukraine and reinforcing Europe's own defense mechanisms. Collaboration between defense forces and the private sector is critical in creating resilient and adaptive systems designed to address both present and future threats, particularly in the context of procurement processes.
Prioritizing sovereign defense capabilities for strategic autonomy
Securing essential military assets domestically has never been more critical. Europe’s defense industrial and technological base is well-equipped, but strategic autonomy must be a priority. Governments and industrial players must balance immediate needs with the investment in future capabilities. Adopting agile development practices and leveraging dual-use technologies can ensure that new capabilities are deployed quickly to meet fast-changing threats, including the most advanced military technology.
Deploying adaptive capabilities to build defense resilience
Technological obsolescence and the rapid pace of military innovation require defense forces to deploy new capabilities swiftly. Emphasizing flexible and adaptive military technology, including software-based and modular systems, is key. Leveraging dual-use technologies and research and development (R&D) initiatives can serve both civilian and military needs, thus harnessing the commercial sector's faster pace of innovation and enhancing military strategy and tactics.
Streamlining defense procurement to unlock innovation and scale
Significant increases in defense expenditures across Europe offer an opportunity to optimize procurement. However, faster procurement and pooled demand strategies are essential to enhance efficiency and effectiveness. Standardizing national regulations and requirements can ease market entry for emerging and commercial players, fostering innovation and expanding dual-use commercial capabilities for military applications.
Shifting to product-centric partnerships for faster defense innovation
A shift from traditional buyer-supplier dynamics to product-centric partnerships between the government and industry is vital. Promoting open dialogue and innovative solutions can accelerate the adaptation of military technology. Examples like the Boeing Loyal Wingman program in Australia demonstrate the success of product-centric partnerships, highlighting the development of advanced military capabilities within stringent timelines and budget constraints.
Harmonizing defense regulations to foster innovation
Standardizing defense regulations and tender requirements across European nations can accelerate procurement and delivery. Ensuring system interoperability and harmonizing national requirements at the EU level can strengthen collaboration and create a resilient military production and supply chain, enhancing geopolitical security.
Scaling defense production with future-proof manufacturing technologies
Prioritizing advanced manufacturing capabilities can rapidly scale production of critical technologies. Technologies such as additive manufacturing for rapid prototyping, modular design approaches, and digital manufacturing can reduce dependency on complex global supply chains and ensure technological superiority in defense development.
Securing top talent to sustain strategic defense capabilities
Training and retaining talent is a significant challenge for the defense industry. Enhancing the permeability of talent markets and streamlining security vetting processes can improve talent mobility. By collaborating with universities and industrial bases, governments can ensure a steady influx of skilled individuals, essential for maintaining strategic capabilities in areas such as cyber defense, artificial intelligence (AI) in military applications, and electronic warfare.
Accelerating defense innovation through strategic investments
Strengthening supply chains and focusing on defense, security, and resilience are crucial for unlocking R&D output and accelerating the adoption of dual-use technologies, including the use of AI in military operations.
Powering defense transformation with innovation and alliances
Europe's defense landscape demands resilient and future-proof military capabilities. Transforming government-industry relationships from traditional buyer-supplier models to collaborative partnerships can facilitate rapid procurement and the development of cutting-edge technologies. By embracing a shared mission and an innovation culture, nations can prepare their military forces for future challenges and foster a mutually beneficial environment for both government and industry.