Opinion: To close Europe’s defence tech gap, governments must support startups

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March 21, 2025, 8:00 AM

• •Europe's defence industry is stuck with an outdated model of procurement that favours a handful of bloated contractors over the fresh ideas of startups and entrepreneurs.
• •The US government has deliberately nurtured an environment where defence innovation thrives, through institutions such as the Defense Advanced Research Projects Agency (DARPA) and the Defense Innovation Unit (DIU).
• •Europe needs to rethink its defence industrial strategy from the ground up, starting with joint procurement and diversifying and scrutinising supply chains.

The United States has long understood a simple truth: war is won not by size alone, but by speed and creativity. Indeed, innovation has always been crucial in conflict. Armour made knights safe until the crossbow came along. High walls protected cities until cannons emerged. Trenches were made obsolete by fast-moving mechanised forces. The lesson: a military that cannot innovate is one that falls behind. Yet Europe remains stuck with an outdated model of defence procurement – one that favours a handful of bloated contractors doing the same old thing over the fresh ideas of startups and entrepreneurs. Against a backdrop of serious geopolitical unrest and diplomatic realignment, this must change.

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