The Role of DefenseTech in Securing European Sovereignty - European Champions Alliance
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The Role of DefenseTech in Securing European Sovereignty

DefenseTech Securing European Sovereignty

The Role of DefenseTech in Securing European Sovereignty

The Growing Role of DefenseTech in Securing European Sovereignty

DefenseTech has become a critical topic of conversation in recent years, even though many of us would prefer to focus on areas like education, sustainability, or climate tech. However, the reality of current global dynamics, from the war in Ukraine to rising tensions between the U.S. and China and ongoing conflicts in the Middle East has made it clear that Europe must bolster its defense capabilities.

At a recent France Digital Day 2024 roundtable in Paris on DefenseTech, our MD Andrea Vaugan had the opportunity to explore this pressing issue with a stellar panel of experts. We delved into how Europe can secure its sovereignty through cutting-edge technologies while navigating the evolving landscape of modern warfare.

The Panelists

Renaud Allioux, Co-Founder of Preligens, a leader in AI-driven geospatial intelligence, highlighted the challenges that DefenseTech startups face, such as long contracting times and gaining trust from governments. He noted that while innovation can come from both corporations and startups, disruptive technologies are more likely to emerge from the latter, driving the future of defense capabilities. “We didn’t invent electricity by improving the candle,” he quoted Niels Bohr to emphasize the need for groundbreaking innovation.

Eve Gani, Director of Business Development at Sopra Steria, focused on Europe’s urgent need to develop technological sovereignty in key areas of defense. She argued that reducing reliance on external powers, particularly in the realms of AI and cybersecurity, is essential to ensuring Europe’s strategic autonomy.

Laurence Petit, Chief Innovation Officer at CEA, shed light on how defense and civilian technologies are increasingly intertwined. She explained that many startups emerging from the civilian sector have significant defense potential, and 80% of CEA spin-offs could be dual-use, serving both markets. However, civilian markets remain critical for these companies to thrive long-term.

Mikhail Kokoritch, Founder and CEO of Destinus, offered a forward-looking perspective on the development of autonomous flight systems. He stressed the importance of aligning DefenseTech innovation with Europe’s evolving security needs to avoid becoming dependent on external actors.

What’s Next for DefenseTech in Europe?

The discussion highlighted the urgent need for Europe to accelerate its adoption of advanced technologies, foster collaborations between startups and established defense companies, and streamline public procurement processes to better support innovation.

Ultimately, the future of European sovereignty will depend on our ability to harness the brightest minds and cutting-edge technologies to stay ahead in an increasingly complex and competitive global defense landscape.

 

Highlights of the Panel

 

Acknowledgement of the Current Security Landscape

– The war in Ukraine, rising US-China tensions, and conflicts in the Middle East have made it clear that Europe must enhance its defense capabilities.

– Modern warfare is increasingly sophisticated, relying on digital tools, AI, and automated systems.

Shift in Defense Paradigm

– Traditional reliance on defense contractors is being replaced by newer, innovative tech sectors.

– Startups are increasingly contributing to defense tech, but they face unique challenges compared to other tech companies, including complex market entry and funding.

Challenges for Startups in Defense Tech:

– Renaud Allioux from Préligence highlighted the difficulties of scaling defense tech startups. Sovereignty involves long-term commitment, integration into highly constrained environments, and challenges with raising and exiting capital in a small market.

– Convincing traditional defense industries and military institutions to adopt new technologies like AI is a time-intensive process.

Key Areas for European Technological Autonomy:

– Eve from Sopra Steria emphasized the need for digital technologies as a force multiplier for European armed forces.

– The focus should be on AI, data cloud computing, and quantum technologies to achieve autonomy and transform military operations.

Civilian and Military Technology Integration:

– Laurence Petit from CEA noted that the line between civilian and military technologies is increasingly blurred.

– Spin-offs from military R&D often require civilian applications for sustainable growth, and vice versa.

European Dependency on External Actors:

– Mikhail Kokorich of Destinus pointed out Europe’s reliance on external actors, particularly in producing cost-effective defense solutions like drones. Most of these are currently sourced from China.

– Europe needs to focus on producing its own hardware, such as engines and controllers, to maintain autonomy.

Funding and Public Procurement Issues:

– Defense tech startups face challenges in accessing public markets, navigating complex and lengthy procurement processes, and securing long-term funding.

– National defense budgets are often pre-allocated to traditional defense programs, leaving limited funds for innovative technologies.

The National vs. European Level Balance:

– Achieving European sovereignty requires clarity on what technology should be shared between European nations and what remains within national interests.

– EU initiatives like the European Defense Industrial Programme (EDIP) aim to encourage European collaboration and investment in defense tech.

 

Key Actions to be Taken Now

 

Increase Investment in Digital Technologies:

Invest more in AI, cloud computing, and quantum technologies as these are crucial for digitalizing armed forces and transforming defense operations.

Streamline Public Procurement:

Develop more flexible and accessible public procurement processes for startups to enable them to provide innovative solutions to defense sectors.

Support Collaboration between Startups and Established Companies:

Encourage partnerships between startups, established defense companies, and public institutions to foster innovation in defense technology.

Strengthen European Supply Chains:

Focus on developing the capability to produce essential hardware components (e.g., engines, controllers) within Europe to reduce dependence on external suppliers.

European-Level Coordination:

Clearly define what technologies and capabilities should be shared across European nations to build a more unified and efficient defense strategy.

Promote Private Investment:

Address issues related to exit strategies to attract more venture capital into the defense tech sector.

For those interested in diving deeper into the discussion, a replay of the panel is available here.

Feel free to continue the conversation and share your thoughts on these critical defense tech topics!

Léa Terrier
leaconseilencom@gmail.com