Last year, 23 NATO countries set up a new billion-euro investment fund for defence purposes, which has its home in the Grand Duchy. Our colleagues from RTL went to the official presentation on Monday to speak to some of the 170 guests about how the European tech sector has changed its stance on defence investments in recent years.
The Russian invasion of Ukraine and the tensions between China and Taiwan have certainly fuelled this change of heart. While the military used to generate major technological breakthroughs, such as the internet or GPS systems, the private sector in recent years has become the primary driver of innovation.
David van Weel, NATO’s Assistant Secretary General for Emerging Security Challenges, commented on this reversal of traditional roles: “We see commercial technologies that are paving the way. New technologies that are changing the world come from universities and start-ups. So yes, NATO has to change.”
NATO’s new defence fund will invest €1 billion into start-ups and other capital funds that develop technologies.
According to director Roland Reiland from the Luxembourg Defence Directorate, both the military and society will benefit from this approach: “We are talking about ‘emerging disruptive technologies’, which should also have defence purposes. But not only for defence. These are businesses that work on regular civilian applications, such as artificial intelligence ... and renewable energy.”
The large sum put into the defence fund is hoped to fuel investors’ desires to also privately support such innovative projects.
“Ukraine is a good example. We have commercial satellite firms that have not yet operated for five years, but which provide very sophisticated images through AI and which detect Russian camouflaged tanks”, van Weel explained in conversation with RTL.
European defence start-ups long struggled to acquire funding, particularly in comparison to similar ventures in the US. Now that financial support has been facilitated, it remains a priority to ensure that developed technologies are used in responsible manner, argues Patrick Schneider-Sikorsky, member of the NATO fund’s senior management team: “We will guarantee to those affected that their technology is being protected. We will monitor as well as possible that it is being used responsibly and that it will not fall into the hands of the enemy.”
The Luxembourg government has pledged €28 million to the fund over the next 15 years.
