German tech leaders are calling on incoming chancellor Friedrich Merz’s new government to strengthen the country’s defence ecosystem, as Europe moves to rearm amid heightened geopolitical tensions.
On Wednesday, Merz unveiled a plan to unlock unlimited borrowing for defence spending, overriding the country’s historic debt brake. A day earlier, European leaders proposed a €800bn plan to boost the bloc’s defence capabilities, as President Donald Trump suspended military aid to Ukraine.
In a new paper, Berlin-based VC firm Project A and the German military’s Cyber Innovation Hub called on lawmakers to improve the procurement process for government contracts, expand financing for military startups, promote collaboration between startups and so-called defence primes like Airbus or Lockheed Martin, and break down barriers between civilian and military research.
Startups have been developing new defence technologies – including AI-powered autonomous drones — to be used by European armed forces, but have faced a number of challenges in selling their products to governments, with lengthy and bureaucratic procurement processes, as well as a general lack of funding.
Marc Wietfeld, cofounder of Munich-based unmanned robotics startup ARX Robotics, says the initial entry for startups — a “major hurdle” discussed in the paper — deserves attention. However, it’s also important to consider how defence technologies can be scaled to encourage mass adoption from the outset.
“New technologies in defence mean more than just new products, testing, feedback, or capital — this is not a standard marketplace. It requires a profound and holistic integration into European armed forces,” Wietfeld tells Sifted.
“These forces must be engaged as recipients and users to adapt their strategies, tactics, infrastructure, and processes to these new technologies, products, and market players. Only in this way can we avoid a dead end in military innovation.”
The paper also highlights ongoing recruitment issues in defence tech, suggesting that while university students are increasingly likely to view defence as a viable career path, there remains a limited pool of people qualified and interested in working in defence.
“Normalising the profession, removing the barriers between military and civilian research and educating the public in the role that defence plays in democracies” can help create a bridge between “both worlds to ensure Europe capitalises its best talent both within and outside of the military,” a Project A spokesperson said.
The German Startup Association that represents 1,200 startups, VCs and mid-sized companies, backed the proposals.
The association previously stressed the importance of making market entry easier for deeptech startups, including dual-use companies, in its ‘2030 Innovation Agenda’ released in August last year.
“Geopolitical uncertainties highlight the need for Germany to become more independent in key technologies. Germany and Europe must adopt a more confident strategic stance – and startups can play a crucial role in this. Startups are fast, agile, and thus help accelerate our technological and economic sovereignty. To achieve this, we must give startups more room to thrive,” says Verena Pausder, chairperson of the German startup Association.
Pausder agrees that dissolving the barrier between civil and military research will help to promote dual use innovations.
“Additonally, stronger collaboration between startups and industry is essential to integrate innovations more quickly into the value chain. Europe’s technological independence requires swift action.”
Read the orginal article: https://sifted.eu/articles/german-tech-leaders-defence-proposals/
