Insights
MacroeconomicsCan Europe innovate at war(p) speed? - with the NATO Innovation Fund
Why are start-ups suddenly at the centre of NATO’s rapid reinvention of its defence strategy?
Authors
Paul Diggle
Chief Economist
Lizzy Galbraith
Senior Political Economist
Duration: 34 Mins
Date: Feb 26, 2026
Russia’s full scale invasion of Ukraine marked a turning point for European security - one that is reshaping defence spending, industrial strategy, and the technologies NATO allies prioritise.
In this episode, hosts Lizzy Galbraith and Paul Diggle speak with John Ridge, Chief Adoption Officer, and Erin Hallock, Partner at the NATO Innovation Fund (NIF), about how Europe is re arming and re-thinking innovation at a speed not seen in decades.
The discussion ranges from battlefield lessons in Ukraine to the challenges start-ups face selling into defence markets, and why NATO believes the future of deterrence depends on harnessing cutting edge civilian technology.
Some highlights:
The discussion ranges from battlefield lessons in Ukraine to the challenges start-ups face selling into defence markets, and why NATO believes the future of deterrence depends on harnessing cutting edge civilian technology.
Some highlights:
- Ukraine is reshaping defence priorities. The conflict has highlighted the need for rapid innovation, uncrewed systems, electronic-warfare resilience and space enabled capabilities.
- NATO’s Innovation Fund backs early stage defence tech. NIF invests €1 billion across 24 nations to accelerate technologies emerging from the private sector rather than traditional defence labs.
- Start-ups struggle to navigate slow procurement. Defence buyers want fully finished systems, while start-ups need to iterate quickly - creating a “valley of death” between invention and adoption that NIF helps them bridge.
- Europe must scale spending - and speed - rapidly. Meeting NATO targets and modernising forces will require faster contracting, clearer demand signals and broader participation beyond traditional defence manufacturers
- A new defence industrial ecosystem is emerging. Modularity, dual-use innovation and closer ties between start-ups, scale-ups and traditional manufacturers are reshaping how Europe develops and deploys its capability.
Listen to the full episode:
