July 2, 2025

Driving innovation in Defence: Bridging the Gap Between Startups and Ministries of Defence

By John Ridge, Chief Adoption Officer, NATO Innovation Fund

This piece first appeared on Resilience Media.

Innovation is key, not only for winning wars, but also for preventing them. In today’s world, where threats are constantly evolving and our adversaries are innovating at the pace of conflict, staying ahead with new and bold technologies is a necessity. By working together, startups and MoDs can overcome barriers, adopt new technologies faster, and create a stronger, more agile defence system. The Rapid Adoption Action Plan – which was just endorsed by Allies at the 2025 NATO Summit in the Hague – makes crystal clear the fact that the future of defence is one where innovation is not just important – it’s imperative.

In today’s fast-changing world, innovation is vital not only for winning wars but also for preventing them. Modern defence strategies rely on cutting-edge technology to address emerging dangers like cyberattacks and drones, while also protecting or even replacing soldiers, sailors and aviators on the frontlines. To keep up, Ministries of Defence (MoDs) need to rethink how they adopt new ideas and technologies. Without change, defence systems risk of falling behind.

The most obvious deterrent effect of innovation is that it can help field capabilities that give one side or other a clear advantage in any future conflict. One obvious historical example is the race to develop nuclear weapons during World War II – capabilities that fundamentally altered the balance of power. But innovation also offers a more subtle way to deter. By introducing uncertainty into an adversary’s decision-making calculus, ramping up our tech capabilities helps create enough doubt to prevent a decision to go to war. Because the innovative forces are constantly evolving, it is hard to predict the outcome of any future conflict.

Why is it hard for defence ministries to innovate?

Even though innovation is essential to prevent wars, many decision-makers in MoDs are cautious about adopting new technologies. Their hesitation often comes from a reliance on proven equipment, either for rational concerns about the potential of new technology or cultural attachment to old ways of doing things. While this may appear to reduce risks in the short term, sticking only to what’s familiar increases them in the long run.

One major challenge is building trust in new technologies. Startups need to show that their solutions work by testing them in realistic settings. At the same time, Ministries of Defence need to give startups opportunities to prove their technologies and provide clear guidance on what they need, framed as problems, not pre-judged solutions. MoD decision-makers also often lack the appetite to take calculated risks. We therefore need to think about how we change structures, processes and incentives to encourage them to try new approaches. MoDs must create systems that reward sensible risks and prioritize the adoption of new technologies. By working together, MoDs and startups can overcome these challenges and accelerate innovation.

Three ways to speed up defence technology adoption

To adopt new technologies faster, MoDs can take three key steps:

  1. Set clear goals for innovation: MoD decision-makers need clear direction and incentives to focus on new technologies. Giving them a strong mandate to innovate will empower them to take action.
  2. Prioritize speed over perfection: On the battlefield, reliable equipment is vital. But as technology becomes a key advantage, speed matters more than ever. Defence teams should focus on adopting solutions quickly, even if they aren’t yet perfect.
  3. Use what’s already out there: Many technologies that meet most defence needs already exist. Adapting these to specific requirements is faster and cheaper than creating something entirely new.

The Role of the NATO Innovation Fund (NIF)

The NATO Innovation Fund (NIF) is helping bridge the gap between startups and MoDs. Acting as a connector, the NIF brings these two groups together to collaborate effectively. The NIF team understands what MoDs need and helps ensure clarity and mutual understanding. It also connects the dots by using its global reach to link innovation hubs with defence requirements, creating opportunities for collaboration.

At the same time, the NIF works closely with startups, to help them develop their cutting edge-tech into capabilities that can be deployed and used effectively by warfighters.

Looking ahead: A plan for Rapid Adoption

To speed up the adoption of new technologies, the NIF worked closely with NATO to help inform the Rapid Adoption Action Plan. This plan will make it easier for MoDs to integrate innovative solutions into their systems. The goal is to strengthen operational readiness, ensuring that defence systems can respond quickly to new challenges. By doing so, we help deter future conflicts or, should deterrence fail, help the Allied nations win.

 

 

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