
Lars Frolund
COPENHAGEN/BOSTON – Following Donald Trump’s victory within the US presidential election, Europe has acknowledged the necessity to strengthen its safety and bolster its financial resilience. European protection business leaders have known as for extra funding within the sector, and protection ministries are spending extra on science and know-how to make sure their international locations’ readiness for the wars of in the present day and tomorrow.
However it’s not sufficient for every nation to behave alone. The European Union and the UK should strategy technological innovation with the aim of constructing shared protection capabilities. Latest strikes on this route are promising: the German protection firm Rheinmetall introduced that it will open a brand new manufacturing unit within the UK in 2027, as a part of a landmark protection settlement between the 2 international locations. The UK’s BAE Techniques, Italy’s Leonardo, and Japan’s Mitsubishi Heavy Industries are collaborating to develop a next-generation fighter plane. Germany’s Helsing, which makes a speciality of AI-based protection software program, is working intently with Swedish protection large Saab and plans to expanded its presence within the UK.
Specializing in collective, reasonably than nationwide, pursuits would allow massive economies of scale. Every nation may construct on its comparative benefits – each in technological innovation and army capabilities – and thus strengthen European resilience for many years to come back. This could additionally be certain that Europe serves as a powerful companion to the US, contributing its distinctive protection experience and industrial base.

Fiona Murray
Superior European technological capabilities additionally type the inspiration of financial prosperity, as mirrored in Mario Draghi’s latest report on the way forward for European competitiveness and the European Fee’s coverage agenda. However nationwide insurance policies proceed to concentrate on technological sovereignty, with the aim of strengthening and defending home business, on the expense of sharing assets and knowledge with allies.
That is the incorrect strategy. The proliferation of important applied sciences implies that even the strongest European economies can not construct a bonus on their very own. Furthermore, every nation going it alone would stifle development alternatives by inadvertently limiting exports and lowering market dimension under what’s economically environment friendly or fascinating.
Gaining a technological edge requires constructing European alliances that promote and shield shared capabilities. This collective statecraft would enable smaller economies similar to Denmark, Norway, and Estonia, that are house to progressive entrepreneurs working in quantum, house, and cyber applied sciences, to contribute to Europe’s sovereignty. These international locations are too small to assist a broad-based tech sector, and dealing extra intently with European allies would assist them construct their industrial base and enhance home financial development.
The thought is way from new. Throughout World Battle II, the British shared extraordinary advances in radar with the USA underneath the auspices of the Tizard Mission. As we speak, NATO allies are creating drones with Ukraine. However to undertake a extra constant strategy to pursuing collective sovereignty over tech exterior of wartime, European governments should contemplate two components: dependency and vulnerability.
Turning into a frontrunner in important applied sciences requires mutual dependence by way of experience, geographic benefit, and cumulative manufacturing. For instance, quantum-computing techniques depend on experience in a variety of areas, from superconducting supplies to cryogenic engineering, which is normally unfold throughout international locations, highlighting the significance of alliances. Different improvements, similar to space-launch know-how, are largely depending on geography: Norway’s Andøya spaceport, contained in the Arctic Circle, will likely be important for European house sovereignty. Lastly, some international locations, after years of funding, have a cumulative benefit in manufacturing, similar to Taiwan with semiconductors. Right here, well-established manufacturing operations in Germany and the UK could possibly be complementary.
Equally essential is the query of vulnerability, which might stem from dependence. The struggle in Ukraine, for instance, has highlighted Europe’s vulnerability to Russia’s management over pure fuel (in addition to supply-chain vulnerabilities in drone elements). Because the vitality transition accelerates, the area might want to be certain that it could actually entry important materials inputs and know-how – which requires a shared effort.
Multilateral establishments can facilitate such collaboration. For instance, the AUKUS safety alliance, established in 2021 by Australia, the UK, and the U.S., is dedicated to delivering superior capabilities and making certain license-free protection commerce. Likewise, NATO ought to allow the sharing of non-military applied sciences.
Luckily, some progress is already being made on this entrance. Final 12 months, NATO established an innovation fund to put money into applied sciences that advance safety objectives. Extra lately, the European Fee launched a Trusted Buyers Community to take away boundaries to co-investing in breakthrough applied sciences with the European Innovation Council Fund.
At its core, collective financial statecraft means recognizing that one nation is perhaps higher served by supporting business in one other. Solely by creating a collaborative framework that allows capital from throughout Europe (and the US) to be channeled to probably the most promising ventures can Europe acquire the technological benefits that may assist it meet essential army challenges.
Such daring motion would resolve a basic pressure that has beset discussions of nationwide safety and financial competitiveness in Europe. Shifting the dialog from defending the homeland or strengthening its competitiveness to a dialogue of learn how to advance collective pursuits would result in measures that each promote and shield Europe’s sovereignty and financial system. However first, every European nation have to be clear about its technological, geographic, and manufacturing benefits, and the way it can finest contribute to collective peace and prosperity.
Lars Frolund, a board member of the European Innovation Council, is a lecturer at MIT and a strategic adviser to the NATO Innovation Fund. Fiona Murray is affiliate dean of innovation and professor of entrepreneurship on the MIT Sloan Faculty of Administration and vice chair of the NATO Innovation Fund. This text was distributed by Challenge Syndicate.