The strategy, which builds on the earlier Defense Industry Strategy of both ministries from 2018 and the Strategic Knowledge and Innovation Agenda (SKIA) 2021-2025 of Defense, can be summarized as strong, smart, and together: the cabinet will invest in the Dutch defense industry, stimulate innovation in a smart way, and will collaborate nationally and internationally in a new and more effective manner. The defense and security industry in the Netherlands consists of approximately 1,000 small and large companies that together generate a revenue of € 7.7 billion
The cabinet has allocated € 1.15 billion in the Defense Memorandum 2024 for the coming years to scale up the defense industry. Defense plans to spend € 310 million this year and intends to make this budget available for, among other things, the Action Plan for Unmanned Systems, increasing the SecFund, innovation scaling projects, and enhancing existing financing instruments from the Ministry of Economic Affairs.
Strong
With a strong defense industry and knowledge base, the cabinet aims to build a future armed force and deter adversaries. This means mobilizing all relevant Dutch knowledge institutions, ensuring that procurement proceeds faster and more efficiently, and ensuring that financial institutions can and want to invest more in the defense industry. The three involved ministers are taking action today by signing letters of intent with companies Lobster Robotics and De Haas Shipyards.
Smart
To strengthen industry and innovation and position the Netherlands internationally, choices must be made. Therefore, the cabinet will focus on additional investments in five areas within the chain of industry, innovation, and knowledge: smart materials (composites, 3D printing), space technology, quantum, intelligent systems (AI technology, drones), and sensors such as radars. Additionally, the Dutch maritime manufacturing industry remains an important pillar.
Together
Strengthening the armed forces and the Dutch industry can only be done together. It is necessary to connect all relevant parties such as the government, businesses, knowledge institutions, and the financial sector. Therefore, regional ecosystems are being built and strengthened, and public-private cooperation through DefPort, a partnership between the government, businesses, industry, and knowledge institutions, is being enhanced.
Moreover, a strong international positioning of the Netherlands is essential for strengthening our armed forces and industry. Therefore, the cabinet will proactively engage internationally in demand aggregation, so that larger contracts can be placed with the industry. This also includes opening up supply chains, co-production, and standardization. This is done bilaterally, among groups of countries, and in EU and NATO contexts.
Finally, cooperation with the Ukrainian defense industry will be intensified. For example, by seeking opportunities for demand aggregation in procurement processes for the needs of Ukraine alongside the needs of the Dutch armed forces.
Starting Shot
The new defense industry and innovation strategy is a starting shot. The cabinet now wants to work with all partners to turn words and plans into concrete actions and results. This is of great importance for our security, now and in the future.