DIANA wants to turn European innovations into military capability

“Nobody doubts the technology exists. Nobody doubts the funding exists. And nobody doubts the need,” said Thomas McSorley, General Counsel of NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA). “The real challenge is connecting demand and supply.”

At the Blue Magic Netherlands event in Eindhoven on November 18, McSorley laid out a diagnosis of Europe’s defense-innovation bottleneck, and how DIANA is trying to break it open.

From ideas to impact

DIANA, launched to act as “NATO’s innovation engine,” now operates across London, Tallinn, Halifax, and Eindhoven, with a network of more than 200 test centers, over 1,000 mentors, and accelerators stretching from the U.S. West Coast to Ankara. The goal: turn promising commercial technologies into deployable defense capabilities.

The program’s core mechanism is simple in theory: NATO publishes challenge statements focused on effects, not hardware shopping lists. Startups and scale-ups respond with ideas; winners receive a €100,000 contract, not a grant.

The distinction matters, McSorley emphasized. A contract positions companies as actual suppliers from day one and gives them a clear route into NATO’s procurement ecosystem. “We’re not a grant-making entity,” he said. “We’re a contracting entity.”

Fixing the adoption gap

McSorley returned repeatedly to NATO’s biggest innovation problem: adoption. New technologies get stuck between proof-of-concept and real procurement. DIANA’s answer is the new Rapid Adoption Action Plan, approved by all 32 NATO leaders this summer.

For the first time, ideas developed through DIANA’s challenge program can move directly into production in member states, without additional competition. Nations can “opt in,” fund prototypes, and if the technology performs, NATO’s procurement agencies can buy it for deployment.

Thomas McSorley, General Counsel of NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA) © Nadia ten Wolde

Five such opt-in pathways are already active. “You can go from idea to delivery without leaving the ecosystem,” McSorley said. “This is modeled on the best thinking across the alliance.”

Startups get more than money

What DIANA really provides, McSorley said, is an ecosystem: a mentor network of technologists and military experts, curated access to test centers, and guidance on IP protection and compliance. The accelerator trains teams to navigate dual-use markets, a topic that once caused hesitation but, McSorley noted, “we no longer sense much trepidation about working in defense.”

Companies also receive support in being strategic, particularly when invited to participate in military exercises. McSorley warned startups not to burn resources on demos that don’t serve clear goals. “We’ve seen companies sink a lot of capital into demonstrations that don’t lead anywhere,” he said. DIANA helps teams plan for return on investment and measurable outcomes.

Early signs of traction

From its first cohort alone, several companies have already secured major contracts or opened new production facilities. One received investment from the NATO Innovation Fund. Others are developing quantum navigation, secure network appliances, smart-grid technology, and new chip-fabrication capabilities.

Defense revenues among participating startups rose 29% last year, and fundraising also increased. DIANA has also begun offering Phase Two contracts of €300,000 for the most promising companies.

A Europe-wide moment

Perhaps the strongest message was one of urgency. With NATO countries committing to raise defense spending to 5% of GDP, the opportunity for innovators is enormous, but only if the ecosystem coordinates.

“There’s a lot of energy, especially throughout Europe,” McSorley said. “What we don’t want is the capital seeping out in all directions and people losing patience. Let’s work together to deliver what the alliance needs.”