New strategy for innovation and upscaling of the defense industry
The Dutch cabinet has earmarked 1.15 billion euros for the coming years to scale up the defense industry.
Published on April 6, 2025
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A more innovative Dutch defense industry that can scale up its capacity more quickly. According to the cabinet, this is necessary for a strong armed forces that keeps the Netherlands and our allies safe, reduces unwanted industrial dependencies, and utilizes economic opportunities. To make the right choices and take action, the Council of Ministers has adopted the new Defense Strategy for Industry and Innovation, as proposed by Ministers Brekelmans (Defense), Beljaarts (Economic Affairs), and State Secretary Tuinman (Defense).
The strategy elaborates on both ministries' previous Defense Industry Strategy from 2018 and the Strategic Knowledge and Innovation Agenda (SKIA) 2021-2025 of Defense. The cabinet will invest in the Dutch defense industry, stimulate innovation and collaborate in new ways both nationally and internationally. The defense and security industry in the Netherlands consists of approximately 1,000 small and large companies with a combined turnover of €7.7 billion.
In the Defense Paper 2024, the cabinet has earmarked €1.15 billion for the coming years to scale up the defense industry. The Ministry of Defense will spend another €310 million this year and wants to make this budget available for the Action Plan for Unmanned Systems, increasing the SecFund, innovation-scaling projects and increasing existing financing instruments of the Ministry of Economic Affairs, among other things.
With a strong defense industry and knowledge base, the cabinet wants to build a military force for the future and deter opponents. This means mobilizing all relevant Dutch knowledge institutions, making procurement faster and more efficient, and ensuring that financial institutions can invest more in the defense industry. Lobster Robotics and De Haas Shipyards have already signed letters of intent.
Five sub-areas
Choices must be made to strengthen industry and innovation and to position the Netherlands internationally. The cabinet will therefore 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. In addition, the Dutch maritime manufacturing industry remains an important pillar.
Regional ecosystems are being developed and expanded, and public-private partnerships are being strengthened through DefPort, a collaboration between the government, businesses, industry, and knowledge institutes. The Netherlands' strong international position is also receiving attention. The cabinet will therefore be more proactive in its global efforts to consolidate demand, so that larger contracts can be put out to industry. Efforts will also be made to open up supply chains, co-production and standardization. This will be done bilaterally, between groups of countries, and in an EU and NATO context.
Finally, cooperation with the Ukrainian defense industry will be intensified. For example, opportunities will be sought to combine demand in procurement processes to meet Ukraine's needs with those of the Dutch armed forces.