Dutch Government Allocates €1.15 Billion to Boost Defense Innovation

The Hague, Friday, 4 April 2025.
The Dutch government has announced a €1.15 billion fund to enhance defense industry innovation, aiming to strengthen national security and support technological growth in the sector.
Strategic Investment in Defense Innovation
The Dutch defense and security industry, comprising approximately 1,000 companies with a combined turnover of €7.7 billion, is set for a significant transformation under this new initiative [1]. The government plans to allocate €310 million this year alone, focusing on crucial areas including unmanned systems, expanding the SecFund, and scaling up innovation projects [1]. This strategic move comes at a critical time when the United States is reducing its European support, necessitating greater autonomy in European defense capabilities [2].
Five Key Technology Priorities
The strategy specifically targets five strategic technology domains: smart materials including composites and 3D printing, space technology, quantum computing, intelligent systems incorporating AI and drones, and advanced sensor systems such as radars [1]. The Dutch maritime manufacturing sector remains a cornerstone of this initiative, with the government aiming to maintain its strategic importance [1]. Ministers Brekelmans and Beljaarts emphasize that ‘these historical times do not require gradual scaling up and growth, but an impulse and courage to change’ [2].
International Collaboration and Industry Support
A key component of the strategy involves strengthening international partnerships, particularly through DefPort, which connects government agencies, private companies, and knowledge institutions [1]. The initiative includes plans to intensify cooperation with Ukraine’s defense industry, leveraging their recent battlefield experience to enhance Dutch military capabilities [2]. To provide stability for defense manufacturers, the government will implement longer-term contracts, following the successful model of Belgium’s 20-year agreement with FN Browning [2].
Cybersecurity Integration
The strategy’s timing aligns with broader defense modernization efforts, as evidenced by the recent ESET Cyber Defense Summit on April 3, 2025, which addressed the evolution of cyberspace into a cyber battlefield [3]. This comprehensive approach to defense innovation acknowledges the increasing importance of digital security alongside traditional military capabilities [3][4].