From innovation to production: Europe’s new defence industry strategy

When the European Defence Fund (EDF) was launched in 2021, Europe took a historic step forward. For the first time, the European Union allocated a specific budget to funding collaborative research and development projects in the field of defence technology. The message was clear: if Europe wanted to develop its technological autonomy, it had to invest in defence innovation.

Four years later, Europe has now taken another step forward. Innovation remains essential, but it’s no longer enough. Today, the priority is not only to develop new technologies, but also to ensure that they can be manufactured in Europe, on a large scale, and whenever necessary. And that’s where the new European Defence Industry Program (EDIP) comes in.

From R&D to production

In recent years, the EDF has helped drive research and development projects in fields such as sensors, command and control, avionics, artificial intelligence, unmanned systems, space, communications, and electronic warfare. The goal was to generate knowledge, reduce technological risks, improve competitiveness, and foster cooperation within the European Defence Technological and Industrial Base (EDTIB). 

However, once a prototype has been developed, a much more difficult question arises: How can we turn this into a final product? Who will manufacture it? Where? Which value chain will be used? What production rate is needed to ensure on-time deliveries? Who will ensure the supply of critical components? This is precisely the gap that EDIP aims to fill.

EDIP is focusing on the next phase: industrialization. Its goal is to help ensure that capabilities developed in Europe can be produced faster and with greater coordination and resilience, thereby strengthening the EDTIB. 

In a sense, Europe has gone from asking “What technology should we develop?” to asking “How do we incorporate it into end products?” 

This change reflects a shift that goes well beyond simply creating a new European program.

Today, official EU documents frequently reference concepts such as “industrial ramp-up,” “security of supply,” “supply chain resilience,” and “reducing strategic dependencies.” The goal is no longer simply to manufacture better systems, but also to ensure that they can continue to be manufactured even during a prolonged crisis—and, of course, delivered on time. The concept of “delivery” is absolutely essential at the moment. 

To achieve this, EDIP is introducing measures that seemed unthinkable just a few years ago: support for the expansion of production lines, incentives for joint procurement, mechanisms to strengthen critical suppliers, new structures for industrial cooperation, and new initiatives to secure supply chains in Europe. 

All of these efforts are aimed at a single goal: strengthening Europe’s industrial capacity so that it can provide a coordinated response to the continent’s security and defence needs.

Five key priorities for the coming decade

But producing more isn’t the only goal. Europe is also determining its priority capabilities in order to better focus this industry work.

In the Defence Readiness 2030 roadmap, the Commission and the High Representative propose a series of major European Defence Projects of Common Interest (EDPCIs) to focus investment and cooperation in the coming years.

The first priority is air and missile defence. Air defence is no longer viewed as a collection of missile batteries, but rather as an integrated system in which radars, sensors, satellites, command-and-control systems, and various interceptors work together in a coordinated manner. The goal is to enable different countries to operate as a single architecture.

The second priority is anti-drone systems. Probably no other technology has evolved as rapidly as drones in recent years. Europe is seeking to boost not only the production of unmanned platforms, but also the entire associated ecosystem: artificial intelligence, navigation, sensors, electronic warfare, and systems capable of detecting and intercepting swarms of drones. 

The third priority lies in space. Programs such as Galileo, IRIS², and Copernicus are already part of Europe’s critical infrastructure. The new strategy aims to strengthen European space autonomy through new space surveillance capabilities, secure communications, and the protection of space assets, further establishing space as a strategic European defence domain.

The fourth priority focuses on the maritime domain, both at the surface level—essential for trade—and in the protection of critical infrastructure such as undersea cables and gas pipelines. As such, one of the strategic European projects aims to develop shared capabilities to enhance maritime surveillance, protect critical undersea infrastructure, improve anti-submarine warfare, and strengthen coordinated operations in areas of strategic interest such as the Baltic, the Mediterranean, and the Atlantic. 

The fifth priority is the Eastern Flank Watch, designed to strengthen surveillance and response capabilities along the EU’s eastern border. The project combines ground-based, airborne, and space-based sensors, as well as drones, anti-drone systems, and electronic warfare capabilities, to provide a common operational picture and strengthen deterrence and response against conventional and hybrid threats. Although it was created with a clear geographic focus, many of the technologies it will launch will have applications throughout Europe and will shape the development of capabilities over the next decade.

Much more than just a new program

In the big picture, EDIP is the missing link connecting research, innovation, industry, and capacity building.

The evolution of the EDF into the EDIP reflects a profound shift in European defence policy. Research remains essential, but now it must be accompanied by an industry capable of producing, maintaining, and evolving these capabilities. 

For technology companies such as GMV, with a leading position in multi-domain command-and-control systems, navigation, avionics, ISR, space, and border protection, this new landscape is an opportunity to contribute not only to the development of innovative technologies but also to the building of the industrial capabilities that will shape European defence over the next decade.

Author: Begoña Rojo