German Defense Needs Startups to Secure Its Future

German defense experts are calling for a transformation of the country's military procurement and innovation ecosystem to address growing security challenges. In a joint paper, Sven Weizenegger (Head of the Bundeswehr Cyber Innovation Hub), Uwe Horstmann (Co-founder and General Partner at berlin-based venture capital firm Project A), and Verena Pausder (Chairwoman of the German Startup Association) outline eight key recommendations to strengthen Germany's defense capabilities through innovation.

The authors argue that with changing NATO dynamics, Germany can no longer rely unconditionally on traditional alliance structures for its security. Instead, they propose creating multiple new pillars in the defense industry by actively supporting startups and SMEs. Large contracts that would be routine for established contractors could be transformative for innovative newcomers, helping them scale rapidly.

A major obstacle identified in the paper is the peacetime-oriented procurement system that's incompatible with modern technology cycles. The experts recommend accelerated initial procurement processes with improved feedback loops, allowing promising technologies to be tested quickly by actual military users in the field.

Other recommendations include breaking down barriers between civilian and military research, expanding access to financing for defense-focused startups, building specialized talent pools, promoting collaboration between startups and established defense companies, and strengthening the Berlin-based Cyber Innovation Hub of the Bundeswehr.

"The artificial separation between civilian and military research communities hinders innovation transfer," the paper states, suggesting integrated research centers where classified and non-classified work can take place in close proximity.