Press Release: Boosting European defence with strategic innovation

BRUSSELS – The boom in European defence spending represents more than an opportunity for increased strategic autonomy, it is a promising avenue for innovation-driven prosperity. 

As the technologies of modern conflicts undergo rapid changes, a new report from the Centre for Future Generations (CFG) argues that investments made today will determine  whether these technologies ultimately become a strategic vulnerability or a source of strength and stability for the EU.

“European policymakers face a choice – these technologies will either become strategic vulnerabilities or sources of strength,” said Jakob Graabak, Tech Foresight Director at Centre for Future Generations. “With hostile countries already preparing for potential conflicts and the EU spending approximately €70 billion annually on foreign defence procurement, the economic and security imperative for European innovation is clear.”

As the era of the peace dividend ends, the EU is under pressure to renew its military capabilities. As Europe faces increasing security challenges, CFG’s research reveals that next-generation drones and counter-drone systems represent strategic priorities for the EU’s defence industry. The report emphasizes that recent conflicts have become testing grounds for emerging military technologies, with drone warfare and military AI rapidly reshaping modern combat

The research finds that:

• Low-cost drones have transformed battlefield economics, with units costing as little as €500 capable of neutralizing multi-million euro military assets
• Current European drone production capacity remains heavily dependent on foreign components, particularly from China
• AI-enabled autonomous drones are expected to be battle-ready by late 2025, potentially rendering traditional counter-measures obsolete
• European development of advanced counter-drone technologies like directed energy weapons lags significantly behind international competitors
• CFG recommends that EU institutions prioritize investment in a dynamic European drone industry capable of rapid innovation and scale, while developing next-generation counter-drone systems that offer affordable and accurate neutralization options.

The Copenhagen Democracy Summit will provide a timely platform to discuss these findings with European security stakeholders as democracies worldwide face increasing external threats.

This report is part of our project Strategic innovation for European security, where we also cover Advanced AI, Biosecurity, and Climate Security. CFG has identified 10 emerging technologies the EU should invest in to safeguard its security and uphold European values in the face of rapid technological change, geopolitical instability, and economic uncertainty.

Such strategic innovation, as highlighted by the Niinistö and Draghi reports, not only enhances crisis preparedness by securing technological sovereignty and supply chains but also fosters a safer, more resilient Europe through targeted advancements in protective technologies. By substantially increasing its research and innovation funding and encouraging cross-border industrial partnerships, the EU can bridge its competitiveness gap, drive sustainable economic growth, and ensure a stable and secure future for the continent.

—ENDS—