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Foreign Policy
Foreign Policy
19 Sep 2024


NextImg:NATO Needs to Innovate More and Faster
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Threatened by values that are at the core of the NATO alliance and shared by Ukraine and many other countries around the world, the Kremlin launched a full-scale invasion of Ukraine in February 2022 with the intention to wipe the country off the map, crush freedom, and weaken democracy. In doing so, Russia receives significant support, including the provision of advanced technology, from its authoritarian friends, not least China, Iran, and North Korea. More than Ukraine’s survival, Europe’s security is at stake. As a global fight is being played out on the battlefield in Ukraine, innovative technologies are being rolled out at unprecedented speed.

For centuries, security in Western democratic societies has been tied to their ability to innovate. From the bow and arrow to battle tanks and from hand grenades to hypersonic missiles, new military inventions not only changed the way we fight and win wars. They also underpinned our ability to shape successful and resilient societies. Now, with a massive technological revolution underway, which has seen the rise of artificial intelligence, autonomous systems, and quantum technologies, it is not enough to just be able to innovate. We must remain at the forefront of innovation. By leading innovation, we can continue to shape our security environment. If we don’t, others will.

NATO nations, and the United States in particular, have long had technological primacy. But they are being challenged. China is not only rapidly developing technologies, but it is also connecting new technologies together, multiplying their potential disruptive impact on our societies, our economies, and our security. Semiconductors from China are a critical component of the phones and computers we use every day—but also of the high-end military systems and capabilities we rely on for our security. Russia’s war against Ukraine is shedding light on the incredible speed of innovation. Ukrainians are innovating fast but not fast enough. In just weeks, Russians managed to neutralize the innovative software that Ukrainians have been putting into drones.

To keep its 1 billion citizens safe, NATO must ensure it out-competes any strategic competitor and potential adversary. That is why we are doubling down on efforts to accelerate technological innovation in the field of security and defense. This is not something NATO does alone but together with the drivers of innovation in the private sector. Today, they produce 90 percent of the dual-use technologies used for our defense and security. The private sector is an indispensable partner.

When I took up my job as deputy secretary-general at NATO in 2019, Secretary-General Jens Stoltenberg asked me to be NATO’s innovation champion. One of my first tasks was to help establish the NATO Innovation Board. As its chair, I prioritized innovation across the alliance, and as a result, NATO has significantly sped up its technological transformation. At the Brussels summit in 2021 and after, NATO leaders launched two breakthrough initiatives to tighten the links between NATO and the dual-use innovation ecosystem. One was the Defence Innovation Accelerator for the North Atlantic, which brings together innovators across the alliance to cooperate on critical technologies. The other was the NATO Innovation Fund, a 1 billion euro venture capital fund that provides strategic investments in start-ups developing technologies in areas that are critical to allied security. NATO has also already established a regular high-level dialogue with private sector leaders, including with companies such as Google, Microsoft, and Amazon Web Services. More recently, NATO stood up a Transatlantic Quantum Community to ensure a secure, resilient, and competitive quantum ecosystem and launched a commercial space platform (SPACENET) to further cooperation with commercial space industries. The alliance has come a long way. Yet the epochal moment we are confronted with requires even bigger and bolder adjustments.

NATO needs to innovate more and faster. Above all, we need to dare to innovate differently. This means rethinking the way we structure our partnerships with the private sector in the area of defense. NATO has worked for decades to achieve interoperability between national militaries. Now, it needs to achieve interoperability with the trans-Atlantic innovation ecosystem to future-proof our security.

In particular, NATO needs to adjust the mechanisms and procedures it has built and relied on for decades to develop and purchase defense capabilities. Defense plans, procurement cycles, and acquisition models are important and necessary to guardrail innovation and help minimize financial risk. But they are also lengthy, rigid, and complex. They can be a roadblock to innovation and a risk for our security. Our procurement timelines are set to the acquisition of large pieces of hardware that we hang on to for decades. New aircraft that NATO is acquiring now to replace the aging fleet of Airborne Warning and Control System aircraft will only be operational in 2031. In the information technology arena, where requirements are different and change very rapidly, more flexible procedures are essential to ensure allied and partner nations get what they need when they need it—and not five or 10 years down the line.

At the same time, as we rethink our partnership with the private sector to accelerate innovation, we must stay aligned with our values. Technological innovation, especially in the field of defense, can be used to curb freedom and control and manipulate people. This is what our competitors do. Moscow and Beijing do not face up to the important ethical dimensions in their race to develop and deploy technologies. But NATO does. It has already integrated so-called principles of responsible use in all its strategies on emerging and disruptive technologies, including AI, autonomy, biotechnologies and human enhancements, space, and quantum. These principles ensure that the use of these new technologies complies with international law and respects our democratic values. Rather than stifling innovation, they enable it by creating a predictable, trustworthy, and responsible environment in which everyone—innovators, adopters, end users, and our publics—feels confident using these technologies and cooperating with one another.

Looking ahead to the next NATO summit in The Hague in June 2025, NATO will pursue its work to foster the development of the long-term revolutionary innovation required to maintain the alliance’s technological edge. A new Rapid Adoption Strategy, to be delivered at the summit next year, will provide recommendations to enable allies to streamline acquisition and procurement processes while at the same time respecting the fundamental principles of fairness, transparency, integrity, openness, competition, and accountability underlying acquisition and procurement in the defense and security environment. With work underway on this new strategy, the alliance is seeking to include small and medium enterprises developing battle decisive technology in the NATO procurement mechanisms. The immediate needs arising from the battlefield in Ukraine are lessons NATO is taking on board as it prepares for the future.

Last week, I concluded my tenure as NATO’s deputy secretary-general and ended my duties as NATO’s innovation champion. Looking back, I am impressed by how profoundly NATO has been adapting to technological advances in a fast-changing world. As threats have evolved and multiplied—on land, sea, and air and in space and cyberspace—so has NATO’s response, in both the physical and the digital world. I leave an alliance that is driving faster toward new, different, and responsible ways of innovating. Looking ahead, I am confident this will keep NATO competitive, our values safe, and the trans-Atlantic area more secure—now and for generations to come.