Defence SMEs and start-ups
1. Run development and acquisition in parallel. Pilot one integrated programme with one accountable owner. Run user testing, production planning, procurement preparation and financing in parallel, with clear decision gates.
ID: IN-099
Lab: INNOVATION SPEED
Challenge: Sequential requirements, testing, procurement and financing delay operational delivery.
Lead actor: Defence SMEs and start-ups
Supporting actors: Armed forces and operational commands, National defence procurement agencies
First step: Select one pilot capability, appoint its owner and record the current end-to-end timeline.
Timeframe: 100 days
KPI: Process waiting time / Calendar days spent waiting between requirements approval, testing, procurement and financing decisions / Reduce by 50%
2. Build a continuous operational feedback loop. Establish recurring user trials and short improvement cycles. Record mission outcomes, operator workload and reliability, then retest agreed improvements.
ID: IN-100
Lab: INNOVATION SPEED
Challenge: Occasional demonstrations provide limited feedback. Requirements can become outdated before delivery.
Lead actor: Defence SMEs and start-ups
Supporting actors: Armed forces and operational commands, National defence procurement agencies
First step: Nominate a test unit and industrial partners, agree trial access and define a common feedback format.
Timeframe: 100 days
KPI: Feedback-to-validation time / Median calendar days from recorded user feedback to user acceptance of the tested improvement / Reduce by 50%
3. Design for serial production from day one. Include production engineers, suppliers and maintenance specialists in early design reviews. Assess assembly time, standard components, testability and repairability alongside performance.
ID: IN-101
Lab: INNOVATION SPEED
Challenge: Successful prototypes may need major redesign before they can be manufactured, serviced and supported at scale.
Lead actor: Defence SMEs and start-ups
Supporting actors: Armed forces and operational commands, National defence procurement agencies
First step: Select one product, measure assembly and test time, and map its main production constraints.
Timeframe: 100 days
KPI: Redesign effort for production / Engineering hours spent modifying an approved prototype for serial production / Reduce by 30%
4. Connect staged orders with production investment. For one pilot, connect staged orders and defined acceptance milestones with a costed capacity plan. Prepare tooling, supplier capacity and staff training alongside R&D.
ID: IN-102
Lab: INNOVATION SPEED
Challenge: Uncertain demand delays tooling, automation, supplier capacity and workforce investment.
Lead actor: Defence SMEs and start-ups
Supporting actors: Armed forces and operational commands, National defence procurement agencies
First step: Identify a pilot, map the applicable procurement route and prepare its demand, investment and capacity plan.
Timeframe: 12 months
KPI: Demand visibility / Share of planned production capacity covered by committed orders for the next 12 months / Achieve at least 80%
5. Measure delivered capability by mission outcome. Pilot a common evaluation method covering lifecycle cost, successful missions, availability, operator hours and time to capability. Compare systems under the same mission conditions and required effect.
ID: IN-103
Lab: INNOVATION SPEED
Challenge: Unit price alone does not show availability, repeat use, operator burden or the operational effect achieved.
Lead actor: Defence SMEs and start-ups
Supporting actors: Armed forces and operational commands, National defence procurement agencies
First step: Agree one mission profile, a definition of success, the cost boundary and a trial data format.
Timeframe: 12 months
KPI: Mission-based procurement evaluation / Share of evaluated configurations assessed on lifecycle cost per successful mission, availability, missions per system and operator hours / Achieve 100%
6. Use digital twins as part of the development process.
ID: IN-111
Lab: INNOVATION SPEED
Challenge: Time to operational deployment is too long. Software-defined defence (SDD) develops too slowly.
Lead actor: Defence SMEs and start-ups
Supporting actors: Primes / large Defence Companies; National ministries of defence
First step: Define where digital twins should be used.
Timeframe: 100 days
KPI: List of useful digital twin applications available.
7. Strengthen access to stable, long-term equity investors for European defence companies.
ID: IN-118
Lab: INNOVATION SPEED
Challenge: Limited knowledge and visibility between defence manufacturers and investors, alongside insufficient angel investor and venture capital appetite, restrict access to equity funding.
Lead actor: Defence SMEs and start-ups
Supporting actors: National governments, including finance and economy ministries; European Commission, particularly DG DEFIS
First step: Demonstrate national and state willingness to share defence investment risks through the grant, equity and guarantee mechanisms proposed in IN-117.
Timeframe: 12 months
KPI: Growth in EU defence venture capital funding; value of grants and equity deployed through the mechanisms proposed in IN-117.