The Defense Industry’s Hidden Strength: Why Europe Should Embrace Its ‘NASA Moment’

The European defense industry has long been associated with controversy, its reputation marred by its connection to war and militarism. However, as the continent grapples with economic stagnation and declining manufacturing prowess, a more nuanced narrative is emerging.

Beneath the surface of defense spending lies a wealth of innovation and technological advancements that could have far-reaching benefits for Europe’s economy and society. In recent years, defense expenditure has surged in Europe, driven by concerns over security and shifting global power dynamics. The UK’s defense turnover reached £36.5 billion ($49.6 billion) in 2026, a 42% increase since 2022, while the EU’s defense turnover is now running at €148 billion ($172.3 billion) annually, up 60% since 2021.

This investment has sparked a revival of engineering and manufacturing capabilities, with world-leading defense companies based in the UK, France, and Germany. However, the defense industry’s potential extends far beyond its traditional role as a supplier of military hardware. By harnessing the expertise and resources of this sector, Europe can unlock significant economic benefits and drive growth in areas such as healthcare, energy, and transportation.

The TAG Alliance, launched by the UK last year, is a prime example of how defense innovation can be leveraged to drive commercial success. This initiative demonstrates that the defense industry’s capabilities can be adapted for civilian use, driving economic growth and creating new opportunities.

From Quakeproof Buildings to Rechargeable Batteries

The Apollo missions are often cited as a catalyst for civilian innovation, with technologies such as rechargeable hearing-aid batteries and quakeproof buildings finding their way into everyday life. Similarly, the European defense industry has produced numerous spin-offs from defense research that have significant potential for civilian use.

For instance, BAE Systems’ Rho-C developed ultrasound technology originally designed for submarines, which is now being used to support oil and gas operations. Stirling X’s drone technology, backed by Gallos Technologies, a defense fund, can map critical infrastructure such as national power grids.

Embracing the Dual-Use Potential

France’s Agence Innovation Defense encourages the development of dual-use technologies, while NATO’s DIANA program does a similar job. By promoting collaboration between defense and civilian sectors, these initiatives demonstrate that innovation is not mutually exclusive with military objectives.

The US defense sector has already demonstrated its ability to drive long-term economic benefits through funding for innovative projects, such as Google. Europe would do well to follow this model, investing more confidently in the dual-use effects of a revitalized defense industry.

The Economic Imperative

As Europe struggles with stagnant growth and declining manufacturing capabilities, it is time to rethink its approach to defense spending. Rather than simply viewing it as an expense, policymakers should recognize the potential for innovation and economic benefits that lies within this sector.

By embracing its “NASA moment,” Europe can unlock a new era of cooperation between defense and civilian sectors, driving growth and revitalizing its manufacturing base. It is time to look beyond the controversies surrounding defense spending and acknowledge the hidden strength that lies beneath – a strength that could have far-reaching implications for Europe’s economic future.

In doing so, the continent will not only secure its borders but also pave the way for a more innovative, prosperous, and resilient society – one that is equipped to face the challenges of an increasingly complex world.