New institute to strengthen cooperation between Defence and the business community

On November 5, Defence has the National Institute for Defence Technology (NIDT) launched. The new institute aims to strengthen cooperation between Defence, the business community, and knowledge institutions, and to accelerate the development and application of new defence technology. For Dutch technology companies, this potentially offers new opportunities to contribute to the armed forces of the future.

Bridge between Defence and the business community

With the establishment of the NIDT, Defence aims to better utilize the innovative capacity of the Netherlands. Technology is developing at a rapid pace, and the way conflicts are conducted is also changing. According to Defence, the war in Ukraine and the increasing geopolitical tensions underscore the importance of technological innovation, production capacity, and strategic independence.

The NIDT must bridge the gap between the needs of Defence and the knowledge and innovative capacity of the Dutch market. Companies, startups, and knowledge institutions are challenged to jointly develop solutions for current and future security issues.

In addition, Defence aims not only to develop new technology, but above all to ensure that successful innovations are actually applied and can be produced on a larger scale in the Netherlands. This is intended to prevent Dutch innovations from ultimately being further developed or produced abroad.

Two tracks for defense innovation

The NIDT will work with two different innovation tracks:

• Accelerated development and scaling up: Technologies that are already relatively well developed are being taken further into practically applicable solutions for Defence. The goal is to make new capabilities available to the armed forces within a few years.
• Developing groundbreaking innovations: In addition, there will be room for innovative technologies with a greater risk, but also a potentially major impact on the future way of warfare. This involves innovation trajectories with a longer development period.

In its approach, Defence draws inspiration from, among others, the American DARPA (Defense Advanced Research Projects Agency), which is known for its role in the development of groundbreaking technologies. The NIDT must provide space for entrepreneurship, creativity, and collaboration, with the operational needs of Defence as the starting point.

Protection of the North Sea as the first challenge

The first concrete innovation challenge focuses on the 24/7 surveillance and protection of the North Sea. To this end, Defence is seeking innovative solutions together with the market to continuously guarantee the safety of Dutch waters.

Consider, for example, new sensor and surveillance systems, autonomous patrol capabilities, and technologies for collecting and processing information. Startups, established companies, knowledge institutions, and defense experts must join forces in this regard.

This first challenge demonstrates the breadth of technological expertise required by Defence. Not only traditional defence companies, but also companies from the civilian high-tech sector can contribute.

NIDT is launching under the banner of TNO.

To avoid having to wait for the full establishment of the institute, Defence has already started a temporary organization. This will be housed in an independent company within TNO Affiliates. TNO supports the start-up phase, while the NIDT must be able to independently shape projects and collaborations.

The intention is to gain experience with this working method in the coming period. The permanent organization is expected to become operational in 2028. According to reports by WNL, an annual budget of 350 million euros has been allocated for the institute starting in 2028.

What does this mean for FHI members?

The launch of the NIDT underscores the increasing importance of collaboration between Defence and the Dutch technology industry. It is precisely companies that originally develop their knowledge and products for civilian applications that can potentially contribute valuable technology and expertise for defence applications.

For FHI members, there are points of contact in various areas, such as:

• Electronics and embedded systems;
• Sensors, measurement and detection technology;
• Industrial automation and control technology;
• Communication and network technology;
• Cybersecurity and protection of digital and operational systems;
• Energy supply and energy storage;
• And more.

The NIDT can therefore be an interesting development for companies that want to apply their technological knowledge within the defense sector and contribute to strengthening the Dutch defense industry.

FHI closely monitors developments surrounding the NIDT and the collaboration between Defence and the Dutch business community. Within the FHI Defence Cluster, we bring technology companies together to exchange knowledge and experiences and to explore opportunities for collaboration with Defence and other parties.

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