EU defence spending sparks boost for Irish tech products
Several Irish tech companies are reporting more interest in their products since Europe’s move to boost defence spending.
Spurred by the war in Ukraine and a US push for its allies to take greater responsibility for defending their countries, many European nations announced new defence spending targets and initiatives this year.
Limerick start-up Provizio, a safe-driving company which makes sensors that helps prevent accidents, said interest in what it develops has grown tenfold over the past year.
“It would be fair to say it’s increased an awful lot. Especially around the drone industry,” said Provizio CEO Barry Lunn.
“We build what we call the application layer, so there is always someone who sits on top of that.
“For us it’s about finding the right partners. I would say the interest from that side of things, especially across Europe, is probably times ten,” the founder said.
Ireland firms are not known for building tanks or heavy weapons, but artificial intelligence, radar and subsea surveillance are rapidly expanding sectors, particularly for companies that produce technology adaptable for both civilian and military sectors.
This year marked a pivotal year in Europe’s defence transformation, with new funding, fiscal flexibility and coordinated procurement.
In March this year, the European Union stepped up efforts “to protect its citizens and strengthen its defence” with an initiative that hopes to mobilise up to €800bn to bolster the bloc’s capabilities.
It includes means to allow members states to raise defence spending by up to 1.5% of GDP over four years without breaching deficit limits.
NATO nations also agreed to aim for 5% of GDP on defence by 2025, with a 3.5% allocation for core military needs and 1.5% for security-related areas.
“There’s a real awakening. I think as we know, through the geopolitical situation in the world, about how Europe needs to close the gap or step-up in providing the ability to defend its own infrastructure,” said CEO of Ubotica Fintan Buckley which develops space AI for maritime security.
Mr Buckley said Ubotica is seeing a “real demand” for its technology, which can provide a picture of what’s happening at sea.
“We have concerns now about what is going on in the open waters and, in particular, about the security of the communications infrastructure, the energy infrastructure that flows on the seabed.
“We know there are state actors who are actively monitoring and mapping what’s there. So, there’s been a huge interest in maritime situation awareness, and that’s where our technology comes to the fore,” he said.
Irish neutrality has also been a topic of discussion at Ubotica, according to the chief executive.
“We’ve had these debates even in our own company to make sure we’re quite clear that even though we are a defence company, we are very much on the security side,” Mr Buckley said.
“But I think we do have a responsibility as a state to participate in the security of Europe-wide infrastructure, and we can definitely do that without compromising our neutrality,” he added.
Irish businesses are hoping to take advantage of the growing defence market next week at a major defence and security trade show in the UK.
One of those exhibiting is Dublin simulation company VRAI.
“Ireland is never going to be a base for traditional defence industry. The industry isn’t here, there’s no public support for it. But what you do have is a really deep dual use technology base, and I think those Irish companies are now growing in confidence.
“So, they’re exhibiting at the likes of DSEI, which is probably the biggest event in this space happening next week in London,” said VRAI CEO Pat O’Connor.
Mr O’Connor, who is also involved in the Irish Defence and Security Association, said there is an innovation opportunity for Ireland.
“It’s important to remember that [with] European money, Ireland is a net contributor. Irish taxpayers are paying for that,” he said.
“I think there’s an increased awareness in society here that if we’re going to spend more on defence to protect our society, it’s important that that spend not only leaves the country, it also goes into our indigenous companies,” Mr O’Connor said.
“So that means jobs in SMEs, like ours, investment into university or in RND … And I think critically having sovereign capability,” he added.
A neutral country, Ireland has one of the lowest spending on defence in the European Union.
The National Development Plan has earmarked €1.7bn in capital spending for defence to strengthen capabilities.
Plans are under way to develop the country’s sonar and radar technology as well as hire additional Defence Forces members.
Ireland has also partially signed up to the EU’s new Security Action for Europe programme, or SAFE, which seeks to accelerate joint defence procurement across the bloc.
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