The Politics and DV Engineering working group analyses current political developments in the defence sector. It provides independent facts and interpretation from the technological knowledge and experience of engineers.
The working group has the following observations on the coalition agreement 2017-2021. These have been compiled based on publicly available documents and defence technology knowledge and experience. The observations and questions based on them concern technological or related aspects only.
The coalition agreement is definitely a big step in the right direction for the defence of our country and our allies and a turning point after almost 25 years of cuts and dismantling of the armed forces. The great importance of replacing outdated equipment, new investments, innovation and advanced technology resonates throughout the text. However, some questions remain about the agreement.
Strengthen innovation power (page 33)
Defence could use smart ideas from SBIR projects or the startup incubator Yes!Delft (see budget 2018). However, this paragraph of the coalition agreement seems to underestimate the importance of large companies1 in the Dutch (Defence) industry. In most sectors of the economy, innovations arise precisely from startups on the periphery2 of large companies. They specify a need for technology and actually purchase the products. They also often take over production when large numbers of high-quality new products are involved. However, these aspects are not foreseen in the proposed policy.
Future-proof financing (Page 48 Par. 1)
Various interpretations of the term "future-proof financing" are possible. For example, integrated life-cycle cost calculations as required under the new DMP procedure, but also "innovative financing" as is common in many economic sectors and involving market players3.
Security strategy and defence memorandum (Page 48 - Par. 3)
The working group's impression is that an entirely new security strategy will be developed first, followed by a defence memorandum. This will take quite some time. Only then can the much-needed investment take place. Congestion due to implementation of several parallel projects will lead to further delays, both within Defence and in the technology sector and industry. It may be wise to initiate investments on which consensus already exists (or can be reached) in the coalition immediately and not wait for the defence bill.
For example: MQ-9 Reaper systems, run-up replacement submarines, BMD intercept capability, etc.
International cooperation (Page 48 - Par. 5 and 6)
The coalition agreement does not link to the rapid developments in defence cooperation in Europe. However, the Defence Action Plan, the European Defence Fund and France and Germany's plans to enforce cooperation under PESCO have major implications for our country. European harmonisation and synchronisation of plans reduces the Dutch decision-making and governance space.
Level playing field industry (Pag. 48 - Par. 7)
The call for a level playing field and room for European production and sales is at odds with the plan to interpret art. 346 more generously.
Cyber capacity and technology (Pag. 48 - Par. 9)
The announced substantial expansion of "cyber capacity and technology" seems to be exclusively about cyber. The great importance of other technological developments is also not indicated elsewhere. The working group perceives this as a major omission, because only the best high-quality technology in all domains will enable militaries to adequately cope with adversaries. For this, many other technologies besides cyber are important4. It does matter to include cyber aspects in any technology development in other domains.
Notes:
- These are so-called System houses, System integrators or OEMs . Dutch examples in the defence sector are Damen shipyards, Thales Netherlands, Stork/Fokker, DAF trucks. Successful "valleys" are usually concentrated around such a large company.
- There are important economic reasons for this: (1) it gives a startup a focus to concentrate on developing new technology; (2) it puts the financial risk outside the OEM, (3) the OEM can support the startup where desired, and control it in other areas such as certification, compliance, etc., (4) only with actual orders from the OEM can a startup obtain the necessary credit. (5) the OEM buys up successful startups.
- See among others: Future-proof financing of Defence investments
- Among others, advanced sensors, artificial intelligence, quantum computing, command & control, secure communication systems; unmanned systems (air, land, sea and underwater); advanced materials; biotechnology; sustainable technology; kinetic interceptors; advanced training facilities, etc.
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The Hague, 23 October 2017
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Disclaimer: The facts and opinions given are based on open sources and on the knowledge and experience of working group members.
This is not an official position of KIVI. The association accepts no liability for anything put forward by the working group or its members.
Photo: Ministry of Defence
