The security situation is worsening, but digital innovations in defense are lacking. This is the key finding of a recent survey conducted by the startup initiative Get Started of the digital association Bitkom among 44 founders of Defensetech– and dual-use startups in Germany. Their verdict is clear: 71 percent of respondents rate Germany's defense capability as low, and a quarter even rate it as very low.
According to the startups, the main reasons for this are structural hurdles. The current procurement practices for military technologies are considered too slow and complex. All respondents therefore call for a significant streamlining of the processes. Small and young companies, which often provide innovative impulses, are left out due to the bureaucratic process.
Bitkom President Ralf Wintergerst says:
"If Germany is serious about the announced turning point, we must rely much more heavily on digital technologies in defense—from reconnaissance drones to AI for situation analysis and software-defined defense. Alongside the traditional defense industry, German tech startups must play a key role in the reorganization of the armed forces. DefTechs [Defensetech, editor's note] make the Bundeswehr more effective and also more attractive for the necessary young soldiers.”
Innovations need better framework conditions
In addition to procurement reform, the founders see other levers for improvement. For example, 84 percent support the establishment of real-world laboratories where new technologies can be tested under realistic conditions. The current regulatory density – for example, in the area of drone technology – is perceived as a hindrance to innovation.
Financing is also lacking. 84 percent also say public investment in defense technology is necessary to attract private investors. Other demands include improved networking, strategic flagship partnerships, and the bundling of existing Bundeswehr innovation initiatives.
Location satisfaction is correspondingly low. Only 39 percent of startups would establish a new business in Germany today. 59 percent would choose a different location – most frequently mentioned: the USA (25 percent), EU countries (16 percent), and other regions of the world (18 percent).
Another obstacle: social perception. 34 percent of founders feel their work is not valued in Germany. This also has consequences for their location decision. Wintergerst comments:
“Anyone who contributes to Germany’s defense capability with their startup deserves our public recognition.”
