The article addresses the possibility of startups and small and medium enterprises (SMEs) entering the defense sector, traditionally dominated by large industrial conglomerates, called "prime" companies. Although these larger companies continue to be the backbone of the defense industrial base, smaller companies can play a decisive role in the value chain, especially in areas such as artificial intelligence, drones, cybersecurity, and quantum computing, with dual-use technologies.
The proposed model is based on a symbiotic relationship between large and small companies: "prime" companies function as system anchors, being able to incorporate and scale solutions developed by startups, while these find in large groups partners with the capacity to bring their technologies to the defense market. Large international companies can also function as entry doors to international value chains.
However, entering the sector faces significant difficulties, including licensing, certifications, and technical and security requirements. The critical bottleneck, according to the article, is access to funding. A 2024 European Commission study identified that European defense SMEs face an equity funding deficit of approximately 2 billion euros on average, and that approximately 40% consider access to funding difficult or very difficult.
At the European level, support programs are being implemented such as AGILE, EUDIS, and the European Innovation Council, which is now funding dual-use technologies with grants of up to 2.5 million euros and equity investments of up to 30 million euros per company. The article highlights that Portugal has favorable conditions to take advantage of this opportunity, including industrial capabilities with dual-use potential, engineering talent, and a growing technological innovation ecosystem.
