Innovation Ecosystems for Dual Use and Defence: The Place-Based Dimension of Europe’s Preparedness

• The Russian aggression against Ukraine and its global escalation through hybrid threats present a daily challenge that seeks to undermine the security and values that define Europe, from East to West across our continent. In her recent State of the Union address, President Von der Leyen delivered a candid portrayal of our situation: Europe is in a fight—a fight to maintain a continent that is whole and at peace and we must ensure our own defence and security, while gaining control over the technologies and energies that will drive our economies and prepare us for the challenges ahead.

• Europe's future hinges on its capacity to remain competitive and to strengthen the European Internal Market during these tumultuous times. The acceleration of the implementation of the EU Competitiveness Compass, which is grounded in innovation, decarbonisation, and ecurity, is essential. The imperative to advance European defence capabilities, bolster the European Technological and Defence Industrial Base, alongside the unprecedented levels of investment earmarked, position dual-use technologies as potent catalysts for competitiveness

• The competitiveness, security, and preparedness of Europe are inherently tied to the competitiveness, security, and preparedness of its regions, especially in the face of accelerating climate change and the sensible geographically conditioned nature of the geopolitics and climate threats. Tackling these complex challenges demands tools, mindsets, and approaches that differ from traditional ones. Our societies are confronted with systemic issues that necessitate sociotechnical transformations, calling for new, place-based innovation policies that strive for transformative, system-level change.

- Place-based innovation policies and regional ecosystems are pivotal for advancing dual-use technologies and enhancing Europe’s competitiveness and preparedness.

- The dual-use and defence industry is highly relevant for these territories, as it represents a high-technology ecosystem with strong value added, high productivity, quality job creation, and significant spillover effects across the regional economy.

- These activities contribute directly to European strategic autonomy, through infrastructure, the reinforcement of the European Defence Industrial and Technological Base, and integration into the European value chain. The role of ERDF resources managed by regions has been essential for designing customised policy portfolios.

- This is not only about developing new defence capabilities. It also requires new forms of governance, alongside the budgetary, administrative, and legal capacities to sustain them. Europe is now in the midst of an accelerated capacity-building process, shaped by new fiscal rules, evolving budgetary frameworks, updated regulations, fresh incentives, and reforms to procurement and state aids

- While defence policy remains a competence of Member States, it is increasingly recognised as a European public good, which justifies unprecedented resources are being mobilised. Despite the current security threat, this also represents a major opportunity for reindustrialisation. For this process to happen need to reach the territories where the industry, the human resources are placed and where the territorial administration can deploy ad hoc measures.

- Russia’s war of aggression against Ukraine has triggered a wave of innovation in warfare. Alongside major investments in satellites, fighter aircraft, and armoured vehicles, frugal innovations such as drone technology are emerging. Ukraine has become a laboratory of innovation, where AI is transforming traditional defence practices.

- The new defence value chains demand more than just established OEMs: they require fresh knowledge and disruptive solutions from start-ups. Reducing dependence on foreign technology is crucial. More investment in R&D and stronger support for start-ups is needed, as illustrated by initiatives such as EUDIS.

- Border regions in Europe, such as Andalusia (Spain) and Podkarpackie (Poland) with strong defence traditions and ambitions for reindustrialisation, now face a unique window of opportunity.

- Seizing this momentum requires cooperation. Europe will provide unprecedented resources for defence projects, but SMEs must be connected and actively collaborate—clusters will play a vital role in this.

- Skills remain a critical gap that must be filled.

- Above all, territories must be prepared to face any kind of threat and risk, as our societies have experienced over the past five years—whether from climate change, cyber risks, or the energy crisis. Preparedness can be a driver of competitiveness, and through a systemic and transformative approach we can address the complexity of today’s challenges. This can only be achieved by joining forces—vertically, from local to European level, and horizontally, by connecting policies and overcoming fragmentation and interterritorially, through cooperation among regions.

-The cooperation of the territories can contribute to the European Single Market, overcoming fragmentation and contribute to create European Added Value

- The Exploratory Research Activity REGDUALOSA y the forthcoming Experimentation Journey on Territorial Preparedness, to be launched by the JRC, represent significant steps towards exploring new policies and instruments for place-based and transformative innovation.