Funding

    Dutch military innovation budget lands at about €950m, down from the nearly €2.9bn the coalition signalled

    The Netherlands will put about €950m into military innovation rather than the nearly €2.9bn expected after the coalition agreement, a gap of close to €2bn that comes down to which budget the 10% target applies to.

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    The Cap Table

    21 October 20263 min read
    Dutch military innovation budget lands at about €950m, down from the nearly €2.9bn the coalition signalled

    The Netherlands will put about €950m into military innovation rather than the nearly €2.9bn expected after the coalition agreement, a gap of close to €2bn that comes down to which budget the 10% target applies to.

    Credit: this report is based on a story first published by IO+. Read the original at ioplus.nl.

    According to IO+, the money set aside for military innovation has shrunk from nearly €2.9bn to about €950m. The difference is in the definition of the base on which the innovation share is calculated.

    How the gap opened

    In the coalition agreement published in February, D66, VVD and CDA agreed that, in the longer term, 10% of the defence budget would go to innovation. The Defence White Paper 2026 (Defensienota 2026) shows that the 10% applies only to the smaller budget for defence investment, not to the full defence budget. Applying the same percentage to the smaller base produces a much lower figure.

    The Ministry of Defence confirms the calculation, IO+ reports. The ministry does not explain why the wording in the coalition agreement differs from how it has been worked out in the white paper.

    Where the money is meant to go

    Among other plans, the government intends to set up a defence innovation agency. The body is modelled on DARPA, the US research agency, and is meant to help develop new military technologies.

    Industry view

    Some observers find the lower figure understandable. IO+ notes that the Dutch defence industry also faces immediate needs for more personnel and equipment.

    Hans Huigen, director of the Netherlands Industries for Defence and Security (NIDV), the trade body for the Dutch defence industry, said that 10% of the entire defence budget would be a substantial amount to spend on innovation when there are also large and urgent needs in other areas. In his view, the task is to meet the armed forces' immediate needs while continuing to invest in future military technology.

    The numbers at a glance

    • Expected for military innovation: nearly €2.9bn
    • Now allocated: about €950m
    • Target: 10% of the defence investment budget, according to the Defence White Paper 2026, rather than 10% of the full defence budget
    • Planned new body: a defence innovation agency modelled on DARPA

    Original source: IO+, "€2 Billion less for military innovation" Suggested image: official imagery from the Dutch Ministry of Defence (Defensie) website (defensie.nl)

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