NATO fund targets drone defence technologies as Russia-Ukraine war reshapes priorities

Russia's invasion of Ukraine is reshaping NATO's defence technology priorities, with counter-drone systems and space-based surveillance emerging as some of the alliance's most urgent capability gaps, the head of the NATO Innovation Fund told Reuters.

The 1 billion euro ($1.12 billion) fund, backed by 24 NATO nations, is expanding into Poland and looking for direct investments as it seeks to accelerate the development of dual-use technologies on NATO's eastern flank.

"We have seen drone incursions into countries here to an extent that is not being seen elsewhere," NIF President Ari Jonsson said.


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"That really creates a different mindset when it comes to threats that you can actually see."

The most pressing needs on NATO's eastern flank are technologies that can detect, track and neutralise drones as well as space-based intelligence and reconnaissance capabilities, he said.

Lessons from the war in Ukraine had significantly influenced the fund's investment strategy, Jonsson said.

Poland's high defence spending, openness to new technologies and strong engineering base have made it an attractive destination for investment, he said.

Jonsson said the fund was deliberately looking beyond traditional defence contractors for the next generation of defence technologies.

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To support that effort, the fund is opening a presence in Warsaw to speed up the identification and adoption of promising innovations.

"The NATO Innovation Fund is the first major fund, not originating from Poland, to establish a substantial presence in our country," Polish Finance Minister Andrzej Domanski said in a statement.