Portuguese defense industry seeks to triple participation in EU projects

The Portuguese defense industry is seeking to significantly expand its presence within major European military projects. José Neves, president of AED Cluster Portugal, stated that the sector aims to increase the number of participating national entities from approximately thirty to nearly one hundred. This ambition aligns with the European Union’s efforts to bolster military investment and develop strategic capabilities amid geopolitical instability.

Currently, Portugal participates in several projects funded by the European Defence Fund, including Decoder (drones and anti-drone systems), IMSD (maritime and seabed defense), and EU-FIAMD (air and anti-missile defense). The broader European package involves 281 billion euros and covers critical areas such as space, maritime security, and eastern flank reinforcement.

To achieve this growth, there is a growing emphasis on integrating startups and small-to-medium enterprises (SMEs) into the defense value chain. While large industrial conglomerates remain the backbone of production and complex system integration, smaller companies are increasingly vital for rapid innovation in specialized fields. Key areas for these smaller players include artificial intelligence, drones, cybersecurity, and quantum computing. A symbiotic model is proposed where large prime companies act as anchors, providing the scale and market access necessary for startups to deploy their dual-use technologies.