NATO fund targets drone defence technologies as Ukraine reshapes priorities


An engineer tests commands on the AI-powered Nexus system during flight tests with multiple drones in Katwijk aan Zee, Netherlands, September 30, 2026. REUTERS/Piroschka van de Wouw

Oct 13 (Reuters) - 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.

"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.

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.

($1 = 0.8953 euros)

(Reporting by Alicja Surdy and Marta Maciag; Editing by Matt Scuffham)

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