The Power of Young, Private Companies: How They Are Shaping the Global Distribution of Defence Technology

Defence technology, once the dominion of stalwarts like BAE Systems, Lockheed Martin, and Thales, has seen a shift in power dynamics as younger, private companies rise. These companies are now making critical decisions about who gets access to cutting-edge battlefield technology. With global conflicts escalating and the technology becoming increasingly autonomous, questions about transparency and ethical distribution grow louder.

The advance of technology has opened up a new era where decisions in the defence sector are no longer confined to well-established military brands, with decades-long government relationships. These younger, nimble companies are navigating military procurement, selling extensive autonomous gear – from AI-enabled drones to surveillance systems – shaking up the traditional landscape of defence tech.

These companies, including Europe’s best-funded defence startup, German AI unicorn Helsing, make use of independent democracy indexes for potential deals, screening potential partners diligently. However, this approach is no more beyond scrutiny. Critics argue that merely working with democratic nations is not a sufficient marker of ethical business. The use of provided technology by bad actors within these nations or in unethical ways further muddies the waters. They suggest that companies should suffer financial penalties for not adhering to ‘idealistic marketing slogans’.

Company culture, too, plays a crucial role in this complicated, multi-faceted decision-making. The culture of internal debate among employees is emphasized, as confronting these grey area opportunities makes this not just a business decision, but one that has global security implications.

The rise of these newer companies represents a tectonic shift in the defence technology sector, but with power comes great responsibility. The question remains: are these private entities up for the task?