The New Zealand government unveils a comprehensive Defence Industry Strategy, introducing a $100-300 million Technology Accelerator fund and expanding local industry partnerships to strengthen national security and boost exports amid global tensions.
The New Zealand government has unveiled a comprehensive Defence Industry Strategy aimed at strengthening the local defence sector and fostering closer collaboration between the Defence Force and its suppliers. This initiati...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
ve is part of a wider effort to implement the 2025 Defence Capability Plan, which outlines a substantial investment of $12 billion over the next four years and aims to raise defence spending to more than 2 percent of GDP within the next eight years.
At the heart of the strategy is a clear signal from Defence to its existing industrial base—currently comprising around 800 suppliers—that it expects more integrated partnerships to deliver defence capabilities more quickly and with greater resilience. This approach seeks to respond effectively to the shifting strategic environment and global tensions that pose risks to supply chains, urging a focus on building domestic supply resilience.
A key element of the Defence Industry Strategy is the introduction of a “Technology Accelerator,” a fund set between $100 million and $300 million, designed to foster innovation by partnering the Defence Force with New Zealand’s advanced technology sector. The initiative aims to support the development of cutting-edge technologies that can be leveraged by the New Zealand Defence Force (NZDF) and also hold export potential. Defence Minister Judith Collins emphasised the country’s existing talent and innovative potential, stating that the strategy clears the way for greater innovation and collaboration.
Prime suppliers to the Defence Force will now be required to develop and submit detailed New Zealand Industry Capability Plans. These plans must outline how they intend to collaborate with local businesses to deliver and sustain defence capabilities. The strategy also encourages the inclusion of small and medium enterprises, allowing them opportunities to take on more significant roles as “Thin Primes,” enabling a broader industrial base engagement.
The strategy also fosters closer regional integration, particularly with Australia, reflecting a wider vision of cooperation and shared capability development within the Pacific region. By promoting joint ventures and shared procurement, the government hopes to build a more robust and interconnected defence supply chain.
Industry voices have welcomed the strategy’s potential. Sam Vye, CEO of Tauranga-based drone manufacturer SYOS Aerospace, praised the Technology Accelerator initiative. He highlighted the advantages of emerging technologies such as uncrewed vehicles (drones), which offer cost-effective capabilities and significant operational improvements through robotics, artificial intelligence, computer vision, and swarming techniques. Vye sees the strategy as pivotal in building New Zealand’s defence technology ecosystem to support both national security and export growth.
The government’s broader economic agenda underpins this defence strategy, aiming to optimise the role of New Zealand businesses in the defence industrial base while encouraging export opportunities and showcasing Kiwi innovations to international markets. The Defence Industry Strategy also sets a framework for ongoing biennial updates to the Defence Capability Plan, with the next scheduled release in 2027, ensuring adaptive management aligned with evolving defence needs and technological advancements.
Ultimately, this strategy represents a concerted effort to build a strong, resilient, and innovative defence sector in New Zealand. It reflects recognition of the increasingly complex global security environment and the need for domestic capability and supply chain robustness, coupled with enhanced cooperation with international partners. As this plan unfolds, both the Defence Force and local industry are positioned for a closer, more productive partnership that could reshape New Zealand’s defence landscape for years to come.
Source: Noah Wire Services
