First Deputy President of BGK: Resilience Capital – how investments in security change economic growth
The article discusses how investments in defense and security can positively influence economic growth in Europe and the U.S.
The article highlights the increasing trend of public and private investments directed towards startups and scale-ups developing defense and dual-use technologies across Europe and the United States. These technologies range from autonomous systems to advanced sensors and cloud solutions. The author argues that security, as a public good, operates on two fronts: it protects citizens from external threats while also fostering a collaborative environment for public procurement that enhances knowledge, competencies, and innovation in the economy. Thus, defense spending transforms from merely maintaining military capabilities to being an investment in resilience and recovery from economic shocks.
The critical issue now is not whether to allocate funds for defense, but how to structure those expenditures to strengthen resilience capital, reduce disruptive effects, and genuinely support the national economy. Properly designed security investments can help mitigate risks that threaten economic stability and can lead to a more robust economic framework that anticipates and adapts to changing circumstances. The focus is shifting from traditional notions of defense spending to a broader understanding of how these investments contribute to overall economic resiliency.
Furthermore, the conversation emphasizes the need for strategic planning in defense spending. By intelligently integrating defense expenditures into economic strategies, countries can enhance their adaptive capacity and ensure long-term benefits. This approach not only serves immediate security needs but also invests in future growth and innovation, ultimately facilitating a constructive link between national security and economic prosperity.