Delivering NATO First: The Industrial Test

As we approach the forthcoming NATO Industrial Advisory Group (NIAG) Plenary at NATO HQ on 25 – 26 February 2026, we need to accelerate a new model of partnership between government, the armed forces, and industry.

The much-anticipated Defence Investment Plan (DIP) will, of course, provide important clarity around the industrial requirements that underpin the United Kingdom’s future defence posture and a NATO First policy.

Any consideration of DIP priorities should begin with first principles. The armed forces exist either to be in action or to be ready for action. That means sustaining forces committed to operations, as well as holding others at readiness. Current UK commitments include 24/7 tasks such as the Continuous at Sea Nuclear Deterrent, and the defence of the homeland through aircraft on Quick Reaction Alert.

Under the government’s NATO First policy, forces held at readiness must contribute credibly to NATO’s deterrence posture and align with the Alliance’s NATO ‘Deterrence and Defence of the Euro-Atlantic Area’ family of plans. These plans drive capability requirements, which in turn underpin the Capability Targets agreed by nations. While classified, it requires little imagination to recognise these targets imply large forces, improved equipment, expanded industrial capacity, and therefore a sustained increase in funding.

The targets agreed reflect national ambition and national commitment; they are informed by affordability but not constrained by it. There should be stretch in the plan, deliberately setting challenges that require innovation from, and integration with, industry. As the adage goes, “when the money runs out, the thinking has to start”.

The Defence Production Action Plan (DPAP) addresses the industrial assumptions within Capability Targets and mitigates some of the associated risk. If delivered with urgency, it promises tangible gains in industrial effectiveness and efficiency through interoperability, standardisation, collective production planning, and improved supply chain resilience.

While there are undoubtedly efficiency gains to be won, defence spending overall should be treated as investment, not cost. Investment in the UK’s world-class, European-leading defence industry is one of the most effective ways to align national security with economic growth. This logic underpinned the UK’s 2018 Combat Air Strategy and the introduction of the National Value Framework, which balanced military capability with prosperity, influence, and sovereign freedom of action.

Delivering this value depends on moving beyond a transactional customer-supplier relationship. An integrated partnership between the government, armed forces, and industry enables innovation not only in technology but also in acquisition pace, commercial models, and risk sharing. To maximise scale and affordability, national industrial initiatives must align with those of our Allies. This is where the NIAG plays a critical role, convening delegations from Allied and partner nations to share insights and debate common industrial challenges.

The Rapid Adoption Action Plan (RAAP), endorsed at last year’s NATO Summit, is a good example. It seeks to accelerate the adoption of cutting-edge technologies across the Alliance, with the ambition of creating “the most robust innovation in the world”. However, this ambition will not be realised without a more explicit role for industry.

Too often, innovation is considered the sole preserve of new entrants to defence, yet this stereotype neglects the reality that powering defence innovation requires the full ecosystem: large and small companies, primes and SMEs, traditional and non-traditional suppliers. Only through collaboration can emerging technologies be industrialised at pace and translated into credible, deployable military capability.

The RAAP therefore requires further development if NATO and its member nations are to fully exploit the innovation inherent within industry. This presents the UK with both an imperative and an opportunity to turn Strategic Defence Review (SDR) intent into DIP action. We are at a moment that demands active leadership from UK industry and an innovative partnership with the Ministry of Defence (MOD).

The UK NIAG stands ready to contribute to this discussion and looks forward to engaging on the innovation challenge at the Plenary, and with colleagues in the ADS‑sponsored UK Industry NATO Forum (UKINF).

To deliver NATO First, industry needs a plan that is clear on priorities, honest about constraints, and ambitious about what can be delivered with sustained investment. Any strategy is only as credible as the plan that implements it.