National Security Threats Drive Global Wave Of Innovation

National security concerns are rapidly becoming a defining influence on corporate innovation strategies worldwide, according to the seventh annual International Innovation Barometer published today.

The latest report by innovation funding consultancy Ayming finds that national security concerns, from geopolitical instability to supply chain vulnerabilities, have become a top priority. Over two-thirds (67%) of small, and 85% of large, businesses are now integrating national security risks into strategic planning, with almost a quarter (23%) of companies reporting that these considerations have a significant influence on strategy.

However, far from stifling creativity, these pressures are actively fuelling innovation. 81% of firms have effectively innovated in direct response to national security threats in the last five years, peaking at 91% in the Finance sector. The research points to a lasting trend, with nearly four-in-five (79%) businesses expecting to increase their investment in security-related innovation over the next two years.

Innovation: Risk And Reward

Cybersecurity tops the list of national security issues, which 54% of businesses cite as their biggest concern. However, it is also seen as the largest innovation opportunity (51%), reflecting a closer alignment between defensive priorities and commercial ambitions.

The rise of dual-use innovation further underscores this shift, with over a quarter (26%) of companies developing innovations that serve both civilian and defence purposes. Nearly half (48%) of the Defence sector cites pressure for immediate results as the biggest barrier (48%) to innovation, suggesting that civilian industries will continue to drive strategic defence value.

Njy Rios, Partner at Ayming UK, comments: “National security risks have shifted from a specialist concern to a core driver of innovation. The urgent need to protect infrastructure, supply chains, and digital systems is encouraging businesses to align R&D priorities with security goals, shaping a new era where innovation is measured not only by commercial impact but also by its contribution to stability and resilience."

“As this trend accelerates, we expect to see unconventional partnerships emerge, with industries that once had little to do with defence now playing a direct role in it – in turn boosting their own performance.”

Innovation: Enduring And Evolving

Despite the volatile macroeconomic landscape, innovation remains a strategic imperative. The International Innovation Barometer finds that:

• ‘Enhancing operational efficiency’ is the top priority for businesses, followed by ‘driving innovation’ and ‘cost reduction’.

• 96% of businesses now have a dedicated innovation team, up from 78% last year.

• AI has become the top innovation priority, overtaking last year’s ‘new tools and technology,’ indicating its divergence from general technology.

• Talent shortages have emerged as the number one barrier to innovation, with the Energy sector hardest hit.

Rios continues: “Even amid ongoing funding challenges and near-static budgets, the meteoric rise in dedicated innovation teams shows that businesses are prioritising innovation like never before."

"At the forefront of this shift is AI – no longer just a subset of ‘technology improvements,’ but a distinct and dominant focus in its own right, driving speed, efficiency and strategic advantage.”