Defence and Industry: Building capability through partnership
According to NZDIA Board, a resilient defence ecosystem requires a balance of sovereign capability, international partnerships, innovation, and operational relevance.
As Line of Defence marks its 10th anniversary, it is worth reflecting not only on how far the defence and security conversation has evolved in New Zealand, but also on how much the global strategic environment has changed.
The pace of technological development, the complexity of modern conflict, and the lessons emerging from current global events are reshaping how nations think about capability, resilience, and preparedness.
A decade ago, defence capability discussions were often centred on long-term platforms, deliberate acquisition cycles, and relatively stable strategic assumptions. Today, the environment is far more dynamic. Capability is increasingly defined not only by what is acquired, but by how quickly systems can be integrated, adapted, and operationalised.
The war in Ukraine has highlighted this reality starkly. One of the clearest lessons has been the ability of smaller nations to rapidly adopt and adapt emerging technologies, particularly uncrewed and autonomous systems, through close collaboration between Defence, industry, and innovators, often at great speed.
“Defence, Government, and industry are increasingly aligned around a common objective: delivering modern, relevant capability that strengthens national resilience and focuses support on those who serve.“
For countries such as New Zealand, those lessons matter. With limited resources, we need to be punching above our weight and making smart, agile decisions about capability.
Encouragingly, there is growing recognition here that future capability development must place greater emphasis on agility, experimentation, resilience, and partnership.
With the Government’s Defence Capability Plan 2025 committing approximately $12 billion of investment over the next four years, including around $9 billion in new spending, New Zealand is entering one of the most significant periods of defence capability investment in decades.
This plan, the accompanying Industry Engagement Statement, and the recently released Strategic Industrial Base Statement collectively represent an important and positive step forward in that regard.
Together, they provide not only strategic direction and investment intent, but also a clear signal that Government and Defence see value in deeper engagement with New Zealand industry, innovation ecosystems, and sovereign capability development.
The NZDIA has long served as a principal conduit between industry, the New Zealand Defence Force, and the Ministry of Defence. Founded in 1993, the NZDIA has, for more than three decades, helped connect industry with the New Zealand Defence Force and the Ministry of Defence.
Established during a period when New Zealand was seeking to grow local participation in major defence programmes such as the ANZAC frigate project, the NZDIA evolved from earlier initiatives including the Defence Technologies Joint Action Group (DTJAG). Since then, our organisation has grown exponentially, now numbering almost 200 companies, located across New Zealand and internationally.
Today, we represent a diverse membership ranging from small and medium-sized enterprises through to major international primes, spanning defence, security, cybersecurity, advanced manufacturing, autonomous systems, and emerging technologies.
Beyond advocacy, the Association plays a practical and pivotal role in connecting industry and government, supporting procurement engagement, fostering innovation, and creating opportunities for collaboration through conferences, workshops, demonstrations, and strategic engagement events. As New Zealand’s strategic environment continues to evolve, NZDIA’s role as a trusted and constructive bridge between Defence and industry has become more important than ever.
A shared opportunity
Modern defence capability is no longer built solely through traditional procurement models. Increasingly, it depends on connected ecosystems involving Defence, industry, academia, innovators, and international partners working together to solve operational problems quickly and effectively.
Importantly, there is growing evidence that this collaborative approach is gaining momentum in New Zealand.
The Strategic Industrial Base Statement for Uncrewed Systems and Uncrewed Counter Systems highlights the importance of:
- resilient supply chains
- modular and open architectures
- rapid experimentation
- early engagement with industry
- iterative development
- and accelerated pathways from concept to operational capability.
These are important shifts in emphasis.
They recognise that technology cycles now move faster than traditional acquisition models were originally designed to accommodate, particularly in areas such as autonomy, robotics, sensors, electronic warfare, data fusion, and counter-uncrewed capability.
At the same time, the statement also reflects confidence in New Zealand industry’s ability to contribute meaningfully to these challenges.
That confidence is justified.
Across a range of sectors, New Zealand companies are already delivering advanced technologies and operational capability to domestic agencies, international partners, and Five Eyes customers. In many cases, these are not theoretical or developmental concepts, but proven systems, services, and technologies being used in demanding operational environments.
New Zealand’s defence industry may be relatively small by international standards, but it is increasingly agile, innovative, and globally connected.
Building a more connected defence ecosystem
The opportunity now is to continue strengthening the connections between Defence and industry in practical and meaningful ways.
Importantly, the Defence Capability Plan also introduces concepts such as “Thin Primes”, intended to encourage more agile delivery models and create greater opportunities for New Zealand small and medium-sized enterprises to participate meaningfully in capability delivery and sustainment.
Coupled with the growing emphasis on New Zealand Industry Capability Plans and the Government Procurement Rules, there is now a genuine opportunity to operationalise industrial participation expectations in a way that supports the development of sovereign capability, local innovation, and long-term industry growth.
This is where the NZDIA has an important role to play.
The NZDIA exists to help connect capability, operational need, innovation, and decision-makers across the broader defence and security ecosystem. Its role is not simply advocacy, but facilitation, helping create the conditions for collaboration, understanding, and practical delivery.
Recent initiatives have demonstrated the value of that approach.
Events such as the Uncrewed Systems Day, held in partnership with industry and attended by senior Defence and Government representatives, provided an opportunity for emerging technologies to be seen, discussed, and evaluated directly by operators and decision-makers in a practical environment.
Similarly, our annual Space Technology & Innovation events have focused on not only highlighting New Zealand’s capabilities in this developing sector, but also encouraging engagement and collaboration between the government agencies, industry and academia.
These NZDIA-led events are well known for bringing together the New Zealand innovators and technology providers, encouraging extensive networking and enabling further development.
These engagements matter because they move conversations beyond theory and into real-world understanding.
Equally important is the work currently underway to develop a more comprehensive understanding of New Zealand’s sovereign industrial capability.
The creation of a “single source of truth” around New Zealand capability across uncrewed systems, counter-uncrewed systems, sensors, autonomy, integration, and enabling technologies has the potential to significantly improve visibility and understanding across the sector. For the first time, Defence and government agencies will be able to better understand the depth, breadth, and maturity of capability already present within New Zealand industry.
That benefits both Defence and industry by creating greater awareness of the capabilities, expertise, and innovation already present within New Zealand. For industry, it creates clearer pathways for engagement and collaboration.
Most importantly, it helps reduce friction, improve understanding, and support faster, better-informed decision-making.
Accelerating innovation through partnership
One of the most encouraging developments in recent months has been the growing focus on experimentation, innovation, and accelerated capability development.
Mechanisms such as the Government’s new Technology Accelerator provide exciting opportunities for Defence, industry, researchers, and innovators to work together more closely to test ideas, reduce risk, and rapidly explore emerging technologies.
This reflects an increasingly practical understanding that innovation rarely occurs in isolation.
The best outcomes are often achieved when operators, engineers, researchers, and industry partners work together early in the process, iterating and refining capability through experimentation and operational feedback.
New Zealand is well positioned to embrace this model.
Our scale, agility, and close relationships across sectors can be genuine advantages. We have the ability to bring together decision-makers, operators, and innovators quickly and pragmatically in ways that larger countries sometimes struggle to achieve.
That creates opportunities not only to strengthen domestic capability, but also to contribute meaningfully to allied partnerships and international supply chains.
Importantly, the Strategic Industrial Base Statement also recognises that sovereign capability does not necessarily mean building every platform entirely within New Zealand.
Rather, it means understanding where New Zealand can add the greatest value, whether through sustainment, integration, payloads, sensors, command and control systems, advanced manufacturing, software, or operational innovation, while working alongside trusted international partners.
That is a pragmatic and mature approach.
Building resilience for the future
Resilience is now becoming a central consideration in defence capability planning worldwide.
Recent global events have demonstrated the importance of secure supply chains, trusted partnerships, diversified suppliers, and the ability to adapt quickly when circumstances change.
New Zealand is not immune from those pressures.
Building a resilient defence ecosystem therefore requires a balanced approach that combines sovereign capability, international partnerships, innovation, and operational relevance.
The Strategic Industrial Base Statement, the Defence Capability Plan, and the Industry Engagement Statement collectively provide a strong foundation for that future direction.
The opportunity now is to continue building on that momentum through practical collaboration and a shared focus on outcomes.
Looking ahead
The next decade presents a significant opportunity for New Zealand.
Defence, Government, and industry are increasingly aligned around a common objective: delivering modern, relevant capability that strengthens national resilience and focuses support on those who serve.
The foundations are now being put in place. The challenge, and the opportunity, is to continue building trusted partnerships, embracing innovation, and turning strategic intent into practical operational outcomes.
The NZDIA can help facilitate those connections, support engagement, and ensure that collaboration between Defence and industry remains constructive, informed, and effective.
If New Zealand continues on this path, it has the opportunity not only to strengthen its own defence capability, but also to grow a resilient, innovative, and internationally connected defence industry sector that contributes meaningfully to both national security and economic growth.
The momentum is building.
The NZDIA is leaning in and stands ready to support constructive collaboration between Government, NZDF, MoD, academia, and industry. Our shared objective is straightforward: to help deliver practical capability that improves resilience, strengthens national security, and better supports the men and women who serve.
By continuing to work together, New Zealand has the opportunity to build not only a more capable and resilient defence force, but also a stronger and more internationally connected defence industry sector that contributes meaningfully to both security and economic growth.
