Portugal is committed to military and technological modernization as a driver of economic development. But, faced with aging and a lack of personnel in the Armed Forces, the country faces a paradox: how will the future of national defense be guaranteed?
Defense as an economic engine
On October 21st, the Navy Academy hosted a series of conferences on the Economy of the Sea, this year under the theme: Defense industries in the economy of the sea.
The cycle, moderated by the Deputy Director of the newspaper Diário de Notícia, Valentina Marcelino, brought together representatives from the industry and public administration: the CEO of Thales Edisoft Portugal, Engineer Sérgio Barbedo, the President of the Board of Directors of AED Cluster of Portugal, Engineer José Salvado Neves, the President of the Board of Directors of Arsenal do Alfeite SA, Engineer Bernardo Soares, and the President of IdD – Portugal Defense, Dr. Ricardo Pinheiro Alves.
Under debate were the opportunities and risks of a sector that asserts itself as a strategic pillar of the national economy, generating innovation, exports and qualified employment.
Over the last two decades, Portugal has experienced a profound transformation in its defense industry. The connection between the State, the Armed Forces, universities and the private sector formed an axis of cooperation that seeks to modernize military capabilities and stimulate technological and industrial development. Despite budgetary constraints and economic crises, the country rebuilt an export-oriented industrial fabric and consolidated a new vision: defense as a strategic investment, and not mere public expenditure.
Three-level planning
Among the central ideas of the meeting, the need for joint planning between the State, industry and the Armed Forces stood out. This “TRIPLE HELIX” model is seen as essential to ensuring that defense programs translate into tangible economic value. For years, Portugal advanced with acquisitions without an integrated strategy — without foreseeing the equipment life cycle, maintenance or reintegration of industrial value.
Today, defense is thought of as part of a circular economy, where each acquisition boosts national production. As one of the speakers highlighted, “to buy abroad you need to sell something back — be it knowledge, technology or products”.
A new industrial generation
In just twenty years, the country went from a residual industry to a diversified and competitive defense sector. Portuguese engineering and technology companies have developed excellent skills in communications, maritime surveillance, cyber defense and integration of complex systems.
European programs such as the European Defense Fund and national industrial counterpart policies have supported this growth. The presence of giants such as Thales, Airbus and Embraer reinforced the national ecosystem, creating engineering and technological export centers in Portuguese territory.
Trust and transparency
Despite the growing dynamism, public procurement continues to be one of the critical points. There is a lack of effective penalty and accountability mechanisms, which undermines trust in the system.
Experts argue that transparency, rigor and continuity are essential conditions to ensure that public investments in defense result in real benefits for the economy and the country.
Today, however, the relationship between industry and the Armed Forces is closer than ever, with continuous dialogue and technical cooperation. It is a sign of institutional maturity and that Portugal is beginning to consolidate a true defense community.
Human capital and innovation
The shortage of qualified human resources is one of the sector’s biggest challenges. The lack of engineers, technicians and cybersecurity experts threatens to slow the pace of modernization.
Initiatives such as the Vocationmakers program and partnerships with Ciência Viva bring industry closer to universities and awaken scientific vocations, showing that defense is also a driver of knowledge, talent and social innovation.
Integrated defense economy
Cooperation between the Ministries of Defense and Economy was another highlight. The example of the Netherlands shows that defense decisions are only approved after evaluating their economic impacts. With national investment approaching 5% of GDP, Portugal faces the opportunity to consolidate an integrated defense economy — sustainable, generating innovation and promoting qualified employment.
Social responsibility and local impact
Investment in defense can also have a social and educational impact. Thales and other international companies promote scientific literacy programs, school visits and internships, bringing young people closer to engineering and emerging technologies. But the most relevant contribution continues to be qualified employment and talent retention. Each job created is a direct investment in the country’s technological and economic future.
Final reflection
Portugal is preparing to invest like never before in defense, but its Armed Forces are aging and losing attractiveness. The average age of military personnel exceeds what we call young age, and recruitment has difficulty keeping up with the pace of technological modernization. While new equipment and systems are acquired, the human capital that must operate and sustain them is decreasing.
This paradox raises an inevitable reflection: how will the future of national defense be guaranteed? More than a budgetary dilemma, this is a national challenge. The future of Portuguese defense will also depend on the ability to renew the commitment between the Nation and its military — those who, with competence and dedication, ensure the country’s sovereignty and security.