May 8, 2026

Visibility, Not Technology, Is The Hidden Bottleneck In Transatlantic Defense Collaboration

European and U.S. industrial capability are surging, so why does it seem harder than ever to find the right partner?

Katrin Mayrhofer
Co-Founder & COO
ELSA Industry S.R.L.
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Marco Dorow/Bundeswehr

The transatlantic defense industrial base is among the most capable in the world. Across the United States and Europe, thousands of companies, from precision manufacturers to dual-use startups to research institutes are pushing the boundaries of what is technologically possible. Structurally, the two regions share many strengths: strong engineering cultures with deep scientific talent and a long history of coalition-based cooperation. But one difference seems to surprise Americans, who lament their own often disconnected system: Europe’s industrial landscape is far more fragmented. Dozens of national ecosystems, multiple languages, different procurement cultures and varying regulatory frameworks shape who gets seen and who does not.

That fragmentation creates a problem few talk about but everyone feels: a striking lack of operational visibility. Not marketing visibility, but the basic ability to answer four questions: Who exists? What can they do? How do I reach them? And maybe most importantly, how do I know they are legitimate?

Europe and the U.S. have more industrial capability than ever. New entrants are joining the defense and dual-use space at record speed. Supply chains are diversifying. Startups are building technologies that would have been unthinkable a decade ago. And yet, paradoxically, finding the right partner has never been harder.

As ecosystems grow, they become more complex, with more nodes, more specializations, more niche technologies and more cross-border dependencies. Traditional discovery methods like trade shows, personal networks, cold outreach and legacy procurement portals do not scale with that complexity.

The result is predictable.

A U.S. integrator searching for a European composite manufacturer spends weeks emailing outdated directories. A Romanian engineering firm with NATO-relevant capabilities remains invisible to American primes because it never exhibited at the ‘right’ trade show. And a German small manufacturer with world-class machining capacity is known only within a 200-kilometer radius.

The industrial base is rich in capability but poor in discoverability.

I have seen this play out again and again. A European small- or medium-sized enterprise with a highly specialized manufacturing capability, with exactly what a U.S. prototype program needs, will never be considered — not for reasons of quality or compliance, but simply because nobody knew it existed. By the time the company surfaces, the program has already chosen a less optimal supplier because that supplier was easier to find. This is not a failure of technology; it is a failure of discovery.

At its core, the challenge of discovery is a supply-chain problem. Modern defense supply chains are meant to work very differently from the legacy systems we inherited. They are supposed to be distributed instead of concentrated. They are redundant instead of fragile and modular instead of locked into linear dependencies. They are cross-border instead of siloed and fast instead of buried in bureaucracy. At least in theory they are all those things. In practice, none of it works without the foundational element of visibility.

Take the idea of distribution instead of concentration. When solutions are spread out, program managers cannot see the full landscape of suppliers, so they fall back on the same familiar names and fail to identify alternative sources. When governments lack a clear picture of industrial capacity, they cannot plan for surge production or crisis response, making even routine procurement timelines a challenge. Visibility is not a ‘nice to have.’ It is the backbone of supply chain resilience. Without it, ambitions for distributed, modern transatlantic production remain just that ... ambitions.

For startups and small companies, slow discovery is often existential. A dual-use startup may have a breakthrough sensor or a novel propulsion component, but if it takes six months to find the right integrator, the right research partner or the right manufacturing collaborator, the company loses momentum and ultimately loses funding. I have watched early stage teams with extraordinary technology fail not because the tech was inadequate but because they could not connect to the right partners fast enough. At that stage, speed is not a competitive advantage. Speed is survival.

Even for the companies that are identified, there are real asymmetries between the U.S. and Europe that present wholly different challenges. European companies often struggle to navigate the U.S. acquisition culture and to present their capabilities in a way that resonates with American buyers. They encounter a landscape dominated by primes. And then there is the paradox of presence: Without a U.S. footprint, even highly capable European SMEs can struggle to be taken seriously.

On the other side, U.S. companies face their own blind spots. Europe is not one market; it is a patchwork of national ecosystems, each with its own industrial strengths, procurement culture and regulatory rules. Finding the right R&D partners means navigating dozens of research institutes across multiple countries, languages and certification regimes. Both sides underestimate how hard it is for the other to be seen. But that is also where the opportunity lies: Transatlantic cooperation becomes far more powerful when both sides understand each other’s blind spots and learn how to bridge them.

We need to confront the reality that outdated prejudices still shape perceptions of capability, competence and reliability in some places. These assumptions often come from a different era and no longer reflect today’s reality. Yet they linger. Those mutual misconceptions slow cooperation before it begins. Anyone working transatlantically must be willing to leave old narratives behind and evaluate partners on current, demonstrable capabilities alone — and sometimes embrace the mindset of 'let’s give it a shot!'

Real collaboration is concrete, not ceremonial. It looks like a U.S. startup finding a European manufacturer that can scale a prototype into production. It looks like a European SME integrating into a U.S. supply chain for the first time to overcome regulatory hurdles together. It looks like cross-border R&D teams co-developing a dual-use technology that neither side could have built alone. It looks like a NATO innovation program uncovering a niche capability in a country it had not previously considered. These are real examples. I know because I’ve seen them happen, if too rarely or too slowly.

There are encouraging signs. There is stronger U.S.-E.U. cooperation on defense innovation through NATO DIANA, which is expanding its accelerator network with more dual-use startups entering transatlantic programs and growing political emphasis on distributed industrial capacity. The appetite is there and the capability is there, but the missing piece is still broader visibility. The people who should be working together often do not know the other exists, and because of that, the institutional connection points are weaker across the Atlantic.

Solving that problem by improving operational visibility is the quiet and structural revolution that will define the next decade of defense innovation.

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