Defense Spending as an Opportunity for the Polish Economy – Łukasiewicz Center Report

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Strategic investments in the domestic defense industry can support the development of technology, innovation, and the economy in Poland. Experts from academia, the military, and the defense industry discussed the opportunities and risks associated with this topic along the presentation of the report “Increased National Defense Spending – An Opportunity to Improve the Innovation of the Polish Economy?” 

Following 2022, Poland was compelled to increase its defense spending. The funds allocated for this purpose have doubled to over 4% of the national GDP. Maintaining this pace means that over the next decade, approximately PLN 1.8 trillion will be allocated to defense. Even if just 5% of this amount is invested in research and development, we can expect a significant stimulus for the economy. Currently, however, a substantial portion of these funds is spent abroad. Poland is the largest importer of armaments in NATO. It is time to redirect more resources to the domestic industry, emphasized Hubert Cichocki, CEO of the Łukasiewicz Research Network. 
 
Meanwhile, the potential of the domestic defense industry and research institutes remains largely untapped. According to studies, increasing the role of the Polish defense industry in fulfilling national defense contracts and supporting collaboration between the defense sector and Polish scientific institutions will positively impact the rate of innovation in the Polish economy. 
 
Scientific studies and numerous historical examples confirm that R&D programs in the defense sector also lead to innovations in the civilian sector. The Łukasiewicz report is another contribution to the debate on the role of national science in building a modern and secure state. Its recommendations align with the new strategy of the Network, which focuses on defense and security. 
 
In the United States, for every 10 dollars spent on defense, one dollar is invested in research and development. In France, it is 50 euro cents per 10 euros. In Poland, the share of R&D in defense spending is currently only 2.5%. To reach the French level, we would need to double this ratio, which would mean an additional PLN 90 billion working towards the innovation of domestic entities over the next 10 years. 

The debate on the report “Increased National Defense Spending – An Opportunity to Improve the Innovation of the Polish Economy?” was held on June 10 at the Polish Press Agency (PAP) media room. Participants included retired General Mieczysław Cieniuch – former Polish ambassador to Turkey, Witold Orłowski, PhD – economist and advisor at PwC, Wojciech Dąbrowski – President of the Polish Development Holding, Hubert Cichocki – CEO of the Łukasiewicz Research Network, and Marcin Wroński, PhD– Chief Economist at the Łukasiewicz Research Network and author of the report. The discussion was moderated by Jakub Machaj, editor at PAP. 

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