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Nico Woods
Defense Industry Advisor - Ukraine | CEO | Stanford MBA | Former Nuclear Submarine Officer
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April 30, 2025
Following our discussion on the Danish Model, let's examine how the Netherlands has developed its own distinctive approach to supporting Ukraine's defense industry while addressing similar challenges. #DefenseIndustry #UkraineSupport #SecurityCooperation #DefenseInnovation
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April 30, 2025
Discussion about this post
Profile picture of Todd Brown
Todd Brown
National Security, Security Cooperation SME, International Relations, Consultant
4 months ago
Great update Nico. Just like the Danish model there is potential gaps in sustainment of any new purchased widgets. Some gaps can be accounted for in contracting, but others require extensive institutional level planning and funding. Ukrainians as you know tend to provide equipment lists in the “consulting process” that do not account for sustainment, training/edcuation, infrastructure improvements ect. In essence, this process similiar to the Danish model is largely void of the DOTMLPFI wholistic planning approach. Additionally, and maybe a more critically important flaw, these relationships build long term dependency on external funding. When funding dries up, Ukraine typically does not have the resources nor has it planned for such a contingency. Lastly, the Dutch investment in its own defense industry (500M$ for Patriot replacement) is paltry given the requirements. A ball park figure for a new Patriot system alone is closer to 1B$. So the Dutch and Danish are in many ways robbing Peter to pay Paul - at least in the short term.
The Danish Model: A Transformative Approach for European Support to Ukraine's Defense Industry Leadership in defense cooperation means rethinking how we provide support. Denmark’s approach is setting a new standard that European partners can adopt as they fulfill their pledges for increased defense spending on Ukraine. The Danish Model is a financing mechanism where partner countries pay for weapons production in Ukraine through a reimbursement system—covering costs after they’ve been incurred. Unlike traditional military aid, this model allows Ukraine to prioritize their most needed items while offering the flexibility to the donor country to choose a capability that aligns with their foreign policies. This keeps decision-making in Ukraine's hands, ensuring resources go where they're needed most. What makes this model different? ✅ Efficiency – Funding is allocated based on real operational needs, not donor constraints. ✅ Self-Sufficiency – Strengthens Ukraine’s defense industry rather than just supplying finished weapons. ✅ Transparency – European partner nations conduct oversight to ensure funds are used effectively, with payment only made after the Ukrainian army has formally accepted the items and attested they meet operational and quality assurance standards. But this model isn’t just beneficial for Ukraine—it presents opportunities for the U.S. as well: 🔹 Direct Impact – Investments directly strengthen Ukraine's defense industrial capacity while addressing immediate needs. 🔹 Value Alignment – A proven framework for European partners to demonstrate their commitment to Ukraine's sovereignty. 🔹 Long-term Investment – Building Ukraine's defense industrial base creates a more resilient security partner integrated with European standards. This isn’t just a funding model—it’s a strategic shift toward sustainable defense partnerships. Stay tuned as I break down other models and explore what’s next in defense cooperation. #DefenseLeadership #SecurityStrategy #InternationalCooperation #DefenseInnovation
9 comments
March 20, 2025
Everyone's wrong about Ukraine's defense industry. While America debates, Europe's locking up tomorrow's capabilities. I just got back from Tech Force in UA's forum in Lviv and what I saw changed everything. Ukrainian startups are building weapons faster than Lockheed Martin, and this is not hyperbole. They push 16 product iterations while traditional, large defense prime contractors deliberate whether the time is suitable to enter Ukraine. Let’s look at the numbers:  ❗ €4 billion projected revenue (218% growth) 🏭 75% of companies didn't exist before 2022 ⏱️ 3 months to operational production (vs. 3-5 years in the West) Here's what floored me: These founders collect battlefield feedback DAILY. Their reality is that the customer dies if the product fails. No procurement officers. No PowerPoints. Just brutal, immediate truth. Teams of twenty-somethings outpacing billion-dollar R&D departments. They've replaced our entire development cycle with WhatsApp messages at the warfront. Meanwhile, Western defense contractors are still arguing about requirement documents. And to make it worse, export restrictions keep 55% of the Ukrainian defense company’s capacity idle. Self-imposed export restrictions are literally preventing innovation that could save allied lives because of bureaucracy. Denmark gets it. The UK gets it. Germany gets it. They all had booths soliciting for partnerships. My prediction: In 5 years, you'll either partner with Ukrainian defense tech or compete against someone who did. The future of defense isn't in Arlington boardrooms. It's in Ukrainian workshops. Agree or disagree? #Defense #Ukraine #Innovation #Technology #Future #TFUA
8 comments
September 4, 2025