Governments worldwide are ramping up defence budgets in a new rearmament drive, responding to heightened geopolitical tensions. This surge in military spending is a direct reaction to perceived threats and regional conflicts, pushing national security to the forefront of policy agendas.

However, the promised economic stimulus and innovation benefits are far less certain. Historically, wartime production booms can create jobs, but peacetime defence spending often yields limited spillover into the broader civilian economy or cutting-edge technology sectors.

The real test lies in whether this spending can foster genuine dual-use technologies. Markets will watch for tangible returns on investment, as taxpayers demand more than just military hardware from these expanded budgets.