Capital for security: PFR strengthens Poland's defence industry and dual-use technologies

Poland’s defence sector is being presented not only as a military necessity, but also as an opportunity for economic development. Six state-linked institutions, including PFR, BGK, PAIH, KUKE, PARP and ARP, will appear together for the first time at MSPO under the Team Poland brand.

They plan to showcase companies that have expanded internationally with support in defence, space technology, cybersecurity and dual-use products. The Polish Development Fund, or PFR, has made economic and defence resilience a long-term priority, alongside innovation and the country’s technological autonomy.

The article points to the scale of Poland’s effort. In 2026, Poland is expected to allocate about 4.8% of GDP to defence, proportionally the highest share in NATO, with more than half directed to equipment. The focus therefore extends beyond buying modern weapons. It also includes domestic technological skills, production capacity, access to capital and companies able to develop and scale strategically important solutions.

These priorities underpin PFR Deep Tech, a fund-of-funds programme announced in May 2025 under the auspices of Finance Minister Andrzej Domański. PFR is providing 300 million złoty, while private and institutional investors are expected to contribute at least the same amount. PFR Ventures cannot provide more than half of a fund’s capitalisation, meaning each złoty from the programme must mobilise at least one złoty from other sources.

The money is intended to reach 50 to 80 advanced-technology projects through three to five specialist venture-capital funds. About 130 million złoty has gone to Expeditions II and 65 million złoty to Balnord, bringing publicly announced allocations to 195 million złoty, or 65% of PFR Deep Tech’s budget. The article says Expeditions II completed fundraising with 197 million euros in July 2026, while Balnord had 300 million złoty. Balnord has invested in Microamp, a Polish company developing advanced 5G communications systems for industry and defence.