Written by Dean Rosenfield, CEO at Nova Systems
The word sovereignty has moved from the theoretical to the immediate.
Not as an abstract idea.
Not as a policy slogan.
But as a practical question confronting governments, Defence forces—and industry—every day.
Can we act when it matters most?
Can we sustain ourselves under pressure?
And can we do so at the speed the strategic environment now demands?
The 2026 National Defence Strategy is unambiguous
It describes our times as the most challenging strategic circumstances Australia has faced since the Second World War, with shorter warning times, greater uncertainty, and far less tolerance for delay or fragility in our national systems.
That assessment changes the nature of sovereignty.
Sovereignty today is not simply about ownership.... It is about availability, authority, adaptability, and endurance—when systems are stressed.
Today, I want to talk about sovereignty in a time of need from a Defence industry perspective—and why Australia must prepare now, not later—drawing on three things:
What the 2026 National Defence Strategy now explicitly requires of industry
Lessons I learned from working in Sweden as part of their Sovereign Defence Industry before and after the Ukraine invasion
And insights from Australian strategists who challenge us to think more seriously about preparedness and grand strategy
Because together they reinforce a simple truth:
If we want sovereign outcomes in crisis, we must build sovereign systems in peacetime.
Reframing Sovereignty – From Ownership to Preparedness
Historically, sovereignty in defence has often been framed around where things are built.
That still matters.
But it is no longer sufficient.
Modern sovereignty rests on four foundations:
Access – can we obtain what we need when global supply chains fracture?
Authority – can Australia decide how systems are used, modified and sustained?
Adaptability – can capabilities evolve faster than threats and contexts change?
Endurance – can the system hold under sustained pressure, not just initial shock?
The National Defence Strategy is very deliberate here. Self‑reliance does not mean isolation or self‑sufficiency. It means the ability to act independently when required, while remaining deeply connected to allies and partners.
From an industry perspective that reframing matters. Sovereignty is not primarily a procurement question. It is a system‑design challenge.
Lessons from Sweden – Living Total Defence
I want to turn now to Sweden. I spent time living and working there as part of the Saab Group Management Team, during a period when Sweden was re‑learning—very deliberately—what national preparedness actually means.
This was before NATO membership. Before Ukraine. Before today’s level of strategic urgency.
Sweden’s approach is grounded in Total Defence—a whole‑of‑society model where military defence, civil preparedness, economic resilience, and industry are inseparable pillars.
What struck me most was not the scale of Sweden’s defence budget or its platforms. It was this:
Defence industry is not treated as an external supplier.
It is treated as a strategic capability in its own right.
Three lessons stand out.
First: Industry Is Planned Into National Defence
In Sweden, industry does not wait for a contract to understand its role in national defence. The State, Defence and industry plan together—for mobilisation, sustainment, surge capacity and adaptation.
Supply‑chain vulnerabilities are discussed honestly before crisis. Trade‑offs are accepted early. And resilience is treated as a design requirement, not a by‑product. That mindset is what has allowed Sweden—a relatively small nation—to maintain credible deterrence in an increasingly dangerous environment.
Second: Sovereignty Flows from Trust and Transparency
The second lesson was the depth of trust between government and industry.
Industry is trusted with sensitive technical knowledge because it is understood that sovereign capability cannot exist without information symmetry.
That trust shortens decision loops, enables faster upgrades, and allows rapid response when systems are stressed. Without it, sovereignty becomes procedural—not practical.
Third: Innovation Is a National System, Not a Program
Sweden’s so‑called “Triple Helix”—government, industry and academia—is not treated as innovation policy. It is simply how the system works.
Risk is shared. Failure in peacetime is tolerated to avoid catastrophe in wartime. Dual‑use technologies are deliberately cultivated.
It underpins platforms like Gripen and A26 submarines—not accidentally, but by design.
Australia’s Strategic Wake‑Up Call
Australia is now confronting many of the same realities.
The 2026 National Defence Strategy is explicit:
The strategic environment is deteriorating
Warning times are shrinking
Flawless global supply chains can no longer be assumed
Industrial resilience and civil preparedness are now core defence outcomes, not adjuncts
This has profound implications for industry. Industry is no longer just about delivering platforms.
It is about:
Keeping systems credible over decades
Modifying, integrating and sustaining capabilities at tempo
Managing risk across the entire lifecycle
Retaining knowledge inside the national decision loop
This is where I want to ground the argument in practice—not by marketing Nova Systems, but by sharing observations from being deeply embedded in these parts of the system.
What Sovereignty Looks Like in Practice – Observations from Nova
Over more than two decades, Nova Systems has often been engaged in the parts of the capability lifecycle that only become visible when things do not go to plan. Three observations from that experience are worth reflecting on.
Sovereignty Is Often Exercised Through Independent Technical Judgement
One of the least visible but most critical sovereign functions is independent test, evaluation and assurance. When systems behave unexpectedly, when integration fails, or when risk must be called early, sovereignty is exercised through trusted, Australian‑controlled technical judgement - not through platform ownership.
Nova has repeatedly been asked to perform this role across aviation systems, complex mission systems, and enterprise test and evaluation—not because it is quick or easy, but because those decisions must sit inside Australia’s authority, not offshore.
That judgement matters most under stress—but when it is required, it cannot be improvised or made up on the spot.
Sovereignty Is Sustained by Knowledge Continuity, Not Programs
Another lesson is how easily sovereign expertise can be lost. In several major programs—from submarines to advanced training and mission systems—Nova’s role has been less about delivering an end item or platform, and more about retaining and transferring critical knowledge. That work is largely invisible, but without it Australia constantly has to relearn its own systems. Sovereignty here is not about building everything domestically. It is about never losing the ability to understand, adapt, and govern capability over time.
Preparedness Depends on Enterprise Capability, Not Project Silos
A consistent theme in the National Defence Strategy is the move toward enterprise‑level capability - particularly in test, assurance, digital engineering and integration. From experience, this is unavoidable. You cannot surge competence at the moment of crisis.
That is why Nova - like other serious industrial players - has invested in enduring capabilities such as enterprise test and evaluation, digital engineering, and workforce pipelines that cut across domains rather than programs. These investments are not made against a single contract. They are made because preparedness is cumulative.
The Challenge from The Big Fix
This brings me to the Australian Naval Institute’s 2025 Book Prize winner “The Big Fix” written by Dr Albert Palazzo. I recently listened to an interview with him where he discusses the themes in his book. You may not agree with every conclusion Palazzo draws—but he forces an uncomfortable and necessary conversation. He argues that Australia’s defence policy has too often assumed dependency, and too rarely considered the depth of national resilience required to sustain security under pressure.
One insight or theme is particularly relevant for industry:
Grand strategy is not just military strategy. It is the alignment of all national resources for security in peace and war.
That includes industry, skills, infrastructure, supply chains and energy.
Whether or not you accept Palazzo’s prescription, his critique reinforces a truth that industry understands instinctively:
Preparedness cannot be switched on at the moment of need.
What Sovereignty Now Requires from Industry
So what does this mean—practically—for Australia now? We need to:
Design for adaptation, not just delivery
Treat our skilled workforce as a sovereign asset
Build supply‑chain resilience before crisis
Share risk between Defence and industry deliberately; and
Accept that preparedness has a visible peacetime cost
The cost of readiness is visible. The cost of unreadiness is strategic failure.
Preparing Today for Tomorrow’s Crisis
Let me close where I began. Sovereignty, in a time of need, is not declared. It is demonstrated.
It is demonstrated when systems can adapt quickly. When sustainment does not hinge on fragile assumptions. When Australia can decide, modify and act at speed. When Government, Defence and industry move as one system.
My time in Sweden taught me that preparation is a cultural choice, not just a budget line. Self‑reliance does not mean self‑sufficiency... It means ensuring Australia retains control and competence in the sovereign capabilities that underpin national security. The National Defence Strategy tells us plainly that the future will not be forgiving of delays. And thinkers like Albert Palazzo remind us that security is not something we outsource.... It is something we build deliberately, across the whole of society.
Australia has the capability. We have the people. We have strong partners.
What matters now is whether we prepare before the time of need.
Originally presented by Dean Rosenfield on Wednesday 27 March 2026 at IODs 2026, Perth Convention and Exhibition Centre