In a time of rapid innovation, many EU countries lag in research and development investment, while investors grapple with ethical concerns and the defence sector's public image. As technology evolves, questions arise about innovation dynamics, financing sustainability, and industry strength. Federica Valente (EDA) and Jan Pie (Aerospace, Security & Defence Industries Association of Europe) provide insights into innovation shifts, EDA's Hub for EU Defence Innovation (HEDI), and financing strategies. We also explore nurturing innovation culture, political support, and improving industry-government partnerships.