The rapid, global ascent of Sydney-based DroneShield shows Australian electronics warfare (EW) capabilities at their best. The company's counter-drone systems are now in service with the US Air Force, the French Army and the Tokyo Police, as well as military and law enforcement agencies in Australia.
In this case study, Founder and Chief Executive Oleg Vornik explains the source of Droneshield's success, including:
- Access to exceptional skills in Australia in advanced computing and electronics
- A 'moonshot' culture that creates world-class technical solutions
- Partnership with Austrade that helps open complex overseas markets.
Australia nurtures world-class electronic warfare specialist
DroneShield (ASX:DRO) was founded in Sydney in 2015. At that time, the threat posed by maliciously operated drones was marginal. But the DroneShield team forecast that government agencies would shortly need to prevent drones from conducting illicit surveillance on sensitive sites.
The company gathered local expertise in a range of disciplines – electronic warfare, waveform design, application software, surveillance, and artificial intelligence (AI) across the radio-frequency and optical spectrum. The Sydney-based team designed a device to counter drones and drone swarms, which forces them to land safely or return to their launch point.
The program had official support via Australia's Defence Innovation Scheme. Collaboration with the University of Technology Sydney helped to exploit local ingenuity in AI. And success was swift. The company launched on the Australian stock exchange in 2016.
'We realised we had a viable counter-drone device before any organisation in Australia wanted one,' says Vornik. 'I packed my bags for the US for two years. We set up an office in Virginia, and began building a business that was 100% export-driven from the get-go.'
Austrade helps establish credibility with US defence forces
According to Vornik, the biggest challenge in setting up a defence electronics business in the US was establishing credibility. That's where Austrade helped.
'We needed to pitch to high-grade military and security personnel who protect defence establishments and sensitive assets,' says Vornik. 'Nurturing those relationships took time, but Austrade helped in multiple ways.'
Austrade recommended finding a commercial partner while DroneShield was building out its own business-development team. Advisors believed DroneShield would find it easier to sell into US agencies via a network of established third party partners.
'By helping us to make commercial connections, Austrade made it clear to potential partners that our technology represented high-quality Australian innovation,' he says. 'Austrade helped to give us credibility in a complex and highly competitive market.'
Australian defence electronics competes with global best-in-class
Once DroneShield was competing in international markets, the team realised how well their home-grown solution measured up against global competitors.
'We were pleasantly surprised at how capable we were compared to the rest of the world,' says Vornik.
In the UK, BT (formerly British Telecom) surveyed numerous companies worldwide to find a counter-drone system for its nationwide infrastructure. DroneShield was eventually selected as the exclusive supplier.
'Our bid won a global competition based on the strength of our research and development, and also our customer service capabilities,' says Vornik.
The company is now a showcase for Australian scientific enterprise. DroneShield has a A$200 million order pipeline and its workforce has tripled in 12 months.
Participation in Team Defence Australia
As DroneShield ramps up its exports, Austrade provides assistance in multiple markets. This includes incorporation into virtual and physical trade shows. For example, DroneShield was included on the Australian stand at one of the world's largest events: the Defense and Security Exhibition International, held in London in 2019.
In an average year, DroneShield typically participated in half a dozen Team Defence Australia events, according to Vornik.
'We were part of a truly impressive collection of Australian defence-equipment manufacturers, fronted by high-ranking Australian defence personnel,' he says.
'The exhibitions help us to connect with defence attaches around the world,' he adds. 'This is important, because procurement in major defence markets – such as in the US or France – will frequently look to national tech companies first. We have to show we can out-compete.'
Australian exports built on home-grown ingenuity
The company has so far spent A$35 million in research and development – all of it in Australia. Vornik credits successful outcomes on his company's ability to source expertise locally.
'A lot of our success is due to the quality of education in Australian,' he says. 'We have huge domestic expertise in Australia in areas such as AI, sensors and electronics. Customers in the overseas defence sector are discovering that we draw on an amazing array of domestic skills.'
Entrepreneurial spirit is also a game-changer.
'We believe in giving our technology teams the freedom to aim for those "moonshot" breakthroughs,' says Vornik. 'This gives us the potential to create world-leading solutions.
Vornik says that now is the best time to be a defence company in Australia.
'The Government is investing over A$200 billion over the next 10 years in defence equipment to build strategic defence capabilities,' he says. 'It wants the highest level of domestic content possible.
'Australia is just at the start of a journey into high-end defence technology.'
About Austrade
The Australian Trade and Investment Commission (Austrade) is the Australian Government's international trade promotion and investment attraction agency.
We deliver quality trade and investment services to businesses to grow Australia's prosperity. We do this by generating and providing market information and insights, promoting Australian capability, and facilitating connections through our extensive global network.
To discover how we can help you and your business, visit austrade.gov.au or contact us on 13 28 78 (within Australia).
