Kristo Klesment, an expert in ICT research and development at the Estonian Business and Innovation Agency, wrote in an article on the ERR news portal on June 14 that the defense industry is a strategic investment, not merely an expense. He emphasizes that given the current geopolitical situation, defense spending is a direct investment in Estonia’s future, peace, technological advancement, and economy.
Klesment points out that while Estonia’s defense industry is still young, it’s a rapidly developing sector that focuses on niche solutions like IT systems, drones, cyber defense, and surveillance. He notes that the field is characterized by continuous innovation, highlighting new trends such as artificial intelligence, autonomous systems, directed-energy weapons, and nanotechnology.
According to Klesment, the Estonian defense industry has achieved significant success in a short time, as shown by the sector’s growth. In 2023, export volume reached 350 million euros, while sales revenue exceeded 400 million euros. The ambitious goal is to reach a turnover of two billion euros by 2030. This plan is realistic, as several successful Estonian defense companies, such as Milrem Robotics, Cybernetica, and Threod Systems, have already achieved international recognition.
To achieve this vision, close cooperation is needed among the Ministry of Defense, the Estonian Business and Innovation Agency, and research institutions. Klesment notes that support is available from both the European Defence Fund (EDF) and the NATO Innovation Fund. Additionally, the Estonian state has created its own defense fund to invest in the development of local companies. This ensures stable funding and promotes innovation, which is critical for success.
In conclusion, Klesment emphasizes that Estonia’s ability to develop its own defense industry enhances the country’s credibility among allies and strengthens its geopolitical position. The development of the defense industry also supports the economy by creating knowledge-based jobs and encouraging high value-added production. This is an important step in securing Estonia’s economy and security.
Read full article: ERR portal
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