📋 Tender Overview
Yesterday, the government agreed on an investment of nearly EUR 200 million in defense investment, which is to be fined the unused funds of the European Union Cohesion Funds. Of this, the Ministry of Economic Affairs and Communications will invest EUR 23.8 million in support of the product development of defense companies.
According to Erkki Kelda, Minister of Economic Affairs and Industrial Affairs, such investments will help to improve both Estonias defense capabilities and to stimulate the economy. The impact of the defense sector goes beyond just security - it is an increasingly important engine for innovation and economic growth, and vice versa - innovation and new products are inevitably necessary to strengthen our defense capabilities. Product development support is one additional link than the integrated value of our defense industry, which aims at 2030. Economic sectors such as the metal and electronics industry or ICT, said Keldo.
While the export volume of the Estonian defense industry was only 46 million euros in 2020, 350 million last year and the field has set the goal of reaching a turnover of EUR 2 billion by 2030. The peculiarity of the defense industry is fast development cycles, and only the most innovative solutions have strong export potential. The purpose of the Product Development Support Measure of Products Entrepreneurs is to encourage entrepreneurs to invest more in development to develop new innovative and high value -added products and services.
According to Kalev Koidumae, Head of the Estonian Defense and Space Industry Association, product development in the defense industry is strategically important for Estonia, as as a small country we can strengthen our defense capabilities with smart and innovative solutions. The Estonian defense industry has already shown internationally competitive products and services, but the rapid development of the field requires a constant investment in new technologies. State support helps companies to make greater developments, which are too high, but have a major impact on export capabilities and national defense.
The Defense Industrys great interest in developing innovative technologies also shows the thematic round of the Defense Industry Program, which opened opened in the early May entrepreneurship and Innovation Foundation (EIS), where nearly 50 companies have expressed their desire to apply for development projects to the countrys co -financing. The deadline for presentation of materials for the preliminary evaluation of the Round of Applied Research Program is on Monday, June 9.
EIS is also co -funded by companies through product development projects. The Ministry of Economic Affairs will adjust its conditions based on the need for the defense industry and will open according to the plan of the updated measure in early 2026, when the European Commission has approved the proposals for the transformation of Euro funds.
Support is still funded at the expense of EU subsidies uncovered, which have not progressed at the desired pace or the operating costs of which have been taken to the state budget.
Read more about the entire 200 million defense investment:
Laura Laaster
Head of the Public Relations Department
