33 years after the Restoration of the Republic of Estonia, the country is not only home to tech unicorns, but also a growing defence sector. With expertise in manufacturing and innovation as well as a wide range of solutions, Estonian defence companies already support their partners from allied countries, and are inviting Polish companies to partner up.
On 20th August 1991, at 23:03, the Supreme Council of the Republic of Estonia officially proclaimed the full restoration of the independence of Estonia, restoring the independent state, proclaimed in the year 1918, same year as the Second Polish Republic.
33 years later, Estonia is not only referred to as the most entrepreneurial country in Europe, but is the one-stop shop for advanced defence. With expertise in manufacturing and innovation as well as a wide range of solutions, the Estonian Defence and Aerospace Industry Association with 146 diverse member companies offer complex services to customers at home and from allied countries, with 2/3 of the sector’s output already being exported.
Now the Estonian defence industry sector is elevating this cooperation further and invites Poles to partner up. Polish companies are welcome to discover business opportunities and partners amongst Estonian defence industry companies, to jointly create smart defence solutions, which can help strengthen security of the region.
“Russia’s brutal war in Ukraine has worsened the security situation in the Baltic Sea region more than ever. Estonia and Poland both perfectly understand the importance of supporting Ukraine, but also the need to develop our own defence industry – it is crucial for our security that, in addition to the armaments and ammunition procured from major Allies, we have our own defence industry that can quickly support our defence forces if necessary,” Minister of Defence of Estonia, Hanno Pevkur said.
Backing Ukraine, safeguarding the world
20 years after joining NATO, Estonia is one of the biggest defence spenders in the alliance, relative to GDP, second only to Poland and ahead of the USA. Estonia has committed to invest 3.4% of its 2024 GDP in defence, and the contribution has exceeded the 2% threshold every year since 2015.
To date, Estonia has provided Ukraine with military aid worth 500 million EUR, which equals more than 1.3% of the small country’s GDP. The country was among the first to provide assistance to Ukraine by delivering Javelin anti-tank missile systems even before Russia’s attack, and has recently delivered Mistral air defence systems. In addition to that, products of over 10 Estonian defence industry companies providing different technologies, materials and services to support the Ukrainian military to win this war.
“Estonia and Poland both perfectly understand the importance of supporting Ukraine, but also the need to develop our own defence industry – it is crucial for our security that, in addition to the armaments and ammunition procured from major Allies, we have our own defence industry that can quickly support our defence forces if necessary.”
Hanno Pevkur, Minister of Defence of Estonia
The Government of the Republic of Estonia has also confirmed its readiness to support Ukraine with 0.25% of the GDP per year over the next four years, which equals to more than 100 million EUR annually.
One-stop shop for advanced defence
Estonian defence industry stands ready to serve diverse defence needs efficiently and effectively, both at home and for its allies. The broad range of Estonian defence industry includes companies that offer dual-use technologies in the areas of cyber defence, robotics, and autonomous systems, through electronics, sensors, individual equipment, communication and surveillance technologies, vehicle maintenance, and even sustainability services. All of Estonian defence companies are privately owned.
The notable examples that have already made their mark in Europe, and have been delivered to Ukraine, include DefSecIntel Solutions (mobile autonomous and automated surveillance systems with AI-assisted technology), Milrem Robotics (developer of combat robotics and autonomous systems), and Threod Systems (developer and producer of Unmanned Aircraft Systems), amongst others. In addition, Milrem Robotics operates an engineering centre in Warsaw.
The defense industry is growing year by year
The home country of well-known tech pioneers and unicorns like Skype, Bolt, and Wise is a #1 EU country in the Global Cybersecurity Index published by ITU.
Estonia is also home to the NATO Cooperative Cyber Defence Centre of Excellence, a multinational and interdisciplinary cyber defence hub that conducts research, training and exercises in four core areas: technology, strategy, operations and law.
Over the last 33 years, the Estonian defence industry has grown from almost scratch to the annual turnover of 350 mln EUR in 2023. The vision of its further development is clear: to make Estonia a development centre for smart technologies of the global defence industry in cooperation with NATO and European Union partners.
“We have a very good cooperation with the Polish defence industry, from whom we procure, for example, short-range air defence systems Piorun. It is essential for both Estonia and Poland that the market for our defence industry products is as wide as possible. This is important both in terms of building capacity and diversifying the product range,” Minister of Defence Pevkur added.
Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.
