Finland's defence tech sector experiences explosive growth amid conflict and NATO membership
- Finland has become a major hub for defence technology investments, ranking among the top five cities in Europe.
- The start of the conflict and NATO membership have accelerated the growth of defence tech companies.
- The combination of national resilience and technological innovation is expected to fuel further sector growth.
In recent years, Finland has established itself as a prominent player in the defence tech sector, attracting substantial investments and fostering innovation. This surge in activity follows the commencement of a conflict and Finland's subsequent admission to NATO, which intensified interest in military technology. Companies such as Varjo and Kelluu exemplify this trend, pivoting their offerings to address security challenges while leveraging advancements such as eye-tracking technologies and unmanned aerial platforms. The growth is significantly buoyed by a youthful entrepreneurial spirit, with about 40% of defence tech firms being start-ups or scale-ups showing rapid growth. Additionally, national sentiment plays a crucial role, with surveys indicating a readiness among 80% of the Finnish population to defend their country, influencing business strategies within the sector alongside the existing strong technological foundation in Finland. This sense of urgency and readiness creates a unique environment ripe for development in this field, making Helsinki one of Europe's leading cities for investment in defence and security technologies. However, while this rapid growth is notable, challenges remain, including the global competition for skilled software talent crucial for the sustainability and advancement of dual-use technology businesses.