The defence industry is talking more about innovation, and it’s full of opportunities, says Sauli Eloranta, Vice President, Defence at VTT Technical Research Centre of Finland.
Russia’s war of aggression in Ukraine has highlighted the importance of using commercial technologies to support defence. For example, the use of satellites, drones and various crowd-sourced digital solutions have provided a means to improve situational awareness and communications in Ukraine. These experiences have accelerated the evolution of defence technologies towards open collaboration with civilian technology companies. At the same time, the war in Europe has increased the demand for defence equipment in general.
Building co-operation between the defence industry and civil technologies is challenging the traditional approach, where technologies have been developed mainly by the defence industry itself. According to Sauli Eloranta, Vice President, Defence at VTT, the current development is part of the so-called New Defence phenomenon, which is changing rapidly the defence industry landscape. A similar transformation has happend in space industry, for example, when commercial companies and technologies emerged alongside government players such as NASA (National Aeronautics and Space Administration) and ESA (European Space Agency).
“While commercial civilian solutions may not be directly applicable to defence, the culture of experimentation and the rapid pace of innovation in civil technology can accelerate the introduction of different technologies in the defence industry in a cost-effective way,” states Eloranta.
A Game-Changing Shift
Traditionally, companies have had a high threshold to enter the defence market due to strict security requirements, established supplier relationships and long and complex procurement processes. With the New Defence, new ecosystems and networks are facilitating entry into the industry, as companies, research institutes and defence stakeholders collaborate on development.
“This is a game-changing shift in this industry. It should be greeted with curiosity and enthusiasm. There is no need to fear that New Defence will displace the traditional defence industry, but rather that it will support it,” Eloranta says.
“When networks get help from the defence industry, it’s possible to find the right needs and develop the desired technologies faster.”
Sauli Eloranta, VTT
Millog has taken an active role by participating in two defence and civilian ecosystems, the Digital Defence Ecosystem (DDE) and the Defence Innovation Network Finland (DEFINE). Toni Piispa, Director of the Authorities and Industry division at Millog, points out that although the networks are relatively new, Millog sees good potential in them to develop more efficient and versatile solutions for the Finnish Defence Forces.
“Millog’s role in the networks is to support the testing and rapid deployment of new solutions and innovations for the needs of the Finnish Defence Forces. At the same time, the networks also enhance our own expertise and business development,” he says.
In the midst of the new defence shift, companies and start-ups need support and insight into the defence industry. According to Eloranta, it’s helpful when established defence players such as Millog help newcomers and share their knowledge.
“On the civilian side, companies often lack an understanding of defence use cases. In many cases, sparring sessions have shown that a company’s technology is better suited for a different, more important defence use than the one it had in mind. When networks get help from the defence industry, it’s possible to find the right needs and develop the desired technologies faster,” explains Eloranta.
Hundreds of Companies Interested In Defence
As a country of high technological excellence, Finnish companies have a lot to offer to the growing defence market, also internationally. One of the key objectives of the New Defence networks is to support the growth of Finnish companies and facilitate export efforts to global defence markets, such as other NATO countries.
In addition to the networks, new funding mechanisms and accelerators will facilitate exports and product development. These include, for example, the European Defence Fund (EDF), the EU Defence Innovation Scheme (EUDIS) and NATO’s ‘Diana Accelerator’ and research centres for start-ups, which are coordinated in Finland by VTT. Furthermore, in October, the Define Accelerator was launched in Riihimäki, Finland. It is Finland’s first business accelerator specialising in dual-use technologies for both civilian and military use. The Define Accelerator provides support to start-ups in the areas of business and product development.
“A number of pitching and sparring sessions have demonstrated that there is significant interest from civilian companies in the defence industry. I estimate that there could be thousands of such companies in Finland. This is an invaluable asset for Finland’s comprehensive security,” states Eloranta.