Estonia Commits €10 Billion to Defence: A Golden Window for Tech Innovation

Estonia is taking decisive steps to strengthen its military capabilities. A newly approved development plan outlines a staggering €10 billion investment in national defence from 2026 to 2029. The goal? A modern, adaptable Defence Forces capable of robust deterrence alongside NATO allies.

What’s Included in the Strategy?

• Major upgrades in air defence systems, including the launch of a dedicated Air Defence Brigade and procurement of IRIS-T, Piorun, and Mistral systems.

• A €150 million programme for drone capabilities, spanning detection, electronic countermeasures, reconnaissance, strike, and integration into tactical operations.

• Expansion of the Estonian Defence League, with funding rising from €240 million to over €314 million to support infrastructure and training enhancements.

• Strategic focus on ammunition stockpiles, with roughly a quarter of investments allocated to replenishment and readiness.

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Why It Matters for Entrepreneurs and InvestorsThis defence development plan creates fertile ground for companies that operate at the intersection of technology and security. Dual-use innovations—from drone control systems and situational awareness platforms to secure communications and energy-resilient hardware, are now strategically vital.

Public support is available too. Estonia has created a €100 million Defence Fund supporting startups and growth-stage companies in defence and security innovation. Managed by SmartCap, this fund invests alongside private investors, signaling Estonia’s readiness to co-invest in impactful solutions.

The ESR Launchpad

Building on Estonia’s reputation as a digitally native, innovation-driven nation, this investment plan aligns opportunity with infrastructure. Government-backed initiatives, startup ecosystems, and streamlined e-consulting services from Invest Estonia make this an ideal moment for cross-border expansion.

Looking Ahead

For founders and investors in DefenceTech, this is not just a budget, it’s a signal. Estonia is moving fast, and the door is open for entrepreneurs who can propose innovative, dual-use solutions with scalable impact.