If you’re building the defence solutions of tomorrow, don’t skip Estonia. The country has committed to spending at least 5 per cent of its GDP on defence as of next year, with a heavy focus on novel solutions. There’s a new specialised industrial park in the making, and local defence startups are already tripling their valuation, drawing world-class investors.
Still, new ideas are needed, and Enterprise Estonia is opening a special funding round on May 8th for defence sector development projects, with a total of €5M available to support innovative defence technologies.
What you need to know
The Applied Research Program (RUP) finances high-risk applied research and experimental development while providing companies with technological and business advice. In response to the current global situation, this specific defence-focused funding round offers grants ranging from €250,000 to €500,000 per project.
“The government’s priority is both national defence and security, as well as economic competitiveness, with Estonian defence industry development as the common denominator. Developing the defence sector requires the creation of new and smart technologies in Estonia, which the RUP supports and provides both necessary advice and financial boost,” said Minister of Economy and Industry Erkki Keldo.
Since 2021, RUP has supported defence and dual-use technologies, including Rantelon (drone detection solutions), Cybexer Technologies (cyber training platforms), and Frankenburg Technologies (cost-effective anti-drone weapon systems). Statistics show that companies conducting applied research are highly successful—their productivity is 120% of the EU average.
Why apply
Developing next-generation defence technologies involves considerable risk and time investment. The timeline is years, if not decades.
The public sector support offered through this program helps mitigate these challenges while significantly accelerating your development timeline. The funding creates valuable opportunities to engage both local and international partners, strengthening your position in the defence sector.
RUP-supported development can advance the technologies to the crucial stage where they’re ready for industrial production or real-world implementation, bridging the gap between innovation and practical application. Companies that have participated in applied research programs consistently demonstrate higher productivity—reaching 120% of the EU average—and experience more robust growth compared to companies without active development initiatives.
Focus areas include:
- Drone technologies and cost-effective drone production
- Urban electronic warfare (EW)
- Combat system developments
- Solutions enhancing unit situational awareness
- Development of explosives, ammunition and combat munitions
- Deception devices (imitation tools, electronic decoys)
- Tactical food and soldier equipment (including medical)
- Internal security solutions
- Uncrewed vehicles
- Cybersecurity and software (e.g., simulation environments, communications)
How to apply
The application process has two stages:
- Submit your project for preliminary evaluation by June 7th
- If approved, submit your completed project by July 7th for final evaluation
Additionally, the Ministry of Defence is also running an industry development project competition until May 15th, where winners can collaborate with the Defence Forces to test their developed technologies in real conditions.
Get started now
For pre-consultation booking and additional information, please contact Applied Research Program – EIS
Defence has always been a focal point for Estonia, where entrepreneurs and engineers team up with the army to develop world-class solutions for the global defence industry. When we mean defence, we mean business. If you want to invest in a more secure world, get in touch through our e-Consulting service and let’s find you the right investment opportunity.
