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Defence Industry Policy

The objective of defence industry policy is the inception and retention in Estonia of a defence industry that is internationally competitive, oriented at export and which generates value added, serving as a reliable partner in peacetime, during crises and in wartime.

The defence industry is part of Estonia’s broad-based national defence, covering the manufacturing of goods with dual uses. As due to national security interests, it is expedient for the state to participate in the defence industry, the state shall consider this option; important considerations for the state in this regard are focused allocation of resource, pragmatic approach, creation of a supportive environment and avoidance of protectionism. 

The defence industry encompasses legal persons registered in Estonia that are engaged in research and development or manufacturing for defence and security purposes, or in provision of related services. The defence industry is distinguished from other economic sectors by the specific nature of the close cooperation between state and companies, which places higher requirements on both (such as limited range of users for products, exceptional export regime, exceptional sales environment, higher industrial espionage risk and heightened security requirements).

The defence industry includes, among other things:

  • manufacturing of equipment used for defence and security purposes
  • maintenance and repair of equipment used for defence and security purposes
  • provision of goods or services of a critical nature during a time of crisis and wartime

 

Last updated: 31 May 2014