The metric expresses the development of an internationally competitive, export-oriented and value-added national defence industry, by highlighting the volume of export turnover.
Although Estonian defence industry is still in a growth phase, in terms of total volume, a new industry has emerged in the past ten years with the systematic support of the Ministry of Defence. The annual turnover of the industry is more than 80 million Euros, of which exports accounted for 39% in 2018. Every year, the Ministry of Defence co-finances defence projects with the companies that have export potential, the activities of the Estonian Defense Industry Association and, together with StartUp Estonia and Garage48, the creation of new companies in the field of defence and innovation competitions. Estonian companies are supported in export markets by facilitating contacts. In 2020 Estonian defence industry companies raised about 10 million euros for the development of new products and technologies from European Union programs. The Defence Forces offer companies military expertise when it comes to product development and testing, which also provides the Defence Forces with the opportunity to get to know new technologies and to approach the resolving of problems facing the Defence Forces in a new way.
In addition, international defence industry cooperation helps to strengthen the country’s relations with its allies. The mission of the Estonian Defense Industry Association is to provide the state with a strategic partnership in the development of sectoral industries. The Cluster brings together companies in the defence and security field, who are planning to develop new products and services together with research and development institutions.