FINLAND DEFENCE, AEROSPACE AND SECURITY SPOTLIGHT

Finland is renowned for its technology and manufacturing industries.

The home of giants such as Nokia Corporation, Valmet Technologies, and reputable vehicle producers, the country is also a hub of activity for entities operating in the defence industry.

This is an industry firmly rooted in the nation partially a result of Finland’s own unique history. In 1917, the country gained independence from the Russian Empire following over a century of rule, and since that time has always held a defensive edge - quite literally - sharing a border of over 1,300 kilometres with the larger neighbouring superpower.

Three months after the beginning of the Second World

War, Finland was attacked by the Soviet Union (USSR) in a conflict that came to be known as the Finnish Winter War (First Soviet-Finnish War), with two preceding wars occurring within the timeline of the global conflict - against the USSR a second time and a smaller conflict against German forces in Lapland. Following this period, and with such a vast land border with Russia, national funding and support to Finland’s military and defence industry has remained steadfast.

Today, the defence sector is an ever-changing space where technologies are utilised in unprecedented ways; robotics and artificial intelligence (AI) autonomous systems, cyber warfare, and the latest in vehicle

Writer: Marcus Kääpä | Project Manager: Alfie Wilson

technology are seen to merge traditional modern warfare with new frontiers.

The Finnish defence, aerospace and security industries focus on certain niche areas. Finland is home to global market leaders in armoured wheeled vehicles, turreted mortar systems, logistics, and command and control (C2) related systems. Finnish companies are also world leading within C5ISR (command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance). Dual-use products with security solutions and civilian applications are also becoming increasingly important.

With a few exceptions, most Finnish defence, aerospace and security companies are privately owned small and medium enterprises (SMEs). One strength of these SMEs is that many also operate in alternative industrial sectors. Finland therefore benefits from a larger ecosystem of such companies with substantial R&D investment (15 percent of turnover). Turnover within defence, aerospace and security was approximately €1.9 billion in 2021, which was a slight increase from the previous years, with direct employment standing at around 9,500.

Due to the smaller scale of the Finnish domestic market, Finnish companies operating in the defence industry look abroad to supply products, systems and services to customers and partners.