Cross-Border Innovation: Building a Stronger Nordic–Baltic Defence Ecosystem
At Estonian Defence Week, one of the most thought-provoking sessions was the panel on Cross-Border Innovation Cooperation, featuring insights from Jaan Kokk (Superangel), Kati Pärn (Startup Estonia), and Mika Rantakokko (VTT Finland). The discussion highlighted the urgent need for regional collaboration in defence innovation and the unique strengths that Estonia and Finland bring to the table.
Estonia + Finland = Regional Superpower?
Estonia’s agility and experimental mindset, especially in the startup sector, complements Finland’s structured and stability-focused approach. This synergy creates a powerful foundation for joint innovation programs, particularly in defence and dual-use technologies.
As Kati Pärn noted, “Estonia is a little more experimental and agile compared to Finland. Finland though is very structured and strong at scaling. These are complementary aspects, which means there is strong potential for different programs and projects for the two countries to work together.”
Cross-Border Testbeds & Accelerators: The Next Frontier
One of the key themes was the importance of cross-border validation and testing environments. With smaller ecosystems and limited resources, the Nordics and Baltics must collaborate to build shared capacity. Initiatives like joint pre-acceleration programs – discussed during Latitude59 between Vinnova, Business Finland, VTT, Tehnopol, and Tartu Science Park – are a step in the right direction.
VTT’s Mika Rantakokko emphasized Finland’s “new defence” approach, where civilian innovation is repurposed for defence needs. This opens doors for startups with non-military expertise to contribute meaningfully to national security.
From Procurement to Partnerships — Let’s Rethink the System
The panel explored how to make collaboration between startups and defence organisations more effective and faster. One of the key challenges is procurement: traditional models are slow, while innovation moves fast. That’s why we need new approaches, faster validation cycles, and stronger public-private partnerships.
Estonia is already making moves with faster procurement rules and integrating innovation services meant for startups into programs financed by the Ministry of Defence.
Still, even with structural changes, startups often struggle to navigate the system. As Jaan Kokk pointed out, “The question I hear a lot is not ‘What do I talk to them about?’ but ‘Who do I talk to?’” This highlights the need for clearer pathways and matchmaking between innovators and decision-makers.
On the defence side, VTT suggested a fresh approach: “Our defence sector could have some innovative officers coming to the private sector. So that it would make it easier for our defence organisations to understand better ways to collaborate with companies.”
Scaling Beyond Borders — Together
To compete globally, startups need more than just national validation — they need multi-country recognition. This is especially true in the defence sector, where credibility and trust are key. As Kati Pärn noted, “New Nordics – is this the region where we should put most of our effort? Absolutely.”
She highlighted two major concerns founders face: the need for a national structure as a client, and long sales cycles. That’s why regional cooperation is essential. “If we can have good startups validated by Finns, Estonians, Swedes and the Danes,” she said, “then they can actually compete with the German and French markets. Having that aligned structure and practice in place where we have the Nordic and Baltic governments backing up our startups — financially, venturing, test beds etc — essentially increases our competitive edge.”
There are already great examples of this kind of collaboration. Jaan Kokk pointed to the Baltic testing of autonomous vessels, which gave startups a chance to showcase their capabilities directly to end-users. And as VTT added, the region is home to several global-scale integrators — a valuable asset for putting our companies on the international map.
What Needs to Happen Next?
The panel also tackled the question of political support. Should governments lead, or should the private sector drive collaboration?
Kati Pärn emphasised the importance of public-private partnerships: “What we are facing in Estonia, is that we are seeing a very strong shift to hardware, instead of software (where our strengths lie). Is there something we’re missing?”
Jaan Kokk suggested developing centres of excellence — not just in Estonia, but across borders. VTT agreed: “Testing is essential, and we have these capabilities. I am happy to help with collaborating in regards of cross-border testing.”
When it comes to acceleration and incubation programs, Jaan Kokk proposed a more tailored approach: “The Estonian Force Transformation Command has given the accelerators the list of problems they are focusing on, and the accelerators collaborate to get all their capability developers in those verticals sent there. More matching, less military tourism.”
VTT added: “We need to link our accelerations together to really make a difference. For example, help out the companies that cannot get into NATO DIANA.”
And finally, Kati Pärn pointed out the need for deeper cooperation between startups and large corporations: “The development of tech is so incredibly fast that the corporations are really falling behind, which means they need to step up their game to be useful and innovative on the battlefield. The next steps for tomorrow would be to figure out how to integrate the startup ecosystem more towards the primes and larger corporations.”
Key Takeaways
- Regional Synergy: Estonia’s agility + Finland’s structure = a strong innovation engine.
- Validation Matters: National clients and cross-border recognition are essential for startup growth.
- Testbeds & Accelerators: Shared infrastructure is key to scaling defence innovation.
The panel concluded with a clear message: the time to act is now. Governments must move faster, and startups need support to navigate complex defence ecosystems. With the right partnerships, the Nordic–Baltic region can become a global leader in defence innovation.e a stronger science-based startup environment – one where deeptech ventures can grow, scale, and make a global impact.