Defence Innovation Day: How Ukraine’s experience and startups are shaping the future of defence technology

On September 22, the week dedicated to the defence industry – Estonian Defence Week 2025 – was opened by the Defence Innovation Day, organized by Tehnopol, which brought together opinion leaders, experts, and startups in the field of defence at the Tallinn Creative Hub (Kultuurikatel).

In his opening speech, Minister of Defence Hanno Pevkur emphasized that defence innovation is born through cooperation between the state, the armed forces, and entrepreneurs. “When public institutions work together with innovators, the armed forces share their needs, and the government creates room for experimentation, solutions emerge that genuinely strengthen our security,” said Pevkur.

The minister highlighted Ukraine’s experience as an example, where under wartime conditions an ecosystem has been created in which frontline soldiers’ feedback quickly reaches engineers, and solutions move from idea to implementation within weeks.

Pevkur also stressed that Estonia continues to invest in the development of defence technology. To this end, a Force Transformation Command has been established, bringing together the government, the armed forces, and entrepreneurs. In addition, Estonia will continue allocating at least 0.25% of its GDP to support Ukraine.

Startups bring speed and agility to defence technology

Martin Karkour, Sales Director at the German company Quantum Systems, noted that the future of defence technology does not lie in a single “super weapon,” but in a system of systems where unmanned and traditional capabilities work together. The competition is about accessibility, speed, and adaptability.

According to Karkour, traditional defence industry companies cannot adapt fast enough. Startups and new players have the advantage, as they are more flexible and develop solutions more quickly, often directly based on feedback from the battlefield.

Karkour said that if he were to establish a new defence technology startup today, he would begin by involving military knowledge and experience to understand the processes and mindset of soldiers, which differs from that of the civilian sector.

Quantum Systems is one of the few European defence technology unicorns.

Mission impossible or possible cooperation? The future of government, industry, and defence

The future commander of the soon-to-be-established Force Transformation Command, Ivo Peets, pointed out in the discussion that the Defence Forces must adapt quickly, as the threat landscape changes every month. Traditional processes that take years no longer work – what is needed are short-cycle projects that deliver results within just a few months. This is exactly what the Force Transformation Command will focus on: 1–12 month initiatives that bring new solutions into use as quickly as possible.

Peets emphasized the importance of developing reservists’ skills and involving them more actively – systematically enhancing their skills and capabilities will help ensure that defence capacity grows in a rapidly changing environment. He also highlighted the need for the fast integration of new technologies – drones, sensors, autonomous systems – and the readiness to experiment and, if necessary, fail quickly in order to move on to the next solutions.

Kadri Tammai, NATO DIANA’s Regional Director, said that defence innovation does not always mean inventing completely new technology – often success lies in adapting existing solutions to the needs of the armed forces and soldiers.

Tammai explained that NATO DIANA brings together the different cultures, legal frameworks, and innovation models of 32 member states to create a unified and effective mechanism. One major challenge she highlighted is the access of small and medium-sized enterprises to the defence industry – DIANA’s role is to create testing environments and help companies start collaborating with the defence sector. According to her, international cooperation is essential for success, as domestic partners alone are not enough in the defence market.

Jaanus Tamm, CEO of DefSecIntel Solutions, noted that the defence industry has historically been a closed club that was almost impossible for startups to enter. However, the war in Ukraine has broken down barriers and shifted the focus towards flexible solutions that can be deployed rapidly.

Tamm stressed that innovation must start with the soldier and their practical needs, not just with new technology. It is important to remember that the value of technology depends on how well a soldier can use it – training and deployment are just as important as development. According to Tamm, solutions must be affordable, quickly replaceable, and adaptable to changing circumstances.

How Ukraine’s experience is changing defence technology

In a discussion focused on Ukraine’s experience, participants examined how developments there are reshaping defence technology. HIMERA CEO Misha Rudominski echoed previous speakers by stressing that the war has shown the need for much shorter defence technology cycles – moving from idea to battlefield use within weeks.

His advice to those wanting to build a defence technology startup was to begin with a small, clearly defined problem that can be solved quickly and tested immediately on the battlefield. Attempting to solve the entire technological need of the war all at once is not realistic.

Farsight Vision CEO Viktoriia Yaremchuk emphasized that the value of technology lies in its user – if a soldier cannot easily use the solution, it is of little benefit.

Yaremchuk advised startups to work closely with soldiers and gather their feedback at every stage of development. Successful innovation emerges when a solution is intuitive for the soldier, not just technologically impressive.

Yevhenii Panchenko, a division commander in the Ukrainian Armed Forces, said that from a soldier’s perspective, the most valuable solutions are affordable, easily replaceable, and reliable – expensive and complex systems may not withstand the realities of war. According to him, Ukraine’s experience shows that defence technology solutions must be modular, quickly updatable, and easy to train on.

Panchenko encouraged startups to focus above all on resilience and adaptability – considering how solutions function when there is no connectivity, when equipment wears down, or when large numbers of new users must be trained very quickly.

Small country, big advantage

Sigrid Rajalo, Head of the Innovation and Technology Department at the Ministry of Economic Affairs and Communications, emphasized that in Estonia the state acts as an active partner and catalyst in the defence innovation ecosystem. Estonia’s small size gives it a significant advantage – everyone knows each other, and it is possible to approach the ministry directly with ideas or concerns.

According to Rajalo, the state has a comprehensive system of support and development mechanisms that cover the entire defence technology development cycle:

• Creation and growth of new companies (Defence Business Lab, NATO DIANA accelerator)
• Technology development (R&D grants, development programs, IP advisory, MOD support, European Defence Fund, ESA, CERN)
• Testing (experimental framework, RTO drones, CR14, Nurmsi training centre)
• Production environment (Defence Industry Park 2027, Ämari mini industry park)
• Export support (joint stands, trade fairs, export programs, 0.25% of GDP directed to support Ukraine)
• Capital raising (Defence Fund, loans, guarantees, large investor support)

When speaking about cross-border cooperation, it was noted that defence has long been considered primarily a national issue that each country had to solve on its own. However, programs like NATO DIANA have opened new opportunities for international collaboration. According to Pirko Konsa, Member of the Management Board of Sparkup Tartu Science Park, the public sector should cooperate with startups and bring their expertise and talent into its own ranks, as this would help better understand innovation cycles.

Throughout the day, various startups also took the stage to present their solutions to the audience and a panel of experts, which included Karin Künnapas, Jaan Kokk, Heidi Kakko, and Taavi Veskimägi. Presentations were given by NATO DIANA Estonia accelerator participants Factiverse, Scaleout, Resquant, IS-Wireless, and GaltTec; as well as by Farsight Vision, Asvel, AEREUS, Harlequin Defense, and 18°C Thermal.

Check out the event gallery here!

Defence Innovation Day was organized by Tehnopol and the Ministry of Economic Affairs and Communications through the NATO DIANA Estonia accelerator, with one part of the program put together by Sparkup Tartu Science Park.