Finland pushes defence industry expansion for the 2030s

A parliamentary working group on defence appointed by the Finnish Government has concluded that strengthening Finland’s defence industrial and technological base will be critical to meeting the country’s security requirements in the 2030s.

In a new report, the group argues that Finland and Europe must rapidly expand defence production capacity and improve industrial scalability to reduce dependence on non-European suppliers. 

It also calls for measures to accelerate the development, testing and commercialisation of emerging defence technologies, enabling new capabilities to move more quickly from research to operational use.

The report highlights the Nordic region as Finland’s most important framework for defence cooperation and identifies significant opportunities to deepen industrial collaboration. 

At the same time, a deteriorating security environment and the accelerating pace of technological change are driving demand for a new level of defence research, development and innovation (RDI).

According to the working group, Finland’s defence administration must strengthen its technology forecasting, situational awareness and ability to adopt emerging technologies. This will require substantial reform of defence RDI structures, increased personnel resources and closer cooperation with industry and research organisations.

The group supports a target of allocating at least 2 percent of defence expenditure to RDI activities during the 2030s, in line with European Union objectives. 

Increased investment is expected to strengthen national expertise, support future military capabilities and improve the international competitiveness and export potential of Finland’s defence industry, while reducing life-cycle costs across defence programmes.

The report also identifies industrial capacity growth as a key element of military security of supply and technological sovereignty. Expanding the scale and capabilities of Finland’s defence sector is seen not only as a security imperative but also as a significant economic opportunity.

To achieve this, the working group recommends measures to support industrial scaling, export promotion, international materiel cooperation and more efficient regulatory and administrative processes. 

It also calls for adequate strategic financing through organisations including Tesi, Business Finland and Finnvera, alongside stronger cross-government mechanisms to support defence industrial development.

The report notes that European rearmament, NATO membership and changing security dynamics are creating new opportunities for Finnish industry. International materiel cooperation is identified as a key enabler, supporting both military capability development and the growth of Finland’s defence industrial and technological sectors.