“To strengthen Latvia’s defence capabilities and at the same time facilitate economic growth, it is essential to build close cooperation between state institutions, industry, and the scientific sector. Our goal is to create an environment in which Latvian companies and researchers can develop technologically advanced, competitive, and defence-appropriate innovations. The strategy implementation plan is the next step towards a strong and sustainable defence industry ecosystem, the development of which is directly linked to our country’s security and independence,” said Minister of Defence Andris Sprūds.
The implementation plan sets out four principal areas of action. These include specific and targeted measures to strengthen national defence capabilities, promote high value-added innovations, expand cooperation between the public sector, industry, and research institutions, and strengthen the resilience of supply chains for the needs of the defence industry and the National Armed Forces.
A strong and internationally competitive defence technological and industrial base
The first area of action, “A strong and internationally competitive defence technological and industrial base,” provides for measures to strengthen the capabilities of the national industry and facilitate its integration into the international defence market. This includes the regular exchange of information with the sector, including procurement seminars and EU support opportunities, as well as support for exportable projects and military production.
Regulatory frameworks will be improved, licensing times reduced, industry capacity mapped, and cooperation with the scientific sector strengthened.
The plan also envisions the promotion of innovation and knowledge transfer, ensuring the sector’s resilience and long-term development.
Integration of the defence industry in the execution of National Armed Forces tasks
The second area of action, “Integration of the defence industry in the execution of National Armed Forces tasks,” includes steps aimed at strengthening the capacity of Latvia’s defence industry, supply security, and cooperation with the National Armed Forces. This includes the establishment of a strategic partnership mechanism, a unified procedure for contracts with supply security requirements, and guidelines for the involvement of the defence and security industry in strengthening defence capabilities.
It also includes promoting the industry’s military competence by organising various activities to involve industry, launching funding competitions, as well as developing the military industry ecosystem.
Strengthening the innovation capacity of the defence industrial and technological base
The third area of action, “Strengthening the innovation capacity of the defence industrial and technological base,” is focused on promoting innovation and developing research capacity within the defence and security field.
This includes national research programmes and grant competitions for military and dual-use technologies, introduction of testing and validation service systems, mentoring and grant programmes for startups, as well as the implementation of research and development projects, including in cooperation with universities and think tanks.
This area of action also envisions the establishment of the Defence Innovation Fund, which will provide sustainable financial support for the development of ideas. Cooperation with the European Defence Fund will be strengthened, along with support for companies’ participation in it. In addition, in cooperation with the Ministry of the Interior and industry representatives, promotion of internal security innovation will be supported. These measures aim to promote the competitiveness and sustainability of Latvia’s defence innovation ecosystem.
Resilience of national supply chains to meet the needs of the defence industry and the National Armed Forces
The fourth area of action, “Resilience of national supply chains for the needs of the defence industry and the National Armed Forces,” provides for a study on the list of critical components and raw materials for defence industry production.
The goal is to identify critical components and raw materials for defence industry production and their scope for meeting the needs of the National Armed Forces, as well as to collate Ukraine’s experience regarding critical components and raw materials for defence production and NAF requirements.
Implementation of the strategy has already begun
Implementation of the 2025 action plan for the Defence Industry and Innovation Support Strategy has already begun. Several significant steps have already been taken to significantly bolster the development and innovation capacity of Latvia’s defence industry. A Defence Industry Advisory Council has been established and has held its first meetings. Meanwhile, all four national research and development project contracts have been concluded with Latvian companies in the counter-drone field. Parallel to this this, significant progress has been achieved internationally, with nine new European Defence Fund projects involving Latvian participation applying for €7 million in EU co-financing and €1.2 million in national support.
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