The Importance of Defence Technology is Growing – Finland Positions at the Forefront of International Development
Finland has become a leader in the development of defence technology. Geopolitical shifts, growing investor interest, and the latest technologies such as artificial intelligence and cybersecurity are shaping the future of the defence. But how can we ensure that technological development is ethically sustainable and serves society as a whole?
In recent years, the importance of defence technology has grown significantly both in social debate and in the investment environment. Russia’s invasion of Ukraine in 2022 changed attitudes towards the defence sector, and as a result, security has become a key theme in Finnish society.
– People and companies have now finally understood how important the development of defence technology is for the stability of society, says Matti Anttila, Director of Defence Business at Huld.
Huld organised a seminar on the future of defence technology. The speakers at the event were (from left) Matti Anttila, Tero Kiuru, Mika Hyytiäinen, Juha-Matti Ylitalo and Mika Kulkas.
Finland on the Rise in the Global Defence Technology Field
In February, Huld organized a defence seminar for experts in the field to exchange views on defence technology, its development opportunities and challenges. The speakers at the event were professor (colonel, retd.) Mika Hyytiäinen, Deputy Director of the Finnish Defence Forces Logistics Command Juha-Matti Ylitalo, Research Lead Tero Kiuru from Saab and Head of Defence (colonel, retd.) Mika Kulkas from Business Tampere.
– Finland’s strength lies in preserving its defence industry history and expertise. We have a fully operational defence force – including all three branches, a functional command structure, and well-trained ground forces – which puts us ten years ahead of many other European countries, professor (colonel, retd.) Mika Hyytiäinen emphasizes.
Several defence industry companies are currently operating in Finland, and we are internationally recognized for our highly skilled engineering expertise. The ethical aspects of investing in the defence sector have been debated for a long time, but attitudes have shifted in recent years. Finland’s rise to the center of Nordic defence technology has also attracted international investors.
– As geopolitics has entered a new era, attitudes and perspectives on the defence sector as an investment opportunity have also changed in Europe. One could even argue that it would be irresponsible not to harness private capital and innovation for this sector to its full potential, says Johan Wentzel, partner at private equity firm Sentica Partners.
Business Finland and the European Defence Fund have also enabled new innovations and development projects that support the growth of the sector in Finland and Europe.
Dual-Use Technologies and Artificial Intelligence are Transforming the Industry
The development of defence technology does not only concern traditional systems, but also advanced software technology, the application possibilities of which are expanding.
“The most classic examples are weather forecasts, communication solutions and satellite positioning, which can be used for both civilian and military use,” Anttila points out.
The role of artificial intelligence and cyber security in the development of defence technology has also increased significantly. As systems become more digital and communication between devices increases, cybersecurity has become a critical part of defence strategy. Artificial intelligence, on the other hand, enables more efficient organisation of defence and data analysis, which creates new types of security solutions.
– It is important for the defence industry to follow the example of product-driven innovation, which includes, for example, continuous improvement and rapid software updates based on customer feedback. In addition, investing in dual-use technologies and their research ensures the speed, cost-effectiveness and innovativeness of development, says Research Lead Tero Kiuru from Saab.
Companies Also Bear Ethical and Social Responsibility
Ethics and responsibility are one of the key issues in the development of defence technology.
– As a company, we are aware of our social responsibility. We focus on developing solutions that help secure a stable society for future generations, Anttila emphasises.
Cooperation between the state, research institutes and companies operating in the defence industry creates the conditions for an even safer society. The development of defence technology is part of a broader security ecosystem that includes, for example, cyber security, intelligence technology and crisis management.
– We have great opportunities to develop defence technology now and in the future. We understand our own conditions and are able to create technologies through collaboration in the areas where we are strongest, Hyytiäinen states.