This was the second round of the Ministry of Defense's 2025 defense industry development competition, and 12 of the 30 firms entering were selected.

"With defense spending steadily increasing both in Estonia and among our allies, we want Estonia's defense industry to remain competitive internationally and ensure its output meets the needs of the Defense Forces. To this end, under the 2025 competition we have allocated more than three million euros to companies to develop their products and services," said Siim Sukles, undersecretary for defense industry and innovation at the ministry.

Sukles noted that the competitive process has been held since 2013, during which time 85 projects have been supported to a total of around €8 million, adding that 2025 saw the highest annual sum awarded.

"In previous years, the largest annual amount distributed slightly exceeded 700,000 euros, but this time we have surpassed that by more than four times," Sukles said via a press release.

This year's competition featured counter-drone tech, campus-based electronic warfare protection, combat system developments, and solutions boosting units' situational awareness, aligning with Defense Forces' capability priorities, the ministry said.

The companies, generally registered as limited liability partnerships (OÜ), and mostly involved in anti-drone tech and electronic countermeasures projects, were awarded sums ranging from 95,000 to 200,000. These sums made up 30-40 percent of their total project costs.

The companies were: Alfatec Group, ARM Vision, BaBayte, C2Grid, Krattworks, Lendurai, Teletactia, Marduk Technologies, Meridein Grupp, SkyFortress Technologies, Stickleback Robotics, and Weareteledriving (Telearmy).

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