Estonia launches Defence Business Lab for startups

Estonia’s Ministry of Defence, in collaboration with the Ministry of Economic Affairs and Communications, has established a pre-accelerator programme called the Defence Business Lab. 

The initiative is crafted to bolster the competitiveness of local enterprises in major global defence funding contests. Its objective is to equip fledgling development teams with the skills necessary for submitting successful applications to NATO DIANA (Defence Innovation Accelerator for the North Atlantic) and the European Defence Fund (EDF), which are prominent sources of defence funding.

According to Siim Sukles, Undersecretary for Defence Industry and Innovation, the creation of the Defence Business Lab will help companies overcome common barriers in the defense sector, such as understanding various regulatory requirements, and further increase their competitiveness in international acceleration programs.

He said that in 2025, 10 companies participated in the program on a trial basis. One of the Defence Business Lab participants was successful in the NATO DIANA program, three in the Ministry of Defence grant competition, one company applied to participate in the EDF program, and one company attracted its first investment.

Similar programs to support companies in international competition have been created, for example, in Sweden and Latvia.