Finland's Defence Tech Revolution: Innovating at the Crossroads of Security and Technology

In Finland, a blossoming landscape of defence technology is emerging, spearheaded by innovative companies like Varjo, which specializes in advanced mixed reality headsets that blend synthetic visual content with real-world environments. These devices are crucial for military training, allowing forces to conduct simulations without the costs and logistics of traditional setups. Following Russia’s invasion of Ukraine, investments in Finland’s defence sectors surged, with Varjo raising over €50 million since March 2022 alone.

Varjo’s CEO, Timo Toikkanen, notes that prior to the conflict, investors viewed military applications cautiously, but attitudes have now shifted dramatically to a recognition of the need for robust military technology, especially as Finland continues to invest heavily in defence, driven by its long border with Russia and a collective national memory of past conflicts.

The growth of startups within the defence realm is buoyed by a skilled tech community rooted in Nokia’s early influence, while entities like Business Finland are channeling substantial state support into this developing sector. Yet, challenges persist, including a disconnect between nimble startups and the lengthy procurement processes of established defence firms, alongside heightened competition for skilled workers globally.

As Finland confronts unique security challenges, a resilient spirit among its populace fuels the drive towards comprehensive defence solutions, making it a notable player in the UK’s defence landscape.