Latvia Bolsters Defense Tech Sector with Expanding Support Programs
Latvia is significantly increasing its support for entrepreneurs in the defense technology sector, with more than 10 existing mechanisms set to expand alongside a planned increase in the national defense budget. This initiative aims to not only facilitate Latvian companies’ participation in international projects, including those at the NATO level, but also to strengthen the national economy and bolster national security.
Currently, a comprehensive suite of support options is available to companies throughout the entire lifecycle of new technology development – from initial concept to finalized production. According to government officials, this strategy is designed to enable domestic defense firms to supply products to the National Armed Forces and contribute to overall economic resilience.
Entrepreneurs can access resources such as the ideas hackathon co-hosted by the University of Latvia and the Ministry of Defense, and the business incubator operated by the Latvian Investment and Development Agency. Looking ahead to mid-2025, applications will open for a new start-up support program organized by UniLab, a university incubator specifically focused on the defense industry. This program will offer financial assistance of up to €300,000.
“The goal is to help companies refine their products and create clearer prototypes, as well as to introduce them to the industry and provide guidance on navigating the market,” stated a program manager at UniLab Defence.
Beyond initial development, Latvian companies have access to robust prototype testing opportunities. The NATO-level program Diana, supported by UniLab and the Ministry of Defense, provides access to international experts, up to €100,000 in support, and over 180 prototype test centers for a period of six months.
Testing is also available domestically, with experts from the Ministry of Defense providing support to merchants and scientific institutions involved in the development, manufacture, repair, and disposal of military or dual-use technologies. A senior rapporteur from the Ministry emphasized that this support is specifically intended for products in the development or prototype phase, excluding finished goods.
This local testing project operates year-round, requiring an application followed by a scheduled testing period. Additional support avenues include ministry grant programs and projects funded by the European Defense Fund.
For companies transitioning to production, the Ministry of Economy, through the financial institution Altum, offers loans ranging from €300,000 to €5 million to facilitate manufacturing and market launch. This multifaceted approach underscores Latvia’s commitment to fostering a thriving and innovative defense technology sector.
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