“The evolution of national economy and geopolitical circumstances increasingly more often returns us to a discussion about what defence industry we need. It is difficult to dispute the argument that if the Lithuanian defence industry focuses on local demand alone, it will not sustain itself, nor our national security. That, however, does not mean the area does not require care – and we look for best solutions daily. On the other hand, alongside the due attention to local market and traditional industry, we should encourage our defence industry to orient itself to export while strengthening international competitiveness with stepped up high tech development,” says Minister of National Defence Arvydas Anušauskas.
The right direction
Both NATO and the European Union currently pay special attention to high technology through implementation of such initiatives as DIANA, the NATO Investment Fund and the European Defence Fund. HIGHTECH development opens global export markets, international supply chains and cooperation with the major players of the global defence industry to Lithuanian companies. Moreover, high technology does not require economies of scale and large quantities, exactly as not there in abundance in Lithuanian companies either.
“We have to accelerate the Lithuanian defence industry, in a way, “rock” it going with major international projects and contracts, partnerships on development of new technologies. If we fail to adequately appreciate export and internationality, we may end up manufacturing bullets a decade later, while the rest of the world will have transitioned to smart technologies or AI,” states Minister A. Anušauskas.
High technologies are interlinked with the availability of a qualified, skilled and advanced workforce which is capable of creating high added value through cooperation with other branches of the economy. By concentrating on export and new technologies, the Lithuanian defence industry would strengthen the economy and enhance defence technology competencies, thus furthering the prosperity and security of Lithuania.
According to Minister, the mentioned directions are exactly what the Lithuanian defence industry is currently focused on and it is preferable to stay the course in a systematic and regular manner. The Ministry of National Defence and the Ministry of Economy and Innovation has instruments to support such a course, as well as different international funds and bilateral formats available to the same end.
The Ministry of National Defence has an interest in a strong Lithuanian defence industry, an integral part of the national economy that is competitive in the international arena internationally. The Ministry of Economy and Innovation plays a big role in strengthening the national economy. The Ministry of National Defence contributes to and takes part in these processes on its behalf as well, since later on it benefits from the results developed by the defence industry in terms of national capability development. “We are working to unify the efforts as efficiently as possible and to take the right track through collaboration of the Ministries of National Defence, Economy and Innovation and Foreign Affairs, depending on what a situation or problem requires,” says A. Anušauskas.
Drawn-out process and delayed results
The Lithuanian defence industry today is unquestionably a contributor in strengthening national defence, which is done directly with the manufactured goods as well as indirectly. Everyone in the state – sectors of national economy, defence and security community, all citizens – have an interest in national security and prosperity. That is felt in public debate and efforts to find the best solutions.
Defence industry is often related to attraction of foreign companies and their involvement in its activities, whereas growing foreign investment in Lithuania is an indirect contribution in a better security situation; it also increases the interest in national defence and in involvement, development and maintenance in the field of defence technologies, and advances the public will to defend. Defence industry also serves as an advantageous platform for developing Lithuanian Armed Forces competencies and exchanging expertise. Moreover, it is a multiplier of jobs as a frequent job provider for retired officers.
“A strong, innovative and competitive national defence industry would bring immense added value, benefit in terms of security and defence to the National Defence System. However, no matter how much we accelerate the processes, it should be a natural, not forced development, because it is required for a strong defence industry as opposed to a dependent of the state. Beyond doubt, it should continue steering towards international funds, focus on new technologies, export, involvement in the supply chains of major manufacturers – it is a lengthy process that does not bring results immediately but we need to have sufficient patience and avoid pointless distraction on the matter,” notes A. Anušauskas.
The Ministry of National Defence supports the Lithuanian defence industry by organizing the international Baltic Miltech conference in Vilnius on April 25, the event brings together representatives of business and science and promotes cooperation.
The Ministry of National Defence consistently organizes different industrial events involving bilateral meetings with Lithuanian companies, finances Lithuanian exposition area at international exhibitions, also, the Lithuanian Armed Forces is open for testing Lithuanian-made products as of this year.
