As politicians consider the development of the defense industry, the institutions agreed to deepen ties

As politicians consider ways to boost domestic industry, several state agencies agreed Wednesday to deepen ties to help companies innovate in the defense field.

This is stipulated in the agreement signed on Wednesday by representatives of the Lithuanian Armed Forces, the Defense Resources Agency and the Innovation Agency, the Ministry of National Defense told BNS.

The document stipulates that the institutions will “cooperate and provide assistance to each other in the preparation and organization of initiatives, events and activities related to defense innovation, defense and security industry”.

“We are turning a new page related to cooperation and the development of the defense industry,” Minister of National Defense Laurynas Kasčiūnas told BNS.

The institutions agreed to exchange information and cooperate in preparing various programs and events to promote defense innovation.

Among them are “Miltech Academies”, “Miltech Sandbox” training for the Lithuanian army and industry about innovations, business subsidization through defense innovation checks.

The latter measure will be intended for companies to purchase research and experimental development services from research and study institutions, addressing the challenges of the military identified during the defense innovation workshop.

According to L. Kasčiūnas, the institutions are strengthening their ties in preparation for the adoption of the Defense and Security Industry Law being considered in the Seimas.

We are turning a new page in cooperation and defense industry development.

This law is intended to create a more favorable business environment for the defense industry operating in Lithuania and to promote business cooperation with the national defense system.

“This agreement brings together innovators with the needs of the defense industry.” Since both the army and the Defense Resources Agency will be here, it is necessary to combine the need with the capabilities of innovators,” said L. Kasčiūnas.

According to him, cooperation between the institutions responsible for innovation and the national defense system already took place, but new agreements and political will will formulate a more systematic approach

“We formulate the need, provide a certain expert base, orient innovators to a defense product that can be useful,” said the minister.

“An example would be if we were building a drone that could shoot down an enemy drone in flight and do it cheaper than shooting at that drone from some expensive system,” he added.

The Law on Defense and Security Industry, which is currently being considered by the Seimas committees, provides, among other things, various budget financing measures for the development of defense and security technologies, including state orders.

The project also envisages the creation of the Defense and Security Industry Council, which will unite state institutions and business.

The amendments also propose to define what market participants call an offset – a mechanism where the state and a foreign arms seller agree that part of the seller’s obligations related to, for example, the repair or production of weapons, is carried out with the help of Lithuanian companies.