Lithuania strengthens defence investment: €40 million allocated to the Defence Investment Fund
Ministry of the Economy and Innovation (EIMIN) is allocating €30 million to the Defence Investment Fund (DIF). These funds will be used to implement the MILInvest 2 risk capital financial measure, with an additional contribution of €10 million from the Ministry of National Defence.
The total value of the measure is €40 million.
'Investment in defence technologies is not only a financial necessity, but also a strategic imperative. Attracting capital will help defence sector start-ups to grow, strengthen our technological progress and independence, and enhance cooperation with international partners,' said the Minister of the Economy and Innovation, Lukas Savickas.
The new MILInvest 2 measure aims to promote experimental development and innovation in the Lithuanian defence and security sector. It will focus on attracting investment from micro, small and medium-sized enterprises, developing defence technology ideas, forming teams and strengthening competencies.
UAB ILTE will administer the MILInvest 2 measure and plans to select two financial intermediaries to manage the funds, implement pre-acceleration and acceleration programmes, and invest in companies. The selection of financial intermediaries is expected to be announced in the fourth quarter of this year.
'This is a consistent step by the ministries to strengthen Lithuania's defence capabilities through technological development. ILTE already has extensive experience in implementing measures of this kind, including the initial MilInvest initiative and a €250 million loan programme to finance defence company projects. This new initiative therefore builds on a tried-and-tested model that enables the effective development of innovative solutions, while strengthening cooperation between science and business in the defence sector," said Inga Beiliūnienė, ILTE's business development manager and board member.
EIMIN is currently implementing the Vytis initiative, which has been allocated €300 million in funding. This forms part of the START economic transformation plan presented by the Ministry of Defence, which aims to strengthen the country's defence industry capabilities, promote innovation and boost international competitiveness.
The ministry has already announced measures such as the Miltech Sandbox initiative and the Defence Innovation Vouchers scheme, which provide financial and infrastructural support to the defence industry. One such measure is a €100,000 fund to support companies in testing and prototyping technologies using the infrastructure of Miltech Sandbox partners. Cooperation has been established with 18 partners, including universities, research institutes, and security agencies.