Opinion: Estonian drone industry needs mass production, not just procurement contracts

Logistics and supply chain expert Jana Salm writes that Estonia's decision to strengthen air defence and develop the drone industry is strategically sound, but the nation's actual benefit depends on whether it can build domestic industrial capacity. According to Salm, drones and defence technology could become Estonia's new economic engine.

Estonia has taken a strategically sound step in deciding to strengthen air defence and invest in drone industry development. Yet logistics and supply chain expert Jana Salm cautions that merely purchasing equipment does not guarantee long-term benefit to the nation-the question is whether Estonia can use these procurement contracts to build its own production capacity.

In Salm's view, drones, robotic platforms and other defence technology hold potential that extends far beyond ordinary government procurement. If the state can create conditions where domestic companies grow into suppliers and manufacturers, the defence sector could become a new economic engine for Estonia, much as digital government once brought the nation international recognition.

The central challenge is reaching mass production. With individual contracts and small batches, no manufacturer can achieve the cost structure and quality assurance that would make Estonian defence technology competitive internationally. This means the state's role cannot stop at being a buyer-Estonia must become a partner that actively supports domestic production.

Salm emphasizes that the current geopolitical moment offers Estonia a rare window: NATO allies are increasing defence spending, demand for reliable European-sourced drone technology is growing, and international investor interest in the sector is higher than ever before. Estonia has digital nation credentials, a flexible regulatory environment and strong engineering expertise-preconditions that many competitors lack.

If Estonia can combine state orders, private sector innovation and smart supply chain development, the drone industry could grow into an export product that generates economic returns even when the security situation improves. The expert calls on decision-makers to look beyond immediate needs and shape the drone industry into Estonia's long-term competitive advantage.