Lithuania's Defence Ecosystem Innovation Agency Lithuania: Support for R&D, exports and the defence industry

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The state‑run Innovation Agency Lithuania supports Lithuanian companies in developing new technologies, funding research and development, and entering international markets. In the defence and space sectors it combines grant programmes, export promotion and international cooperation.

The Innovation Agency Lithuania and Invest Lithuania are sister agencies under the Ministry of Economy and Innovation. While Invest Lithuania (which we visited earlier) seeks to attract foreign companies to establish operations in Lithuania, the Innovation Agency focuses on developing and internationalising Lithuanian businesses.

The agency accompanies companies throughout their lifecycle — from the initial technology idea through R&D and product development to export. It also directs firms to other public and private support services and helps them navigate Lithuania’s business and technology ecosystem. For R&D projects the Innovation Agency provides grants and funding, with a particular emphasis on projects reaching technology readiness level TRL 6.

Defence industry as a growth field

Lithuania’s defence industry is developing dynamically. Since before Russia’s invasion of Ukraine the number of companies has grown from around 50 to roughly 110. Some 15–20 firms are currently experiencing especially strong growth. Technological focus areas include unmanned aircraft, counter‑UAS systems, reconnaissance and ISR technologies, as well as electronic and optical components.

Lithuanian developers monitor practical frontline requirements and tailor products accordingly, for example for FPV drones and reconnaissance systems. At the same time the established civilian laser industry is increasingly transferring its expertise to security and defence applications.

The agency helps companies adapt their products to NATO standards and integrate into international supply chains. This is crucial for young companies: they can provide near‑term support to Ukraine, but at the same time must develop products that can be used in the long term by NATO forces and European customers.

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From grant project to international contract

A major part of the agency’s work is export promotion. The Innovation Agency organises Lithuanian group pavilions at international trade fairs such as Eurosatory and leads trade delegations to key technology regions. A recent visit to Bavaria allowed Lithuanian firms to meet potential customers, integrators and suppliers directly.

Support does not end with the first contact. The aim is robust partnerships, joint development projects and access to international supply chains. Lithuanian component manufacturers already export to multiple countries; for some firms up to a third of turnover comes from defence.

Building a domestic space ecosystem

In the space sector the Innovation Agency is leveraging existing technological strengths. Since Lithuania’s first satellite launch in 2014 a growing ecosystem has emerged. A central actor is NanoAvionics, which signed a contract with US company SpinLaunch in spring 2025 to manufacture nearly 300 satellites in Vilnius. The project is expected to create new production facilities and several hundred engineering jobs by 2030.

Following Lithuania’s accession as an associate member of ESA in 2021, recommendations were made to exploit national laser expertise more extensively for space applications. Companies such as Astrolight are now developing laser communications terminals and have won ESA contracts. Other firms are working on vision‑based navigation for spacecraft, mission operations and model‑based systems for early detection of mission anomalies.

The agency supports this sector primarily through ESA programmes. Public space funding is channelled via ESA, giving Lithuanian companies access to financing, technical projects and international expertise. The Innovation Agency also promotes the Lithuanian space sector at events such as the Space Symposium in the US and the Space Tech Expo in Germany.

A bridging function

Ultimately, the Innovation Agency Lithuania plays a connecting role between the state, industry, research and international markets. Its task is to guide Lithuanian technologies to international readiness — thereby laying the foundation for a competitive ecosystem in defence, space and dual‑use technologies.