‘We Must Have Industry to Have Defence’: Finland's War Economy, Military Security of Supply, and Defence Industry in the Changing Global Security Environment, 1998–2024

Heikki Roiko-Jokela, Association Professor
Tapio Roiko-Jokela, Doctoral Researcher

Finland’s security of supply and defence industry (A.K.A military industry) have transformed significantly since the Cold War, shifting from a national, state-led model to a multinational business. This transition has required adaptation in national security of supply policies while also necessitating active management of internationalization’s impact on military security of supply. Despite these efforts, global trends continue to shape Finland’s defence industry and its resilience. This evolution has occurred in multiple phases, with decisions made over the past three decades playing a key role in the current transition. These decisions explain the present state of Finland’s defence industry and security of supply, form a reference point for ongoing and future policymaking, and reveal critical trends and signals for strategic planning. The defence industry is a fundamental component of Finland’s comprehensive national defence, particularly in terms of security of supply. It supports the Finnish Defence Forces (FDF) by producing, maintaining, and developing critical systems and technologies, as well as offering related services. The industry is closely integrated into Finland’s defence structure, with the FDF maintaining strategic and industrial partnership agreements to ensure operational readiness. International cooperation is increasingly vital for Finland’s defence industry. The Nordic countries have long-standing defence collaboration, which has further strengthened in the 2020s. Maintaining a viable, internationally competitive defence industry, along with expanding global networks and exports, ensures military security of supply and strengthens national defence capabilities. This study examines the development of Finland’s defence industry and military security of supply over the past thirty years using empirical data. It positions Finland’s approach within global security and economic contexts, identifies key trends and turning points, and provides insights into the future of defence policy and security of supply in an evolving geopolitical landscape.

No extended abstract or paper available

 Presented in Session 189. Defense and War Economics