---
title: SMEs could become Europe’s fastest defence advantage
description: Small and medium-sized enterprises are playing a decisive role in Ukraine’s war effort. At the Nordic Defence and Security Conference, industry leaders from Norway and Ukraine argued that Europe can strengthen resilience, innovation and military readiness by giving SMEs greater access to users, testing environments and procurement opportunities. The discussion highlighted how Ukraine has built a defence innovation ecosystem where ideas can move from concept to battlefield deployment in a matter of months rather than years.
---

[NORDSEC News](https://www.nordsec-cluster.no/en/news)

# [SMEs could become Europe’s fastest defence advantage](https://www.nordsec-cluster.no/en/news/smes-at-the-centre-what-europe-can-learn-from-ukraines-innovation-ecosystem)

 Written by [Lars Bugge Aarset](https://www.nordsec-cluster.no/en/news/author/lars-bugge-aarset) | Sep 28, 2026, 7:01:20 PM

Europe is pouring billions into defence. Yet many of the companies developing tomorrow's technologies never reach the market. During the Nordic Defence and Security Conference, Norwegian and Ukrainian industry leaders argued that the problem is not a lack of innovation. It is a lack of pathways from prototype to procurement.

That challenge was at the centre of a session at Forsvarskonferansen - Nordic Defence and Security Conference, where representatives from Norway and Ukraine shared experiences from the defence innovation ecosystem and how SMEs can contribute to stronger defence capabilities.

The discussion brought together Maja Solum Executive Operations Manager of Ubiq Aerospace, Mykyta Rozhkov, Chief Business Development Officer of Ukrainian defence technology company Frontline Robotics, Denys Horielov of the Ukrainian Council of Defence Industry, and Tevje Ravn Eggan, Cluster Manager at NORDSEC Nordic Defence and Security Cluster.

While their perspectives differed, they all returned to the same question: how can Europe create the conditions that allow innovative SMEs to develop, scale and deliver capability faster?

Maja Solum, Ubiq Aerospace. Photo: Lars Bugge Aarset/Fremtidens Industri

## The gap where companies disappear

For Maja Solum of Ubiq Aerospace, the challenge is familiar.

> *“Going from proof-of-concept to large-scale production is a treacherous road for innovative SMEs. Many businesses die here,” she said.*

Across Europe, startups and SMEs often find themselves caught between investors seeking proven demand and procurement authorities seeking proven products. The result is a dangerous middle ground where companies fail long before their promising technologies reach operational users.

According to Solum, this is one of the reasons Ukraine is moving faster.

Maja Solum, Ubiq Aerospace. Photo: Lars Bugge Aarset/Fremtidens Industri

Solum highlighted new procurement approaches in which purchase orders are conditional on companies meeting defined milestones within a specified timeframe. Without any certainty of a future purchase order, companies struggle to attract the necessary capital to develop and scale their product. Under the new procurement approach, companies have the certainty that if they meet certain requirements, purchase orders will come.

By giving companies a predictable path from prototype to production, reducing risk, they are stronger positioned to raise the necessary capital from capital markets.

For innovative SMEs the difference can be significant. Access to capital is one of the decisive factors for building the defense companies of tomorrow. 

 Mykyta Rozhkov, Frontline Robotics. Photo: Lars Bugge Aarset/Fremtidens Industri

## Ukraine’s shorter path from idea to deployment

The discussion repeatedly returned to Ukraine, where wartime conditions have forced military organisations and industry to work together at a far higher tempo than is common in most European countries.

Some of the most striking differences, according to Solum, are that Ukrainian military units are easily accessible, have the mandate to buy systems directly from industry, and have a willingness to accept greater risk.

> *“The Ukrainian armed forces want your system once they believe it has operational value,” she said. “It does not have to be perfect before it can be deployed.”*

Solum pointed out that the rest of Europe must find ways to apply lessons from Ukraine to its own operational context, rearming in peacetime. Two key lessons are the importance of access to end-users and the importance of fast procurement. This greatly benefits innovative SMEs on their journey from technological concept to production at scale. Rapid feedback, testing and development, combined with continuous revenue streams, drive rapid innovation cycles and growth. 

Illustration from Mykyta Rozhkov's presentation. Photo: Lars Bugge Aarset/Fremtidens Industri

## Investing in capabilities

According to Mykyta Rozhkov of Frontline Robotics, Ukraine's experience has changed the way defence innovation is viewed.

> *“In Ukraine, we do not invest in products. We invest in capabilities,” he said.*

The distinction reflects the speed at which modern warfare evolves. Products may change, software may be updated and hardware may be replaced, but the capability being delivered remains the objective.

Mykyta Rozhkov, Frontline Robotics. Photo: Lars Bugge Aarset/Fremtidens Industri

Rozhkov described an innovation ecosystem built around three key factors: direct access to operational data, continuous feedback from end users and the ability to rapidly scale production once a solution proves effective.

A system that performs well today may require significant modification only months later because tactics, threats and electronic warfare environments continue to evolve. Success therefore depends on the ability to learn and adapt faster than the adversary.

Ukraine's defence industry today consists of hundreds of companies working alongside military units, government organisations and investors. Together they form what Rozhkov described as a coordinated defence innovation ecosystem rather than a collection of individual startups.

Tevje Ravn Eggan, manager of NORDSEC - Nordic Defence and Security Cluster. Photo: Lars Bugge Aarset/Fremtidens Industri

## Learning directly from the users

## That point was reinforced by Denys Horielov of the Ukrainian Council of Defence Industry.

> *“Only the people using the systems can tell you how they truly perform,” he said.*

According to Horielov, close cooperation between industry and military users has become one of the defining characteristics of Ukraine's defence innovation ecosystem. Feedback from the front line is incorporated directly into product development, helping companies identify weaknesses and respond rapidly to emerging requirements.

Innovation, he argued, does not end when equipment is delivered. In many cases, the battlefield itself becomes part of the development process.

Denys Horielov, Mykyta Rozhkov, Tevje Ravn Eggan and Maja Solum in discussion led by Jan Erik Larsen. Photo: Lars Bugge Aarset/Fremtidens Industri

## Creating access

For Tevje Ravn Eggan, the most important lesson for the Nordic countries is not necessarily technological.

> *“The willingness is here. The challenge is creating access.”*

Access to users. Access to testing environments. Access to procurement opportunities.

Eggan argued that many innovative companies already possess valuable technologies and expertise. What they often lack is a route into the defence sector and opportunities to demonstrate their capabilities to potential users.

Through initiatives such as innovation hackathons, collaborative projects and networking activities involving industry, academia, defence organisations and public authorities, NORDSEC Nordic Defence and Security Cluster is working to reduce barriers and create more direct interaction between innovators and end users.

According to Eggan, innovation depends as much on relationships and access as it does on technology.

Tevje Ravn Eggan, Manager of NORDSEC. Photo: Lars Bugge Aarset/Fremtidens Industri

## The race Europe cannot afford to lose

Ukraine's experience suggests that defence innovation is no longer driven only by the largest companies.

Many of the technologies shaping today's battlefield have come from smaller firms able to move quickly, work closely with military users and adapt continuously as operational requirements change.

The challenge for Europe is not identifying these companies. The challenge is ensuring they survive. As defence budgets continue to increase, the question is no longer whether Europe can afford to invest in SMEs.

The question is whether Europe can afford not to.

Photo: Lars Bugge Aarset/Fremtidens Industri

[View full post](https://www.nordsec-cluster.no/en/news/smes-at-the-centre-what-europe-can-learn-from-ukraines-innovation-ecosystem)

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