Frankenburg Technologies Tops Ranking of Most Innovative Baltic Defence Startups

A panel of 34 defence experts from across the Baltic states ranked Frankenburg Technologies as the most innovative defence industry startup in the region, with Origin Robotics (Latvia) and Unmanned Defense Systems (Lithuania) taking second and third place. The ranking, compiled by Delfi Media, named 52 defence startups across Estonia, Latvia, and Lithuania.

The same week, Frankenburg’s Mark I interceptor missile achieved a world first — successfully engaging a kamikaze drone in an air-to-air launch from an Airbus Defence and Space Bird of Prey uncrewed interceptor drone. The test was conducted at a military training area in northern Germany.

Key Developments This Week

  • Estonian defence growth: Estonian defence industry revenue has grown 350% since 2021, reaching €730 million in 2025. Export sales quadrupled from €82m to €350m, now accounting for over 60% of total revenue
  • Hanwha joins EDIA: Hanwha Aerospace becomes the first Korean company to join the Estonian Defence and Aerospace Industry Association, signalling long-term commitment to Estonia’s defence sector
  • 155mm shell factory: A Swedish company (believed to be BAE Systems Bofors) to build a 155mm artillery shell factory at Estonia’s Põhja-Kiviõli defence industrial park, investing at least €300 million and creating 100+ jobs
  • Sweden-Lithuania ties: Sweden’s Chief of Defence General Michael Claesson visits Lithuania, discussing air defence, counter-UAS, and NATO operations Baltic Sentry and Eastern Sentry
  • Counter-drone partnership: Latvia’s Origin Robotics partners with DroneShield, the global leader in counter-drone technology, to advance joint counter-UAS capabilities
  • Drone defence costs: Estonia’s Interior Minister warns that modern drone defence would cost up to €500 million, with delivery times for radar and camera systems already stretching 6-12 months
  • Defence accelerator: Defence Business Lab pre-accelerator invites companies for its second year, after graduates like C2Grid advanced to NATO’s DIANA accelerator

Strategic Context

The Frankenburg-Airbus test marks a milestone for low-cost, mass-producible counter-drone systems. The Bird of Prey’s operational version will carry up to eight Mark I missiles, creating a reusable platform capable of neutralising multiple kamikaze drones per sortie. With the global anti-drone market estimated at €2.7 billion in 2025 and growing faster than the overall drone market, Baltic companies are positioned at the centre of one of defence’s fastest-growing segments.