Critical technologies and industrial capabilities: National definition and policy implications. The case of Baltic States

Abstract:

The way the Baltic States define, assess and develop critical technologies and their industrial capabilities is very much affected by their smallness in terms of capabilities and the size of the defence industrial sector as well their security environment. Critical technologies are inextricably linked to ensuring the security and operability of critical infrastructure.

The development of critical technologies in Lithuania, Latvia and Estonia, therefore, depends on the identified vulnerabilities of critical infrastructure. All three Baltic states have limited defence industries which are mostly focused on dual-use products. The main players in the industries are private small and medium-sized enterprises which have slim chances of competing with France or Germany’s counterparts. Key challenges for all three Baltic states mostly derive from the external security environment rather than natural disasters or other threats such as terrorism (apart from frequently occurring cyberterrorism). Russia’s war of aggression against Ukraine has reinforced the aspiration to increase defence capabilities and ensure the security of the critical infrastructure.

This paper focuses on five main questions: how the Baltic States define their critical technologies, what monitoring mechanisms are in place, how they tackle potential dependencies, how national mechanisms are coordinated with the EU, and finally, how the war in Ukraine has impacted the understanding of the security of the critical infrastructure.