Compensation in military procurement – a transaction concept that could well be worth knowing.
It will take some diligence though, since in basically every country, industrial participation works differently. For countries like Finland that have less capability in producing their own equipment, there are special rules in place that make sure large sums of money spent on foreign equipment, eventually make their way back into the Finnish economy.
That’s industrial participation in a nutshell, and here’s why we’re talking about it.
There hasn’t been this much on the Finnish defence agenda since WWII.
As the political landscape continues to change, there’s a lot at stake – tensions divide unions that were once strong, massive immigration shakes international fundamentals, and the rising threat of terrorism hits closer and closer to home.
We are now combatting elements of disorder.
In light of this, Finland is obliged to take initiative in strengthening security and being prepared with a modern and capable defence. This concerns not only politics but also industry, as Finland undergoes two huge procurement projects – Squadron 2020 and HX.
With price tags of 1-2 billion euros and 5-10 billion euros respectively, it becomes a bit clearer why so many discussions are being had.
Finland wants to secure supply, create more jobs and foster innovation, and create strategic partnerships for the future of the country. These can all be achieved with Industrial Participation, and it’s important to get the best return on those billions.
But this doesn’t only affect companies who are used to dealing in such large sums of money. Anyone get a piece of the pie.
SME’s can also take part in industrial participation.
As long as it’s related to the defence agenda, even a small startup can participate. Whether you produce cutting-edge technology that can make flying safer, or have a premise for a ground-breaking research project, all applications are taken into consideration.
It’s important, however, to be active and apply for a contract as early as possible. And it doesn’t hurt to network with the industries involved.
Luckily, we know of one platform that can help companies do just that.
The Defence Industry Dialogue helps local and international defence and dual-use companies find their opportunities.
Why does this matter to us? The DID has a unique position and plays an important role in the defence industry in Finland. As an open, neutral platform for sharing insights and providing support in the industry, the DID is the place for international cooperation.
If you’d like to know more about industrial participation or the Defence Industry Dialogue, don’t hesitate to get in touch.