New dimensions of Polish-Lithuanian cooperation: advanced technologies for security and innovative economy

The new Lithuanian government announces the continuation of the strategic partnership with Poland to ensure regional security. In the context of the ongoing Russian-Ukrainian war and the US presidential elections, this relationship could become even closer. In the coming years, the areas of Polish-Lithuanian cooperation will be expanded to include the innovative defence industry and the application of modern technologies in the economy.

New technologies for security. In the coming years, security will remain the most important area of cooperation between Poland and Lithuania (“IEŚ Commentaries”, no. 1074). The countries continue to strengthen their national defence capabilities – plans for 2025 include PLN 186.6 billion (EUR 43.32 billion; 4.7% of GDP) for Poland and EUR 2.5 billion (3.03% of GDP) for Lithuania.

Regardless of the configuration of the domestic political scene, the intensification of relations between Vilnius, Warsaw and Kyiv will be maintained. Lithuania’s assistance to the struggling Ukraine has amounted to 1.64% of GDP (in the case of Poland, 0.65% of GDP; Kiel Institute), and Vilnius has pledged to continue this assistance at the level of 0.25% of GDP per year. Lithuania and Poland have also signed bilateral security agreements with Ukraine: Lithuania – in June, and Poland – in July 2024. The agreements provide for regular strategic dialogue meetings on issues related to Ukraine’s defence, as well as military, humanitarian and financial assistance, strengthening Ukraine’s economic and energy stability and social resilience, and supporting Ukraine’s aspirations for NATO and European Union membership.

The Ukrainian-Lithuanian Defence Industry Forum was held in Kyiv in September, which resulted in the signing of a Memorandum on Defence Cooperation. Lithuania and Ukraine pledge to cooperate in the production of drones (land and sea) and electronic warfare systems (based on the detection, jamming and defence of threats in communication systems), as well as to develop the production capacity of ammunition, explosives and missiles in both countries and to invest in defence research. Lithuania also undertakes to give Ukraine priority in the purchase of Lithuanian products, components and defence materials. In 2025, the construction of a Ukrainian RDX explosives factory is to begin in Lithuania, using new technologies that allow for fast detonation and high explosive power. During the Polish-Lithuanian Defence Business Forum, attended by the presidents of Poland and Lithuania, the two countries signed a memorandum on industrial cooperation in the field of cybersecurity. Since 2023, Poland, along with the US, Ukraine and Georgia, has been a member of the Regional Cyber Defence Centre in Lithuania, which was established in 2021 and focuses on the analysis of threats in cyberspace.

Poland and Lithuania have already started joint investments in the defence industry and this direction will continue in the coming years. In July, the two countries announced a joint purchase of Piorun mobile short-range air defence systems. In addition, in November the Lithuanian Innovation Agency launched an international programme of scientific research and experimental development work aimed at helping domestic defence companies implement projects with partners in Poland. During the aforementioned Polish-Lithuanian Defence Business Forum, it was also agreed to establish a technology laboratory, which will provide a bilateral platform for inter-institutional cooperation in the field of defence innovation.

Poland and Lithuania, together with the other Baltic states, Finland and Norway, also announced the creation of a so-called ‘drone wall’, which will use unmanned aerial vehicles to protect the external borders of the states. Strengthening air defence is one of the most important defence tasks for Lithuania. The latest programme of the Lithuanian Ministry of Defence, the so-called Lithuanian Drone Ecosystem, includes the financing of drone operator courses, the creation of a register of drone operators, incentives for Lithuanian drone manufacturers and the creation of drone clubs.

Innovative economy. In the context of Russia’s aggression against Ukraine, the economy has become an integral part of both countries’ security. Poland and Lithuania are dynamically developing technological ecosystems, characterised by innovation and the broad impact of innovation on the socio-economic sphere. Poland and Lithuania ranked 39th and 35th, respectively, among 133 economies included in the Global Innovation Index 2024. In turn, according to the European Innovation Scoreboard 2024 report, Lithuania showed the highest growth rate in the innovation ecosystem – with a value of 3.7 percentage points. It is also a European leader in the financial technology sector (in terms of licensed FinTech companies; Bank of Lithuania, 2023), as well as a significant country in terms of virtual asset services, with 270 companies operating in this field, including companies related to online banking, digital payments, crypto-assets and financial software. In addition, Lithuania has the second fastest growing start-up ecosystem in Central and Eastern Europe, with more than 1.000 start-ups (Dealroom, 2023). The most advanced solutions currently used by the defence sector in Lithuania include photonics, engineering technologies and ICT products. Lithuanian defence industry products, such as electro-optical and laser systems and anti-drone systems (RSI Europe, Brolis), are exported to NATO countries – Germany, France, the UK and the US – as well as to Israel and Ukraine. In this context, a specific response to economic and geopolitical challenges is the Lithuanian Innovation Space – an institution opened on 9 October 2024 at the Lithuanian Embassy in Warsaw, which aims to facilitate cooperation between representatives of Lithuanian business and science. An important dimension of this will be the joint acquisition of EU funds for the development of innovation, scientific research and entrepreneurship.

Conclusions and forecasts. The revaluation of Polish-Lithuanian bilateral relations observed in recent years is, on the one hand, a response to geopolitical threats in the region and, on the other, the result of a more pragmatic approach on both sides and the implementation of concrete initiatives. The growth of mutual trust is having an impact on the intensification and expansion of areas of regional cooperation. In addition to existing projects – political, economic, energy, cultural – Poland and Lithuania are initiating activities in the fields of defence, development of new technologies and scientific exchange. The aim of the cooperation is to increase deterrence capabilities, shape the resilience of critical infrastructure and neutralise threats in cyberspace posed by Russia and Belarus.

The announced foreign policy of the new US President, Donald Trump, and his declaration to reduce US involvement in Europe may paradoxically strengthen the dimension of Polish-Lithuanian bilateral relations and dynamise regional projects in the field of security and innovation, while at the same time serving to create partnerships necessary for the reconstruction of Ukraine. It is therefore expected that Poland and Lithuania will increase the competitiveness of their own defence industries and support their development by attracting new investments and using innovative solutions and new technologies. The establishment of the Lithuanian Innovation Space in Warsaw is therefore an important step in building the position of Poland and Lithuania in the field of innovation and technology and expanding the areas of strategic cooperation in the region.

The focus on defence and economic projects may distract decision-makers from the issue of the Polish minority in Lithuania. The development of education, the original spelling of surnames and the formation of objective and professional Polish-language media in Lithuania should continue to be the subject of interest and dialogue between the two countries in bilateral relations.