The Evolution of Dual-Use Technology: Lessons from the Baltic Pivot
The modern defense landscape is shifting toward a model where civilian innovation rapidly transforms into military capability. A prime example of this trend is the Lithuanian company Brolis. Originally founded in 2011 to develop infrared laser products for scientific applications, the company pivoted its operations following the 2022 invasion of Ukraine.
By applying scientific laser systems to create electro-optical targeting systems for drones and rifles, Brolis demonstrated how “dual-use” technology can be scaled quickly during a crisis. This agility is becoming a blueprint for other NATO allies, including Canada, as they seek to modernize their own industrial bases.
Rethinking Defense Spending: Agility Over Scale
While larger nations often rely on the sheer size of their industrial complexes, smaller states are proving that proportional spending and strategic focus can yield faster results. Lithuania has emerged as one of the biggest spenders on defense within NATO, reaching 4% of its gross domestic product (GDP) in 2025, with a goal to hit 6% by 2030.
This aggressive investment has led to a surge in industrial growth. According to Minister of Economy and Innovation Edvinas Grikšas, Lithuanian industry revenues shot up by 50% just last year. This suggests a future where defense spending is not just a cost, but a driver of broader economic industrialization and innovation.
Comparing Defense Industry Ecosystems
The contrast between the Lithuanian and Canadian models offers a unique look at industry maturity:
- Canada: Possesses a larger base of over 600 defense companies, with exports representing about half of industry revenues in 2022.
- Lithuania: Operates with roughly 100 companies, but maintains a higher percentage of exporters feeding into NATO chains.
Strategic Diversification and the European Gateway
As global geopolitical tensions rise, countries are looking to diversify their strategic partnerships to avoid over-reliance on a single source. Canada is currently exploring ways to strengthen ties with Europe, utilizing mechanisms like the EU’s Security Action for Europe program to invest in defense capabilities.
Lithuania is positioning itself as a strategic entryway to the European market. With the upcoming presidency of the Council of the European Union in 2027, Lithuania is pitching itself as a hub for Canadian companies and governments looking to diversify away from the United States.
Beyond traditional hardware, this partnership is expanding into advanced technology sectors, including:
- Biotechnology
- Mass manufacturing
- Large-scale drone production
Scaling Exports for Global Security
The trend toward “export-first” defense industries is accelerating. Canada has set an ambitious target to double its defense exports over the next decade, aiming to create 125,000 jobs. By studying the Baltic experience, Canada can learn how to better incentivize the commercialization of innovation.
The ability to manufacture products, such as drones, at scale is no longer just a military requirement—it is an economic opportunity. The transition from scientific research to mass production is the key to maintaining a competitive edge in the NATO alliance.
Frequently Asked Questions
What is the “dual-use” technology model?
It is the practice of developing technology for scientific or civilian use that can be rapidly adapted for military applications, such as Brolis’ shift from scientific lasers to targeting systems.
How much is Lithuania spending on defense?
Lithuania reached 4% of its GDP in defense spending in 2025 and is striving to reach 6% by 2030.
Why is Lithuania seen as a gateway to the EU?
Due to its strategic position, its focus on innovation, and its upcoming presidency of the Council of the European Union in 2027.
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