This case study, one of four, examines Estonia’s approach to digital capabilities. It identifies lessons that can be drawn from Estonia’s experience and approach.

Small State, Digital Giant

Lessons from Estonian investment in digital capabilities for defence

Judith Huismans, Rebecca Lucas, Ondrej Palicka, Sarah Winder, Erik Silfversten

ResearchPublished Jan 21, 2026

Ahead of the North Atlantic Treaty Organization (NATO)’s Summit in The Hague, Microsoft commissioned a range of think tanks and research organisations to conduct projects examining digital capability across defence. The projects are intended to help to better articulate how NATO and its members can progress the development of digital capabilities and encourage informed dialogue before and after the Summit. As part of this effort, RAND Europe proposed to write papers across three aspects of digital capability development.

This case study is one of four country-based deep dives that were written as part of Paper 1. This case study covers Estonia, while the other three cover Finland, Poland, and Sweden. Research for this document was based on a literature review, stakeholder interviews, and workshops. The short studies provide examples of how different NATO Allies have approached digital capability development. They are intended to be read alongside the other research papers as an addition or supplement.

Key Findings

  • Estonia has invested heavily in digital capabilities for its civilian population and government; the omnipresence of digital services in turn helps Estonian citizens gain digital skills and proficiency in the use of digital technologies.
  • Estonia’s experience is also a reminder that reliance on digital systems and networks also creates new vulnerabilities. To reduce the risks associated with cyber disruptions, Estonia has developed a number of innovative solutions to protect its data from both cyber and physical threats.
  • In the military sphere, the Estonian example demonstrates the advantages of focusing on specific or niche areas: for example, uncrewed ground vehicles (UGVs).

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Huismans, Judith, Rebecca Lucas, Ondrej Palicka, Sarah Winder, and Erik Silfversten, Small State, Digital Giant: Lessons from Estonian investment in digital capabilities for defence. Santa Monica, CA: RAND Corporation, 2026. https://www.rand.org/pubs/research_reports/RRA3831-4.html.
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This research was sponsored by Microsoft and conducted within the Defence, Security and Justice Program within RAND Europe.

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