Latitude59, Estonia’s flagship tech and startup conference, has become a focal point for innovation leaders across Europe. Held in Tallinn, the event draws founders, policymakers, investors, and ecosystem builders together to explore the future of technology, regulation, and economic development.
Estonia has long been recognised as a pioneer in digital innovation. Its e-residency programme, national digital infrastructure, and government-backed regulatory sandboxes position it as a leading example of how agile policy can catalyse economic transformation. The country’s approach to enabling tech-driven growth through collaboration, experimentation, and investment offers valuable lessons for more mature markets, including the UK.
Key themes and takeaways
Regulatory sandboxes are strategic enablers, not just policy tools
The UK has been an early adopter of regulatory sandboxes, most notably through the Financial Conduct Authority (FCA), which launched its sandbox in 2016 to allow fintech firms to test new products with live oversight. Other regulators, including Ofgem and the Information Commissioner’s Office, have piloted sandboxes in energy and data. However, these initiatives tend to be regulator-led, sector-specific, and limited in scale.
In contrast, Estonia’s approach is more integrated and commercially focused. Sandboxes there are not only used to test compliance, they’re embedded in national innovation strategy and designed to accelerate scaling. This was evident at Latitude59’s Thinking in Billions track, where policy and industry leaders explored how countries can act as legal testbeds for urgent, transformative innovation.
One session, Building Effective Defence Tech Sandboxes, explored how public-private collaboration can create secure environments for trialling dual-use technologies, including drone and AI solutions. These frameworks are built with the explicit aim of reducing friction, encouraging rapid iteration, and enabling faster entry into regulated markets.
There’s a clear opportunity for the UK to broaden its use of sandboxes, particularly at the regional level, to support mid-sized businesses. If positioned correctly, these platforms can become growth enablers, not just regulatory tools, giving businesses the confidence to invest in innovation with a clearer path to implementation.
Dual-use tech and the resilience imperative
One of the dominant themes at Latitude59 was the growing significance of dual-use technologies. These are innovations that serve both civilian and defence purposes, such as drone systems, cybersecurity infrastructure, and AI-based surveillance tools. In a world facing rising geopolitical tensions and economic uncertainty, the ability to create technology that contributes to both commercial value and national resilience is increasingly important.
The Thinking in Billions programme, which opened the conference, focused heavily on the intersection between innovation and security. Discussions centred on how governments can support dual-use innovation through regulatory flexibility, procurement reform, and targeted R&D investment. Crucially, the emphasis was not only on military-grade technology, but also on applications that can scale into adjacent markets like logistics, construction, healthcare, and infrastructure.
This has strong relevance for the UK, particularly in regions with advanced engineering and manufacturing capabilities. Dual-use innovation presents a strategic opportunity to diversify revenue streams, access new funding channels, and participate in public-private partnerships that drive both growth and long-term resilience.
For mid-sized businesses, the challenge is to recognise where their core competencies intersect with these opportunities. Collaborating with defence agencies, academic institutions or innovation accelerators can unlock routes into dual-use markets without requiring a wholesale shift in business model. It is also a route to strengthening supply chain roles and increasing relevance in national innovation strategies.
AI in venture capital is a signal for operational reinvention
One of the most thought-provoking discussions at Latitude59 explored how AI is transforming the venture capital sector. Panels highlighted how investors are now using AI tools to automate deal sourcing, evaluate risk, analyse founder profiles, and even model future market conditions. These developments are not theoretical. They are actively reshaping how capital is deployed and how decisions are made at speed and scale.
For mid-sized businesses, this shift sends a clear message. If the investment community is embedding AI into core decision-making processes, then companies seeking capital, partnerships or acquisition opportunities must begin doing the same. AI is not just a back-office efficiency tool. It is becoming fundamental to how organisations interpret data, assess opportunity, and stay competitive.
Integrating AI into commercial and operational functions can provide immediate gains. These may include faster product development cycles, more accurate forecasting, and greater clarity on customer behaviour. But over time, the larger benefit lies in building an organisation that can respond to market shifts with agility and precision.
The key is to avoid viewing AI purely as a technology investment. It must be considered as part of a broader shift in organisational design. That includes upskilling teams, adjusting governance frameworks, and aligning AI use with strategic priorities. For many mid-sized firms, this may require partnerships with technology providers, academic institutions, or innovation consultancies that can provide the expertise and structure to scale AI capability with purpose.
Mastercard Lighthouse and Superconnectors: Playbooks for collaborative growth
Two standout sessions at Latitude59 exemplified how structured collaboration can accelerate innovation: the Mastercard Lighthouse Startup Showcase and the Superconnectors Tallinn programme. While different in format, both initiatives shared a clear objective, to connect early-stage startups with established organisations in ways that solve real problems and unlock commercial value.
The Mastercard Lighthouse programme brought together 20 high-potential fintech and impact startups from across the Nordic and Baltic regions. Rather than relying on broad visibility or pitch competitions, the programme created curated matchmaking sessions that prioritised relevance and scalability. For startups, this meant access to potential buyers and strategic partners. For corporates, it was an opportunity to address known challenges with targeted, agile solutions.
Superconnectors Tallinn adopted a more informal, high-energy approach, but with equally strategic intent. The event facilitated direct, challenge-led conversations between founders and ecosystem leaders. The emphasis was not on investment or exposure, but on brokering introductions and removing barriers that often prevent startups from working with larger organisations.
This level of curated interaction is still underdeveloped in the UK. Too often, corporate-startup engagement happens in isolation from commercial strategy, or through passive channels like innovation showcases and trade fairs. The Estonian model highlights the value of intermediaries who understand both startup dynamics and corporate decision-making, and who can create the conditions for mutual benefit.
For mid-sized firms, the lesson is to invest in structured collaboration. That might involve joining accelerators, launching challenge-led open innovation calls, or hosting their own regional ‘Superconnectors’ to connect with the innovation ecosystem on their own terms. The value lies not just in discovering new solutions, but in positioning as an active participant in the wider innovation economy.
CleanTech and the investment frontier
Cleantech emerged as a central theme at Latitude59 2025, underscoring its growing significance in the global investment landscape. The conference highlighted how sustainable technologies are not only addressing environmental challenges but also presenting substantial economic opportunities.
A notable side event, the Emerge Estonia Pitch & Party, served as the afterparty for CleanTech Capital Day, bringing together cleantech startups, investors, and industry leaders. This gathering emphasised the convergence of AI, fintech, and cleantech, illustrating the interdisciplinary approach driving innovation in the sector.
Discussions at the conference focused on the resilience and growth of the cleantech sector, driven by innovation and increasing demand for sustainable alternatives. From renewable energy technologies like solar and wind to electric vehicles and energy-efficient appliances, cleantech is paving the way for a greener economy.
For UK mid-sized businesses, the Estonian model offers valuable insights. The integration of cleantech into national innovation strategies, supported by collaborative ecosystems and proactive policy frameworks, demonstrates how sustainability can be a driver of economic growth. UK firms have the opportunity to engage with cleantech initiatives, explore partnerships, and invest in sustainable technologies to remain competitive in a rapidly evolving market.
Implications for UK mid-sized businesses
The conversations at Latitude59 offer a strong challenge to UK mid-sized firms: be proactive in how you engage with innovation, regulation and the wider ecosystem.
Estonia’s example shows that smaller economies can lead globally by creating the right conditions for entrepreneurship and strategic experimentation. The UK has the infrastructure, talent and policy ambition to do the same, but mid-sized organisations must take a more deliberate role in shaping this future.
Be an ecosystem player, not just a market competitor
The most successful businesses in Estonia are not operating in isolation. They are embedded in networks of startups, universities, regulators and corporates, which enable shared learning and faster problem-solving. UK firms should explore how to embed themselves into similar local or national ecosystems, through partnerships, memberships, innovation programmes or open collaboration initiatives.
Push for regional innovation infrastructure
Regulatory sandboxes should not remain the domain of national regulators. There is scope to influence and support the development of regionally embedded sandboxes that address industry-specific or place-based innovation challenges. Mid-sized firms have an important voice in making the case for these frameworks and in helping shape how they work in practice.
Operationalise AI now, before it becomes a prerequisite
AI is rapidly becoming foundational to how businesses make decisions, allocate resources and compete for investment. It is no longer optional. Firms that are not actively exploring and embedding AI risk falling behind. Start with targeted, use-case-driven adoption and build capability over time, not just in technology, but in governance, data culture and strategic alignment.
Explore the dual-use opportunity
There is growing support across Europe for dual-use innovation. Mid-sized businesses in sectors such as advanced manufacturing, engineering, logistics or cybersecurity are often well-positioned to contribute to this agenda. Exploring government-funded partnerships or working with universities can provide low-risk entry points into this market.
Curate your innovation partnerships
Innovation is not just about technology, it is about relationships. The success of programmes like Mastercard Lighthouse and Superconnectors lies in how they reduce friction and increase relevance between startups and more established businesses. UK mid-sized firms can adopt this mindset by hosting their own challenge-driven engagements, working with innovation brokers or joining relevant accelerators and scale-up platforms.