Saab and Finland's Aalto University have signed a 10-year collaborative agreement for research, especially in sensor technology.

The agreement, worth about $21 million, strengthens past collaborative efforts with the school, Saab said.

"For Aalto University, collaboration with Saab means a substantial injection of resources into the research in the field, and an opportunity to share expertise with Saab," Aalto University President Tuula Teeri said. "Thanks to the agreement, Aalto University will be able to expand and deepen its research efforts in the field while increasing multi-disciplinary cooperation and educating new professionals."

Saab reinvests 25 percent of its total revenue back into research and development and is especially interested in developing radio and signal processing technologies, which are among Aalto University's core strengths, the company said.

"With the collaboration with Aalto University, Saab will strengthen our cutting edge technological expertise in sensors and communications, said Hakan Buskhe, president and chief executive officer of Saab. "Our sensor technology is at the top of its class, and we want to remain continuously ahead of the field."