EU research and innovation funding expands to defence and dual-use technologies

The European Union has extending its research and innovation funding to defence and dual-use technologies with both civilian and defence applications. This move underscores Europe's commitment to strategic autonomy, security, and technological leadership in an increasingly competitive global landscape.

The change is the result of an amendment to the European Innovation Council (EIC) Work Programme 2026, adopted to implement the Defence Mini-Omnibus, a legislative package designed to strengthen Europe's defence industrial base and reduce dependencies on external suppliers.

From now on, start-ups and small and medium companies developing technologies with both civilian and defence applications such as artificial intelligence, quantum computing, advanced materials or robotics, can apply for grants up to €2.5 million and equity investments up to €30 million under the EIC Accelerator and the STEP Scaleup.

At the same time, the EIC is launching a new €100 million EIC STEP Defence Scale Up call open to companies in the EU, in countries from the European Economic Area associated to Europe's multi-billion research programme Horizon Europe, and in Ukraine. These companies can receive up to €30 million in direct equity financing to accelerate the scale-up of their industrial capabilities on, among others, air and missile defence, drones and counter drones, and other critical defence technologies. 

This is the first time any EU funding programme will ever invest direct equity in defence companies. The EIC will co-invest in major funding rounds typically ranging from €50 million to €150 million or more, leveraging at least three to five times the EIC investment.

For more information:

EIC website