EU Research and Innovation Funding Expands to Defense and Dual-Use Technologies, with New Call Offering Up to €30 Million

The European Union announced on June 17 that it will expand its research and innovation funding to support defense and dual-use technologies with both civilian and military applications. The decision underscores Europe’s commitment to strategic autonomy, security, and technological leadership in an increasingly competitive global environment.
 

The change stems from an amendment to the European Innovation Council (EIC) Work Program for 2026, adopted by the European Commission as part of the defense “Omnibus Simplification Package,” a legislative initiative designed to strengthen Europe’s defense industrial base and reduce reliance on external suppliers.
 

Under the revised framework, startups and small and medium-sized enterprises (SMEs) developing technologies with both civilian and defense applications—such as artificial intelligence, quantum computing, advanced materials, and robotics—will be eligible for grants of up to €2.5 million and equity investments of up to €30 million through the EIC Accelerator and the STEP Scaleup program.
 

Ekaterina Zaharieva, European Commissioner for Startups, Research, and Innovation, said: “The European Innovation Council was created to take risks, and we must be prepared to take risks when developing European technologies that strengthen our security. We need to invest in critical technologies to safeguard Europe’s strategic autonomy, whether in drones, cyber defense, or quantum technologies. This will reinforce Europe’s technological leadership and innovation capacity for decades to come.”
 

At the same time, the European Innovation Council is launching a new €100 million STEP Defence Scale Up call, open to companies from the EU, countries within the European Economic Area associated with the Horizon Europe research program, and Ukraine. Eligible companies may receive up to €30 million in direct equity financing to accelerate the expansion of their industrial capabilities in areas including air and missile defense, drones and counter-drone systems, and other critical defense technologies.
 

This marks the first time an EU funding program has made direct equity investments in defense companies. The European Innovation Council will co-invest in major funding rounds, which typically range from €50 million to €150 million or more.
 

More information is available online and on the European Innovation Council website.