EU research and innovation funding will be opened up to defence and dual-use technologies for the first time under changes to the European Innovation Council’s 2026 work programme adopted by the European Commission.
Start-ups and small and medium-sized companies developing technology with both civilian and defence uses will be able to apply for grants of up to €2.5 million and equity investments of up to €30 million through the EIC Accelerator and the STEP Scaleup scheme, the Commission announced on Wednesday.
Eligible areas include artificial intelligence, quantum computing, advanced materials and robotics, according to the Commission.
European commissioner Ekaterina Zaharieva said: “The European Innovation Council was built to take risks, and we need to take risks when it comes to developing European technologies that keep us safe … whether it’s drones, cyber defence, or quantum technologies.”
New €100m defence scale-up call
A new €100 million EIC STEP Defence Scale Up call is also being launched for companies in the EU, in European Economic Area countries associated with Horizon Europe, and in Ukraine, the Commission said.
The funding will take the form of direct equity financing of up to €30 million per company, and is intended to support industrial scale-up in areas including air and missile defence, drones and counter-drone technologies, and other defence technologies.
It is the first time an EU funding programme will invest directly in defence companies through equity.
The EIC will co-invest in major funding rounds typically ranging from €50 million to €150 million or more, and said it expects the EIC contribution to be leveraged by at least three to five times that amount.
