EIC now also supports dual-use and defence

With an amendment to its 2026 work programme, the European Innovation Council (EIC) is, for the first time, allowing defence and dual-use technologies to be funded. The EIC Accelerator and STEP Scale Up programmes will now also fund technologies with dual-use potential, whilst the new EIC STEP Defence Scale Up call for proposals is aimed directly at defence applications.

This marks a clear change of direction for the EIC: alongside traditional civilian applications, there is now a greater focus on technologies with both civilian and military uses. This step is part of an overarching strategy to strengthen Europe’s technological sovereignty and its capacity to act in the field of security policy.

Expanded funding opportunities under the EIC Accelerator and STEP Scale Up

In practical terms, this expansion means that companies with dual-use business models will in future be able to access the well-known EIC funding instruments:

• EIC Accelerator: grants of up to 2.5 million euros + up to 10 million euros in equity
• STEP Scale Up: equity of 10 to 30 million euros
  
  

Funding is aimed in particular at start-ups and SMEs developing highly innovative technologies with significant scaling potential – for example, in the fields of AI, quantum computing or advanced materials. In each case, the prerequisite is that the technology has reached a Technology Readiness Level (TRL) of 6 or higher.

This opens up new funding opportunities for companies, particularly during early and high-growth phases.

New call for proposals: 100 million euros for scale-ups in the defence sector

Another pillar is the new ‘EIC STEP Defence Scale Up’ call for proposals, with a total budget of 100 million euros. The aim is to provide targeted support to companies as they scale up.

Funding is available for projects in the following strategically important technology areas:

• Air and missile defence
• Artillery and precision strike
• Missiles and ammunition
• Drones and counter-drones
• Strategic enablers
• Cyber, AI and electronic warfare
• Military mobility
• Ground combat
• Maritime
• Air combat
• Medical and countermeasures

Companies can receive between 10 and 30 million euros in funding in the form of equity capital for each project. This marks the first time a European programme has provided direct capital investment for defence companies.

The EIC’s participation always takes place within the framework of larger funding rounds with a volume of between 50 and 150 million euros or more. When submitting an application, applicants must demonstrate that at least 20 per cent of private co-investment has already been secured.

Applications may be submitted until 28 October 2026, with results expected in early 2027. 

Opportunities for businesses and innovation drivers

This development presents new opportunities for innovative businesses:

• Greater access to funding for dual-use and defence technologies
• Greater potential for scaling up through large equity financings
• Increased visibility within the European innovation ecosystem
• Contribution to Europe’s strategic autonomy

Technology-focused SMEs and deep-tech start-ups, in particular, benefit from the combination of grant and equity financing – a key success factor for capital-intensive development phases.

Context: A long-term trend

The EIC’s expansion to include defence and dual-use technologies is not a short-term measure. Rather, all the evidence points to the long-term integration of these areas into European innovation funding. It is already expected that the funding programmes will continue beyond 2027.

Conclusion

By opening up to dual-use and defence technologies, the EIC is sending a clear signal: innovation and security are closely linked in Europe.
This presents companies with a new opportunity to combine technological excellence with societal relevance, whilst benefiting from attractive funding instruments.
It is particularly worthwhile now for stakeholders in the field of critical technologies to examine the funding opportunities in detail and develop appropriate strategies.

Text: Julian Seethaler