Defence and dual-use technologies: increased investment from the European Innovation Council (EIC)

Brussels – Green light for more investment in defence and dual-use technologies: from today (17 June), the European Innovation Council (EIC) will allocate new resources. The decision follows an amendment to the EIC’s 2026 work programme, a document that provides funding opportunities of up to €1.4 billion. The European Commission has approved the change in order to implement the defence Mini-Omnibus,namely the regulatory simplification package aimed at making it easier to use EU funds to strengthen the defence industry. 

From now on, the EIC Accelerator and STEP Scaleup, two funding schemes under the programme, will support companies developing this type of technology. Consequently, start-ups and small and medium-sized enterprises (SMEs) that develop devices for both civilian and military applications (such as artificial intelligence, quantum technology, advanced materials, robotics) will be able to apply for grants of up to €2.5 million, as well as equity investments of up to €30 million. To access this funding, companies will need to submit applications in accordance with the procedures set out by the two schemes. 

The EIC has also launched a new call for proposals, the EIC STEP Defence Scale Up, worth €100 million. The scheme will enable companies from Member States, euro area countries associated with Horizon Europe, and Ukraine to receive up to €30 million in “direct equity funding aimed at accelerating the expansion of their industrial capabilities, including air and missile defence, drones and anti-drone systems, as well as other critical defence technologies,” explains the Berlaymont Building. “We must invest in these critical technologies to ensure Europe’s strategic autonomy,” said the Commissioner for Start-ups, Research and Innovation, Ekaterina Zaharieva, stressing that this “will underpin Europe’s technological leadership and innovation for decades to come.” 

This is the first time that an EU funding programme has invested directly in venture capital for companies in the defence sector. The EIC will also invest in certain funding rounds (the progressive stages through which a start-up or company raises capital from external investors in exchange for shares) generally ranging from €50 to €150 million, with the total amount per round being at least three to five times the investment requested by the EIC. Applications can be submitted from 30 June to 28 October 2026, and the winners will be announced in early 2027. “The European Innovation Council was set up to take risks, and we do take them when it comes to developing European technologies that ensure security,” Zaharieva reiterated.