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Home»Equity Investments»The European Innovation Council opens to defence and dual-use technologies
Equity Investments

The European Innovation Council opens to defence and dual-use technologies

By CharlotteJuly 22, 20263 Mins Read
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As from today, the European Innovation Council (EIC) will provide investments in defence and dual-use technologies, marking a strategic pivot in Europe’s innovation policy. The change is the result of an amendment to the EIC work programme 2026, adopted today by the Commission to implement the Defence Mini-Omnibus.   

From now on, the EIC Accelerator and STEP Scaleup will support companies developing dual-use technologies. Start-ups and SMEs developing technologies with a focus on dual-use business cases, both civilian and defence applications (e.g. AI, quantum, advanced materials, robotics) can apply for grants up to €2.5 million and equity investments up to €30 million. Companies can apply in line with the EIC Accelerator and STEP Scaleup rules. 

At the same time, the EIC is launching a new €100 million EIC STEP Defence Scale Up call. Companies in the EU Member States, in countries from the European Economic Area that are associated to Horizon Europe and in Ukraine 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, with total round sizes expected to be at least three to five times the requested EIC investment.  They can apply from 30 June until 28 October 2026, and the results are expected in early 2027.  

Defence and dual use are increasingly important areas for startup and scaleup companies in Europe and the support to defence innovation and critical defence technologies is expected to continue in 2027. 

Ekaterina Zaharieva, European Commissioner for Startups, Research, and Innovation 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. We must invest in critical technologies also to ensure Europe’s strategic autonomy – whether it’s drones, cyber defence, or quantum technologies. This will underpin Europe’s technological leadership and innovation in the decades ahead.    

Background information 

The EIC responds to an urgent need to strengthen Europe’s security and technological sovereignty. Russia’s war against Ukraine has exposed critical capability gaps and Europe’s reliance on non-EU technologies, while fragmented investment continues to limit the growth of innovative defence companies, with no other EU programme able to invest direct equity in defence companies. By addressing this market failure, the call will help scale strategic technologies and reinforce Europe’s defence industrial base. 

More information 

For more information, join the dedicated info session on 24 June, consult the factsheet, and review the amended EIC Work Programme 2026.

 



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