The EIC Defence & Dual-Use Technologies funding landscape is changing in 2026. Following an amendment to the EIC Work Programme adopted on 17 June 2026, the European Innovation Council can now support companies developing defence and dual-use technologies.

For European startups, SMEs and scaleups, this opens clearer funding options for technologies with civilian, security and defence relevance. This may include areas such as AI, cybersecurity, robotics, drones, quantum, advanced materials and other strategic technologies.

Dual-use companies can now consider the EIC Accelerator and STEP Scale Up, while defence-focused companies may be eligible for the new EIC STEP Scale Up Defence call.

What this means for dual-use technology companies

Dual-use technologies are mainly developed for civilian or commercial markets, but also have credible defence or security applications.

For these companies, the key question is whether the defence relevance is specific, realistic and aligned with European priorities. A vague possible use case is not enough. Applicants should be able to explain how their technology serves a commercial market while also supporting resilience, security or technological sovereignty.

Through the EIC Accelerator and STEP Scale Up, dual-use companies may now access:

Grants of up to €2.5 million
Equity investment of up to €30 million, depending on the programme and company profile

In general, the EIC Accelerator is more relevant for startups and SMEs developing breakthrough technologies that need grant support and early scale-up finance. STEP Scale Up is better suited to more mature companies preparing larger equity rounds to industrialise, expand production or accelerate market deployment.

EIC STEP Scale Up Defence: the new dedicated defence call

The new EIC STEP Scale Up Defence call is designed for companies where defence is the primary application.

This is the main distinction from dual-use funding. If the company’s core market is civilian, with a credible defence use case, EIC Accelerator or STEP Scale Up may be more suitable. If defence is the main market, EIC STEP Scale Up Defence should be assessed.

The call has a €100 million budget and offers equity-only investment of €10 million to €30 million per company. It targets critical defence technologies such as:

Air and missile defence
Drones and counter-drone systems
Cybersecurity
Other strategic defence capabilities

The call is intended for companies with strong scale-up potential, investor readiness and a clear contribution to Europe’s defence industrial base.

Programme	Best suited for	Funding available	Main focus
EIC Accelerator	Startups and SMEs	Grants up to €2.5 million and equity investment	Breakthrough technologies with commercial markets and credible dual-use potential
STEP Scale Up	Scaleups and small mid-caps	Equity investment, including larger scale-up rounds	Strategic technologies requiring major investment
EIC STEP Scale Up Defence	Defence-focused companies	€10 million to €30 million in equity investment	Critical defence technologies where defence is the primary application

The context behind the change

The EIC update forms part of the European Commission’s wider Defence Mini-Omnibus package, which aims to make EU programmes more responsive to defence and security needs.

One important element is the proposal enabling Ukraine’s participation in the European Defence Fund. This fits within a broader effort to strengthen Europe’s defence innovation ecosystem, support strategic technologies and improve coordination between industrial, security and investment policies.

For companies, this means defence and dual-use innovation is becoming more closely linked to European funding priorities. Applications will need to show not only technical excellence, but also market potential, investor readiness and strategic relevance.

To sum up, the expansion of EIC Defence & Dual-Use Technologies funding gives startups, SMEs and scaleups new options to finance strategic innovation in 2026.

Companies should prepare now by assessing which programme best fits their technology: EIC Accelerator for dual-use startups and SMEs, STEP Scale Up for more mature companies seeking larger equity rounds, or EIC STEP Scale Up Defence or even the European Defence Fund for defence-focused scaleups.

At Evolution Europe, we help companies identify the right EIC instrument, assess eligibility and prepare competitive applications aligned with EU priorities.

If your company is developing defence or dual-use technology, contact Evolution Europe to assess your opportunity and build a strong funding strategy.

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