New equity investments and calls aim to strengthen Europe’s security and technological autonomy.

The European Innovation Council (EIC) has expanded its remit to include defence and dual-use technologies, following an amendment to its 2026 work programme. This marks a significant shift in EU innovation policy, enabling direct support for technologies with both civilian and military applications.

Under the updated framework, the EIC Accelerator and STEP Scaleup schemes will now fund start-ups and SMEs developing dual-use solutions in areas such as artificial intelligence, quantum technologies, advanced materials, and robotics. Eligible companies can apply for grants of up to €2.5 million alongside equity investments of up to €30 million, in line with existing programme rules.

In parallel, the EIC has launched a new €100 million STEP Defence Scale Up call. This initiative offers up to €30 million in direct equity financing to companies based in EU Member States, associated European Economic Area countries, and Ukraine. The funding is designed to accelerate industrial scale-up in key areas including air and missile defence, drone and counter-drone systems, and other critical technologies. Applications will open on 30 June and close on 28 October 2026, with results expected in early 2027.

This is the first EU programme to provide direct equity investment in defence companies, with the EIC set to co-invest in funding rounds typically ranging from €50 million to €150 million or more. The move reflects growing recognition of defence innovation as a strategic priority, driven by geopolitical challenges and the need to reduce reliance on non-EU technologies.

European Commissioner for Startups, Research, and Innovation 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. 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.’

Further information is available at the EIC website.