Innovative funding program of the European Union (Eudis): opportunities for mechanical engineering and logistics | EU defense innovation scheme

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Published on: July 24, 2025 / update from: July 24, 2025 – Author: Konrad Wolfenstein

European Innovation Center for Defense (Eudis): Opportunities for Mechanical Engineering and Logistics | EU defense innovation scheme – creative image: xpert.digital

Strategic autonomy: How to transform SMEs and start-ups in Europe's defense skills

What is the EU Defense Innovation Scheme (Eudis)?

The EU Defense Innovation Scheme (Eudis) is an innovative funding program of the European Union, which is specially designed to strengthen defense innovation and make it easier to access the European defense market. Eudis was launched in 2022 as part of the European Defense Fund (EDF) and represents a crucial instrument for promoting Europe's strategic autonomy.

The program has a budget of 336.6 million euros for 2025, which corresponds to about 31 percent of the total EDF budget. These considerable means aim to lower the barriers for the entry into the defense area and to focus on technological willingness and market maturity.

Eudis is primarily aimed at small and medium-sized companies (SMEs), start-ups and other non-traditional players in the defense ecosystem. According to the EU definition, companies are considered SMEs if they employ fewer than 250 employees and either have annual sales from Hözielen or an annual balance sheet total of a maximum of 43 million euros.

More about it here:

Promotion for dual-use technology from SMEs and startups: Eudis – EU Defense Innovation Scheme and the European Defense Fund (EVF)

Why was Eudis founded and what goals does it pursue?

The emergence of Eudis is closely associated with the geopolitical developments in recent years. The program was developed as a direct reaction to the changed security situation in Europe, especially after the Russian attack war against Ukraine. The EU recognized the need to strengthen its strategic autonomy and become less dependent on external actors.

Historical background

The European Defense Fund was already proposed by Commission President Jean-Claude Juncker in 2016 and established in 2017. The initiative broke with the many years of tradition that defense investments were only national matter. With the 2016 EU global strategy, the concept of strategic autonomy was first focused on European security policy.

Eudis itself was officially announced in May 2022 as part of the European Commission's defense package. The program emerged in response to the realization that Europe needs a reactionable and resilient technological and industrial defense base (Edtib) to cover the needs of European armed forces and to ensure technological sovereignty.

Strategic autonomy as a guiding principle

The concept of strategic autonomy is at the center of Eudis. Strategic autonomy is defined as the ability to set their own external and security policy priorities and make decisions, as well as the institutional, political and material requirements in order to implement them independently in cooperation with third parties or, if necessary.

For Europe, strategic autonomy does not mean self -sufficiency or foreclosure, but rather the strengthening of the ability to act and reducing critical dependencies. In defense policy, this manifests itself through the establishment of your own skills and the promotion of a European defense industry that rely less on imports from third countries.

Core targets of Eudis

Eudis pursues several central goals that are all geared towards strengthening the European defense ecosystem:

First, the program aims to reduce the entry barriers for smaller actors and innovators into the defense area. Traditionally, the European defense market was dominated by large system integrators, while SMEs were often only able to act as a supplier in the second or third row. Eudis is intended to overcome this structural disadvantage.

Second, the program promotes innovation through the support of disruptive technologies. Special focus is on areas such as artificial intelligence, quantum technology, cyber security, robotics and autonomous systems. These technology fields are considered crucial for the future defense capacity of Europe.

Third, Eudis is aiming for promoting cooperation between civil and military areas. So-called spin-in calls are to be used for civil research results for military applications. These dual-use approaches make it possible to use the innovative strength of the entire European industry for defense purposes.

In which areas can mechanical engineering and logistics score particularly score?

Mechanical engineering and logistics offer considerable potential for participation in Eudis programs. These industries have core competencies that are of central importance for modern defense applications.

Opportunities for mechanical engineering

Mechanical engineering can make important contributions in various areas of defense technology. The focus is on autonomous systems and robotics. Companies that have experiences with the development of industrial robots, automated manufacturing systems or precision machine construction can transfer these skills to military applications.

Developments in the field of drone and robot technology are particularly relevant. European companies are already developing AI-based autonomous systems for military information and combat missions. The integration of AI, embedded systems and IoT technologies into security-critical applications requires the specific expertise of mechanical engineering.

Additive manufacturing and 3D printing open up other options. These technologies enable the production of complex geometries and weight -optimized structures that are of great interest to defense applications. Mobile manufacturing solutions, such as those required for military missions in remote areas, represent another area of application.

The area of material sciences and advanced materials also offers considerable opportunities. High -strength and light materials, such as those developed in automotive construction and mechanical engineering, can be transferred to armored vehicles or portable protective equipment. Companies with expertise in forming technology and precision processing can manufacture components from high -strength materials for critical defense applications.

Hub for security and defense – advice and information

Hub for security and defense – Image: Xpert.digital

The hub for security and defense offers well-founded advice and current information in order to effectively support companies and organizations in strengthening their role in European security and defense policy. In close connection to the SME Connect working group, he promotes small and medium -sized companies (SMEs) in particular that want to further expand their innovative strength and competitiveness in the field of defense. As a central point of contact, the hub creates a decisive bridge between SME and European defense strategy.

Suitable for:

The Working Group Defense of the SME Connect – Strengthening SMEs in European defense

Europe's high-tech defense: opportunities for mechanical engineering companies

Potential of the logistics industry

The logistics industry faces a special opportunity, since military logistics are increasingly automated and digitized. Autonomous transport systems, which are already developed in civil logistics, are increasingly used in military contexts.

Drone-based logistics solutions represent a particularly promising area. The European Defense Agency (EDA) has already started concrete tenders for autonomous systems in military logistics, with a focus on air and country domains. These tenders include different categories of unmanned air and soil systems with budgets between 200,000 and 500,000 euros per lot.

Unmanned flight systems (UAS) for inexpensive and heavy applications are particularly in demand. The development of VTOL drones (Vertical Take-Off and Landing) for the transport of heavy loads opens up new markets. Such systems can be used in areas that are difficult to access or in time -critical deliveries, where conventional means of transport reach their limits.

The warehouse logistics benefit from developments in autonomous inventory and surveillance. Drone -based solutions for warehouse management, as already developed by companies like Geodis, show potential for military applications. These systems enable fully automated inventory management without additional staff and at the same time reduce sources of error.

Supply chain management and logistics systems are the focus of military modernization. Europe is investing in strategic transport capacities and the modernization of the railway infrastructure for military mobility. Companies with expertise in the optimization of supply chains and the development of logistics planning software can benefit from these investments.

Key technologies and funding areas

Eudis promotes special technology areas that are particularly relevant for mechanical engineering and logistics. These include medical technology and biosciences, quantum computing and sensors, communication and connectivity, robotics and autonomous systems, semiconductor, artificial intelligence, digitization and cybersecurity, space and satellites, advanced materials and nanotechnology as well as photonics.

The integration of AI into military systems offers significant options for companies with appropriate expertise. AI supported predictive analytics and decision-making aid systems improve the efficiency of management systems on the battlefield. Autonomous systems for information and logistics tasks are increasingly being in demand.

Cyber security and electronic warfare represent further important areas. Companies that develop solutions to protect critical infrastructures can adapt their technologies for military communication and management systems.

The development of dual-use technologies is particularly promoted. Technologies that have both civil and military applications can be developed faster and cheaper because existing industrial capacities can be used. This applies in particular to areas such as autonomous vehicles, sensor technology and communication systems.

Concrete funding opportunities

Eudis offers various funding mechanisms that are relevant for mechanical engineering and logistics. The Innovation Test Hubs enable consortia to distribute cascade finding to SMEs and start-ups. Individual companies can receive up to 60,000 euros for six -month acceleration programs.

Technological Challenges offer companies the opportunity to demonstrate their solutions in competitive test environments. These programs promote cooperation between different technology providers and enable direct comparison with competitive solutions.

The Eudis Business Accelerator supports selected start-ups and scale-ups with an eight-month program that includes boot camps, mentoring and networking. Participants also receive a Seed financing voucher of 65,000 euros.

Disruptive Technologies Calls promote groundbreaking research with up to 100 percent funding. These non-thematic tenders are particularly interesting for innovative companies that develop completely new approaches.

Challenges and success factors

Despite the considerable opportunities, companies from mechanical engineering and logistics face specific challenges. The complexity of the award procedures and the high compliance requirements can deter smaller companies. Eudis addresses these problems through simplified application procedures and business coaching for SMEs.

For SMEs, the formation of strategic alliances becomes a need to compensate for the structural disadvantages of large corporations. The Eudis MatchMaking program supports the networking between start-ups, SMEs, investors and end users.

The shortage of skilled workers, especially in high technology areas such as AI and cyber security, is another challenge. Companies have to compete with the civilian tech industry for qualified employees.

Successful participation in Eudis programs requires a deep understanding of military requirements and end user needs. Companies must be ready to adapt their civilian technologies to the specific requirements of the defense area.

Eudis: The billion-dollar master plan for European technology companies

The EU Defense Innovation Scheme (Eudis) is a historical opportunity for European SMEs from mechanical engineering and logistics. With a budget of over 2 billion euros until 2027 and especially tailored for smaller companies, Eudis opens up new markets and business opportunities.

The programs emerged from the strategic need to strengthen Europe's defense skills and reduce the dependence on external actors. The Russian attack war against Ukraine has reinforced this need and led to considerable investments in the European defense industry.

Mechanical engineering and logistics can score in various key areas: from autonomous systems and robotics to additive manufacturing to drone -based logistics solutions. The promotion of dual-use technologies enables companies to use their civilian skills for military applications.

However, success depends on the willingness of the companies to deal with the specific requirements of the defense area and to enter into strategic partnerships. Eudis offers comprehensive support from business coaching, matchmaking and simplified application procedures.

The coming years will show whether Eudis will achieve its goal of creating a stronger European defense ecosystem and strengthening Europe's strategic autonomy. In any case, for innovative mechanical engineering and logistics companies, the program offers unique opportunities to participate in the design of the European defense future.