Funding for dual-use technologies by SMEs and startups: EUDIS – EU Defence Innovation Scheme and the European Defence Fund (EDF)

 

In a rapidly changing geopolitical landscape, the European Union has recognized the need to significantly strengthen its defence-industrial and technological base (EDTIB). This strategic realignment is supported by broad public opinion: 69% of European citizens favor an enhanced EU capability to produce military equipment. In response, the European Commission has launched far-reaching initiatives backed by substantial financial resources. For the period 2021-2027 alone, €8 billion has been earmarked for defence research and development. At the heart of these efforts is the European Defence Fund (EDF), the Commission's main instrument for supporting cooperative projects in this sector.

 

Within this fund, a specific and highly relevant instrument was created: the EU Defence Innovation Programme (EUDIS). EUDIS is the EU's response to the recognition that true technological superiority and disruptive innovations often do not originate solely from the established structures of large defence corporations. Rather, it is often small and medium-sized enterprises (SMEs), agile start-ups, and highly innovative players from the civilian sector – so-called “non-traditional” defence companies – that possess groundbreaking technologies. EUDIS was specifically designed to facilitate access to the defence market for precisely these companies, to reduce existing barriers to entry, and to support them throughout the entire innovation cycle – from the initial idea through development to market readiness and scaling.

 

For German SMEs, especially those with advanced dual-use technologies, EUDIS represents an unprecedented strategic opportunity. The program explicitly recognizes the enormous potential of transferring (spin-in) civilian technologies to the defense sector and actively promotes these synergies. The existence and substantial financial resources of EUDIS are therefore more than just another source of funding; they send a clear political signal. The European Commission acknowledges that traditional procurement and R&D cycles, dominated by large corporations, are often too slow and closed to keep pace with the speed of global technological change. For an SME, this means a fundamental reassessment of its own position: its agility, niche expertise, and experience in fast-moving civilian markets are not weaknesses in the context of EUDIS, but rather core strategic competencies. Therefore, an applicant should not try to act like an established defense company during the application process, but rather confidently highlight their own unique strengths: speed of innovation, unconventional solutions and the proven ability to quickly and efficiently adapt cutting-edge civilian technology for new fields of application.

 

National and regional contacts – Who will support you?

 

The central contact point: The National Contact Point for the European Defence Fund. Further details available upon request.

 

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