European SMEs can access a growing set of defence and dual-use R&D funds through EU/NATO schemes and national programs.
What are some of the key channels?
Key channels include:
- EU’s European Defence Fund (EDF) (large-scale collaborative grants),
- NATO’s DIANA accelerator (competitive challenge grants of €100–300K),
- NATO Innovation Fund (a €1B+ VC fund for deeptech),
- Horizon Europe and the European Innovation Council (civil programs increasingly open to dual-use), and
- National schemes: e.g. France’s DGA/AID grants, Germany’s ZIM/Cyberagentur, Spain’s CDTI loans, Poland’s NCBR calls.
Key requirements
SMEs should collaborate with larger consortia (often mandatory for EDF calls), align civilian and defence use-cases, and leverage accelerators like DIANA to “get a way in”. IP generally remains with the SME (DIANA explicitly does not take IP rights), but companies must navigate export controls and certification (e.g. EU transfers directive certification) when moving technology across borders.
Recommended Entry Strategy
- Market & Partner Scan (Months 1–2): Identify relevant defence topics and map them to your tech.
- Skill Up on Compliance: Ensure staff understand export controls (EU Dual-Use Reg. & ITAR basics).
- Apply to Low-Hanging Fruit (Months 3–5): Pursue national R&D programs with shorter deadlines (CDTI, ZIM, Cyberagentur, etc.), and join any open consortia for EDF calls.
- Refine and Scale (Months 6–12): If funded by pilot grants, use results to strengthen EDF/EIC proposals.
If you want to know more about Defense Innovation and access advice from our funding experts, read our guidelines for 2026:
