Why this topic matters now
Europe’s innovation landscape is changing. Technologies that were once developed mainly for civilian markets are now becoming relevant for resilience, security and defence-related applications. This creates opportunities for startups, SMEs, research organisations and industrial technology providers, but it also creates more strategic complexity.
The key question is not simply whether a company is a defence company. A more useful question is whether its technology can solve both civilian and defence-related challenges, and which funding route fits the maturity, application logic and partnership needs of the company.
For Nexuswelt, dual-use innovation is not only a funding topic. It is a proposal strategy topic. The right programme, the right consortium and the right positioning can decide whether a promising technology becomes a credible European project or remains only a good idea.
What is dual-use technology?
Dual-use technology means goods, software or technology that can be used for both civilian and military applications. In EU trade policy, dual-use items are controlled because they can contribute to international peace and security risks if exported or transferred in the wrong context.
In startup and EU funding language, the term is often used more broadly to describe technologies that may have both civilian and defence or security relevance. This can include AI, cyber, robotics, drones, sensors, advanced materials, quantum, secure communication, semiconductors, space technologies, industrial automation and critical infrastructure solutions.
Important: a technology should not be called dual-use only because it sounds attractive. The defence or security relevance must be credible, concrete and connected to a real user need.
Examples of dual-use potential
- AI for predictive maintenance in factories may also support defence manufacturing, logistics or mission-critical equipment readiness.
- Cybersecurity platforms can protect hospitals, energy grids and companies, but also strategic networks and defence infrastructure.
- Drones may support agriculture, inspection or emergency response, but also reconnaissance, logistics or counter-drone contexts.
- Advanced materials can be relevant for automotive, aerospace, energy systems and defence platforms.
- Robotics can be used in industrial automation, hazardous environments, disaster response and defence operations.
- Secure communication and quantum technologies can support critical infrastructure, government systems and military communication needs.
- Space and satellite solutions can support climate monitoring, logistics, border management, maritime awareness and security.
Main funding routes: where does your technology fit?
One of the biggest mistakes companies make is treating all EU funding programmes as interchangeable. Horizon Europe, EIC, STEP, EDF and defence innovation schemes have different purposes. Choosing the wrong route can cost months of work and weaken the company’s positioning.
| Funding route | Best for | Not suitable when |
|---|---|---|
| Horizon Europe | Civilian research and innovation, pilots, industrial transformation, civil security, resilience, AI, cyber, manufacturing and international consortia. | The project is mainly military or has a direct defence capability objective. |
| EIC Accelerator / STEP Scale Up | High-risk, high-potential startups and scaleups with breakthrough technologies, including dual-use business cases where eligible. | The company is too early-stage, has weak traction, or cannot show a credible scale-up route. |
| European Defence Fund (EDF) | Collaborative defence research and development with multinational consortia and clear defence capability relevance. | There is no concrete defence use case, no relevant partners, or no serious security/industrial logic. |
| EUDIS | Early defence innovation ecosystem entry, startup visibility, challenges, testing and connection to defence stakeholders. | The technology has no defence or security relevance yet. |
| NATO DIANA / NATO Innovation Fund | Related NATO ecosystem for dual-use innovation, acceleration, testing and venture investment. | Should not be presented as EU funding; eligibility and strategic fit must be checked separately. |
Horizon Europe: civilian innovation first
Horizon Europe is the EU’s main research and innovation programme. It is highly relevant for collaborative research, validation, pilots, demonstration and international consortia. It can support civilian technologies in areas such as civil security, cybersecurity, industrial resilience, AI, advanced manufacturing, climate, health, digital infrastructure and critical supply chains.
However, Horizon Europe is not a defence procurement programme. If the intended project is mainly military or focused on defence capability development, Horizon Europe is usually not the correct route. For dual-use companies, Horizon Europe may still be relevant when the funded activities are clearly civilian and the defence relevance remains a possible later market or parallel application.
EIC Accelerator, STEP Scale Up and EIC STEP Defence Scale Up
The European Innovation Council is becoming more important for deep-tech startups and scaleups. The EIC Accelerator supports individual startups and SMEs with high-risk, high-impact innovation and scale-up potential. In 2026, the EIC opened to defence and dual-use technologies, including dual-use business cases in areas such as AI, quantum, advanced materials and robotics.
This is important for companies that do not necessarily need a large consortium but need funding and investment to scale a strategic technology. For later-stage companies, STEP Scale Up and EIC STEP Defence Scale Up may be relevant when the company has strong industrial potential and a credible scale-up path.
EIC defence and dual-use update
European Defence Fund: for defence R&D consortia
The European Defence Fund is the EU’s main programme for collaborative defence research and development. It supports companies and research organisations across Member States in developing innovative and interoperable defence technologies and equipment.
EDF is not a simple startup grant. It usually requires a serious consortium, clear defence relevance, security awareness, technical excellence, industrial credibility and alignment with defence capability needs. For many startups, EDF may be a later step after the technology has been validated and the company has built relevant industrial and defence partnerships.
EDF calls and funding opportunities
EUDIS: entry point into the defence innovation ecosystem
The EU Defence Innovation Scheme (EUDIS) is relevant for startups, SMEs and innovators that want to explore defence innovation opportunities and connect with defence-related stakeholders. It should be understood as an ecosystem and innovation-support route, not as a replacement for a full EDF proposal.
For early-stage dual-use companies, EUDIS-type opportunities can help test whether the technology has credible defence relevance, whether end users are interested and whether the company should build a longer-term defence or dual-use strategy.
EU defence innovation / EUDIS related information
STEP Platform: strategic technologies and funding navigation
The Strategic Technologies for Europe Platform (STEP) helps identify funding opportunities for strategic technologies. It is relevant because dual-use startups often work in strategic technology areas such as AI, semiconductors, cybersecurity, quantum, biotech, advanced manufacturing, clean technologies or critical supply-chain technologies.
STEP is useful as a navigation layer: it helps companies understand where strategic technology funding may be available across different EU programmes and national funding streams.
NATO DIANA and NATO Innovation Fund: related ecosystem, not EU funding
NATO DIANA and the NATO Innovation Fund are relevant for dual-use startups, but they should not be presented as EU funding programmes. They belong to the NATO innovation ecosystem.
DIANA supports innovators with acceleration, test centres, mentoring and access to defence and security networks across the Alliance. The NATO Innovation Fund is a venture capital fund backed by 24 NATO allies, investing in deep tech for defence, security and resilience.
For companies active in dual-use technologies, these programmes may be strategically relevant in parallel with EU funding, but the eligibility, purpose and funding logic are different.
How to decide which funding route is realistic
A useful dual-use funding strategy starts with diagnosis, not with grant hunting. Before applying anywhere, a company should assess technology maturity, market focus, security relevance, consortium needs and regulatory complexity.
| Company stage | Possible route | What must be strong |
|---|---|---|
| Early research idea | Horizon Europe, national R&D grants, university-industry projects | Scientific excellence, concept validation, research partners |
| Prototype with civilian pilot | Horizon Europe, EIC Transition, national innovation funding | Pilot site, validation plan, end-user feedback |
| Startup ready to scale | EIC Accelerator, STEP Scale Up, private investment | Market traction, business case, scale-up roadmap |
| Clear defence use case | EDF, EUDIS, defence innovation challenges | Defence stakeholders, security logic, multinational consortium |
| Dual-use with NATO relevance | NATO DIANA, NATO Innovation Fund, related investors | Dual-use narrative, test environment, investor readiness |
What a fundable dual-use project needs
A strong dual-use project needs more than a good technology description. It must show why the technology matters, who will use it, where it will be validated, how risks are handled and what happens after the project ends.
1. A concrete civilian and defence/security use case
A dual-use project should clearly explain the civilian application and the defence or security relevance. For example, a drone system may support infrastructure inspection in civilian use and secure logistics or situational awareness in defence-related use. The proposal should avoid vague claims such as ‘also relevant for defence’ without evidence.
2. Technology maturity and evidence
Companies should be able to show prototypes, pilot results, technical performance data, user feedback or validation plans. For EDF or EIC, weak evidence can be a major problem. The more strategic the funding route, the more important it is to show credible technical maturity.
3. The right partners
A credible consortium may need technology developers, industrial integration partners, research organisations, testing facilities, cybersecurity expertise, end users, public-sector or operational stakeholders, standardisation or certification knowledge, and communication, dissemination and exploitation support.
4. Security, compliance and export-control awareness
Dual-use technologies may involve export controls, sensitive data, security restrictions, ownership and control issues, cybersecurity requirements, classified or restricted information, and IP management. These issues should not be ignored until after the project is approved.
5. Exploitation and scale-up logic
European funding evaluators and investors want to understand what happens after the project. Will the solution be commercialised, integrated into a supply chain, tested by end users, procured by public actors, scaled by industry or licensed to partners? A strong exploitation plan is essential.
Common mistakes in dual-use and defence-related funding
- Using the term dual-use as a buzzword without a concrete defence or security problem.
- Trying to fit a military-oriented project into Horizon Europe without a clear civilian focus.
- Entering EDF too early without defence partners, end-user logic or consortium maturity.
- Ignoring export controls, security-sensitive information, data governance and ownership questions.
- Building a consortium around names rather than roles, capabilities and implementation needs.
- Overlooking manufacturing, integration, certification and scale-up challenges.
- Writing a technical proposal without a strong exploitation and market-adoption pathway.
- Underestimating how different defence procurement, validation and end-user engagement can be from civilian markets.
- Assuming that investor pitch logic and EU proposal logic are the same.
- Leaving communication, dissemination and exploitation until the last minute.
Practical readiness checklist
Before exploring EU defence or dual-use funding, startups and SMEs should be able to answer the following questions:
- What is our core technology and what problem does it solve?
- What is the main civilian use case?
- What is the credible defence, security or resilience use case?
- What technology readiness level are we at?
- Do we have a prototype, pilot, test data or user feedback?
- Which funding route fits now: Horizon Europe, EIC, STEP, EDF, EUDIS or another route?
- Do we need company-level funding or a consortium-based project?
- Which partners are missing?
- Do we have access to a test or validation environment?
- Are there export-control, IP, security, AI Act or data issues?
- Can we explain European added value and strategic relevance?
- What is the exploitation and scale-up pathway after funding?
Where Nexuswelt can support
Nexuswelt supports startups, SMEs, research organisations and innovation ecosystems with EU funding strategy, consortium building and proposal positioning.
For dual-use and strategic technologies, Nexuswelt can support:
- Programme-fit analysis across Horizon Europe, EIC, STEP, EDF and related routes
- Dual-use positioning and funding roadmap
- Consortium strategy and partner role definition
- Stakeholder and end-user mapping
- Proposal concept development
- Impact, communication, dissemination and exploitation strategy
- EIC readiness checks and scale-up positioning
- Preparation for event-based partner meetings and investor conversations
The goal is not to push every company into defence funding. The goal is to identify whether dual-use is realistic, which funding route fits best and what must be prepared before entering a competitive proposal process.
Conclusion
Civilian innovation and defence funding are becoming more connected in Europe. For companies working on AI, cybersecurity, robotics, drones, semiconductors, advanced materials, secure communication, space, quantum or industrial technologies, this creates new opportunities — but also new strategic questions.
Not every technology is dual-use. Not every dual-use technology is ready for the European Defence Fund. Not every startup should start with defence funding. But every company working in strategic technology fields should understand whether its innovation has civilian, defence or resilience relevance.
The best question is not only: Can we get EU funding? The better question is: Which European funding route fits our technology, maturity, consortium and market strategy?
Nexuswelt is currently interested in connecting with startups, SMEs, research organisations, industrial partners and innovation ecosystems exploring EU funding opportunities in civilian, dual-use and strategic technology fields.
Related Nexuswelt programmes:
For dual-use and defence-related project ideas, Nexuswelt supports organisations with European Defence Fund proposal strategy and Horizon Europe support for civilian research, security, resilience and innovation projects.
Useful official links
