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Dual-use funding: the defence industry opens a new growth direction for SMEs

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On this page
  1. Introduction
  2. What does dual-use mean and who is the funding for?
  3. ReArm funding: the elinvoimakeskus development grant for dual-use
  4. Business Finland: R&D funding and Defense and Digital Resilience
  5. European Defence Fund (EDF): how can an SME get involved?
  6. Other EU and international instruments
  7. How can a company identify its own dual-use potential?
  8. How we work

Updated 8 October 2026: The European Defence Fund’s 2026 call closed on 29 September 2026. We have also clarified that ReArm calls run by region.

Dual-use funding opens a route for SMEs into defence and security markets. This article covers the ReArm funding of the elinvoimakeskus (regional development centres), Business Finland’s R&D funding and the Defense and Digital Resilience programme, and the European Defence Fund (EDF), with amounts and call periods.

In 2026, dual-use funding is one of the fastest-growing areas of business funding in Finland. Dual-use refers to a product, service or technology that is suited to civilian use and also to defence and security needs. Many Finnish SMEs already have a solution like this, or a concept in development, but have not yet recognised its dual-use potential. Significant public funding from both national and EU-level instruments is now available to precisely these companies.

Novus Victoria acts as a bridge between Nordic defence, dual-use and deep tech companies and public funding instruments and private investors. We help companies identify the right funding sources, build fundable projects and take them through the application process all the way to the funding decision and reporting.

What does dual-use mean and who is the funding for?

A dual-use product serves two markets at the same time. For example, sensor technology, a situational awareness system, an energy solution, logistics software or a materials innovation may have been developed for civilian markets, yet the same technology also meets the needs of defence and security of supply.

The key point is that a previous background in defence is not necessarily required. Technology developed for civilian use can open access both to demand from the defence sector and to the public funding that supports it. Funding is available to companies that already have a product on the market as well as to those developing an entirely new solution. In both cases, the funding is directed at research and development and at production capabilities.

ReArm funding: the elinvoimakeskus development grant for dual-use

The ReArm funding of the elinvoimakeskus centres is the most significant new opening for dual-use companies in 2026. It is a business development grant available through a continuous call, for example in Western Finland from 15.4. to 31.10.2026. The funding is delivered through a new priority of the EU’s Innovation and skills in Finland 2021–2027 programme, named Kaksikäyttöistä tuotantoa edistävä Suomi (Finland promoting dual-use production). The programme is coordinated by a national steering group, and the Ministry of Defence is the responsible ministry. Behind it is a €300 million reallocation within the structural funds programme to strengthen defence capabilities.

The funding is granted by the elinvoimakeskus centres, and the call is open in all four large regions. Call periods, conditions and budgets vary by region. The application is submitted in the EURA2021 system before the project starts. The smallest grant awarded is €10,000, which in practice means a project size of at least around €20,000. Grants for development measures are awarded as de minimis aid, which means the maximum per company is €300,000 over a three-year period. The maximum includes all previous de minimis aid received by the company and its group, so the amount available is always company-specific. At most, ReArm makes possible a development project of around €600,000, half of which is covered by the grant.

Funded projects are expected to achieve significant improvements in production methods, processes and delivery capability, as well as a rapid transition to production. Up-to-date information can be found in the Secure Finland theme call announcement. (opens another website)

Business Finland: R&D funding and Defense and Digital Resilience

Business Finland’s research and development funding can be applied for on a continuous basis, and for many dual-use companies it forms the backbone of their development work. Business Finland’s Defense and Digital Resilience (opens another website) programme (2024–2028) brings together funding and networking services for defence, critical infrastructure and digital security, and its funding target is €120 million. National funding accelerates early product development, while EU instruments bring scale and an international dimension. The best result often comes from combining the two.

European Defence Fund (EDF): how can an SME get involved?

The European Defence Fund (EDF) is the EU’s main defence R&D funding programme, with a budget of €7.3 billion for the 2021–2027 period. The 2026 call was open from 11.2. to 29.9.2026, and the Commission’s funding decisions are due in April 2027. Future calls are based on the 2027 work programme.

EDF projects are carried out by consortia of at least three organisations from three EU Member States or Norway. Research projects can be fully funded, whereas development projects require additional national funding. In Finland, Business Finland provides complementary national matching funding and is responsible for EDF business advisory services, while national support for project proposals is applied for through the Ministry of Defence (opens another website). The work programmes also include calls specifically for SMEs and start-ups, so joining a consortium does not require being a large company.

Other EU and international instruments

Alongside the EDF, relevant options for dual-use companies include the EIC Accelerator (grants and equity funding for breakthrough technologies), the Eureka and Eurostars programmes for research projects between member countries, and NATO DIANA, an accelerator and funding programme for dual-use deep tech. The right instrument depends on the company’s stage of development, the maturity of its technology and its internationalisation plans.

How can a company identify its own dual-use potential?

Dual-use potential often goes unrecognised because a company views its product only through its current customer base. Good indicators include, for example, the technology’s importance for security of supply, suitability for demanding conditions, protection of critical infrastructure, or support for situational awareness and decision-making.

Because of the nature of the sector, building a project requires an understanding of both funding and the defence and security environment: the constraints of security of supply, dual-use classification, export control and classified development work affect both the terms of the funding and the strategic positioning of the project. Linking the company’s concept to the wider national and European defence and security of supply framework is often the decisive difference that makes a funded project succeed.

How we work

Our service covers the entire funding process, from idea to follow-on funding. In a funding review, we identify the most suitable national and EU instruments for the company and a realistic timetable. We then build the project together with the company and make sure its research and development content meets the funding requirements. We prepare the application and budget together so that the whole withstands both technical and strategic assessment. After the funding decision, we support reporting and the planning of the next funding rounds.

For many SMEs, dual-use is a significant, still untapped direction for growth and a route to funding for research and development. Get in touch, and we will assess together which instrument your company’s project should target right now.

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