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EU Defense Related Research and Development Financing

The European Commission’s Directorate General for Defense, Industry, and Space (DG DEFIS) has announced its research and development funding priorities for 2022. Opens There is an application window for EUR 1 billion financing through the European Defence Fund (EDF). DG DEFIS manages a E1 billion budget to co-finance research and development projects in 16 categories. These include: 

  • Defense Medical Response (e.g., Chemical, Biological, Radiological, Nuclear – CBRN)
  • Information Superiority (e.g., Command and Control)
  • Sensors (e.g., Advanced Radar Technologies)
  • Cyber (e.g., Cyber Security)
  • Space (e.g., Responsive Space Systems)
  • Digital Transformation (e.g., Shared Databases for Image Recognition)
  • Materials and Components (e.g., Smart and Multifunctional Textiles)
  • Energy and Environment (e.g., Sustainable Components)
  • Air Combat (e.g., Airborne Electronic Warfare)
  • Ground Combat (e.g., Collaborative Ground Combat)
  • Force Protection and Mobility (e.g., Medium Sized Tactical Cargo)
  • Naval Combat (e.g., Medium Sized Sem-Autonomous Vessels)
  • Underwater Warfare (e.g., Underwater Manned-Unmanned Teaming and Swarms)
  • Simulation and Training (e.g., Modelling, Simulation, and Simulators Integration)
  • Disruptive Technologies for Defense Applications (e.g., Adaptive Camouflage)
  • Small and Medium Size Enterprise (SME) Calls (e.g., Non-Thematic Research and Development)

Note: This does not constitute an exhaustive list of projects eligible for funding. DG DEFIS has posted a complete list on this website: The European Defense Fund (EDF).

As indicated above, DG DEFIS generally co-finances EDF projects. An exception applies where DG DEFIS may finance the total cost of EDF-approved research. However, DG DEFIS may fund up to 80 percent of the value for development projects. Thus, the participants in development projects need to identify other financing sources to cover the remaining costs. Furthermore, the EDF seeks to encourage and support cross-border cooperation in defense research and development within the European Union. 

DG DEFIS’ eligibility criteria require each project to comprise a consortium of participants domiciled in at least three EU Member States or associated countries. DG DEFIS makes an exception to this rule for projects involving disruptive technologies.  The European Defense Fund website contains more information about project financing limits. 

DG DEFIS requires all consortia to submit their applications by November 24, 2022.  European-domiciled subsidiaries of U.S. companies may participate in EDF projects subject to them securing an endorsement from the government of the EU country where they operate. Other American companies may participate in an EDF-financed project under certain conditions. Such companies should note that they will not receive EDF-funds.  

The Commercial Service at the U.S. Mission to the European Union encourages any American company interested in participating in an EDF-financed program to contact us at: matthew.kopetski@trade.gov. For more information contact the U.S. Commercial Service at the U.S. Mission to the European Union.

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