A company developing technology that can be used both in the civilian market and in the security or defence sectors often requires funding at successive stages of development. Funding for dual-use technologies may cover several stages: from technology development and R&D, through deployment and the expansion of production capacity, to scaling up the business. <\/p>\n\n
At the outset, funding is needed to refine the technology, build a prototype and verify whether the solution genuinely meets market needs. This is followed by R&D, testing and preparing the product for deployment. If the technology proves successful, the next challenge is to launch production, expand production capacity, acquire customers and secure the capital needed to grow on a much larger scale. <\/p>\n\n
In 2026, the funding landscape for such companies is changing significantly. PARP has begun to structure its funding instruments into a pathway leading from a deep-tech start-up, through R&D and deployment, to investment in production capacity. The European Innovation Council has opened the EIC Accelerator and EIC STEP Scale Up to dual-use technologies, while also launching EIC STEP Scale Up Defence for critical defence technologies. <\/p>\n\n
This creates a range of funding instruments tailored to different business needs:<\/p>\n\n
This is not a mandatory sequence in which the programmes must be used. The choice of funding instrument depends on the maturity of the technology, the purpose of the planned activities, the amount of capital required and the market targeted by the company. <\/p>\n\n
For a start-up already developing deep-tech technology, one of the first funding instruments on this pathway may be Startup Booster Poland \u2013 DeepTech Goes Dual.<\/p>\n\n
The programme is designed for start-ups developing deep-tech solutions, including technologies with dual-use potential, i.e. solutions that can be used for both civilian and military purposes. The minimum Technology Readiness Level required for a start-up is TRL 4. The programme also admits more mature technologies, provided that during the first stage of acceleration the start-up advances its technology by at least two TRL levels. PARP therefore indicates that solutions entering this stage should be no more advanced than TRL 7. <\/p>\n\n
The acceleration process is to comprise two stages and may last up to 16 months. At each stage, a start-up may receive a grant of up to PLN 450,000 and up to PLN 50,000 in support in the form of free accelerator services. The total value of grants awarded to a single start-up may not exceed the equivalent of EUR 200,000. At least 30% of the start-ups participating in the acceleration programme should be developing dual-use solutions, while preference is given to programmes in which such start-ups account for at least 50% of participants. <\/p>\n\n
At present, however, an important organisational point should be noted. The PARP call for proposals, which closed on 8 September 2026<\/a>, was addressed to operators of acceleration programmes rather than directly to start-ups. PARP received 14 applications from prospective operators, with a total value of nearly PLN 197 million. Only the selected operators will subsequently run programmes for start-ups. <\/p>\n\n For a young technology company, it is therefore worth monitoring primarily the outcome of this call and the subsequent application rounds conducted by the accelerators.<\/p>\n\n The programme concept is also interesting for another reason. In deep tech, there is often a gap between developing the technology and reaching the point at which the company can present it to a customer, investor or prospective industrial partner. DeepTech Goes Dual is intended specifically to help companies bridge this gap. <\/p>\n\n If a company needs to carry out further R&D or wishes to implement the results, SMART Path may be one of the available funding instruments.<\/p>\n\n Dual-use projects are eligible under this instrument, provided that the solution also has a civilian application. Projects whose results are intended exclusively for military applications fall outside the scope of SMART Path. <\/p>\n\n In 2026, PARP is also separating funding for R&D activities and the implementation of R&D results into separate calls. The call for R&D activities is planned from 29 October to 29 December 2026, while the call for the implementation of R&D results is planned from 21 January to 16 March 2027<\/a>. <\/strong><\/p>\n\n For dual-use technologies, the way the future market is presented is also important. The current PARP documentation for SMART Path requires applicants, in the case of a dual-use product, to specify and justify the proportions of civilian and military use and, in the financial model, to show separately the revenues generated by each use and the ratio of civilian revenues to total revenues. Irrespective of this, the application must describe the target market and market demand for the product. Project revenues are then taken into account in the model used to assess the project\u2019s financial viability. <\/p>\n\n This means that, already at the project planning stage, applicants need to consider not only the technological work itself, but also the implementation model, the market and future revenues, which is often a significant challenge. The detailed requirements of future PARP calls for SMEs will, however, only be possible to assess once the relevant documentation has been published. <\/p>\n\n Moving from a proven technology to larger-scale production requires a different type of funding. A company may already have a finished product, its first customers and validated technology, while still needing a new production line, production facilities, machinery, equipment or additional production capacity. <\/p>\n\n In August 2026, the Council of Ministers adopted an amendment to the European Funds for a Modern Economy (FENG) programme, adding defence technologies as another area covered by the STEP Critical Technologies Support Fund. At the same time, dual-use projects may also receive support under STEP calls concerning digital technologies, biotechnology, and clean and resource-efficient technologies. PARP is also preparing a separate call for defence technologies. <\/p>\n\n According to PARP\u2019s current announcement, the call is expected to focus primarily on manufacturing and industrial investment: establishing new production lines, constructing and expanding production facilities, increasing production capacity, and launching the manufacture of strategic products and components. PARP lists, among other areas, unmanned and counter-drone systems, artificial intelligence and cybersecurity, communications and command systems, space technologies, electronic warfare technologies, sensors and radar systems, and solutions related to the protection of critical infrastructure. <\/p>\n\n The call is expected to be open to SMEs<\/a> and large enterprises, with a maximum funding amount of PLN 140 million. PARP has announced that the call is expected to open between November 2026 and January 2027. These are currently indicative parameters announced by PARP, and the detailed conditions will only be possible to assess once the call documentation has been published. <\/p>\n\n The main difference compared with SMART Path lies in the purpose of the funding. Under SMART Path, the starting point is R&D or the implementation of R&D results. The announced STEP call for defence technologies is expected to focus on establishing and expanding production capacity. <\/p>\n\n Once the technology has been developed and a viable market exists, the next question is whether the company can manufacture the product at a scale sufficient to meet future demand.<\/p>\n\n The EIC Accelerator is intended for start-ups and SMEs developing breakthrough innovations that can create new markets or significantly transform existing ones. It is aimed at companies with ambitions to scale up where the technological or business risk remains too high for the required funding to be provided by the private market alone. <\/p>\n\n Since 17 June 2026, the EIC Accelerator has also been open to dual-use technologies. For the purposes of this instrument, the EIC requires a credible business model addressing demand in both the civilian and defence markets. The mere potential for a solution to be used in both areas is not sufficient. <\/p>\n\n The grant component is below EUR 2.5 million and supports innovation activities at TRL 6\u20138, carried out over a period of up to 24 months. The EIC Fund investment component ranges from EUR 1 million to EUR 10 million. The two forms of funding may be combined or, subject to specific conditions, used separately. <\/p>\n\n EIC STEP Scale Up is designed for companies at a significantly later stage of development that are preparing a major funding round. The instrument provides for an EIC Fund investment of EUR 10\u201330 million as part of a substantially larger private funding round \u2013 the EIC refers to rounds of approximately EUR 50 million or more. At the application stage, the company must already have a commitment from at least one qualified investor to participate in the planned round for an amount representing at least 20% of its total value. <\/p>\n\n Since 17 June 2026, STEP Scale Up may also cover dual-use technologies. It is therefore not simply a larger version of the EIC Accelerator. The EIC indicates that the Accelerator is more suited to companies at an earlier stage and with lower capital requirements, whereas STEP Scale Up is intended for companies ready to raise a major funding round. <\/p>\n\n This form of financing differs from a grant for an R&D project<\/a>. The EIC Fund makes an equity investment in the company, so the size of the planned funding round, the company\u2019s growth model and its ability to attract co-investors are all important.<\/p>\n\n The situation is different for technologies whose primary application is defence. For such projects, the EIC has launched a separate instrument, EIC STEP Scale Up Defence. <\/p>\n\n The distinction between the regular EIC STEP Scale Up and STEP Scale Up Defence stems primarily from the nature of the technology being developed. The regular STEP Scale Up covers strategic technologies in the fields of digital and deep-tech technologies, clean and resource-efficient technologies, and biotechnology, including dual-use solutions. Under STEP Scale Up Defence, the proposed product, technology or service must have a primarily defence application. The company must also demonstrate credible interest from customers in the defence sector and a realistic pathway for the adoption and scaling of the solution within the European defence ecosystem. <\/p>\n\n EIC STEP Scale Up Defence offers an equity investment of EUR 10\u201330 million as part of a larger funding round, typically ranging from EUR 50 million to EUR 150 million or more. The budget for the 2026 call is EUR 100 million. At the application stage, the company must already have a commitment from at least one qualified investor to participate in the round for an amount representing at least 20% of its total value. The deadline for applications in 2026 is 28 October. The programme covers, among other areas, technologies related to air and missile defence, unmanned and counter-drone systems, cybersecurity, artificial intelligence, electronic warfare, military mobility and space technologies. <\/p>\n\n Public funding for technology does not have to end with a single project. As a company grows, the activities requiring capital also change. The first need may be technology validation, followed by R&D, then deployment, increased production and, ultimately, a major equity funding round. <\/p>\n\n In its guidance on STEP Scale Up Defence, the EIC expressly envisages the possibility of using several funding instruments sequentially or in parallel, provided that the same costs are not funded twice. It even gives as an example the combination of funding for technology development from the European Defence Fund (EDF), subsequent scale-up funding under STEP, and instruments aimed at increasing production capacity and supporting joint procurement. This does not, however, mean that individual funding instruments can be combined without restriction. For each subsequent source of funding, the eligibility rules of the relevant programme must be checked and funding of the same activities or costs from more than one source must be excluded. <\/p>\n\n From a company\u2019s perspective, this means that funding should be planned several steps ahead. A decision made at the stage of the first R&D project may later affect rights to the technology, the way it is deployed, the company\u2019s ownership structure or its ability to attract an investor. <\/p>\n\n When developing dual-use technology, its status under trade-control rules must also be assessed separately. In PARP programmes, dual-use refers to solutions that may have both civilian and military applications, whereas in its dual-use calls the EIC requires a credible business model covering demand in both the civilian and defence markets. Classifying a project as dual-use for funding purposes does not in itself determine whether a specific product, software or technology constitutes a dual-use item within the meaning of Regulation (EU) 2021\/821<\/a>. <\/p>\n\n Regulation (EU) 2021\/821 requires an export authorisation for dual-use items listed in Annex I. In certain circumstances, this requirement may also apply to items not listed in that Annex.<\/p>\n\n Before carrying out a specific transaction, it is therefore necessary to determine the classification of the solution, the destination of the export or transfer, the end user and the intended end use. The Ministry of Development and Technology administers separate procedures for authorisations relating to trade in dual-use items. <\/p>\n\n For defence technologies, the range of regulatory requirements may be broader still. Project funding is then only one element of preparing the company to operate in a regulated market. <\/p>\n\n A company with a prototype has different funding needs from a company conducting advanced R&D. A business with a finished product that needs to build a production line has different needs again, as does a scale-up preparing a EUR 100 million funding round. <\/p>\n\n For this reason, when dealing with dual-use technology, it is worth starting with a few very practical questions: what level of technological maturity the solution has reached, what work remains to be done, who holds the rights to the technology, where the product is to be sold, and how much capital the company actually needs at the next stage.<\/p>\n\n Only then can a well-informed choice be made between acceleration, an R&D grant, funding for deployment, investment in production capacity and capital for scaling up.<\/p>\n\n Funding for dual-use technologies in 2026 offers companies significantly more opportunities than just a few years ago. What is particularly interesting, however, is that these instruments are beginning to form a continuous funding pathway: from technology development, through deployment and production, to scaling up and entering the security or defence market<\/a>. <\/p>\n\nTechnology requires further R&D \u2013 SMART Path<\/strong><\/h2>\n\n
The product works. Now it needs to be manufactured <\/strong><\/h2>\n\n
EIC Accelerator \u2013 bringing advanced innovation to market and scaling it up<\/strong><\/h2>\n\n
STEP Scale Up \u2013 when several million euros is no longer enough<\/strong><\/h2>\n\n
Critical technologies with primarily defence applications \u2013 EIC STEP Scale Up Defence<\/strong><\/h2>\n\n
Several programmes can fund different stages of the same development pathway<\/strong><\/h2>\n\n
Dual-use for funding purposes and dual-use under trade-control rules are two different issues<\/strong><\/h2>\n\n
Funding for dual-use technologies should be matched to the company\u2019s stage of development<\/strong><\/h2>\n\n
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