^{Published on 17.9.2026}

Investment in defense, security, and resilience has increased across the Nordic region significantly in recent years. Finland, Sweden, and Norway have all strengthened their focus on defense capability development, technological innovation, and long-term preparedness. This changing environment has created new opportunities for companies developing technologies with both civilian and defense applications. This article focuses primarily on these three countries, which currently have the most developed national dual-use funding programs in the region; the European and NATO-linked instruments covered later apply across the wider Nordics, including Denmark and Iceland.

Alongside national innovation programs, Nordic organizations participate in European instruments supporting defense, security and dual-use innovation. The European Defense Fund (EDF) focuses on collaborative defense research and development, while Horizon Europe supports civilian research and innovation in areas that may also be relevant to security, resilience and dual-use applications. The European Innovation Council (EIC) has also opened selected instruments to dual-use and defense-related technologies, creating further opportunities for companies with strong commercialization potential.

Taken together, these developments have created a broader and more diverse funding landscape for dual-use innovation than was available only a few years ago.

Despite the growing number of opportunities, many companies still struggle to secure funding for product development. The challenge is often not a lack of programs, but uncertainty about where to start, which instruments are relevant and how they fit into the product development journey. The funding needs to be secured at the right stage, as it can be critical to maintaining development momentum. This is especially true for projects involving physical products, integrated systems, or platform-level technologies, where development timelines are often long, technical uncertainty is high, and significant investment may be required long before commercial revenue is generated.

This article examines how national, European and NATO-linked funding instruments can support different stages of the dual-use product development journey, and a few pointers to what aspects funding organizations look at in the SME’s application process.

Aligning funding strategy with the product development roadmap

Dual-use technologies typically require extensive design work, prototyping, testing, validation and industrialization before they reach operational readiness. Development timelines may be extended further by regulatory requirements, certification, manufacturing readiness and customer qualification. In defense and security markets, procurement cycles are also often longer and more structured than in commercial sectors.

Product development is therefore rarely supported by a single funding source from start to finish. Companies typically combine different instruments as their technologies mature from concept to prototype, from prototype to validated product and ultimately towards scalable production and deployment.

Funding strategy should consequently be treated as part of product strategy. A clear product roadmap helps a company identify its next development milestones, the evidence needed to reach them and the resources required along the way. By linking funding decisions to this roadmap, companies can approach the right instruments at the right time, reduce development risk and maintain momentum between different phases of the project.

A well-defined roadmap will also strengthen individual funding applications. Funding organizations need to understand the problem being addressed, why the technology is relevant, what the project will achieve and how the work will be carried out. Companies with a credible development plan and a clear understanding of their next steps are generally better positioned than those approaching each funding opportunity as a separate exercise.

External support can help companies clarify and validate this path before they apply. Finland’s DEFINE supports defense and dual-use companies through acceleration, mentoring, ecosystem connections, testing opportunities and investment-readiness development. For technologies intended for defense use, validation in relevant operational conditions may be, and often is, also important. This has become a concrete point of due diligence: many funding programs and private investors now ask defense and dual-use companies directly whether their solution has been tested or validated in Ukraine. Ukraine’s IRON Cluster connects companies with testing opportunities, military stakeholders and strategic partners that can help mature and scale battlefield-informed technologies, which opens a direct route for this kind of validation. These kinds of networks can help companies test their assumptions, demonstrate practical relevance and build the evidence expected by funders and other partners.

Technology Readiness Levels, or TRLs, provide one practical way to position these development and validation activities on the roadmap. The nine-level scale is widely used in EU funding programs to describe how mature technology is, from early research and proof of concept to operational deployment. Some instruments focus on lower TRLs, such as feasibility, applied research or early validation. Others target later-stage prototyping, demonstration, testing, industrialization or market uptake. This matters because funding eligibility is often linked to both the project topic and maturity.  

Technology at an early validation stage may fit one program, while the same technology may become eligible for entirely different instruments after reaching prototype or demonstration readiness. Understanding the project’s current TRL, its target TRL and the work needed to move between them should be used to identify a suitable funding path.

However, TRL isn’t the only consideration. Programs also assess commercial potential, defense or security relevance, consortium structure, company size, geographic eligibility and the applicant’s ability to finance its share of the project. Public funding commonly covers only part of eligible costs, which means companies may also need their own financing, revenue or private investment to support the wider product development journey.

With this strategic foundation in place, companies can begin assessing which national, European and NATO-linked instruments best support the next milestones on their roadmap.

National funding programs are often the logical starting point

For companies developing dual-use technologies in the Nordics, national funding programs are often the most accessible way to begin a structured development project. While program structures differ across Finland, Sweden, and Norway, their underlying purpose is broadly similar: to reduce early-stage development risk, support the maturation of new technologies, and help companies move from early concepts towards validated and commercially viable products. In practice, this funding is commonly used for activities such as concept development, prototyping, testing, verification, and preparation for market entry.

A concrete example can be found in Sweden’s Civil-Military Innovation Program (CMIP), a joint initiative by Vinnova and the Swedish Armed Forces. The program supports startups and SMEs developing civilian technologies with potential defense applications through funding and accelerator activities designed to help companies understand defense-sector requirements and identify relevant military use cases. Recent calls have combined project funding with mandatory accelerator participation to benefit both technology development and the creation of a defense-oriented business strategy. Funding levels and conditions vary by call. For example, in 2027 call companies can apply for up to 1,000,000 SEK for development and verification, as well as a designated 150,000 SEK for accelerator participation. The focus is on technologies aligned with NATO's emerging and disruptive technology priorities, including areas such as artificial intelligence, autonomous systems, advanced materials, energy, and next-generation communications.

National instruments are also increasingly connected to European programs. In Finland, Business Finland provides R&D funding for ambitious projects developing new products, services and business models. It can also provide national co-funding for qualifying European Defense Fund (EDF) projects. Business Finland has offered separate preparatory funding for extensive Horizon Europe and EDF consortium applications.

Norwegian companies can access similar support through Innovation Norway and other national innovation instruments. Although the mechanisms differ, applicants are generally expected to demonstrate a clear development objective, a realistic implementation plan, and a credible commercial case. Projects are typically assessed based on innovation potential, expected impact, and business viability.

For hardware-focused dual-use companies, national funding can support a broad set of development activities beyond the core technical solution itself. In addition to electronics development, embedded software, system integration, testing, and verification, companies often need to prepare for late-stage requirements such as manufacturing readiness, quality processes, supply chain resilience, and manufacturability. These issues can become critical well before full-scale deployment and should be reflected in both the development roadmap and the funding plan.

National and regional instruments are also beginning to support later-stage industrial capacity. In Finland, funding aligned with the ReArm Europe Plan has opened new opportunities for projects that strengthen defense-industry capacity, security of supply and the production of dual-use items. Some regional calls specifically support SME development, investment, internationalization and production capacity, though availability differs by region, so companies should consult the relevant regional funding authority before applying.

For many SMEs, national programs represent the first structured step in a longer funding journey. They allow early development work to be validated and de-risked while also helping companies position their technology and organization for progression towards larger collaborative European funding instruments such as EDF.

EU funding as companies move towards scale

As products and technologies mature, many companies begin exploring European-level funding opportunities. At this stage, the focus typically shifts from early development towards broader collaboration, validation, and longer-term positioning within the European technology ecosystem.

Horizon Europe is one of the largest research and innovation programs globally. It supports projects that bring together companies, research organizations, and industry stakeholders from multiple countries to work on shared technology challenges. For dual-use companies, relevant areas may include autonomous systems, sensing technologies, advanced communications, robotics, critical infrastructure technologies, and other hardware-intensive solutions with both civilian and defense applications. Companies should assess the scope of each call carefully because Horizon Europe is a civilian research and innovation program, not a general defense funding instrument.

In practice, Horizon Europe projects are commonly structured around multi-partner consortia, where participants contribute complementary capabilities to a defined technical objective. This makes the program suitable for technologies that require further development in an ecosystem setting, including integration, testing, and validation across different environments and use cases.

Participation does not necessarily mean leading a consortium. SMEs can join as partners and contribute specialized expertise while gaining access to shared resources, funding and networks. This approach often provides access to valuable development opportunities without the administrative burden associated with coordinating a large international project.

For defense-related technologies, the European Defense Fund (EDF) is a more targeted opportunity. With a total budget of approximately EUR 7.3 billion for 2021–2027, EDF focuses on strengthening European defense capabilities through joint development initiatives between companies and research organizations across member states. These projects are typically aligned with specific capability needs and involve longer development horizons compared to many national programs.

Compared to national schemes, EDF projects are generally more complex and require a higher level of coordination. Project consortia typically include organizations from multiple countries, and individual EDF calls often allocate funding in the range of several million euros to tens of millions of euros, depending on the capability area and scope of the project. In return, EDF can provide access to development environments in which technologies are matured closer to operational use, demonstrated in realistic settings and evaluated in a broader European defense context.

Another relevant initiative for dual-use and defense-focused SMEs is the EU-funded European Union Defence Innovation Scheme (EUDIS), which sits within this wider EDF framework. EUDIS is designed to help innovative companies access the European defense ecosystem through targeted support mechanisms, networking opportunities, acceleration activities, and innovation challenges. For smaller companies entering defense markets for the first time, EUDIS can provide a more accessible starting point than larger collaborative funding programmes.

Whereas EDF generally requires multinational collaboration around defined defense priorities, the European Innovation Council (EIC) offers routes for individual companies with breakthrough technologies and strong scaling potential.

The EIC Accelerator is designed for startups and SMEs developing high-impact innovations with significant commercial potential. It can combine grant funding with equity investment to support companies moving from advanced development towards commercialization and market entry.  

Since June 2026, the EIC Accelerator and STEP Scale Up have been open to eligible dual-use technologies, making the EIC more relevant to companies operating at the intersection of civilian and security applications. A dedicated EIC STEP Scale Up Defence call provides equity financing specifically for companies scaling critical defense technologies.

European programmes require more preparation and often involve more complex applications and consortium-building than national schemes. They can, however, provide access to larger funding opportunities, cross-border development networks and structured pathways towards industrialization and growth.

NATO DIANA – a further pathway for dual-use SMEs

NATO's Defense Innovation Accelerator for the North Atlantic (DIANA) has also become an important pathway for companies developing dual-use technologies. DIANA supports innovators working in areas such as sensing, autonomy, communications, energy resilience, and critical infrastructure protection.  

Selected companies receive an initial €100,000 in contract funding and take part in an accelerator program focused on developing their solutions for defense and security needs. They can also access DIANA’s test-center network to test, verify and validate technologies against end-user requirements. Access arrangements are agreed with individual test centers, and support towards testing fees may be available.

DIANA is particularly relevant to companies that have moved beyond the earliest concept stage and are looking to validate, demonstrate, and accelerate the adoption of dual-use technologies within defense and security ecosystems.

For many SMEs, DIANA offers a practical route into defense and security ecosystems without requiring participation in large-scale procurement programs at an early stage.

Building the full funding journey

Ultimately, successful funding aligns the product roadmap with suitable funding instruments and builds the technical, commercial and operational evidence required at each development milestone. This approach helps companies reduce risk, maintain momentum and move from an early concept towards a validated, industrially viable product.

Public funding can support much of this journey, but it rarely takes a dual-use device all the way to scalable commercial deployment. As the product matures, the company must also demonstrate that the opportunity behind it can become an investable business. A credible path to market, a scalable business model and a clear case for private capital therefore become the next elements of funding readiness.

Note: funding programs, budgets and eligibility criteria referenced in this article are subject to change. Companies should confirm current terms directly with the relevant funding body before applying.