In several European regions, there are a significant amount of defence companies which are important generators of regional employment and growth. In the past, it was difficult for development agencies to support these companies due to the civil characteristics of our funds, the reserved nature of the technologies and the involvement of large corporations or governments that imposed limitations of the support actions that may be carried out by RDAs.
To overcome these difficulties, regional development agencies supported companies able to produce dual-use technologies (both civilian and military). The agencies supported projects in the fields of cybersecurity, unmanned guidance of vehicles, materials, logistics, communications, etc. Over the last decade, there have been notable initiatives by development agencies to support companies with dual-use technologies. Among others, the Andalusian Idea Agency (ES), Bretagne Développement Innovation (FR), the Agence de Développement et d'Innovation de la Nouvelle Aquitaine (FR) or the Regional Development Agency, North-East Romania (RO). Over these years, EURADA has been involved on providing guidance on how to support defence industry and we organised our Agorada+2018 on this topic in Kajaani (Finland) in close cooperation with Kainuun Etu, the European Commission and the European Network of Defence Related Regions. Christian Saublens (EURADA) drafted the EU funding for Dual Use: Guide for Regions and SMEs, on behalf of the European Commission.
These difficulties have now been overcome by the introduction specific European programmes to support the defence industry. In 2017, the European Commission adopted a Communication launching the European Defence Fund (EDF) consisting of 'dimensions' for defence research and for capability development. Since then, the European Commission has implemented actions in the field of training (skills in the defence industry) as well as a preparatory action and a European Defence Industrial Development Programme to develop capabilities in industry during the end of the 2014-2020 programme period. These initiatives have served to create a new Directorate General for Defence and Space (DEFIS) within the European Commission and to consolidate a specific policy to support the defence industry, which will enable development agencies to help companies in this sector that were struggling with the need to develop their own capabilities and to develop their own capabilities. In this moment defence industry research capabilities could be supported by both, European programmes managed by the European Commission directly or Structural and Investment Funds (ESIFs).
What is financed?
This is the first programme that will effectively support cooperation among companies and research centres from different European Countries. It will support projects that carry out either:
collaborative research that could significantly boost the performance of future capabilities throughout the European Union, aiming to maximise innovation and introduce new defence products and technologies; or
collaborative development of defence products and technologies, thus contributing to the greater efficiency of defence spending within the European Union, achieving greater economies of scale, reducing the risk of unnecessary duplication and thereby fostering the market uptake of European defence products and technologies and reducing the fragmentation of defence products and technologies.
The European Defence Fund contains specific provisions in favour of involving SMEs and midcaps and it will incentivise the cross-border participation of SMEs by providing higher financing rates and favouring projects by consortia, which include SMEs. To improve the inclusion of SMEs, opening the internal market, and to promote innovation capacity, dedicated calls in the EDF are foreseen. Calls for proposals submitted by consortia composed of only SMEs without pre-defined topics, will be organised for both the research and the development window of the EDF.
How to take part?
The EDF is implemented through annual work programmes structured along 17 thematic and horizontal categories of actions, which have been shaped to remain stable during the Multiannual Financial Framework 2021-2027. Calls for proposals will be launched on an annual basis following the adoption of the corresponding annual work programme. With a total budget of €1.2 billion, the first 23 EDF calls for proposals were published on the 30th of June 2021. The deadline for submission of proposals is set to 9 December 2021.
EURADA is organising an information day specifically design for Regional Development Agencies. The purpose of the event is to increase the understanding that regional economic practitioners have of this new opportunity to increase the competitiveness and international linkages of their local defence companies. With the experience of several development agencies and the vision of the European Commission we want to help development agencies to position themselves in their territorial ecosystems and learn how they can support their local companies and applied research centres to participate in this initiative.
We strongly recommend you to take part in the EDF Info Day and Networking Event from the 15th to the 17th of September 2021. This event will be an opportunity to learn about the context, objectives, and participation modalities of the EDF, as well as to network with potential partners. Potential applicants from public and private entities interested in the EDF calls for proposals are invited to attend.
More information
Call for proposals and conditions of participation. European Defence Fund. European Commission
European Defence Fund. European Commission
European Network of Defence-related Regions (ENDR). European Commission
Information Day & Networking Event. 15-17 September European Commission
