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EU member states’ defence research and development (R&D) amounted to €13 billion in 2024. Investments increased by an additional €4 billion in 2025, according to European Defence Agency estimates.
The US and China still maintain a significant lead over Europe. In 2024, Washington invested €138 billion in defence innovation, while China’s estimated defence industry R&D reached €38 billion, with a focus on AI, hypersonic, and quantum technologies.
The EU’s Programme for Agile and Rapid Defence Innovation (AGILE) supports “new defence players” to accelerate the development of new defence technologies.
The plan allocates €115 million to 20-30 projects involving SMEs, startups, tech innovators, and AI scale-ups working on dual-use and defence technologies. Projects will receive €1 million to €5 million, depending on their scope and maturity.
AGILE promises to support innovators from the technical development phase to transition to real-world use. It foresees four-month funding approvals and deployment to member states’ national forces within 3 years.
The plan also aims to shorten time-to-deployment as conflicts evolve on timelines of weeks. Executive Vice-President Henna Virkkunen called AGILE “the missing piece of the puzzle that helps defence solutions reach the market”.
The European Commission has put forward a proposal for a regulation establishing AGILE as part of its March 2026 defence package, which is now being transmitted to the European Council and Parliament.
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