We make sure Europe remains an innovation hub by easing access to finance for space and defence companies while keeping our talents in Europe.
Investing in space research and development to keep Europe competitive
Through the European Defence Fund, the European Commission supports companies across Member States in developing competitive and collaborative defence projects that will deliver innovative and interoperable defence technologies and equipment. It offers support and advice to participants throughout the entire cycle of research and development.
The Fund has a budget of nearly €8 billion for 2021-2027, with €2.7 billion allocated for collaborative defence research and €5.3 billion for collaborative capability development projects that complement national contributions.
EU space research aims to foster a cost-effective, competitive, and innovative space industry and research community. It ensures that space technology, services and applications meet EU policy needs. EU space research is supported through framework programmes. The support of these programmes is critical to the ongoing development of the space sector.
Horizon Europe, the new framework programme for research and innovation for 2021-2027, was adopted in April 2021 with a total budget of €86.1 billion in current prices. The programme is structured in three pillars: open science, global challenges and industrial and open innovation. Space falls under the second pillar in a joint “digital, industry and space” cluster with a proposed envelope of €13.5 billion. The funded research is expected to foster the competitiveness of the EU space sector and reinforce EU capacity to access and use space.
One programme that enhances the competitiveness of the European space sector is In-Orbit Demonstration and Validation (IOD/IOV), which allows new technologies to be tested in orbit by providing aggregation, if needed, launch services and operations. By allowing innovative technologies to be effectively tested in orbit, IOD/IOV reduces the time to market and increases EU autonomy by providing cost-effective services based on EU solutions, both for the spacecraft and for the launch services. In addition, the programme fosters skills development by providing a generation of European engineers with hands-on experience in real-world space programmes. Finally, it supports the development of space tech startups and SMEs for technology developers, satellite manufacturers and space transportation solutions.
Easing access to finance for European Companies
“New space”, characterised by new commercial players bringing cutting-edge business techniques and funding methods to space activities, has brought disruptive innovation and democratised access to space.
The European Commission, together with ESA, is exploring new ways of procuring directly from New Space companies. The dynamic purchasing system launched by DG DEFIS has already yielded positive results for many New Space companies, like Satlantis, which was one of nine companies awarded a €5 million contract for the Copernicus Contributing Missions.
The Commission has embraced a new business model, public-private partnership, to join forces directly with industry to deploy programmes with specific objectives and roles. One of example of this is the upcoming secure connectivity constellation IRIS2.
Innovative procurement schemes should be maximised in the future so that public institutions act as anchor customers and are less involved the development phase.
Likewise, through the Defence Equity Facility, DG DEFIS aims to stimulate the development of an ecosystem of private funds investing in defence innovation. The initiative will focus on technologies with dual-use potential, encompassing both civilian and defence applications, to further support the EU’s security, in line with InvestEU objectives.
The initiative, consisting of €100 million from the European Defence Fund (EDF) and an additional €75 million from the European Investment Fund (EIF), will significantly expand EIF’s capacity to support, in the next four years, private equity and venture capital funds with strategies covering technologies relevant to defence.
This €175 million initiative is expected to attract additional private investments in the funds it supports, thereby mobilising, in total, around €500 million in support of European companies.
Developing and retaining talents in Europe
Space has become one of the most exciting ecosystems to generate revenue. Yet, when most people hear the term "space business" the first thing that comes to mind is a rocket blasting off of a launch pad and a control room.
But a "space entrepreneur" can be anyone from any sector that is looking into space data to innovate and add value to their or someone else’s business model. It could be a startup monitoring the environmental impact of tourism using Earth observation data or a drone operator integrating secured satellite navigation services to deliver first aid products.
To help you break into the space business DG DEFIS launched the CASSINI Space Entrepreneurship Initiative, an entrepreneurial support mechanism that cuts across all components of the EU Space Programme. It offers actions targeted at the full entrepreneurial lifecycle - from idea generation to market entry and growth – and covers both the upstream and downstream sectors. CASSINI consists of:
- CASSINI Business Accelerator, boosting the commercial growth of top space startups and scaleups through a 6-month, intensive acceleration programme.
- CASSINI Hackathons, a major opportunity for SMEs to develop ideas for a digital application building on space data, including satellite images and positioning services.
- CASSINI Matchmaking, bringing startups, scaleups and SMEs to start a conversation with corporates and investors to accelerate their business.
To support the development of the necessary skills, the EU Space Academy Learning Platform was created to provide the business and technical skills you need to build ground-breaking new apps and disruptive business solutions.
Innovation is key to strengthening our defence capabilities, to creating strategic advantages in the battlefield, reducing strategic dependencies and staying competitive. In the area of defence, DG DEFIS seeks to lower entry barriers for smaller players and innovators. The EU Defence Innovation Scheme (EUDIS) offers specifically designed support measures to help European innovative companies bring their ideas to defence end-users. It supports innovators throughout the development cycle to mature, scale-up, demonstrate their use-case, grow and successfully enter the market. As part of EUDIS, a series of hackathons will be organised across Europe between 31 May to 2 June 2024.
The EUDIS Hackathons aim to stimulate defence innovation and attract new talents to the defence sector. The theme of the first edition of defence hackathons is “Digital in Defence”. Several challenges will be designed under this theme. Teams of students or young engineers will compete to come up with the best solutions for the challenges. Experts from defence ministries, innovation ecosystems and the defence industry will guide the teams during the event and sit on the panels that will select the best solutions.
Fostering the development of space-related job opportunities
As we anticipate the growing need for professionals with scientific, engineering, and technical skills, particularly in the highly innovative space industry, it is essential to ensure that the next generation of professionals are equipped with the necessary skills and experience.
DG DEFIS has launched two new initiatives aimed at improving the skills situation in the space sector:
- a job placement scheme called "Space Career Launchpad" to help university students and young graduates find internships and employment opportunities to gain hands-on experience in local space companies; and
- CASSINI Space Summer Camp, targeting younger students (age group 14-18), to inspire them to pursue a career in the space sector.
These initiatives aim at addressing the shortage of expertise in the sector and promoting its sustainable growth in line with President Von der Leyen’s commitment on a European Year of Skills. The recent European Union Space Strategy for Security and Defence (EU SSSD) also highlights the need for up-skilling and re-skilling to meet industry demand, fill the future skills gap, and increase female participation in the sector.