The EU’s investment in deep tech innovation aims to boost competitiveness in AI, quantum computing and biotechnology, challenging global leaders.
In the global effort for technological supremacy, while the US and China have long been considered leaders in this arena, the EU is now making a move to bolster its position.
The deep tech sector, which encompasses cutting-edge technologies such as AI, quantum computing and biotechnology, has become a critical battleground for economic and strategic dominance.
The EU’s recent announcement of a €1.4bn euro (US$1.5bn) investment in 2025 to support the region’s deep tech research sector marks a substantial commitment to technological innovation and competitiveness.
This funding, channelled through the European Innovation Council (EIC), represents an increase of nearly €200m (US$216M) compared to 2024, underscoring the EU’s determination to accelerate its technological advancement.
Technology investment focus
The EU’s investment strategy targets a range of cutting-edge technologies, with a particular focus on AI, quantum computing and biotechnology.
“The European Innovation Council has emerged as a game changer in EU support to breakthrough innovation.” – Commissioner for Innovation, Research, Culture, Education and Youth, Iliana Ivanova.
The EIC Challenges programme allocates €120m (US$130m) for emerging technologies such as autonomous robotics, climate-resilient crops, waste conversion and advanced medical diagnostics.
An additional €250m (US$270m) is earmarked for early-stage companies working on high-potential projects in generative AI, agri-tech, and new mobility solutions.
Globally, similar investments are being made in these sectors.
The US continues to lead in AI research and development, with significant private and public funding.
Meanwhile China is heavily investing in quantum computing and AI, aiming to become a world leader in these fields.
Japan and South Korea are additionally focusing on robotics and advanced manufacturing technologies, while Israel is known for its investments in cybersecurity and biotechnology startups.
Funding schemes and strategic focus
The EIC Work Programme 2025 is structured around three main funding schemes, each targeting different stages of innovation:
EIC Pathfinder
With a budget of €262m (US$283m), this scheme supports multi-disciplinary research teams in early-stage technology research and development.
Grants of up to €4m (US$4.3m) are available for projects with breakthrough potential.
EIC Transition
Allocated €98m (US$106m), this scheme aims to transform research results into market opportunities.
It offers grants up to €2.5m (US$2.7m) for follow-up projects.
EIC Accelerator
The largest scheme with €634m (US$685m) supports startups and SMEs in developing, commercialising and scaling up innovations.
It provides grants below €2.5m (US$2.7m) and investments up to €10m (US$10.8m).
A notable addition to the programme is also the EIC Strategic Technologies for Europe Platform (STEP) Scale-up scheme.
Operating with a budget of €300m (US$324m) in 2025, this initiative aims to provide larger investments in companies bringing strategic technologies to the EU market.
The scheme offers between €10m (US$10.8m) and €30m (US$32.4m) per company, with the goal of leveraging private co-investment and achieving total investments of €50m (US$54m) to €150m (US$162m).
Bridging the funding gap and fostering innovation
The increased funding and new initiatives are designed to address a significant market gap in deep tech scale-up funding in Europe.
By targeting digital technologies, clean and resource-efficient technologies and biotechnologies, the EU aims to reduce strategic dependencies and boost its competitive edge in critical sectors.
The programme also includes measures to improve access to Business Acceleration Services for emerging companies from ‘widening countries’ with lower levels of research and innovation performance.
Furthermore, the introduction of Seals of Excellence under various calls aims to facilitate access to complementary funding sources and business acceleration services.
Iliana Ivanova, Commissioner for Innovation, Research, Culture, Education and Youth, emphasised the programme’s potential impact: “The European Innovation Council has emerged as a game changer in EU support to breakthrough innovation.
“In 2025, it will boost EU deep tech with even more resources, amounting to €1.4bn (US$1.51bn) from Horizon Europe, our research and innovation programme”.
The EIC’s investment arm, the EIC Fund, has already made a significant impact, reaching €1bn (US$1.08bn) in actual investments in deep tech startups and leveraging over four times as much in co-investments.
This makes the EIC Fund the largest and most active deep tech co-investment fund in Europe, demonstrating the EU’s commitment to fostering a robust innovation ecosystem.
As global technology continues to evolve, the EU’s substantial investment in deep tech through the EIC Work Programme 2025 represents a strategic move to enhance its competitive position.
Overall, by focusing on breakthrough technologies and supporting high-potential startups, the EU aims to create a more resilient and innovative tech sector capable of competing on the world stage.
