Defence Innovation in NATO and the EU: DIANA, EDA, and Europe’s DARPA-like Initiatives

As of June 2025, the European defence innovation landscape is shaped by three complementary initiatives: NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA), the European Defence Agency’s Hub for EU Defence Innovation (HEDI), and the European Commission’s European Defence Innovation Scheme (EUDIS). Each initiative operates under distinct institutional logics and strategic frameworks. DIANA reflects NATO’s transatlantic mission by promoting dual-use technologies through accelerator programs and a dedicated €1 billion venture capital fund, the NATO Innovation Fund. HEDI functions within the intergovernmental structure of the EDA, facilitating cooperation among EU Member States through small-scale innovation projects, prizes, and coordination platforms.

EUDIS, under the European Commission, acts as a supranational instrument with the largest financial scope, channelling EU funds through the European Defence Fund and equity tools to support start-ups and SMEs across the Union. While all three aim to attract non-traditional actors and accelerate the uptake of emerging and disruptive technologies in defence, they differ significantly in budgetary scale, operational mechanisms, and startup engagement models. DIANA prioritises direct mentorship, testbed access, and military end-user involvement. EUDIS integrates defence innovation with broader EU industrial policy and leverages both grants and equity instruments to scale civilian-origin technologies.

HEDI focuses on network-building and aligns innovation with capability development plans, serving as a strategic enabler rather than a funding body. Together, these agencies form a multilayered ecosystem that seeks to ensure NATO and the EU remain technologically competitive by mobilising public and private resources, fostering cross-border cooperation, and opening defence markets to high-potential innovators. NATO’s DIANA: The Defence Innovation Accelerator for the North Atlantic (DIANA) is a NATO body launched in 2022 to harness dual-use technological innovation for Alliance defense and security.