Publication date: October 29, 2025
The Polish defense technology sector (defense-tech) is developing dynamically, with a growing number of startups engaging in dual-use projects—civilian and military. Collaboration between these entities and public institutions and acceleration programs is becoming increasingly common, fostering innovation and strengthening the country’s defense potential. In its 2030 strategy, the North Atlantic Alliance recognized dual- use technologies as the foundation of its future strategic advantage, launching initiatives such as the NATO Innovation Fund and the DIANA program. Meanwhile, the European Commission presented the Digital Europe program and Horizon Europe. Furthermore, in 2022, the European Investment Bank introduced significant policy changes by including dual- use projects in its portfolio. The Polish Ministry of National Defence implements programmes such as “Urgent Innovation Need” and “East Shield”, and the Polish Development Fund supports projects with dual-use potential by implementing the IDA project together with the Ministry of National Defence, PGZ SA, the Kraków Technology Park and the Gdańsk Science and Technology Park.
What are dual-use companies focused on? The term can mean that civilian companies adapt their solutions or technologies to military needs, typically with a desire to scale their operations. The term can also be used to describe startups operating in the civilian market that develop products primarily for the defense sector, or companies offering universal solutions for multiple sectors (including the defense sector).
One of the key programs supporting the development of dual-use technologies is the IDA Bootcamp (Investments Dual-Use Technology Accelerator Bootcamp). The program is owned by the Polish Development Fund. It is the first open innovation program in the defense sector in Poland. The second edition of this program, aimed at research teams, startups, and technology companies, launched in 2024. The goal is to adapt civilian technologies to the needs of national resilience, defense, and security. The second edition focused on strengthening the security of Polish borders on land and sea, offering participants workshops and business meetings with investment funds and defense sector representatives. The competition focused on automated and maritime technologies. Selected participants participated in a three-day bootcamp, which consisted of workshops and meetings. It provided an opportunity to gain practical knowledge about the specifics of the defense sector, consult with experts, and establish valuable business contacts.
Polish start-ups also have the opportunity to participate in international acceleration programs, such as NATO’s DIANA (“Defense Innovation Accelerator for the North Atlantic”). The program is aimed at technology companies creating solutions that can be applied for both civilian and military purposes (dual-use technologies). In the first edition, 77 Polish technological solutions submitted to the competition. One of the winners was the Polish startup Revobeam, which creates smart wireless antennas designed to protect against signal interference. This program supports the development of dual-use technologies, such as autonomous systems, artificial intelligence, new materials, innovative energy solutions, and biotechnology. In Poland, the initiative was supported by the Polish Development Fund, the Ministry of National Defence, and the DIANA acceleration center, established by the AGH University of Science and Technology and the Kraków Technology Park.
One of the standout players in the Polish market is the Finnish-Polish company ICEYE, specializing in deploying New Space-class radar satellites, which collect images of the Earth’s surface regardless of weather conditions. Its constellation of New Space-class satellites allows for the identification of smaller objects and targets without the need for additional information sources. This technology is used in both the civilian and military sectors. The Polish subsidiary conducts research and development projects, including a contract for the Military University of Technology entitled “Development and real-world testing of an in-orbit command and control module for observation microsatellites, co-financed by the European Union”. Furthermore, the Polish Army is expected to receive the first Polish satellites. The MikroGlob optoelectronic microsatellite constellation system, as announced, is expected to provide Poland with fully autonomous capabilities to acquire high-resolution satellite imagery by March 2027 for a cost of PLN 557 million. Furthermore, in 2022, the Ministry of National Defense ordered two Pléiades observation satellites from Airbus Defence & Space for EUR 575 million.
In the military technology sector, mergers and acquisitions are often driven by the need to increase innovation (large defense companies acquire startups developing breakthrough technologies, such as drones, AI for battlefield analysis, and cybersecurity systems), expand production capacity (small defense companies join forces to increase military supply capabilities), or unify technologies and collaborate – mergers can then facilitate the integration of various defense systems. In the defense industry, examples of mergers include the collaboration between Rheinmetall and Polska Grupa Zbrojeniowa (PGZ) regarding the production of combat vehicles and defense systems.
Defense-tech companies have access to various forms of funding, both from public and private funds. Public programs include startup platforms for new ideas offered by the Polish Agency for Enterprise Development (PARP), aimed at startups from Eastern Poland. The best startups can apply for non-repayable funding of up to PLN 600,000 to develop their businesses. Also worth noting is the “Startup Booster Poland – Startups Exchange” program, which offers project funding ranging from PLN 7 to 10 million. Furthermore, the Ministry of National Defense awards targeted grants for public tasks related to national defense. Furthermore, military startups can count on support from private investors.
The North Atlantic Alliance also offers funding to businesses through the NATO Innovation Fund. This is the world’s first multi-country venture capital fund. The fund will invest €1 billion in start- ups developing new and disruptive technologies, as well as other venture capital funds developing new dual-use technologies. The fund was launched at the 2022 Madrid Summit by 22 NATO members. The Funds are headquartered in the Netherlands. Given the Fund’s broad geographic reach, additional regional offices will be established across the Alliance.
What are technology innovation hubs in the defense-tech sector? Technology hubs are innovation centers that bring together startups, enterprises, research institutes, and investors to jointly develop new technologies. In the defense sector, they play a key role in supporting research and development of new military technologies, creating an ecosystem for cooperation between business and the public sector, and connecting investors with companies developing dual-use technologies. In Poland and Europe, the main example of such a hub is NATO DIANA, located at the AGH University of Science and Technology and the Krakow Technology Park. One of the most important technology hubs operating in Poland is Hub4Industry, operating at the Krakow Technology Park. The Lodz University of Technology is home to the Lodz Defense Industry Hub. A European technology hub that supports startup and academic innovations in the defense sector is the EDA Innovation Hub (Brussels).
Currently, Poland is witnessing a growing interest in autonomous technologies, unmanned systems, and solutions for communication and navigation in challenging environments. Programs such as the IDA Bootcamp focus on areas such as:
These technological areas are crucial for the future of the defense sector and constitute a priority in the development of Polish startups operating in the defense-tech industry.
In summary, the Polish military startup market (defense-tech) is growing rapidly, supported by state subsidies, EU funds, and private investments. Initiatives such as NATO DIANA in Krakow and Startup Booster Poland provide young companies with access to capital and international cooperation. Technology hubs also play a key role, supporting innovation in the defense sector. Mergers and acquisitions are a common mechanism for company development. Military startups benefit from funds from the Polish Agency for Enterprise Development (PARP), the Ministry of National Defense (MON), and security programs that provide resources for innovation development. Financial support also comes from private investors and venture capital funds. Technologies developed by startups include AI, autonomous systems, cybersecurity, and satellite technologies. There is a growing emphasis on dual-use technologies that can be used in both the military and civilian sectors. Thanks to government support and cooperation with NATO and the EU, Poland is becoming a major player in the modern defense technology market.