While support to technologies having defence implications is possible today under the three existing strategic sectors identified in STEP, it appears necessary to increase the potentialities of development of research, industry and innovation in the defence sector by establishing a fourth strategic sector in STEP, focused on defence technologies without compromising the Union’s intended technological leadership in the existing sectors. This fourth strategic sector should ensure that STEP incentives are used to increase Union funding in innovative defence technologies with the aim of responding effectively to current and emerging threats and of contributing to European competitiveness in line with the STEP objectives. Defence technologies should be understood as those embodied in, or necessary for the development and manufacturing of, defence products, including defence-related products referred to in the Annex to Directive 2009/43/EC of the European Parliament and of the Council. Consistent with the approach applied to the other three sectors set out in Article 2(1), point (a), of Regulation (EU) 2024/795, the Commission should update the guidance provided for in that Regulation to cover the fourth strategic sector, including on the interpretation of defence technologies. As regards artificial intelligence, AI Gigafactories should become key infrastructure for the purpose of a rapid expansion of the power of AI in defence technologies.
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