Small and Medium-sized Enterprises (SMEs) are considered to be the backbone of the EU economy in terms of jobs creation, growth and innovation. The role of SMEs in the European Defence Technological and Industrial Base (EDTIB) has gradually increased over time, partly as a result of greater outsourcing. SMEs are active in defence both as direct suppliers to Ministries of Defence or as subcontractors in the defence supply chain. Member States and Prime Contractors recognise their contributions and ability to respond promptly to changing military needs as well as their relevant role in research, technology and innovation. A number of SMEs that participate in defence markets are involved in dual-use and the increasing convergence of the defence and security sectors appear to be creating even greater emphasis on dual-use, whereas some SMEs remain specialized in defence related activities or in “niche” competencies and are consequently particularly dependant from military business.
