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Disclaimer: This English translation is provided for informational purposes only. In the event of any discrepancy, inconsistency, or difference in interpretation between this translation and the original German version, the original German version shall prevail.
Overall Description
“KMU-innovativ: Zukunft der Wertschöpfung” supports ambitious, high-risk and pre-competitive research, development and transformation projects led by German SMEs and medium-sized enterprises. The programme aims to strengthen their innovation capacity, competitiveness and ability to transfer research results into practical applications across production, services and work. Funding is provided as a non-repayable grant.
Funding Amount
No fixed maximum grant per project or total call budget is specified.
- Commercial companies and research institutions undertaking economic activities: normally up to 50% of eligible project costs
- SMEs meeting the EU SME definition: the funding intensity may generally be increased by 10 percentage points, subject to state-aid rules
- Universities and non-university research institutions undertaking non-economic activities: up to 100% of eligible project expenditure
- Universities and university hospitals: an additional 20% project allowance may be granted for non-economic research projects
An appropriate own contribution is required from commercial applicants. In collaborative projects, grants awarded to participating companies should generally represent more than 60% of the project’s total funding. Projects normally run for two years.
Submission Deadlines
Project outlines are assessed every six months:
- 15 April
- 15 October
The next scheduled assessment deadline is 15 October 2026. The deadlines are assessment cut-off dates rather than strict exclusion deadlines. Late outlines may not be considered until the following assessment round.
Submission Conditions
Applications follow a two-stage procedure:
- Project outline: A German-language project outline must be submitted digitally through the designated online outline tool. It may contain a maximum of ten A4 pages, excluding the cover page and lists.
- Formal application: Applicants whose outlines are positively assessed are invited to submit a complete formal funding application through the easy-Online system.
The outline must describe the state of research and technology, R&D need, objectives, innovative character, planned results, work programme, division of tasks, costs, resources, milestones, exploitation strategy and participating organisations. Applicants must also demonstrate their ability to provide the required own contribution.
For collaborative projects:
- The outline must be coordinated and submitted by the intended consortium coordinator, normally a company.
- The project should be coordinated by the company expected to commercialise the resulting solution.
- Companies must carry out a significant share of the project work and be the principal beneficiaries.
- Partners must conclude a written cooperation agreement.
- The number of partners should remain manageable for a medium-sized company.
Eligible Types of Businesses
- SMEs meeting the EU SME definition
- Medium-sized enterprises with no more than 1,000 employees and annual turnover not exceeding €100 million, including linked and partner enterprises
- Universities, but only as partners in collaborative projects
- Non-university research institutions, but only as partners in collaborative projects
- Other companies may participate in collaborative projects where appropriate, although the programme is centred on SMEs and eligible medium-sized enterprises
Eligible Countries
- Applicants receiving funding must have an establishment, branch or other eligible operational presence in Germany by the time the grant is paid.
- European research cooperation through EUREKA is welcomed. Foreign organisations may participate in cross-border consortia but are generally expected to obtain funding from their own country. German partners are funded under this German programme.
- Project results may be commercially exploited only in Germany, the European Economic Area or Switzerland.
Expected Outcome
Funded projects should:
- Strengthen the innovation and competitive potential of SMEs and medium-sized enterprises
- Accelerate technology and knowledge transfer from pre-competitive research into practical application
- Produce commercially usable new products, processes or services
- Promote sustainable, resilient and technologically sovereign value-creation systems
- Increase companies’ research and development activities
- Generate exploitable research results, potentially including patents, licences and publications
- Address relevant economic and societal challenges through innovative solutions
Scope
Projects must address entrepreneurial and competitive value creation and may cover technological or non-technological innovation, including:
- New or improved products, machinery and industrial production systems
- New manufacturing technologies and process chains
- Product-development methods and tools
- Product and process quality
- Flexible production
- Digitalisation and virtualisation of production, including Industry 4.0
- Production-related and customer-oriented services
- New business models, data monetisation, blockchain and B2B platforms
- Value-chain networks and ecosystems
- New forms of work organisation and workplace design
- Adaptation of companies and employees to technological change
- Knowledge management, skills development and lifelong learning
- Robotics and its integration into new application environments
Projects must go substantially beyond routine company activities, build on current research results and demonstrate a credible commercial, economic or societal exploitation perspective. Projects primarily concerned with establishing transfer structures, advising companies, delivering training measures or developing exclusively proprietary solutions without broader dissemination are generally not supported.
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