Funding for digitisation and innovative R&D projects

As we have been dealing with various subsidy programs for quite some time now and have already used some of them ourselves, it was obvious to examine to what extent our customers can also apply for subsidies for services we provide.

Request advice now

At first glance, the topic of funding seems like an impenetrable jungle - questions over questions and often it leads to the fact that funding is not even considered and one or the other project cannot be implemented.

We would like to share with you our knowledge and experience on the subject of subsidy programmes, but would like to point out that we are not a designated subsidy consultant, nor do we claim to be complete. However, we can certainly emphasize in advance that the subsidy landscape is very complex.

Depending on the project, one or even more funding programmes are possible and a closer look at the project in advance can be financially profitable. In some cases, funding programmes can also be combined, e.g. funding for consultancy with subsequent implementation, which in turn can be funded by another programme. Either way, it is worth considering funding programmes if R&D and/or digitisation measures are planned anyway. Most of the support programmes are only of interest to SMEs, but the new research allowance can also be used to support companies of any size.

Within the scope of a cooperation with us, we will be happy to support you in the examination and the eligible design of our services, so that ideally you will benefit twice - from our actual development and consulting services and from subsidies.

The return on investment of your digitisation measures or your new, innovative product can be achieved in a very short time thanks to state subsidies.

Subsidies - The agony of choice

There are countless funding opportunities and programmes. We cannot and do not want to list them all. The programmes we can present to you are at the state and federal level. Some have a regional connection, others do not. Funding amounts and quotas vary, and what can and should be funded is covered differently by the individual funding funds. In addition, some programmes are already counted towards other subsidies - it quickly becomes clear that "promotion" is not an easy undertaking.

Here is a short overview and if you like, you can download our funding whitepaper.

Whitepaper Subsidies Download

Funding program for innovative research and development -
Funding applications possible again from (08/2022)
ZIM (Zentrales Innovationsprogramm Mittelstand) projects are - as the name suggests - a funding instrument tailored to small and medium-sized companies for operational research and development activities for the development of innovative products, processes or technical services. As a rule, these are projects that extend over one to several years. In addition to individual projects, there is also the possibility of carrying out cooperation projects together with other companies and/or research institutions. Cooperation projects have slightly higher maximum funding amounts and quotas and tend to increase the probability of approval. Eligible for funding are own personnel costs as well as material costs and external work.
In our experience, ZIM projects are suitable for complex new product developments. The innovative character of the development is important. Otherwise the application will most likely be rejected.
The application as well as the implementation and documentation of ZIM projects is quite complex and is usually accompanied by specialised consultants who are remunerated pro rata from the funding amount. Of course, the remaining amount of funding is reduced by this fee.
It is also important that the project may only be started after approval of the application for funding.
Sources and further information:
ZIM Promotion
The research allowance - flexible support for in-house and third-party development
Since January 1, 2020, the Act on Fiscal Research Promotion has been in force. This will increase the attractiveness of Germany as a location for research and innovation. It is estimated that the research allowance will be claimed in the amount of EUR 5.6 billion for the years 2021-2024.
The main two differences from most other programs are the absence of a size restriction on the companies eligible to apply - most other programs are aimed exclusively at SMEs - and the possibility of applying for the research allowance retrospectively.
Only internal personnel costs incurred in the course of development and/or externally purchased development services are eligible for funding. The funding rate is 25% of the eligible costs; the assessment basis is limited to 2 million euros per company/group per year, so that the maximum funding amount per company is 500,000 euros per year.
One disadvantage of the programme is obviously the relatively low funding rate, which is why we really only see it as a supplement to the funding kit. If other programmes are suitable for a development project, we would give preference to these.
However, especially for companies outside the SME specification it is (for lack of alternatives) the means of choice.
Sources and further information:
Research allowance
"Digital Now": a program at the federal level
The "Digital Now" program is divided into two funding modules: "Investment in digital technologies" and "Investment in employee training". Eligible for funding are expenses for services (hardware, software & services) for digitization measures from external providers. The company's own personnel costs cannot be claimed. Applications for "Digital Now" funding must be submitted online. The maximum funding amount and the funding rate are quite high, and the complexity of the application and implementation is significantly lower than for ZIM projects, for example.
Explicitly mentioned as eligible are, among others, investments in data-driven business models, artificial intelligence (AI), cloud applications, big data and sensor technology.
"Digital Now" falls under the "de minimis" regulation[1].
Sources and further information:
Digital now
[1] This EU regulation states that within a period of three fiscal years, the total amount of aid granted may not exceed 200,000 euros.
The Digi grant: efficient support for small-scale digitisation activities in Hessen
This funding program, which is based exclusively in Hesse, is limited to "only" 10,000 euros, but with a funding rate of 50% and little formal effort, it is absolutely worthwhile for small and medium-sized digitization projects. It should also be noted that this grant can only be claimed once per company and that there is a certain time frame from which one may apply for the funding. The next call for funding will take place on August 30, 2022. It is therefore worth being quick and using up as much of the pot as possible so that a new funding call can be launched.
As with "Digital Now," only the costs of external providers are eligible for funding. The company's own personnel costs cannot be claimed. The state of Hesse supports companies in the digital transformation of their production and work processes and the improvement of IT security. The measures must be used by the applicant and are expected to lead to progress in digitization in the areas of production and processes, products and services or strategy and organization of the company.Eligible are therefore expenses in the area of hardware, software & services for digitization measures, such as in the simplest case, for example, CRM or even e-commerce systems. However, the digitization of logistics processes or integration of sensor technology and networking of production systems is also possible under this program.
Even if the "Digi Zuschuss" is a Hessian programme, you should simply find out more about it in your federal state. According to our knowledge, there are often very similar programs like
z. e.g. the "Digital Bonus" programme in Bavaria.
The 'digi grant' is also covered by the de minimis rule.
Sources and further information:
Technology State Hesse
Wibank
Before you apply, do the DIGI check at https://www.technologieland-hessen.de/digi-check or get advice at https://www.technologieland-hessen.de/digi-beratung
"Go Digital" Accompanying SMEs on their way to the digital future - program extended until 2024
The funding program focuses on consulting services related to digitization. The "Go Digital" program can only be applied for via certified consultants, who then also take care of processing the funding. This means that the complexity for the subsidized company is very low. Within the funding program, there are three modules: "Digitized Business Processes," "Digital Market Development" and "IT Security. Only consulting services are funded, not the implementation of corresponding digitization measures.
Authorized consulting firms for the different modules can be searched for online via an interactive consultant map. This programme also falls under the de minimis rule.

Sources and further information:
Go Digital
"Digitization consulting" of the RKW Hessen
The "Digitisation Advisory Service" is quite similar to the "Go Digital" programme at federal level. For example, only consultancy services in connection with digitisation projects are funded; the actual implementation and acquisition of hardware or software is not eligible for funding under this programme. The application and project documentation is also carried out by certified consultants. If you have not yet found your preferred consultant, you can easily contact the RKW, which can provide competent consultants. In this respect, the programme is not very complex and is well suited for smaller projects and digitisation projects.
Within the framework of this programme we have, for example, sought advice on digitisation in marketing. This programme also falls under the de minimis rule.
Sources and further information:
RKW Hesse