Subsidies - m2m Germany

Funding for digitization and innovative R&D projects

Since we have been looking into various funding programs for quite some time now against the backdrop of funding our own internal development and digitization measures, and have already used some ourselves, it was obvious to check the extent to which our customers can also apply for funding for services we provide.

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

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

Depending on the project, one or even several funding programs may come into question, and a closer look in advance can be absolutely worthwhile financially. In some cases, funding programs can also be combined, e.g., consulting funding with subsequent implementation, which in turn can be funded through another program. Either way, it is worth considering funding programs if R&D and/or digitization measures are being considered anyway. Predominantly, the funding programs are of interest exclusively to SMEs, but companies of any size can also benefit from funding via the new research allowance.

Within the framework of a cooperation with us, we will be happy to support you in the examination and 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 digitization measures or your new, innovative product is thus achieved after a very short time thanks to government funding.

Subsidies - The agony of choice

There are countless funding opportunities and support programs. We cannot and do not want to list them all. The programs 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 pools. In addition, some programs already count toward other subsidies - it quickly becomes clear that "funding" is not an easy undertaking.

Here is a short overview and if you like, you can download our white paper on funding.

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 SMEs for company research and development activities to develop innovative products, processes or technical services. As a rule, these are projects that extend over one to several years. In addition to individual projects, it is also possible to carry out cooperative projects together with other companies and/or research institutions. Cooperation projects have somewhat 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 labor.
In our experience, ZIM projects are suitable for complex new product developments. What is important here is the innovative character of the development. Otherwise, the application will most likely be rejected.
The application as well as the implementation and documentation of the ZIM projects is quite complex and is usually accompanied by specialized consultants who are remunerated proportionally from the funding amount. Of course, the remaining funding amount is reduced by this fee.
It is also important to note that the project may not begin until the grant application has been approved.
Sources and further information:
ZIM Promotion
The research allowance - flexible funding for in-house and external 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 fact that the research allowance can be applied for 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 program is obviously the relatively low funding rate, which is why we really only see it as a supplement in the funding toolbox. If other programs were suitable for a development project, we would give them preference.
Especially for companies outside the SME specification, however, 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.
Investments in data-driven business models, artificial intelligence (AI), cloud applications, big data, and sensor technology, among others, are explicitly mentioned as eligible.
"Digital Now" falls under the "de minimis" rule[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 funding for small digitization measures in Hesse
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.
Here, too, 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 the integration of sensor technology and networking of production systems is also possible under this program.
Even though the "Digi Zuschuss" is a Hessian program, just check in your federal state. To the best of our knowledge, there are many very similar programs such as
z. The "Digitalbonus" program in Bavaria, for example.
The "Digi Zuschuss" also falls under the "de minimis" regulation.
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 companies for the different modules can be searched for online via an interactive consultant map. This program also falls under the "de minimis" regulation.

Sources and further information:
Go Digital
"Digitalization consulting" by RKW Hessen
The "Digitization Consulting" is quite similar to the "Go Digital" program at the federal level. Thus, only consulting services in connection with digitization projects are funded; the actual implementation and acquisition of hardware or software is not eligible for funding under this program. The application and project documentation are also carried out by certified consultants. If you have not yet found the consultant of your choice, you can easily contact RKW, which can put you in touch with competent consultants. In this respect, the program is not very complex and is well suited for smaller projects and digitization projects.
For example, we received advice on digitization in marketing as part of this program. This program also falls under the "de minimis" regulation.
Sources and further information:
RKW Hesse