The support through this instrument shall be granted to projects with a clear commercialization objective, which are in the phase of prototype (or appropriate phase depending on the type of innovation product, service, process) up to close-to-market phase.

The instrument is open to micro, small and medium enterprises that wish to develop an innovative product, service or process either on their own or in collaboration with another enterprise or higher educational or scientific-research institution.

Project-proposals from individual applicants (micro, small and medium enterprises) and consortia led by micro, small and medium enterprises are eligible for funding through this instrument.

For additional information, please refer to the Instrument Rulebook.

Goals

The aim of this instrument is to incentivize R&D (research and development) increase in the private sector, to encourage cooperation within the private sector and between the private sector and the higher educational and scientific institutions, as well as other forms of collaboration for commercialization of innovations.

Duration

The duration of the projects funded through this instrument can be up to 24 months. Under justified circumstances, projects may be extended for additional 12 months, with prior approval by the Fund.

Evaluation criteria

The main criteria for evaluation of projects and allocation of funds under this instrument are:

  • Level of innovativeness
  • Project quality
  • Capacity of the project team
  • Market potential
  • Impact

Conditions for financing

The financing under this instrument can be in a form of a co-financed grant or in a form of a conditional loan, depending on the amount of revenues of the applicant. The following conditions shall apply:

  • Financing for enterprises with annual revenues up to 500,000.00 (five hundred thousand) EUR in the last two years is awarded as a co-financed grant,
  • Financing for enterprises with annual revenues over 500,000.00 (five hundred thousand) euro in the previous 2 years, is awarded as a conditional loan.

Financing awarded in the form of a conditional loan after the end of project may be converted into a co financed grant if the applicant fulfills the conditions set by the Fund.
For more detailed information about the conditions for conversion, please refer to the Instrument Rulebook.
The maximum amount which can be awarded in the form of a loan may not exceed 30% of the total capital of the applicant. The conditional loan is repaid at quaterly intervals with a fixed interest rate of 2% (two percent) on annual basis under conditions determined in the Agreement.

Royalty payments

After successful commercialization, the revenue generated from the sale of the product/service or any subsequent product/service based on the technology developed within the project financed by the Fund, will become the basis for royalty payments to the Fund. Each royalty payments shall be made at the rate of 5% (five percent) of the annual revenue generated from sales of the product / service resulting from the project, up to 120% (hundred-twenty percent) of the financing received from the Fund or for a period of up to 5 (five) years after project completion, whichever condition is achieved first.

For additional information, please refer to the Instrument Rulebook.

The instrument shall provide financing of up to 70% of the total budget of the project and the maximum amount is 100,000 (one hundred thousand) euro..

The remaining 30% of the total project budget should be provided by the applicant.

„Innovation“ is an application of a new or a significantly improved product, technology, process or service, including significant improvements of technical characteristics, components and materials, built-in software, user orientation or other functional characteristics, or marketing methods or new organizational methods in operations, organization of work relations or relationships between a legal entity and environment

„Product innovation“ is the application of a new or significantly improved product, but which is not a change of aesthetic nature or only sales of innovated products, manufactured or developed by another natural person or legal entity.

„Process innovation“ is application of a new or significantly improved method of production, delivery, storage and transportation, including significant changes in the technique, equipment or software, but not solely organizational and managerial changes.

„Technology innovation“ is application of new or significantly improved technology.

„Organizational innovation“ is application of new or significant changes in management structure or methods, for the purpose of improving the application of knowledge, quality of products or services, or increasing the efficiency of business processes in the relevant legal entity or entry into new markets.

„Marketing innovation“ is application of new marketing methods, including significant changes in the product design, packaging, distribution and promotion of such product and charge thereof.

„Service innovation“ is application of a new or significantly improved service.