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Realignment thanks to funding

How does the Bavarian Transformation Fund support your company in its transformation?

17.04.2026

The economic environment for companies is currently changing rapidly. Digitalization, decarbonization, geopolitical uncertainties, a shortage of skilled workers and increased international competition are forcing many companies to question their existing business models, systematically scale back activities that are not fit for the future and reposition themselves strategically. This transformation is a major challenge for many companies - but at the same time it offers the opportunity to become competitive and future-proof in the long term.
For many companies, this involves a fundamental realignment that includes both the development of new skills and the conscious departure from outdated technologies, processes or business areas. This also creates space for the development of new, sustainable products, the digitalization of production processes and the establishment of completely new business areas. These transformation projects are very cost-intensive, involve risks and are not always easy to manage in day-to-day business. This is precisely where state funding instruments come in.

Ein Mann und eine Frau betrachten eine in einem Hologramm dargestellte Maschine
iStock/gorodenkoff,

The Bavarian Transformation Fund: 350 million euros for change

The Bavarian state government launched the Bavarian Transformation Fund in June 2025 to provide targeted support to the state's economy during these upheavals. The aim of the fund is to help companies secure their competitiveness and maintain sustainable growth and employment in the long term.
The fund is open to companies across Bavaria and provides a total of around 350 million euros. The focus is on investments by companies in research and innovative technologies as well as the development of new business areas.

Three modules for different transformation needs

The Bavarian Transformation Fund has a modular structure and covers different types of change processes:

  1. Technology and R&D funding
    The focus is on research and development projects for technologically new or significantly improved products, production processes or knowledge-based services. The project must be characterized by a high degree of innovation and be carried out by the applicant themselves.
  2. Process and organizational innovations
    Transformation means not only new products, but also new structures. It also involves exnovation and the targeted replacement of inefficient or no longer competitive processes in order to create space for something new. Funding is therefore provided for projects to optimize production and business processes. This includes, for example, the introduction of new organizational methods in the company or the use of new or significantly improved processes in production or services, including significant changes to technology, equipment or software.
  3. Circular economy and recycling
    The third module focuses on investments in the circular economy, in particular plants for the chemical or biochemical recycling of plastics. Funding is provided for investments in plants for the chemical or biochemical recycling of plastic waste and other innovative recycling plants that contribute to closing carbon cycles. The material recycling of plastic waste is essential here.

As a rule, companies with up to 400 employees are eligible for funding for R&D projects. Larger companies can apply for funding if the project is of exceptional strategic importance for Bavaria as a research and technology location. In the context of process and organizational innovation, large companies are only funded if they cooperate effectively with SMEs.

Bayern Innovativ: project sponsor and transformation facilitator

Bayern Innovativ GmbH provides support in structuring transformation projects appropriately, identifying funding opportunities and reliably meeting the requirements of state aid law. This support relieves the organizational burden on companies, especially in complex innovation and change projects.
The realignment of companies is not a short-term project, but a strategic process. Those who overhaul their processes at an early stage, invest, drive innovation and break new ground can secure decisive competitive advantages for their company. The Bavarian Transformation Fund offers an effective financial and structural lever for this - so that transformation can be used as an opportunity for economic success and a strong industrial location in Bavaria.

Further information:

Please visit the homepage of the Bavarian Transformation Fund.

Contact: Förderlotse Bayern

Service number: 0800-0268724 (Mon. - Thurs.: 9:30 a.m. - 3:00 p.m., Fri.: 9:30 a.m. - 1:00 p.m.)
foerderlotse(at)bayern-innovativ.de