Innovation Voucher Bavaria: Requirements

The Bavarian State Ministry supports the cooperation of small companies/craft enterprises based in Bavaria and external research and development institutions by awarding innovation vouchers.

Innovation vouchers are offered in two variants:

• The innovation voucher standard supports the planning, development and implementation of new products, production processes or services or the substantial improvement of existing products, production processes and services in the field of technical or technological innovations. The eligible expenses amount to a minimum of € 4,000 and a maximum of € 30,000.
• The Innovation Voucher Special opens up the possibility of carrying out projects with increased financial requirements that need highly specialized support (university, research institution). The eligible expenses amount to at least € 30,000 and a maximum of € 80,000.

The aim is to introduce small businesses and craft enterprises to the cooperation with research institutions and other companies / innovation partners and thus strengthen their innovative capacity. Innovative companies have clear advantages in terms of growth, stability and number of jobs. As a result, they are not only more economically efficient, but also take a stronger approach to the challenges of the future.

Who is supported?

Small enterprises/handicraft enterprises of the commercial economy or the liberal professions

• with a permanent establishment or branch office in Bavaria.
• with less than 50 employees (full-time equivalents) and a maximum of 10 Mio. € annual sales or annual balance sheet total (including all affiliated companies).
• that are not in difficulty.

Existenzgründerinnen und -gründer,

• who will start a business with a permanent establishment or branch in Bavaria.
• whose business start-up has formally taken place at the latest by the time the grant is settled.

What is funded?

The Innovation Voucher Standard supports the planning, development and implementation of new products, production processes or services or the significant improvement of existing products, production processes and services in the field of technical or. technological innovations. 

Only services provided by external research and development institutions (R&D service providers)are supported:

• Activities in the run-up to the development of an innovative product/service or process innovation such as.:
  • Technical feasibility studies
  • Material and design studies
  • Studies and concept on manufacturing technology
• Implementation-oriented development and research activities such as.:
  • Construction services
  • Prototype construction and technical design
  • Product testing for quality assurance  
• From 01.01.2023 the development of software will also be funded such as:
  • Solutions related to Industrie 4.0
  • Networked systems and processes
  • Smart Services
  • Automation solutions
  • Big Data projects
  • Simulation models
  • Virtual and Augmented Reality
  • Embedded Systems
  • AI Solutions
  • Cyber Security

Not funded are projects,

• that have already been started or
• are funded under other federal, state or EU programs. 

What expenses are not eligible?

• Sales tax (as far as the applying company is entitled to deduct input tax)
• classical management consulting (e.g. Strategy consulting, organizational consulting, business consulting, market analysis) and entrepreneur coaching
• Outsourcing of R&D activities, which are usually performed in-house
• Sending research personnel into the company
• purchase of machines, equipment, hardware and software
• student and scientific work that is the subject of examination performance as well as student projects within the framework of an education or training unit (seminar, course, etc.).)
• internal expenses, e.g. internal personnel, material, travel expenses
• fees and consulting fees in the context of securing intellectual property rights
• expenses for ongoing sales and advertising
• non-technology service offerings
• introduction of quality management systems

Which research and development institutions can be commissioned?

• Public institutes and societies of basic and applied research:
  • Higher education institutions such as universities and universities of applied sciences
  • Non-university research institutions such as. the Helmholtz Association, the Fraunhofer Society, the Leibniz Association or the Max Planck Society
• Private sector institutions and companies that offer comparable development services with regard to the project.
• National as well as international providers may be used.
• Not recognized
  • Institutes and companies with a clear focus on business consulting (more than 50% of business turnover)
  • F&E services performed by company employees or by a directly or indirectly affiliated company, as well as F&E services performed by family members

Please note that the commissioning of the F&E service provider may only take place after receipt of the grant notification and must be in writing .

How is funded?

Fundable (eligible) services of external research and development institutions are subsidized proportionally. Two variants of the innovation voucher are issued for this purpose:

Innovation Voucher Standard 

• Eligible expenses must be at least € 4,000 and can be max. 30.000 € amount
• Procedure: one-step (direct application)
• The basic funding rate is 40%
• If the following conditions are met, the funding rate is increased by 10% up to a maximum of 60%:
  • (Main) location of the applicant company in a "region with special need for action (RmbH)"
  • Commissioning of a university or comparable research institution (e.g., university, university of applied research, federal-state-funded non-university research institution) as an R&E service provider. At least 51% of the bid amount must be allocated to these R & amp;D service providers.
  • Smallest enterprises with less than 10 employees and less than € 2 million annual sales or annual balance sheet total 

Innovation Voucher Special 

• Eligible expenses must be at least € 30,000 and can be max. 80.000 € amount
• Procedure: two-step (outline and application)
• The fixed funding rate is 50%
• Additional requirements:
  • Commissioning of a university or comparable research institution (e.g., university, university of applied research, federal-state-funded non-university research institution) as an R&E service provider. The services of other R&E service providers are generally not eligible for funding.
  • The anticipated creation of new jobs in Bavaria in the context of economic exploitation
  • The positive vote of an independent expert (commissioned by the Project Management Agency Bavaria)

Determination of the grant: From the submitted R & amp;E offers, the eligible expenses are determined, which can be subsidized with a funding rate of 40-60%. In principle, only expenses can be funded that fall under Art. 28 para. 2 lit. c AGVO (innovation consulting services and innovation support services). The subsidies are paid in arrears to the applicant's account, i.e. the applying company makes an advance payment. Settlement takes place after completion of the project as part of a proof of use.

How often does one receive funding?

• A maximum of three innovation vouchers can be granted to each applicant within 24 months. The calculation period refers to the time of application.
• Companies that join forces for a larger project can cumulate their innovation vouchers. A maximum of 4 innovation vouchers can be cumulated. In this case, all participating companies must be directly involved in the innovation process and strive for the exploitation of the product innovation. 

Which documents must be submitted for the application?

The following documents must also be uploaded as a PDF document in the online application system. Alternatively, the documents can be submitted by e-mail or mail:

1.   Proof entrepreneurship:

• Company is registered in the commercial register, eg GmbH, UG, GmbH & Co KG, AG, etc..:
  • Copy of the extract from the commercial register (the extract may be max. 6 months old)
  • Current list of shareholders, from which the interests in the company incl. the percentage shares can be seen.
• No entry in the commercial register, eg GbR, commercial sole proprietorship, etc..:
  • Copy of the current business registration (of each partner)
• No entry in the commercial register, e.g.. freelance sole proprietorship:
  • Certificate of freelance activity from the tax office

2.  Proof, if no input tax deduction entitlement exists:

• Confirmation of the tax office or tax advisor

3.  Quotation/s R&E service provider:

The quotations must be valid and meet the following requirements or. Components contain:

• Exhibited on the letterhead of the F&E service provider with all sender details
• Addressed to the applicant with correct company name and address
• Quotation number
• Stating a minimum validity of 3 months
• Prices shall be quoted per work package and in Euro
• Flat rates or optional prices cannot be considered
• Indication of payment terms
• German language
• Terms and Conditions (if these are part of the offer)
• The rights to the product/process/service must lie exclusively with the applicant. Agreements deviating from this can have a detrimental effect on funding.
• Company website (alternatively: informative/company portrait/references)

If the online application is without ELSTER certificate, the following document is to be sent in original/by mail to the Project Management Agency Bavaria:

4.  Application/outline form

After submitting your application/outline electronically, you will receive a confirmation of receipt by e-mail. This e-mail contains as an attachment the PDF document "Application Innovation Voucher Bavaria" or "Sketch Innovation Voucher Bavaria" with your file number. Please print out the attachment, sign it and send the original document within eight weeks by mail to Projektträger Bayern. If you apply online with an ELSTER certificate, this point is omitted.