Funding conditions

The Development funding line supports projects for the experimental development of technologically new or significantly improved products, production processes and knowledge-based services. The project must have a high degree of innovation, be carried out by the funding recipient itself and be economically promising.

• In particular,new products or production processes are funded either from the idea to the first functional pre-prototype (phase I) or from the pre-prototype to the first prototype (phase II).
• Technical feasibility studies can be funded for up to a maximum of one year in justified exceptional cases.
• If it can also be assumed that the project is of exceptional strategic importance for Bavaria as a business location, funding can be applied for as a location-relevant technology project. The strategic importance is assessed in particular on the basis of the expected economic and technological effects of the planned utilization concept.

The grant is provided as partial funding. The following costs that arise directly from the research and development activities can be funded

• R&D personnel costs
• Costs for instruments and equipment
• Expenses for contract research, technical knowledge and patents acquired directly or under license from third parties as well as costs for consulting and equivalent services
• Other operating expenses (materials, consumables, etc.)
• Only small and medium-sized enterprises: Costs for obtaining, validating and defending patents and other intangible assets

New products, production processes and technical feasibility studies:

• Technology-oriented companies in the commercial sector
• with a Bavarian technology location and
• less than 400 employees

Location-relevant technology projects:

• Technology-oriented companies in the commercial sector with a Bavarian technology location

Funding is provided as a non-repayable grant as part of project funding. A share of the project funding is granted, limited to a maximum amount. The funding rate depends on the technical and economic risk of the project, as well as the technological importance and size of the company. As a rule, this is between 25% and 50%. Further details can be found in the program guidelines.

The funding is to be drawn down in installments over the course of the project in accordance with the eligible costs incurred.

In addition to regular technical interim reports, receipts for the eligible costs incurred must be submitted. The grant will be paid out by the Bavarian State Ministry of Economic Affairs, Regional Development and Energy following a technical and financial review. A retention of 20% of the total funding amount will only be paid out on completion of the project.

• The project must not have been started yet.
• The project must be characterized by a considerable technical and economic risk of success as well as a high degree of innovation.
• The project must be carried out and utilized to a significant extent in the Free State of Bavaria.
• The use of sufficient own or external funds to finance the project must be demonstrated.
• The project must not be funded under other state, federal or EU programs.
• The project must pursue the development of a technologically new product or process. It must be classified as experimental development and have a high degree of innovation.