KMU-innovativ: high-risk R&D for SMEs.

1. What is KMU-innovativ?

The positioning of the programme and the kind of project it is built for.

KMU-innovativ is the central federal programme for research-intensive SMEs with high-tech projects. It targets ambitious work with real scientific and technical substance: the project must have a high scientific-technical risk and go beyond the state of the art. It is the right fit when your project goes deeper than ordinary development. Because it is a competitive procedure, the quality and clarity of the project outline are decisive.

2. The technology fields

The thematic lines, since you apply within one field, not to the programme as a whole.

Funding is organised into technology fields, each with its own announcement and project agency. The fields include, among others, biomedicine and medical technology, materials research, electronics and autonomous driving and high-performance computing, communication systems and IT security, energy efficiency and climate protection and climate adaptation, interactive technologies for health and quality of life, photonics and quantum technologies, production research, and resource efficiency. The exact set of active fields and their cut-off dates change over time, so confirm the current announcement for your field before applying. As an example of this movement, the communication systems and IT security line stopped accepting new outlines from the April 2026 cut-off.

3. Who can apply

The size limits and the consortium partners that can join.

The core target group is SMEs in Germany with fewer than 250 employees and up to EUR 50 million turnover or EUR 43 million balance-sheet total. Some lines extend eligibility to mid-sized companies with up to 1,000 employees and up to EUR 100 million turnover. Projects can be run as single-company projects or as consortia together with universities, research institutions, and regional public bodies. Applicants need a business site or establishment in Germany by the time of payment.

4. What is funded and how much

The eligible cost types and the rate logic, including the required own contribution.

Eligible costs include personnel costs of the research staff, depreciation on instruments and equipment, contract research, consulting and licences needed for the project, and overheads, operating costs, and travel. Following the ministry's principles, an appropriate own contribution of generally at least 50 percent of the eligible costs is expected. The funding rate for companies of the commercial economy is therefore typically up to about 50 percent, reduced by an SME bonus that lowers the own share; universities and non-university research institutions in a consortium can receive up to 100 percent of their project-related costs. Project volumes are often in the six-figure range and can reach into the millions.

5. The two-stage process and deadlines

How selection works and the strict timing rule.

The procedure has two stages. First you submit a project outline (Skizze) to the project agency for your technology field, at one of the two annual cut-off dates: 15 April and 15 October. All outlines submitted by a cut-off are assessed together in competition, so quality matters. After a positive assessment, usually a few weeks to a few months later, you are invited to submit a formal application via easy-Online, on which a decision typically follows within about two months. The application must be filed before the project starts and, where relevant, before the cooperation contract is concluded.

6. How it compares

When to choose KMU-innovativ over the alternatives.

KMU-innovativ is the most demanding of the SME R&D instruments: it rewards genuine research depth but is competitive and slower than a tax incentive. If your project does not meet its high bar, the Forschungszulage (a legal entitlement, no competition, retroactive) or ZIM (technology-open, rolling applications) are the natural alternatives. KMU-innovativ can be combined with the Forschungszulage, subject to the rule that the same costs are not funded twice.

7. The timeline, end to end

From outline to approval typically runs around nine to twelve months, fast for a federal research programme.

• Confirm fit and field (1 to 4 weeks), check it is research not near-market, assignable to an open field, and agree the field with the Projektträger.
• Prepare the outline (2 to 6 weeks), write the Projektskizze (max 10 pages): objectives, state of the art, methodology, work packages, partners, and the exploitation and financing plan.
• Submit the outline by a cut-off, upload via the field's sketch tool by 15 April or 15 October.
• Competitive evaluation and selection (about two to three months), outlines are assessed against one another and the best are invited on.
• Formal application (a few weeks), submit the förmlicher Förderantrag before starting and before any cooperation agreement.
• Funding decision (about three months), then on approval carry out the research over up to two years.

The cut-offs give planning certainty, and a late outline simply rolls to the next one. The field directives currently run to 30 June 2027 (extendable to no later than 31 December 2030).

8. What to prepare

Two stages, two document sets. The outline is the competitive document; the formal application is the binding follow-on.

Stage 1, the project outline (Projektskizze, max 10 pages, in German): objectives and the link to the technology field; the state of the art; the research approach, methodology and work packages; the partners and their competences (and, for a Verbundprojekt, the consortium and value-chain coverage); the exploitation and commercialisation plan; and the financing plan and timetable, with a bibliography and any letters of intent as annexes. The project leader's signature is sufficient here.

Stage 2, the formal application (förmlicher Förderantrag, via easy-Online): the full application with the detailed cost and work plan; evidence of SME status (counting interconnections), a German establishment and field competence; evidence on equity and creditworthiness (with simplified rules where annual own contributions stay under €100,000); and, for a Verbundprojekt, the partners' applications and consortium arrangements. It needs a legally binding signature and must be submitted before project start and before any cooperation agreement.

9. Industry examples

KMU-innovativ is organised by technology field, so the eligible range follows the fields rather than a single sector. These are illustrative project shapes, not named beneficiaries.

• A software or AI SME researching a novel method in the Information and Communication Technologies field.
• A biotech or medical SME on a pre-competitive project in Biomedicine or Medical Technology.
• A cleantech SME developing a resource- or energy-efficiency technology in the Climate, Environment or Energy field.
• A materials or production SME on a Materials Research or Production Research project.
• An electronics or autonomous-systems SME in the Electronics and Autonomous Driving field.
• A civil-security SME researching a safety or resilience technology in the Research for Civil Security field.

The common thread is risk-rich, pre-competitive research that fits one of the open technology fields. A high-TRL, low-research project does not fit, and points instead to ZIM or the Forschungszulage.

10. Common mistakes and FAQ

The errors that most often cost an applicant, and quick answers.

• Starting the project, or signing the cooperation agreement, before the formal application is in, which breaks the required incentive effect.
• Pitching near-market development: KMU-innovativ funds risk-rich, pre-competitive research, not product roll-out.
• Missing the technology-field fit, or applying to a field whose calls have closed (the open-field list changes).
• Underestimating that the outline stage is competitive, not a formality.

Who runs it? The Federal Ministry of Research, Technology and Space (BMFTR), the successor to the BMBF, through the field's Projektträger (PtJ, DLR PT or VDI TZ).

Is it a grant or a loan? A non-repayable grant.

Can it be combined with the Forschungszulage? Often yes, provided the same costs are not funded twice.

How long does a project run? Normally up to three years, though this varies by field.

See the full program page: KMU-innovativ