Manufacturing funding, handled.
Materials, mechanics, automation and production methods carry real R&D. We secure tax credits, grants and regional investment funding across the board.
The Mittelstand’s most under-claimed funding
Engineering and manufacturing firms run more R&D than they realise, new materials, mechanisms, automation and production processes all qualify. We surface it and document it to the standard assessors expect.
Why R&D funding fits manufacturing
Four reasons manufacturing companies are well positioned for German R&D funding.
Consistent R&D output
Engineering teams generate fundable development work continuously, from materials to mechanics to process, which makes the Research Allowance a recurring source rather than a one-off.
Process and product both count
The Research Allowance funds process R&D as well as product R&D, so a better production method qualifies just as a new product does.
Equipment is in scope
Depreciation on test benches and R&D equipment can be included since 2024, which suits the hardware-heavy nature of engineering work.
Built for the Mittelstand
The SME rate of up to 35%, ZIM, and collaborative research with institutes are all designed for exactly the manufacturing companies that form the German Mittelstand.
What manufacturing activities qualify
Four categories of engineering R&D that consistently qualify.
Materials & components
- New materials, composites and coatings
- Material substitution and optimisation studies under uncertainty
- Durability, fatigue and performance testing requiring experimentation
Mechanics & design
- New mechanisms, structures and machine elements
- Engineering work to resolve a problem with no standard solution
- Simulation and modelling built from first principles to test feasibility
Automation & process
- Automated systems and production processes
- Process redesign and optimisation where the outcome is uncertain
- Control and monitoring systems developed under genuine technical risk
Testing, simulation & validation
- New test methods, rigs and validation procedures
- Digital-twin and simulation models built to predict real behaviour
- Scale-up of a process or product from prototype to reproducible output
The line that decides a claim
It comes down to technical uncertainty. A quick orientation for manufacturing.
Usually qualifies
- New materials, processes or automation tested under uncertainty
- Production methods developed where no standard solution exists
- Tooling or process models validated against trial data
Usually does not
- Routine production, line tuning and ramp-up
- Standard machine installation and maintenance
- Certification and documentation on its own
How much manufacturing companies typically receive
Indicative ranges based on R&D team size and intensity. Actual figures depend on eligible costs and the funder's decision.
Mostly the Research Allowance on a core engineering team.
The Research Allowance stacked with ZIM across a multi-project R&D portfolio.
Toward the Research Allowance ceiling, plus stacked ZIM and EU funding.
* Indicative figures. The actual amount depends on company size, eligible costs and the programs you qualify for.
The kind of Engineering & Manufacturing work that qualifies
If it carries genuine technical risk and novelty, it usually counts. A few examples:
Materials selection, fatigue testing and new component development.
New mechanisms, subsystems and engineering methods.
Vision-guided robotics and new production processes.
Regional investment funding under GRW for new capacity.
Best-fit funding for Engineering & Manufacturing
We usually combine two or three of these for the largest total.
Research Allowance
25–35% of R&D costs back as cash, retroactive to 2022.
Explore program →GrantZIM
up to €550k for SME innovation projects.
Explore program →GrantGRW
up to ~45% for investment in assisted regions.
Explore program →GrantKMU-innovativ
up to 60% for high-risk SME R&D.
Explore program →Manufacturing funding, answered
Both. The Research Allowance funds the development of a new or substantially improved process under technical uncertainty, not only product development.
Depreciation on equipment used exclusively and directly in an R&D project can be included in the eligible base since 2024. We assess which of your equipment qualifies.
SMEs can apply for the higher rate of up to 35% on eligible R&D costs, compared with the standard 25%. We confirm your SME status as part of the eligibility check.
Yes. Contract research is eligible at 70% of the cost, so joint projects with research institutes add to your eligible base.
The Research Allowance is an annual incentive. Engineering teams with continuous R&D can claim year after year, and past financial years may still be open within the statutory window.
Ask us anything
Tell us about your project and we'll assess your case by hand. No prep, no obligation. Prefer to talk?