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KMU-innovativ · Case study

KMU-innovativ Funding for Production Research

How an SME secured KMU-innovativ funding for cutting-edge production-technology research on a new manufacturing method with an open technical outcome.

€600k
grant secured
up to ~80% (SME)
funding rate
Grant
Non-repayable grant
At a glance

The case in figures

ProgrammeKMU-innovativSingle or collaborative project
Grant secured€600kNon-repayable grant
Funding rateup to ~80% (SME)
SectorProduction technology
ConditionOutline, then full application
FormNon-repayable grant
The project

The starting point

A manufacturer wants to develop a new production method that would let it make a product in a way no established process can. Whether the method can reach the required precision, speed or quality is an open question, with several ways it could fail. The research needs specialised personnel and equipment over a multi-year horizon, beyond what the company could fund from its own resources.

What KMU-innovativ funds

How the programme works

KMU-innovativ, the high-risk R&D programme of the Federal Ministry of Education and Research for SMEs, includes production research among its defined technology fields. It funds ambitious research on new manufacturing methods and technologies, where the outcome is uncertain and the project could fail, rather than incremental improvement of existing processes. It offers a fast-track route, a pre-proposal at fixed dates twice a year, then a full application on a positive assessment, and the grant covers a share of the eligible costs.

The eligible costs of a research-intensive production project are dominated by the research and development personnel, with project-related equipment and material for the experimental work, and can run into the high six figures for larger projects.

How it worked

From scope to grant

The project belongs to the production-research field that KMU-innovativ targets, and its high technical risk on a new method is the point. The company submits a pre-proposal, and on a positive assessment files the full application. The eligible costs are mostly the research and development staff, with project-related equipment and material for the experimental work. With a grant covering a substantial share of these costs, the funding comes to about EUR 600,000 over the project.

KMU-innovativ uses a two-step, fast-track process. A short pre-proposal is submitted at one of the fixed dates, usually twice a year, and is assessed on the ambition and the technical risk of the project. Only on a positive assessment does the company prepare the full application, which keeps the early effort proportionate to the chance of success. The grant rate for a company is typically around half of the eligible costs, which makes a multi-year frontier project genuinely affordable to attempt, and the novelty is judged at the level of the field, not just the single company.

The result

A €600k KMU-innovativ grant.

The grant carries a large part of a high-risk, multi-year research project that could not have been financed from the company's own resources. It buys the company the time and the specialised capacity to test whether the new production method holds up, and if it does, it gains a genuinely new manufacturing capability.

Single or collaborative project · up to ~80% (SME)
Single or collaborative projectProduction technology.
Funded at up to ~80% (SME)Of eligible costs.
Non-repayable grantKept in full, never paid back.
Key takeaways

What this means for you

For a manufacturer doing genuinely risky research on a new production method, KMU-innovativ provides substantial grant funding precisely where the outcome is uncertain. The fast-track pre-proposal keeps the early effort proportionate to the chance of success, and the field is explicitly part of the programme.

FAQ

KMU-innovativ, in short

The questions we hear most. Short answer first, detail after.

Yes. Production research is one of the defined technology fields of KMU-innovativ, for high-risk research on new manufacturing methods and technologies with a genuinely open outcome.

The grant covers a share of the eligible costs, which for a research-intensive production project are dominated by personnel and equipment, and can run into the high six figures for larger projects.

KMU-innovativ offers a fast-track route: a pre-proposal at fixed dates twice a year, then a full application on a positive assessment, which keeps early effort proportionate.

Incremental process improvement or routine optimisation does not qualify. The project has to carry genuine technical risk on a new method or technology.

Free eligibility check

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  • Whether KMU-innovativ is the right fit
  • A first read on the funding amount
  • What to prepare before you apply