BDO Consulting / Petra Lahofer
Financing and Funding for R&D&I in Austria
FUNDING AND RESEARCH PREMIUM
22.11.2018
LOGIC OF R&D&I FUNDING
IN AUSTRIA
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Basic Requirements
WHAT IT REQUIRES TO RECEIVE FUNDING FOR R&D & INVESTMENTS
Company location in Austria (already established or at least in formation)
Major part of the R&D costs must arise at the Austrian location
Strong focus on building up R&D competences (employees, know-how, infrastructure) in Austria
R&D activities must contain:
▪ technical risk and uncertainty about the outcome
▪ developments at or above state-of-the-art (new to the market, innovative)
▪ high market potential and potential for locational advantage (regional and national)
Company must be able to prove financial capability to cover the not-funded part
Further the funding agencies acknowledge:
▪ cooperation with local universities and research institutions
▪ potential for patents and licences
▪ investments in infrastructure and location
All of the above must be depicted in high quality application documents!
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Thematic distinction – reginal and national
R&D&I FUNDING AGENCIES IN AUSTRIA
National level
Austria Wirtschaftsservice (aws)
ÖsterreichischeForschungsförderungsgesellschaft (FFG)
Kommunalkredit Public Consulting (KPC)
Wissenschaftsfonds (FWF)
Klima- und Energiefonds (KLIEN)
Regional funding offers on state level
managed by
State departments or
Regional funding agencies (SFG, KWF,..)
Various funding offers for
employees
Funding and financing for
exports
Finance support for the
Austrian hotel- and tourism
industry
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The larger the company, the lower the grants (except: EU H2020 programmes, eg. SME, RIAs, Ias)
THE HIGHER YOUR R&D RISK, THE HIGHER YOUR FUNDING (GRANT)
National rule: the closer to the market (TRL 7-9), the less grants are available
These programmes fall under the so called „De-minimis“ regulation (e.g. AT:net, WKO go international)
Risk
€
FFG Basisprogramm (General Programme)
(LE 19- 25% grant, Startups up to 70% (financing)
H2020 RIAs
(100%)
SME Programme
(70%)
FFG Thematic programms
(LE 35-55%, SE 60-80%)
FFG AT:net
(25-35%)
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Company and technology life cycle
THE PRONOUNCED FUNDING LANDSCAPE OFFERS SUPPORT IN ALL PHASES…
Foundation Phase Expansion-/Growth Phase
■ Business idea
■ Business model development
■ Team finding
■ Conception
■ Company foundation
■ Product development
■ Market research
■ Prototyping
■ Expansion strategy
■ Product development
■ National market penetration
■ Proof of concept, first revenues
■ Sustainable growth
■ Diversification
■ Expansion into foreign
markets
aws PreSeed aws Seedfinancing
Zeit
aws Double Equity
AWS Impulse XL
FFG AT:net
FFG thematic programmes
H2020 FET
H2020 SME Instrument, P2 / FTI
H2020 IAs
FFG BasisprogrammeFFG Bridge
AWS Impulse XS
AWS IP Market
H2020 RIAs
H2020 ERC
AWS guarantees and ERP loans
FFG Feasibility WKO go intern.
PreSeed-Phase Seed-Phase Expansion Phase Growth Phase
Nati
onal
Pro
gra
mm
es
EU
Pro
g.
TRL 1-6 (7): Basic research up to tested prototypes TRL 7-9: Finalising and market introduction
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Company and technology life cycle
IN ADDITION, FOR ALL R&D EXPENSES…
Foundation Phase Expansion-/Growth Phase
■ Business idea
■ Business model development
■ Team finding
■ Conception
■ Company foundation
■ Product development
■ Market research
■ Prototyping
■ Expansion strategy
■ Product development
■ National market penetration
■ Proof of concept, first revenues
■ Sustainable growth
■ Diversification
■ Expansion into foreign
markets
aws PreSeed aws Seedfinancing
Zeit
aws Double Equity
AWS Impulse XL
FFG AT:net
FFG thematic programmes
H2020 FET
H2020 SME Instrument, P2 / FTI
H2020 IAs
FFG BasisprogrammeFFG Bridge
AWS Impulse XS
AWS IP Market
H2020 RIAs
H2020 ERC
AWS guarantees and ERP loans
FFG Feasibility WKO go intern.
PreSeed-Phase Seed-Phase Expansion Phase Growth Phase
Nati
onal
Pro
gra
mm
es
EU
Pro
g.
TRL 1-6 (7): Basic research up to tested prototypes TRL 7-9: Finalising and market introduction14%* Research Premium *from financial year 2018 on (before that 12%)
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IN ADDITION, FOR ALL R&D EXPENSES…
14%* Research Premium (tax incentive) *from financial year 2018 on (before that 12%)
The research premium will be granted for…
… for in-house research and experimental development
within a domestic company or domestic business premises and
…. contract research
The research premium is….
… a credit on your tax account of 14%
(for in-house R&D “uncapped”, for contract research is the tax bases capped with EUR 1 Mio.)
… regardless of your taxable profit
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Key Facts
FFG BASISPROGRAMM (GENERAL PROGRAMME)
Funding of: company (all sizes) R&D projects – open for all topics, continuous submission possible
Funding criteria:
▪ R&D project with high innovation potential, technological risk and market potential
▪ min. 50% of costs must be internal R&D staff costs
▪ Company must proof the capability to cover all costs not funded
Typ of financing: mix of grant and low-interest loan – max EUR 3m
Financing quota: total grant + loan max 50% (up to 70% for start-ups)
▪ Grant: max. 19% LEs; max. 25 % MEs; max. 28 % SE – difference between total financing and grant will be granted as low-interest loan
▪ Additional bonus: max. 15% for cooperation projects
Project duration: up to 12 months (in total 60 months are possible)
Companies can apply for more than one Basisprogramm project! The FFG Basisprogramm is a non competitive allocation (your project proposal for funding will not compete with proposals
from other companies in the evaluation phase)!
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Key Facts
FFG THEMATIC PROGRAMMES
Funding of: cooperative R&D projects of companies (all sizes) and research organisations (e.g. universities)
Topic restriction (production of the future, ICT of the future, mobility of the future,…)
Cut-off dates (for each programme ~ 1-2 x year)
Type of financing: grant, max. EUR 2m (for the consortium)
Funding quota:
The higher the R&D risk (industrial research vs. experimental development ) the higher the funding quota !
Type of organisation Research category
Industrial research Experimental
development
Small enterprises 80 % 60 %
Medium enterprises 70 % 50 %
Large enterprises 55 % 35 %
Research organisations within their non-
profit activities
85 % 60 %
Non-profit organisations within their non-
profit activities
80 % 60 %
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The Austrian Competence Centre Programme
COMET COMPETENCE CENTRES FOR EXCELLENT TECHNOLOGIES
The COMET Programme aims to build up key research competences through cooperation between science and industry, providing a network of hubs offering high quality research within a jointly defined research programmes.
COMET shall enable new research impulses, strengthening technology transfer and increasing the innovation capacity of companies.
This should result in the creation of new products, processes and service innovations.
COMET enables the cooperation with national and international experts.
COMET Centre (K2)*
Federal funds: max 4m/y
COMET Project
Federal funds: max 0.45m/y
Public funding: 35-45%
Duration: 3-4 years
COMET Centre (K1)
Federal funds: max 1.7m/y
Public funding: 40-55%
Duration: 8 years
COMET Module
Federal funds: 0.5m/y
Public funding: 80%
Duration: 4 years
Str
ate
gic
ori
enta
tion,
innovati
ve c
onte
nt
*Last open call 02/2018, K2 programme will be set up new
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FFG Basisprogramm for R&D project and Research Premium for a large enterprise (LE)
EXAMPLE PROJECT COSTS FUNDING
55%
20%
10%
10%5%
R&D staff costs
Third party costs
R&D Infrastructure
Material costs
Travelling costs
Project Costs Grant Basisprogramm Research Premium
Grant up to 19%
(25% for projects in cooperation with
universities). In total financing up to 50%.
14% Tax credit
6,000,000 1,140,000 (without loan) 680,400
Total 1,820,400
50%
14%
36%
Grant and low-interest loan
Research Premium
Not funded
Overview
BDO TAX, AUDIT AND
CONSULTING
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Your local partner with a global network
BDO AUSTRIA – WE SUPPORT YOU WITH MORE THAN 800 EMPLOYEES AT 9 LOCATIONS
BDO Austria never saw
problems but always
searched solutions for
us!
Ing. Karl-Heinz Strauss, MBA
Chairman Porr AG
„
“
EFERDING
BRUCK/
LEITHA
ARNOLDSTEIN
JUDENBURG
GRAZ
OBERWART
SALZBURG
LINZ
WIEN
2018/2019
10 Locations
Thereof 43 Partners
800
Sin
ce 1
976
Forecast Revenue€Employeesm
ore
than
In A
ust
ria
more
then
Com
pany w
ith e
xperi
ence
90
CHANGE HAPPENS, INNOVATION LEADS.17CONFIDENTIAL
WITH OUR GLOBAL BDO NETWORK WE DELIVER INDIVIDUAL SOLUTIONS FOR YOU QUICKLY AND EFFICIENTLY
BDO Group Austria is part of the worldwide active BDO network of
auditors, tax and management consultants.
bdointernational.com
Our clients are central
to everything we do, as
is the quality of our
advice.
„
“Keith Farlinger
Global CEO BDO International
CHANGE HAPPENS, INNOVATION LEADS.18CONFIDENTIAL
Services BDO Consulting GmbH
WE SUPPORT OUR CLIENTS WITH A BROAD AND SELECTED RANGE OF SERVICES
FUNDING
SERVICES
DIGITAL & IT MANAGEMENT
CONSULTING
PEOPLE &
ORGANISATION
FINANCIAL ADVISORY
SERVICESFORENSIC, RISK &
COMPLIANCE
BDO Consulting
SERVICES FOR FUNDING AND
FINANCING R&D&I
ACTIVITIES
CHANGE HAPPENS, INNOVATION LEADS.20CONFIDENTIAL
Overview
RANGE OF SERVICES FUNDING
FUNDING SERVICES
FUNDING ROADMAP
Screening of available funding
opportunities and agencies
Identification of suitable funding
opportunities for our clients
Support in decision making for funding
options to be addressed
FUNDING CONTROLLING & PROJECT
MANAGEMENT
Coordination of project teams/consortia
and project management
Continuous monitoring of project
progress and budget
Reporting and communication with the
funding agencies
FUNDING FOR COMPANY SETTLEMENT
Screening of available funding and
financing opportunities
Partner search
Communication towards business
promotion and funding agencies as well
as cluster organisations
Scientific and company network:
universities, research institutes, start-
ups, SMEs, large enterprises
FUNDING APPLICATION
DOCUMENTS
Topic specification and project
structuring, preparation of project
consortium and partner search
Establishment of all application
documents (budget, text)
Submission of documents and
communication towards the funding
agencies
RESEARCH PREMIUM
Survey of all R&D projects, activities and
costs
Structuring R&D projects and main topics
Compilation of technical project
descriptions and calculation bases
EU STATE AID LAW
Analysis of financial structure
Development of financing concepts
Implementation separate accounting
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With more than 15 years experience
OUR SERVICES FOR R&D PROJECTS
We accompany innovative companies and universities in the project development and funding process for R&D&I projects!
Project Development
Project Financing
Project Management
Research Premium
EU state aidlaw /
Consulting forFFG, AWS
We cover all different forms of funding for R&D, investments, environmental activities as well as funding for your company location.
We help to gain regional, national and European public funds aligned with your R&D strategy.
We find the right partners and networks for your projects.
We develop project contents and prepare your application documents.
We can support your contract design and in questions related to your exploitation of project results.
We optimize and support your ongoing project management and controlling.
Thereby we can perform certain aspects of your funding
activities or the whole process.
CHANGE HAPPENS, INNOVATION LEADS.22CONFIDENTIAL
USP for your R&D project and your application documents
WE ARE MORE THAN JUST A WRITING WORKSHOP
We understand complex project contents, products and processes, the different aims of funding agencies as well as the different needs and interests of project teams and consortia. Together with you we develop the required added value for a positive evaluation of your funding application!
Challenging commercial aspects: market potential,
business model, utilization strategy and marketing
Moderation and coordination of the project team for
the structured development of solutions and methods
If necessary, identification of external partner and
supplier competencies
Final clarification of the funding conditions: Start-
up/SME status, non-funded project costs, cost
structure, content, location, employees
Content-related project conception and structuring:
coordination of content, resources and time planning
We deliver new innovation
impulses...
for
project structure
business model
exploitation possibilities
...and show blind spots:
technical risks
market barriers
economic feasibility
Funding Application
CHANGE HAPPENS, INNOVATION LEADS.23CONFIDENTIAL
We combine tax knowhow with R&D expertise
WE OPTIMIZE YOUR RESEARCH PREMIUM
Since more than 15 years we are working with and for FFG. We know how to describe objectives, method and innovation level of your R&D activities.
We conduct detailed interviews with your R&D staff.
We structure your projects/topics aligned with your R&D activities and your controlling documentation.
We establish the text material based on our long-standing experience in the application of R&D projects with the FFG.
Our experts in the field of tax law and cost accounting critically examine your tax bases – if desired, we can also fully establish your calculations.
We help to develop the ideal argumentation for critical questions arising during your company audit.
We minimize your internal efforts and maximize your
research premium! IdentifyingR&D
activities
Project & topic
clustering
Text writing Tax bases
Preparationfor
companyaudit
Optimizationof projectdocument-
ation
CHANGE HAPPENS, INNOVATION LEADS.24CONFIDENTIAL
WHY BDO IS THE RIGHT PARTNER FOR YOU
DIGITALis deeply rooted in our
consulting DNA
15 years
funding experience
>500 successfully
completed funding project in the last 15 years
Ø 90%of success for research premium applications
probability
20 different fields of study
in our inter disciplinary team
15 years
best contacts towards funding agencies
SPECIALISTin consulting of high-tech
companies
EXPERTin the field of project
management and controlling
SET UPof development and
technology centres
CHANGE HAPPENS, INNOVATION LEADS.
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