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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

CHANGE HAPPENS, INNOVATION LEADS.3CONFIDENTIAL

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!


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


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%)


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


￭ 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


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


￭ Market research

￭ Prototyping

￭ Expansion strategy


￭ 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%)


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


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)!


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 %


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


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

PETRA

LAHOFER

Senior Manager

+43 1 537 37 -736

[email protected]

IN CASE YOU HAVE ANY QUESTIONS

Overview

BDO TAX, AUDIT AND

CONSULTING


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


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


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


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


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.


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


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


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.

funding and research premium · services bdo consulting gmbh we support our clients with a broad...

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