FAQ

With the funding programme for research and innovation “Horizon Europe“ launched in 2021, the EU is providing various funding opportunities for research and innovation. The programme is generally structured in three pillars. The first pillar, “Excellent Science“, primarily provides funding opportunities for cutting-edge research, which are strongly tailored to universities and other research institutions. The second pillar, “Global Challenges and European Industrial Competitiveness“, contains specific calls for funding on various topics to which international consortia can apply with their solutions. As a member of these consortia, SMEs can not only receive funding, but also promote their internationalisation and establish transnational contacts with other companies as well as research institutions and other organisations. In the third pillar “Innovative Europe“, the “European Innovation Council“ (EIC) is of particular interest to companies. This specifically addresses SMEs in order to financially support the development of highly innovative ideas from basic research to market entry.

Testimonials from companies in Baden-Wuerttemberg that have received EU funding in the EIC Accelerator programme demonstrate the requirements, advantages and challenges of the programme. Watch the short videos from SciMo GmbH, constellr GmbH and Computomics.

You can find an overview of the Horizon Europe programme in our Information leaflet Horizon Europe(PDF, 696.09 kB) (leaflet available in German only).

In order to receive funding from the EU, you must first submit an application . The length and exact content of such an application varies from program to program (the EU provides templates in each case). As a rule, the application contains a description of the project to be funded, including the budget for the necessary funds, a justification of the approach with a comparison to the state of research or development and an assessment of the impact the implementation of the project would have on the economy, society and the environment. For some programs, the EU has introduced a new requirement that applications are not formulated and submitted in a multi-page document, but that the individual pieces of information are requested on a platform in the form of a questionnaire. All applications to the EU must be written in English.

With a few exceptions (see EIC Accelerator), funding from the EU consists of non-repayable grants. This means that if an application is approved, a contract, the “Grant Agreement“, is drawn up between the EU and the applicant, which sets out rights and obligations, i.e. in particular the various implementation steps and the budget set for them. According to this agreement, costs for research and innovation activities are reimbursed in accordance with a report to be submitted regularly. The funding rate, i.e. the proportion of costs reimbursed by the EU, also differs between the various funding programs: In the case of instruments with a strong focus on research, the EU usually reimburses 100% of the costs; in the case of funding opportunities that are more closely aligned with the economy, often only 70% of the costs are covered.

Who is eligible and can submit applications differs from program to programme, some funding instruments are only intended for small and medium-sized and start-up companies, others are open to research institutions, large companies, public institutions or others. In some cases, such as the Accelerator (see below), it is possible to apply for individual funding. For other funding instruments, a consortium of several project partners is required. The “three out of three“ rule usually applies here: a consortium must include at least 3 partners from 3 different EU member states or associated countries, with at least one of the partners coming from a member state. A list of associated countries can be found here.

The European Innovation Council (EIC) bundles EU funding opportunities aimed in particular at small and medium-sized enterprises. Approximately €10 billion will be made available between 2021 and 2027 to identify and support breakthrough technologies and pioneering innovations, generate new markets and scale up internationally. The EIC is divided into three funding instruments:

• The EIC Pathfinder addresses early-stage research on breakthrough technologies from basic research to proof of concept in the lab with non-repayable grants of up to €4 million.
• The EIC Transition builds the bridge from laboratory to industry with non-repayable grants of up to 2.5 million euros for the maturation of technologies from proof of concept to validation, promoting both technical development and the development of a business model.
• The EIC Accelerator addresses already validated, disruptive innovations from start-ups and SMEs that are to be further developed and scaled up to market maturity. In contrast to Pathfinder and Transition, mixed financing is offered here: non-repayable grants of up to 2.5 million euros can be combined with investments of up to 15 million euros. For all three funding instruments, applications can be submitted openly on certain deadlines (“Open“), but there are also topic-specific calls (“Challenges“) to which companies can apply.

The EIC Pathfinder promotes interdisciplinary research on the fundamentals of radically new technologiesthat have the potential to create new markets and/or address global challenges and are presented with a convincing long-term vision and concrete and plausible goals. The focus is therefore on an early stage of the development of future technologies (TRL 1-4), based on high-risk/high-gain science-towards-technology breakthrough research. This means that the innovations should be based on scientific knowledge (“deep-tech“) and that not only the technology itself, but also the approach to the research is highly innovative and new. The objective of the funded projects should be a “proof of principle “, a validation of the scientific and technological basis of the technology, and the possibility of subsequent exploitation of the findings. To this end, particular attention will be paid to the handling of intellectual property and to supporting potential “future leaders“ in the project teams.

While the “Pathfinder Open“ is open to all types of innovations, the “Pathfinder Challenges“ define specific focal points for which ideas can be submitted (the list of current challenges can be found here). The “Pathfinder Open“ supports consortia from at least 3 partners from 3 different member or associated states with a maximum of 3 million euros in non-repayable grants. In the “Pathfinder Challenges“, applications can be submitted by individual organizations, tandemsfrom different member or associated states or consortia of at least 3 partners from 3 different states for up to 4 million eurosin non-repayable grants. The funding rate is 100%, so all costs applied for will be reimbursed in full.

The submission and evaluation process runs as follows: First, an application of 17 pages (Pathfinder Open) or 25 pages (Pathfinder Challenges) must be written according to a template and submitted via the “Funding and Tenders“ portal of the EU. The deadlines for these applications in 2025 are May 21 for Pathfinder Open and October 29 for Pathfinder Challenges.

Each application is evaluated by three reviewers according to three main criteria:

• For the criterion “Excellence“, a convincing long-term vision is important as well as concrete and plausible goals and an innovative and interdisciplinary approach.
• For a good rating in the criterion “Impact“, the innovation potential should be very high and activities for the communication and dissemination of project results should be described.
• The criterion “Quality and efficiency of implementation“ considers the quality of the applicants and their qualifications for the project, and the comprehensibility of the work plan (which steps are to be carried out with which budget, what risks exist and how are they countered).

In the case of the Pathfinder Challenge, the project’s contribution to the respective challenge must also be plausibly demonstrated. Five points must be awarded for all three criteria, of which a certain number of points (the “threshold“) must be achieved in each case. The overall score is determined from a weighted sum of the points for the individual criteria, whereby “Excellence“ counts three times, while “Impact“ and “Implementation“ are scored once. The scores of the three evaluators are averaged. An evaluation committee then decides which applications will be funded based on these average scores. Applicants receive approximately 5 months after submitting their application a feedback with their overall score and comments from the reviewers. Then the preparation of the grant agreement begins - so it takes approximately 8 months from the submission of the application to the startof the project.

The EIC Transition promotes breakthrough innovations and new business ideas based on results from previous EU-funded research projects (from the Pathfinder, FET - Future Emerging Technologies or ERC PoC - European Research Coucil Proof of Concept funding programs). These ideas should be ready for the next stages of maturation and validation in specific applications. To increase market maturity in entrepreneur-led teams, the innovations are to be further developed within the transition, whereby the focus is not only on technological progress, but also on activities to refine the business model. The transition is intended to make the transition from proving the functionality of a new technology in principle in the laboratory (TRL 3) to a prototype that has been demonstrated in a relevant environment (TRL 5/6).

While the “Transition Open“ is open to all types of innovations, the “Transition Challenges“ provide specific focal points for which ideas can be submitted (the list of current challenges can be found here). Both “Transition Open“ and “Transition Challenges“ support individual applications (but not from large companies) or consortia of two to five partners with a maximum of 2.5 million euros in non-repayable grants. The funding rate is 100%, so all costs applied for will be reimbursed in full. SMEs and other organizations wishing to apply for the transition do not need to have been part of the original research team on whose results the transition project is based. It is sufficient if the IP rights are available to further develop the results.

The submission and evaluation process is as follows: First, an application of 25 pages must be written according to a template and submitted via the “Funding and Tenders“ portal of the EU. The deadline for these applications in 2025 is September 17.

Each application is evaluated by three reviewers according to three main criteria:

• For the criterion “Excellence“ it is important that it is a technological breakthrough, that the feasibility of the project is clearly explained and that plausible goals are set for the development.
• For the evaluation in the criterion “Impact“, the market fit is considered (IP, certification, standardization, involvement of potential users), economic or social impact of the project, the focus on entrepreneurship in the team composition, existing relationships with necessary partners and the “investment readiness“.
• The criterion “Quality and efficiency of implementation“ focuses on the quality of the applicants, their qualifications for the project and the comprehensibility of the work plan (which steps are to be carried out with which budget).

5 points are to be awarded for all three criteria, of which a certain number of points (the “threshold“) must be achieved in each case. The overall score is determined by the sum of the points for the individual criteria (all criteria are scored equally); the scores of the three reviewers are averaged. All applications above the threshold will be invited to an interview in which a maximum of 5 applicants will present the idea and answer questions. (The interviews are held in English.) Approximately 17 weeks after submitting the application, applicants receive feedback with their overall score and comments from the reviewers. The preparation of the grant agreement then begins - it therefore takes approximately 6 months from the submission of the application to the start of the project.

The EIC Accelerator supports start-ups and SMEs that want to scale high-impact innovations with the potential to create new markets or disrupt existing ones. The focus here is on innovations that build on scientific discoveries and technological breakthroughs (“deep tech“) as well as innovations that require significant funding over a longer period of time and are too risky to be financed by private investors alone. To be eligible for funding, the innovation must already have reached a certain level of maturity and there must be at least one prototype that has already been demonstrated in a relevant environment (TRL 5/6).

While the “Accelerator Open“ is open to all types of innovations, the “Accelerator Challenges“ define specific focal points for which ideas can be submitted (the list of current challenges can be found here). The Accelerator is designed exclusively for individual funding of small and medium-sized companies, start-ups, scale-ups and, with restrictions, small mid-caps (up to 499 employees) - it is not possible to submit applications as part of a consortium.

Both Accelerator Open and Challenges can apply for mixed funding . On the one hand, a grant component of non-repayable grants of up to 2.5 million euros can be applied for. Here the funding rate is 70%, so only 70% of the project costs are reimbursed. On the other hand, an investment component is available. Here, between 0.5 and 15 million euros of direct or quasi-equity capital can be applied for. The exact form of the investment is negotiated individually between the EIC fund, the applicant company and any other investors. The investment can be realized, for example, as convertible bonds or through a participation of the EIC Fund in the company, whereby the EIC Fund’s share may not exceed 25% of the voting rights. In accordance with the “patient capital“ principle, the investment is made with a perspective of around 7-10 years. The grant and investment components complement each other to form mixed financing: The grant is intended for the main development (TRL 5/6 - 8), the investment for the market launch and scaling (TRL 9), whereby the investment can also be used to counter-finance the 30% of the project costs that are not reimbursed in the grant component.

It is also possible to initially apply only for the grant component (“Grant first“) and to negotiate the investment component at a later stage. If no investment component is to be applied for (“Grant only“), the company must demonstrate that it has sufficient financial resources to implement and scale the innovation. If the applicant does not require a grant, it is also possible to apply only for the investment component (“Investment only“).

The submission and evaluation process for the Accelerator has three stages: In the first step, a short application is submitted. This includes completing a questionnaire on the EIC’s AI platform and uploading a pitch deck with a maximum of 10 slides and a video pitch of up to 3 minutes. Four evaluators assess the short application with a “Go“ or “No Go“. If the application receives at least two “Go“ ratings, a full application may be submitted.

For the full application, a business plan is created using another questionnaire on the AI platform. In addition, some further questions must be answered, and a second pitch deck must be submitted. Three evaluators assess the full application. Only if all three evaluators give a “Go“ rating will the third stage of the evaluation process — the pitching — take place.

During the pitching, applicants present their project idea based on the pitch deck submitted with the full application and answer questions from the jury. The pitch takes place in English. If the jury decides to approve the project, the contract negotiation process for the grant and investment component begins.
The evaluation of the short and full applications is based on three criteria:

• Under the criterion “Excellence“, the degree of innovation and market potential as well as the timing of the innovation are considered. In the full application, technological feasibility and maturity (at least TRL 5/6) and the existence of sufficient IP rights are also assessed.
• Under the “Impact“ criterion, scalability potential and broader social, economic, environmental or climate-related impacts are evaluated, as well as, in the full application, market fit or the results of the competition analysis, commercialization strategy, and the presence of key partners. In the case of an Accelerator Challenge, the project must also clearly demonstrate how it contributes to the specific challenge.
• The criterion “Level of risk, implementation, need for EU support“ focuses mainly on the team’s capabilities and motivation in the short application. In the full application, the plausibility and efficiency of the implementation plan and risk management are also considered. On one hand, the application must demonstrate that the investment is so risky that EU funding is necessary and private investment is not viable. On the other hand, it must show how the risks can be minimized to ensure a high probability of success for the project.

No scores are awarded when evaluating the criteria in the Accelerator — evaluators give a “Go“ or “No Go“ based on their overall impression. If an application is rejected, it can be resubmitted after improvement based on the evaluators’ feedback. If the project is rejected again after resubmission, the applying company is blocked for 12 months. During this period, it may not apply for funding through the Accelerator, and after the period ends, it may not resubmit the same project but only a new or significantly improved idea.

The evaluation of full applications only takes place on specific cut-off dates (in 2025: March 12 and October 1). Short applications can be submitted at any time, but since the evaluation takes around 4 weeks, the short application should be submitted at least 6 weeks before the intended cut-off date for the full application. In total, the entire process, including preparation and contract negotiations, takes around 10 months until the project starts.

• The European Prize for Women Innovators honors inspiring female founders whose groundbreaking innovations bring about positive change for people and the planet. The 2025 deadline is September 25.
• The European Capital of Innovation Awards focus on cities that actively foster innovation. In the category European Capital of Innovation (cities with over 250,000 inhabitants), one grand prize of €1 million and two additional prizes of €100,000 are awarded annually. In the category European Rising Innovative City (cities with 50,000 to 249,999 inhabitants), one prize of €500,000 and two prizes of €50,000 are awarded. This is also a two-stage application process: First, a questionnaire must be completed, and an official support document signed by the city’s mayor must be submitted. This is followed by an interview to determine the winning cities. The deadline for submitting the questionnaire in 2025 was June 18.
• The European Innovation Procurement Awards target public and private buyers who emphasize innovation in their procurement processes. In each of the three categories – Innovation Procurement Strategy Award, Facing Societal Challenges Award, and Procurement Leadership Award – a grand prize of €75,000 and a second prize of €25,000 are awarded. This also involves a two-step process: after submitting a questionnaire, selected applicants are invited to an interview to determine the winners. The deadline for the 2024–2025 phase was September 26, 2024.
• The European Social Innovation Competition supports social innovations on an annually changing theme (2024: Digital Democracy). Applications are open to companies as well as individuals, universities, and other organizations. The three best ideas each receive €50,000. The competition begins with a questionnaire, based on which 30 semi-finalists are selected. These semi-finalists receive four months of training, mentoring, and coaching to further develop their ideas toward market readiness. After this period, a detailed development plan is submitted. In a third stage, one year after the application, an Impact Report is submitted, which forms the basis for selecting the winners. The deadline for submitting the initial questionnaires in 2024 was June 11. In addition, all semi-finalists are invited to submit an Impact Report the following year to document the progress of their project. An additional €50,000 prize is awarded for the greatest impact among the previous year’s projects.

The Steinbeis Europa Zentrum, funded by the Ministry of Economic Affairs, Labour and Tourism Baden-Württemberg, offers a range of free support services for small and medium-sized enterprises (including start-ups) based in Baden-Württemberg.

With innocheck-bw, we provide you with a questionnaire that enables us to assess whether your project is suitable for EU funding. Based on your responses, we can make concrete suggestions about the most appropriate funding options. Once you have completed the questionnaire, you will receive further information by email on suitable funding opportunities. In addition, you will receive a free initial consultation with an expert from the Steinbeis Europa Zentrum regarding your specific project and potential funding schemes.

If you decide to apply for EU funding, we are happy to support you: The experts at the Steinbeis Europa Zentrum – with years of experience in preparing EU project proposals – will help you develop a funding concept and, if needed, identify suitable international partners. Once you begin drafting your proposal, we provide suggestions for improvement and corrections to your draft. Even near-final versions can be reviewed by our specialists to offer professional feedback. These services are also supported through funding from the Ministry of Economic Affairs, Labour and Tourism Baden-Württemberg. For more information about EU funding programmes and the application process, we also offer free webinars and training sessions. You can find the next scheduled events
here.

The EU is making efforts within the EIC to specifically target and promote women. For example, 40% of the companies invited to interviews by the Accelerator will have at least one woman in a management position. In addition, the EU offers two programs specifically for women: First, there is the European Prize for Women Innovators, which honors inspiring female founders whose groundbreaking innovations bring about positive change for people and the planet. The application deadline for 2025 is September 25. Second, the EU has launched the Women TechEU Project. Here, individual grants of €75,000 are awarded. In addition to financial support, women receive an individual program with mentoring, coaching, and training. The final application deadline for 2025 is August 4.

• An innovation is described as “disruptive” when it creates a new market and a new value creation network and ultimately displaces market-leading companies, products, and alliances. A good example of disruptive innovation is the smartphone, which has generated completely new services and markets thanks to its greater capabilities compared to previous technology.
• An incremental innovation, on the other hand, is a steady, step-by-step improvement to a product, service, process, or business model. In the example of the smartphone, this would include new displays, sensors, or manufacturing processes. The European Innovation Council focuses on disruptive innovations.

The Technology Readiness Level scale is used to indicate the maturity of an innovation. It consists of 9 stages, ranging from basic research and technology development in applied R&D to demonstration, product development, and finally market introduction:

• TRL 1: Basic research
• TRL 2: Formulation of the technology concept
• TRL 3: „Proof of Concept“
• TRL 4: Laboratory validation
• TRL 5: Validation in a relevant environment
• TRL 6: Demonstrator validated in relevant environment
• TRL 7: Demonstrator in action
• TRL 8: Qualified commercial system completed
• TRL 9: Full commercial deployment

The EU uses the TRL scale particularly to differentiate between the three main funding instruments of the European Innovation Council (EIC): The EIC Pathfinder supports early-stage innovation (TRL 1–4), the EIC Transition focuses on the move from lab to industry (TRL 3–5/6), and the EIC Accelerator covers the later development stages up to market entry (TRL 5/6–9).

In addition to the TRL scale, there is the Business Readiness Level Scale. This is used to describe the maturity of the business model associated with an innovation. Like TRL, it also consists of 9 levels, ranging from an initial description of a market need, through validation and engagement with pilot customers, to proof of scalability and business model stability:

• BRL 1: Market need described, but not yet evidenced
• BRL 2: Market need described with a customer story
• BRL 3: Market need validated
• BRL 4: Small-scale stakeholder campaign conducted (Closed Beta)
• BRL 5: Early adopter campaign conducted (Open Beta)
• BRL 6: Traction shown (first paying pilot customers)
• BRL 7: Market need satisfactorily addressed
• BRL 8: Scalability demonstrated
• BRL 9: Stability demonstrated

The EU does not define strict BRL requirements for the individual EIC funding instruments. However, it is advantageous if the maturity of the business model aligns with the technological development. For example, in an Accelerator application, it’s beneficial not only to demonstrate a validated prototype but also to show first contact or engagement with pilot customers.

The EU defines small and medium-sized enterprises (SMEs) as companies that have no more than 249 employees and generate a maximum annual turnover of €50 million or have a balance sheet total of no more than €43 million. This includes start-ups. You can find a self-assessment tool here.