Research, development and piloting
Who can apply?
Tekes offers research and development funding for mid cap companies' challenging research and development projects, which lead to international growth.
Large companies can benefit from Tekes R&D funding, when they want to carry out challenging research and development work, which not only improve their own competitive advantage but also increases the competence and business opportunities of the SMEs belonging to the network.
What do we fund?
Tekes R&D funding enables a company to develop new, innovative products or services, production methods and business models. The company can also test and demonstrate the operation of a new, innovative solution and evaluate the benefits together with its customers.
Mid cap company
According to the EU, mid cap companies are large corporations with a maximum turnover of €300 million.
What can the funding be used for?
1 Develop the product or service
With Tekes funding, companies can renew their existing products or services, production methods and business models, or develop new ones. Tekes funds R&D through loans.
2 Test and demonstrate functionality through a pilot
Involving customers in development work is beneficial in all business sectors. With Tekes funding, a company can pilot the features of a new, innovative solution alongside customers and obtain feedback for further R&D. Piloting can consist of a quick trial, as is often the case in software development, or involve long development processes, as in the energy or processing industries. Piloting can also be carried out abroad. Piloting can involve:
- The testing of a new innovative product, production method, process or technology in, for example, a production facility.
- The development and testing of a new innovative operating model or system in a real operating environment, for example, in a city district, traffic, or as part of client companies' operations.
- The development of a new innovative service and ensuring that it functions in the customer's operating environment and processes.
Tekes funds piloting through loans.
3 Creating new knowledge and competencies
Improve the competencies of your business and enhance the competitiveness of your products and services. Collaborate with universities and research organisations. Tekes uses grants to fund new, innovative research.
Loan or grant?
A Tekes loan is suitable for piloting and product development close to the commercialisation stage. Tekes provides grants for companies' research projects which focus on the creation of new competencies.
Loan for development and piloting
Loan funding from Tekes is advantageous for companies. At the moment, the interest rate is one per cent, and no collateral is required in most cases. If the project fails or its results cannot be commercially exploited, the loan may be partially converted into a grant.
As a rule, the loan period is seven or ten years, of which three or five years – even more if necessary – can be amortization-free. At the beginning of the project, 30% of the loan can be granted for the project in advance. The rest of the Tekes funding is paid on the basis of the actual costs.
The loan amount
- Mid cap companies: The Tekes loan accounts for 50% of total project costs at a maximum.
- Large companies: The Tekes loan accounts for 50% of total project costs at a maximum. Large corporations must spend at least 15% of total project costs on acquiring services from SMEs or research organisations, or the project must be carried out as a genuine joint project with SMEs and research groups.
Grant for research and creation of new knowledge
Tekes grants are intended for R&D by companies that generates new knowledge and competencies, but not a finished product or service at this stage. Tekes will pay the grant to the company in arrears, based on the reported actual costs.
The amount of the grant
- Mid cap companies: The Tekes grant accounts for 40% of total project costs at a maximum.
- Large companies: The Tekes grant accounts for 40% of total project costs at a maximum. Large companies must spend at least 40 % of total project costs on acquiring services from SMEs or research organisations, or the project must be carried out as a genuine joint project with SMEs and research groups.
Costs approved by Tekes
The content and goals of a project determine what costs are accepted for it. Tekes will approve costs from the date when an application satisfying the related requirements was sent to Tekes.
In research and development projects, eligible cost categories can include
- indirect personnel costs
- travel expenses
- costs of materials and supplies
- machinery and equipment purchases
- machinery and equipment depreciation costs/machinery equipment rentals
- purchased services
Eligible costs for a piloting project can include:
- costs of materials and supplies
- design costs associated with the subject
- commercialisation costs
- costs associated with the use of premises during the project
- R&D costs associated with the pilot or demonstration projects
- leases or depreciation costs for land, buildings, machinery and equipment associated with the project
The recipient must inform Tekes without delay, or at the latest upon presentation of the final report, if it earns revenues during the piloting project or immediately after its completion from selling a prototype, a demonstration project or the results of trial production arising from the project. If such income is substantial, Tekes may not approve the reimbursement of costs derived from commercial operations.