FUNDING OPPORTUNITIES FOR R&D IN AUSTRIAABA's Virtual Open Day Reloaded
BDO Consulting – Petra Lahofer, MBA01.10.2020
2
TAXIn order to be successful in the market, an alongside consultant who will
provide solutions for complex challenges and acts as a future oriented guide,
is essential. Many years of experience and professional expertise ensure you to
receive a thorough perspective on all national and international tax issues and
guarantee the seamless development of your tax affairs.
AUDITGenerating added value and the creation of trust, distinguish our company.
The focus of our work as auditors lies with personal support and reliability, as
well as the highest international auditing and quality standards.
CONSULTINGWe shape businesses permanently into top form. With the help of our on
of tools and
increase the
multidisciplinary based know-how and our vast spectrum
methods, we offer individual and innovative solutions to
performance of your company.
CORPORATE FINANCEAs things go faster and faster in our world, it is more important than ever to
be able to count on specialists with extensive expertise. We offer advise
concerning all questions about transactions and financing. Further, we conduct
due diligence investigations as well as company valuations, in order for you to
be able to make well informed corporate finance decisions.
BUSINESS SERVICES & OUTSOURCINGWe are here for you. So you can continue to focus on your core competency,
we support you with the execution of all your finance processes and provide
reliable data for your entrepreneurial decisions.
WELL - ROUNDED FIVE INDUSTRIAL
APPLICATIONS
WE ENABLE COMPLETE GEAR SOLUTIONS THROUGH OUR EXTENSIVE PORTFOLIO
CONSULTING
Management Consulting
Risk Advisory
Digital
People & Organisation
3 CHANGE HAPPENS, INNOVATION LEADS.
Information Technology
Funding
Portfolio Overview
Innovation, transformation
and security need the best
minds - BDO Consulting has
them.
We manage complex scopes
with a wide range of
innovative solutions, state-
of-the-art tools and
extensive know-how - from
the first analysis through to
the final implementation, on
a national and international
level.
Our goal is your lasting
success!
Change happens,
Innovation leads.
WE ACCOMPANY INNOVATIVE COMPANIES IN THE PROJECT DEVELOPMENT AND PROMOTION OF R&D PROJECTSExtract of our consulting service portfolio
Funding
Funding screening & Conception
Overview of strategic topics & investments (roadmap)
Individual clarification of the eligibility for fundingof
individual projects & plans
Screening of funding programs (regional, national, EU
level) & concept development
State-aid law
Funding controlling & Project management
Coordination of project teams/consortia in project
management
Ongoing monitoring of project progress & budget
Reporting & communication with the funding agency
Preparation of funding applications & Partner
search / Consortium
Topic sharpening & project structuring
Integration of relevant departments & collection of
project information
Information preparation, budget preparation, project
planning, document preparation and submission
Preparation of the project consortium & coordination
of partners
Research Bonus
Survey of all R&D projects, activities & costs
Structuring into R&D main points
Preparation of technical project descriptions &
calculation bases
4 CHANGE HAPPENS, INNOVATION LEADS.
THE LOGIC OF R&D&I
FUNDING IN AUSTRIA
5
MAIN DIRECT FUNDING INSTRUMENTS AND CONDITIONSAn excerpt
Grants
Traceable grant/cash grant (e.g. foundation premiums, pre-seed, FFG subsidy)
Loans / Credits
Low-interest loans (e.g. ERP credits, FFG loans)
Garantuees
Credit protection through the adoptionof liability by the funding agency (e.g. aws liability)
Company headquarters in Austria (already established or in the process of being established)
Most of the R&D costs must be incurred at the location in Austria
Strong focus on the development of R&D competencies (employees, know-how, infrastructure) in Austria
R&D activities and results must:
▪ exhibit technical risk and uncertainties of outcome,
▪ have a high novelty content (above the state ofthe art) and
▪ demonstrate high market and location potential (regional and national)
Companies must be able to prove the ability to finance the non-funded part
Beyond that one achieves plus points through:
▪ Cooperation with Austrian universities andresearch institutions
▪ high potential for patents and licenses
▪ Investments in infrastructure and location
Main conditions for R&D&I fundingMain direct funding instruments
THE PRONOUNCED FUNDING LANDSCAPE OFFERS SUPPORT IN ALL PHASES – DIRECT FUNDING FOR PROJECTS (GRANTS)Company and technology life cycle
Foundation Phase Expansion-/Growth Phase
▪ Business idea
▪ Business model development
▪ Team finding
▪ Conception
aws PreSeed aws Seedfinancing
time
aws Double Equity
FFG AT:net
FFG thematic programmes
H2020 FET
H2020 SME Acellerator, P2 / FTI
H2020 IAs
FFG BasisprogrammeFFG Bridge
AWS Creative Impact
AWS IP Market
H2020 RIAs
H2020 ERC
FFG Feasibility
AWS guarantees and ERP loans
WKO go intern.
PreSeed-Phase Seed-Phase
▪ Company foundation
▪ Product development
▪ Market research
▪ Prototyping
Expansion Phase
▪ Expansion strategy
▪ Product development
▪ National market penetration
▪ Proof of concept, first revenues
Growth Phase
▪ Sustainable growth
▪ Diversification
▪ Expansion into foreign
markets
Nati
onalPro
gra
mm
es
EU
Pro
g.
TRL 1-6 (7): Basic research up to tested prototypes TRL 7-9: Finalising and market introduction
THE GREATER YOUR R&D RISK, THE HIGHER YOUR FUNDINGThe bigger the company, the smaller the grant (Exception: EU H2020)
Nationally, the closer to the market (TRL 7-9), the less subsidy is granted
De-minimis rule applies here (partially - e.g. AT:net, WKO go international)
€
Risk
Grants for large enterprises 19- 25% + loan up to 50%, Start-ups up to
70% financing (grant + loan) – TRL 4-6/7
Grants for large enterprises 35-55%, SME 50-80% - TRL 3-6/7
Grant for all enterprises 25-35% - TRL 7-9
H2020
EICAccelerator
FFG Thematic Programmes
FFG Basis
FFGAT:net
Grant for SMEs 70% - TRL 6-9
Grant for all enterprises 70 - 100% - TRL 3-6/7
IN ADDITION, FOR ALL R&D EXPENSES WITHIN A YEAR, LESS THE ALREADY RECEIVED GRANTS, A TAX CREDIT CAN BEGRANTEDA tax credit as indirect R&D funding instrument
Foundation Phase Expansion-/Growth Phase
PreSeed-Phase Seed-Phase Expansion Phase Growth Phase
▪ Business idea ▪ Company foundation ▪ Expansion strategy ▪ Sustainable growth
▪ Business model development ▪ Product development ▪ Product development ▪ Diversification
▪ Team finding ▪ Market research ▪ National market penetration ▪ Expansion into foreign
▪ Conception ▪ Prototyping ▪ Proof of concept, first revenues markets
aws PreSeed aws Seedfinancing aws Double Equity
TRL 1-6 (7): Basic research up to tested prototypes TRL 7-9: Finalising and market introduction
mmesAWS Impulse XS AWS Impulse XL AWS guarantees and ERP loans r
rP
FFG Feasibility FFG thematic programmes WKO go intern. l
FFG Bridge FFG Basisprogramme FFG AT:net AWS IP Market
H2020 ERC H2020 SME Instrument, P2 / FTI g.or PU
H2020 FET H2020 RIAs H2020 IAs
Zeit
14%* Research Premium (tax incentive)*from financial year
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
R&D&I ACTIVITIES ELIGIBLE FOR FUNDING – CRITERIAS TOBE FULFILLEDTwo forms of funding for R&D&I – direct (project grants) and indirect (tax incentive)
Direct R&D funding (mainly non-repayable grants)
Indirect funding (research premium; tax incentive)
Innovative
Technological risks &
methodical approaches to
find solutions
Novelty
Comparison of eligibilty criteria
=
Uncertainty
Systematic procedure
Transferability &
pepeatability
R&D costs at Austrian location R&D costs at Austrian location
=
=
The criteria to be fulfilled for direct R&D funding (i.e. grants) and indirect research
premium are nearly the same!
OPTIMISED R&D FINANCING VIA DIRECT AND INDIRECTFUNDSScenario Start-up (SME) vs. large enterprise – Example calculation
R&D & foundation costsMEUR 1.2 costs for foundation and growthMEUR 1 R&D costs until prototype (thereof
KEUR 800 submitted for FFG Basisprogrammfunding)
Total MEUR 2.2 / thereof MEUR 1 R&D
Scenario I – Start-up
Potential financing
Preseed grant (<KEUR 200)
Seedfinancing repayable grant (<KEUR 800)
FFG Basisprogramm (<MEUR 3; <70% financing:
grant 31% + low-interest loan 39%)
Research Premium 14%
Plus Double Equity Option
Scenario II – Large Enterprise
Potential financing
FFG Basisprogramm (<MEUR 3; <50%
financing: grant 19% + low-interest loan 31%)
Research Premium 14%Scenario I - Start-up
Financing for R&D and foundation/growth costs >70% possible.
Share
not
covere
d b
y
public d
irect
funds
R&
D a
nd c
ost
for
foundati
on/g
row
th
Fin
ancin
g v
iaAW
S
&FFG
Rese
arc
h p
rem
ium
14%
Share
not
publicly
financed
(dir
ect
&in
dir
ect)
2.200.000
640.000
-1.560.000534.720
-105.280
-1.665.280(-76%) in € in €
Cost basis
(assumption)
MEUR 1 = all
R&D costs
reduced by
received
funds
R&
D a
nd c
ost
sfo
r
foundati
on /
gro
wth
Share
not
covere
d b
y
public d
irect
funds
Fin
ancin
g v
iaFFG
Rese
arc
h p
rem
ium
14%
1.800.000
Share
not
publicly
financed (
dir
ect
&in
dir
ect)
2.200.000
-518.720(-24%)
-400.000 1.681.280
-118.720
Cost basis
(assumption)
MEUR 1 = all
R&D costs
reduced by
received
funds
Scenario II – LE
Financing for R&D and foundation / growth costs >20 % possible potential for increase, depending on no. of suitable topics & projects to be funded.
CHANGE HAPPENS, INNOVATION LEADS.12
IN CASE YOU
HAVE ANY
QUESTIONS
PETRA
LAHOFER
Senior Manager
Head of Team Funding
+43 1 537 37 - 736