Berlin From now on, medium-sized companies can again submit applications for funding under the “Central Innovation Program for Small and Medium-Sized Enterprises” (ZIM). This was announced by the Federal Ministry of Economics. 620 million euros are now available for 2022.
The program was surprisingly stopped for the first time in its history by the previous government in October 2021 because too many applications had been received and the pot was empty.
The traffic light government is now “sending a clear positive signal for ZIM, despite the difficult financial situation,” the ministry said.
The program is important for the development of numerous German medium-sized companies. The ZIM funded an average of 3,500 projects per year. The outrage at the application freeze was correspondingly great. Most recently, around 2,300 applications were still outstanding.
However, the Ministry of Economics had to adjust some rules for the program because of the budget restrictions, it said. For example, companies that have already received a permit for a research and development project can only receive another permit after two years. This also applies retrospectively.
In addition, the possibilities of extending the duration of projects and shifting funds would be “strictly restricted” in order to “prevent excessive pre-commitments in the following years and maintain flexibility for new projects in the long term”.
Economy warns of a new application freeze
If too many new applications are received, the Ministry also reserves the right to further reduce the allocation. This could also affect applications that have already been received, it said.
The Association of German Chambers of Industry and Commerce (DIHK) warns as a precautionary measure that under no circumstances should “another application freeze” occur. “After a break of almost ten months, it is important that ZIM gets up and running again,” said Ilja Nothnagel, member of the DIHK executive board, to the Handelsblatt.
“As the largest technology-open funding program to support innovative medium-sized companies, ZIM has proven to be a recipe for success,” said Nothnagel. Especially in these times of crisis and transformation, innovative solutions are of central importance.
The companies fear that there could be another application freeze.
(Photo: dpa)
After all, the application should be much easier with the restart: Applications and all other documents can now be submitted electronically to the respective project sponsors. In the medium term, the ZIM funding should be possible fully digitally on a central funding portal of the ministry.
Fewer and fewer researching medium-sized companies
The ZIM is the most important instrument for promoting innovations in medium-sized companies. Universities and research institutes that cooperate with companies are also supported.
The ZIM was started in 2008 because the share of small and medium-sized companies in the overall innovation performance of the economy had continued to fall. Since 2020, tax incentives for research have also served the same purpose, which mainly benefits medium-sized companies due to their cap.
During the corona pandemic, the ZIM was increased from 550 to 620 million euros annually to stimulate the economy. The Greens, who now lead the Economics Ministry, had promised to strengthen the program in their election manifesto.
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The overnight stop of the program in October 2021 caused a shock among innovative SMEs. The associations spoke of a “catastrophe for the medium-sized research economy”.
Opposition feared the end of the program
This industry is massively disadvantaged compared to state-funded research, which can rely on annually growing budgets. The Federation of German Industries (BDI) criticized the federal government for leaving smaller innovative companies “out in the rain”. For a long time, the DIHK has been insisting on consolidating research funding for medium-sized companies.
But it quickly became clear that applications should only be accepted again once the new Bundestag has launched the budget for 2022 after the Bundestag elections – i.e. not before March.
But nothing came of it either. In the meantime, the opposition even feared a permanent freeze until the end of the year. It was not until mid-July that the Ministry of Economics promised, after intensive negotiations with the Ministry of Finance, that it would be opened “in the summer”.
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