If you are a SME which needs public funding to realize your innovative state of art new product, concept or service, participation in a Eurostars project can bring you a passport to export, growth, further innovation, an opening to new global markets and even greater business success.
Eurostars is the only European funding programme to be specifically dedicated to support R&D-performing SMEs in their innovative R&D projects. With its bottom-up approach, it stimulates international collaborative research and innovation projects that will be rapidly commercialized. A Eurostars project must have a civilian purpose and be aimed at the development of innovative new products, processes or services. Read more about Eurostars here: https://www.eurostars-eureka.eu/start-your-eurostars-project
Eurostars is primarily for research oriented SME’s in international consortia. Universities, research organisations, hospitals etc. can also participate, but funding depends on national rules. In Denmark all types of organisations can be funded. Technology Readiness Level (TRL) is typically 5-7.
In EU Eurostars is a co-financed between 36 EUREKA member states and the EU Commission administrated by the EUREKA Secretariat and the member states. In Denmark Eurostars is funded by Innovation Fund Denmark (IFD). You can find further information on the Danish funding rules here.
On average a Eurostars project consist of 3-5 partners from 2-3 countries with a total budget of €1-2 mio. There must as a minimum be two independent partners from two Eurostars countries – one from each country - and at least 50% of the project must be conducted by the participating R&D intensive SMEs excl. outsourcing. Maximum duration of a Eurostars project is 36 months and there must be a product or service ready to marketed no later than 24 months after the project has been concluded.
44 EUREKA member states (grey and blue) of which 36 are participating in Eurostars (blue)
IFD can fund up to €300.000 to a Danish partner and up to €500.000 to all partners if there is more than one Danish partner in an application. If research institutions, large partners or other type of partners participate in a Eurostars project without a Danish research intensive SME their funding rate is halved. Read more about the Danish funding rules here.
As an alternative to the above public investment under the GBER, Danish SME’s can choose to be financed according to The European Commission’s de minimis regulation. If the de minimis regulation is applied, the maximum investment for the SME in a three-year period is 200.000€ (app. DKK 1.5 mil). Under the de minimis regulation salary is calculated based on a fixed hourly rate of DKK 750 (app. 100€) per hour including overhead. Other costs are calculated as actual costs without overhead. IFD’s funding rates for de minimis are 60% for SMEs of the calculated cost for basis and industrial research and 33% for SMEs for experimental research activities.
A Danish SME applying for Eurostars must have a turnover of at least DKK 2 mio. Or, in the preceding financial year, have attracted an investment of at least DKK 500.000 or have an equity of at least the same amount.
- Danish Start-up companies existing for less than 3 years, must document an ability to self fund their part of the project not including other public funded projects, but considering that they also have to fund their share of such projects. IFD strongly recommends all Danish SMEs to check their financial eligibility using the Eurostars financial viability checking tool here: https://viability.eurostars-eureka.eu/
- The SME definition follows the EU definition of SMEs and the state aid rules applies for the programme, including the definition of “an undertaking in difficulties”[1].
- Danish SMEs or “single undertakings” as defined in article 2.2 in the regulations for de minimis[2], can only participate in one Eurostars application per call.
- Partners funded by IFD must be registered as Danish legal entities, have economic activities in Denmark and the activities funded by IFD and EU must be conducted in Denmark. Subcontracting must be clearly described in the application and in the budget overview or approved (using the formal change request format) by IFD and the EUREKA secretariat if it is introduced after the approval of the project.
You can find the Eurostars guidelines on financial viability here:
[1] Commission Regulation (EU) Nr. 6511/2014 of 17. June 2014, article 2, paragraph 18
[2] Commission Regulation (EU) No 1408/2013 of 18 December 2013
For specific questions related to the budget, criteria and rules of Innovation Fund Denmark, please consult:
Jens Peter Vittrup
Senior Consultant
Mobil: +45 6190 5023
Email: jens.peter.vittrup@innofond.dk
