This funding is intended to support the implementation of the Innovation strategy and to strengthen the innovative power of Saxony's economy and thus its competitiveness. It especially intends to:

• Mitigate the financial risk associated with research and development (R&D) projects with above-average technical risk.
• Expand collaboration among R&D companies as well as with universities and research institutions.
• Support companies in creating pilot lines in innovative fields in accordance with the Innovation Strategy of the Free State of Saxony and thus promote the transfer of research results to commercial use.
• Intensify R&D activities and technology transfer in general.
• Bring more technological knowledge to small and medium-sized enterprises (SME).
• Involve SMEs in collaborative work with universities and research institutions.
• Expedite the transfer of R&D results to successful innovations.
• Increase the growth and the number of R&D companies in the Free State of Saxony.
• Support SMEs in overcoming the economic consequences arising from the phase-out of brown coal and intensify economic research and innovation in contribution to the transition to a climate-neutral economy.

Funding is provided for R&D projects such as those that feature an effective collaboration between one or several companies, of which at least one is an SME, and one or more research institutions that cover at least ten percent of the eligible costs and have the right to publish their own research results (R&D joint project funding).

Funding is provided for R&D projects which require the creation of a pilot line for industrial research and especially for the purpose of verifying technological principles in order to optimize products, processes or services with a view to economically viable industrial manufacture (R&D pilot line funding).

The Free State of Saxony provides funding for R&D projects with innovative, technologically oriented content which serve to develop or improve products and services. The funded projects also aim to increase the innovative strength and competitiveness of companies that receive funding.

One or more companies, of which at least one is an SME, and one or more research institutions that cover at least 10 percent of the eligible costs and have the right to publish their own research results.

If R&D pilot line research is undertaken as a joint project, a commercial enterprise in Saxony must bear the main organizational and financial responsibility for the project result and be authorized to use it.

Applicants must demonstrate the market potential of the envisioned R&D results by means of a capitalization action plan. The product or process will be considered new if it is not yet in commercial use in the European Union or if it is based on the enhancement of a product or process already on the market.

For R&D pilot line funding, the project must be assignable to one of the following innovative fields as defined by the Innovation Strategy of the Free State of Saxony: environment, raw materials, digitalization, energy, mobility or health. The creation of the pilot line must be essential for industrial research and especially for verifying technological principles in order to optimize products, processes or services with a view to economically viable industrial manufacture. Market potential and the competitive situation must indicate positive effects for growth and employment resulting from industrial production based on the research results at a production site based in Saxony.

Partial funding for a specific project in the form of a grant.

R&D projects should last no longer than 36 months.

Funding for non-commercial research institutions amounts to 90 percent of the eligible expenses/costs. This financing rate cannot be exceeded. Only the additional project expenses and costs that are not already covered by the basic funding of the research institution that are eligible for a grant may receive one. The amount of a grant to cover eligible expenses and costs of all research institutions in a joint project is limited to the sum of the eligible expenses and costs of the companies participating in the project.

• Basic funding for experimental development projects: 20 percent
• Basic funding for industrial research: 45 percent

Basic funding increases by the supplements listed below up to a maximum of 80 percent:

• +10 percent points for medium-sized enterprises according to the SME definition
• +20 percent points for small enterprises according to the SME definition
• +15 percent points for projects with effective collaborative work
• +5 percent points for particularly significant projects

Personnel expenses and costs for researchers, technicians and other project-related personnel are funded in the form of a lump sum for personnel costs on the basis of a monthly or hourly rate according to allocation to a personnel cost category and the project-related job share or completed working hours (costs per unit).

Expenses and costs for the acquisition or manufacture of instruments and equipment as long as they are used for the the project. If these instruments and equipment are used beyond the project, only a depreciation determined in accordance with common accounting principles is eligible for a grant for the duration of the project, unless these instruments and equipment are used by a public research institution for at least 80 percent of the time for non-commercial activities in the field of research and teaching within the earmarking period specified in grant agreement.

Expenses and costs for contract research, insofar as this is not a main component of the project.

Expenses and costs for the acquisition of technological knowledge and patents acquired directly or under license from independent third parties in compliance with the arm's-length principle, provided that their acquisition is not the main purpose of the project.

Other project-related operating expenses and costs including materials.

Project-related overhead as lump-sum funding of indirect costs at 25 percent on direct expenditures and costs.

The Saxon State Ministry of Economics, Labor and Transport may set a maximum limit for eligible expenses and costs for all types of these.

The EPC monitors TU Dresden's projects in accordance with the Notification of the Vice-Rector Research 2/2023 and is therefore to be involved in the preparation of the application at an early stage with regard to calculations and to ensure compliance with the funding regulations. The digital application will be submitted in two steps, starting with the submission of a project idea/project outline via the SAB funding portal, which for TU Dresden will be done via the EPC.

Project outlines and proposals can be submitted at any time. The Saxon State Ministry of Economics, Labor and Transport may publish calls for project proposals or funding applications for select topics, which are to be submitted by a specific deadline and the funding of which will be decided in a competition.

Guideline FRL ERDF/JTF Technology Funding 2021-2027

Press release SMWA

Program website of the SAB