Directive for the support of technology promotion projects co-financed by the European Regional Development Fund and the Just Transition Fund 2021-2027

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.

Current funding opportunities ERDF R&D collaborative funding

• Research and development projects (no STEP and no defense)
• Research and development projects in critical technologies (STEP)
• Research and development projects to increase defense capabilities (defense)
• Czech-Saxon joint research and development projects on the topics of "Life Science", "Digital Technologies" and "Manufacturing Technologies"

Funding is available for R&D projects that involve effective cooperation between one or more companies, at least one of which is an SME, and one or more research institutions that bear at least ten percent of the eligible costs and have the right to publish their own research results (collaborative R&D project funding).

Funding is available for R&D projects in which the establishment of a pilot line for industrial research and in particular the validation of technological principles is necessary in order to optimize products, processes or services with a view to subsequent economically viable industrial production (R&D pilot line funding).

The Free State of Saxony funds R&D projects with innovative technology-oriented content that serve to develop new or improved products and processes and are aimed at increasing the innovative strength and competitiveness of the industrial grant recipients.

Personnel expenses that are already covered by public budgets and own contributions are not eligible for funding. The own contribution must therefore be provided in cash (own funds). As personnel expenses are funded as a lump sum and this is generally lower than the actual costs incurred, additional own funds are required to cover shortfalls in personnel expenses in addition to the above-mentioned own funds. An estimate of these costs is made during the application process.

* Research and development projects in critical technologies ("STEP"):

In the project area "Funding of research and development projects in critical technologies", Saxony supports investments that contribute to the objectives of the Strategic Technology Platform for Europe (STEP) set out in Article 2 of Regulation (EU) 2024/795 of the European Parliament and of the Council (ERDF). The development or production of digital technologies and related technology-intensive innovations as well as biotechnologies should contribute to the competitiveness and sustainability of industry in the EU and reduce the EU's strategic dependencies. With a focus on the STEP objectives, investments in the development of critical technologies, including digital technologies and technology-intensive innovations (STEP sectors), are to be supported, provided that they either create an innovative, new and pioneering element of significant economic potential for the internal market or contribute to reducing the EU's strategic dependencies (STEP conditions).

Regulation (EU) 2024/795
Guidelines of the STEP Regulation
Second guidelines of the STEP Regulation C/2025/6798
Supplementary structure to the STEP project description

** Research and development projects to increase defense capability ("defense"):

The EU responds to greatly increased military threats and enables the promotion of industrial capacity building to increase defense capabilities. The rapid development of flexible and scalable industrial capacities requires, among other things, new cost-efficient, software-defined solutions. In addition, Europe's strategic sovereignty requires it to rely even more on its own European solutions in the future. With its expertise in microelectronics, AI and software, the Free State of Saxony can make a contribution here. For this reason, the Defense project will in future also support research and development collaborations to increase defense capabilities, with priority being given to dual-use capabilities. Funding will be provided for research and development projects carried out by individual companies and in cooperation with research institutions.

*** Czech-Saxon R&D joint projects

Funding is available for Czech-Saxon R&D projects with an earliest start date of 01.01.2027 and a project period of up to 24 months. For this call, the Saxon State Ministry of Economic Affairs, Labor and Transport is calculating a total funding budget of up to EUR 5,000,000, subject to available budget funds.

The R&D projects for the current call must deal with one of the following topics:

- Life Science
- Digital technologies
- Manufacturing technologies

Recipients of funding can be SMEs in the commercial sector with a permanent establishment in the Free State of Saxony and, in association with these, also large companies in the commercial sector with a permanent establishment in the Free State of Saxony and research institutions in the Free State of Saxony. The project must involve at least one company with its registered office or permanent establishment in the Czech Republic and at least one SME with its registered office or permanent establishment in the Free State of Saxony.

The Czech part of the project is funded in accordance with the specifications of the Czech Technology Agency (TACR). The Saxon part of the project will be funded in accordance with the requirements for joint R&D projects of the ERDF/JTF Technology Funding Directive 2021 to 2027.

The application for the Saxon project partners takes place in a two-stage procedure, in the 1st stage a project idea with a project description according to the structure according to the SAB form, together with a joint English-language description of the project of the Czech and Saxon partners - Common Proposal. The Common Proposal must be signed by all partners.

The project proposals submitted will be evaluated by the SAB according to the following criteria:

- Compliance of the project idea with the objectives and priorities of the ERDF/JTF program of the Free State of Saxony for the funding period 2021 to 2027 and the Saxon Innovation Strategy 2020
- Quality of the problem description and the proposed solution in relation to the state of the art (degree of innovation)
- Projects with above-average scientific and technical risk
- Competence of the applicants
- Contribution to increasing the innovative capacity and competitiveness of Saxon companies
- Contribution to the improvement of environmental conditions
- Statements on the exploitation potential of the planned development (market analysis, expected economic output from the project results).

The Saxon State Ministry of Economic Affairs, Labor, Energy and Climate Protection, the SAB and the TACR will coordinate the outcome of the application process in November 2026. Applicants will be informed of the result in writing.

Information on the funding conditions for the Czech part of the project can be found here: https://tacr.gov.cz/en/sigma-programme-announcement-of-the-16th-call-in-sigma-sub-objective-4-bilateral-cooperation/

The Technology Agency of the Czech Republic also offers a partnering tool for initiating bilateral R&D projects.

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.

Projects must be completed by 31.12.2028. The earliest start date for ERDF R&D Saxony-Czech Republic is 01.01.2027.

Personnel expenses/personnel costs for researchers, technicians and other project-related personnel are funded in the form of a lump sum for personnel costs based on a monthly or hourly rate in accordance with the allocation to a personnel cost category and the project-related job share or the actual time worked (costs per unit).

Expenditure/costs for the acquisition or production of instruments and equipment, insofar and as long as they are used for the project. If these instruments and equipment are used beyond the project, only the reduction in value determined in accordance with the principles of proper accounting during the duration of the project is eligible for funding, unless at least 80 percent of these instruments and equipment are used by a public research institution for non-economic activities in the field of research and teaching within the earmarking period specified in the grant notice.

Expenditure/costs for contract research, unless these are the main component of the project.

Expenditure/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/operating costs including materials.

Project-related overheads as flat-rate financing of indirect costs amounting to 25 percent of the direct expenditure/costs of the items personnel, equipment, materials and other expenditure (excluding: construction expenditure, third-party services, R&D contracts)

The allocation of the overhead lump sum is based on Vice-Rector Research 2/2023.

The State Ministry of Economic Affairs, Labor and Transport may set a maximum limit for eligible expenditure/costs for all types of expenditure/costs.

The EPC accompanies the projects of TU Dresden in accordance with the communication of the Vice-Rector Research 2/2023 and must be involved in the two-stage application process. The EPC advises on the funding conditions and the application process, has powers of attorney for the legally binding signature vis-à-vis the SAB and has central access to the SAB funding portal for the submission of project proposals.

Applicants must submit the following documents by email to

• Project proposal according to SAB structure with signature of coordinating Chair(project proposal structure )
• Calculation template (in Excel and PDF format)

• Additionally for projects with reference to STEP: Supplementary outline to the STEP project description

• Additionally for Czech-Saxon collaborative projects: Common Proposal

• Information on the project proposal

• Notification of third-party funding

Subsequently:

• Post-calculation/review of the calculation by the EPC
• Indication/confirmation of a source of funding by the Chair
• Verification of the source of funding by EPC/SG 1.3
• Legally binding submission of project proposals by SG 5.2 (EPC) via the SAB funding portal
• Review of the project proposals by SAB/SMWA
• Invitation to submit full application by the SAB or rejection

• Project proposal structure
• Details of the project proposal
• Calculation template (in Excel and PDF format)
• Innovation strategy brief overview
• Innovation strategy of the Free State of Saxony
• Guideline FRL EFRE/JTF Technology Funding 2021-2027
• Communication from the Vice-Rector Research 2/2023
• Notification of third-party funding
• TUD_EPC Privacy Policy
• Program page of the SAB
• Projects with reference to STEP criteria: Supplementary structure to the STEP project description
• Czech-Saxon R&D joint projects: Common Proposal

• Czech-Saxon R&D collaborative projects: Call for Czech-Saxon collaborative R&D projects