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.

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). Since personnel expenses are subsidized as a lump sum that is generally lower than the actual costs incurred, additional funds are required to cover shortfalls in personnel expenses on top of the above-mentioned own funds. A forecast for these costs is provided during the application process.

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 announcement 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)
• Details of 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
• additional information on the project 
• calculation scheme(Excel and PDF)

• Innovation strategy brief overview

• Innovation Strategy Free State of Saxony

• Guideline FRL ERDF/JTF Technology Funding 2021-2027
• Notification of the Vice-Rector Research 2/2023
• Third-party funding announcement
• TUD-EPC Datenschutzerklärung 8_23.pdf
• Program website of the SAB