Requirements for the Innovation Fund: feasibility study and business plan

+++ Innovation Fund blog series (part 4) +++ The attractive funding conditions are associated with very demanding project selection criteria. In order to be successful with the Innovation Fund, a series of well-prepared application documents are required. The two documents Feasibility Study and Business Plan are mandatory for your Innovation Fund application. They comprise a maximum of 60 pages each and offer the opportunity to describe the project in detail so that it is actually ready for realisation. 

Are these documents less important than "Part B"?

The feasibility study proves the innovative character of the project and, above all, the technical maturity of the project. The business plan then essentially explains the financial maturity of the project and the data helps to assess the business model of your project. As project maturity is very important for the Innovation Fund, these documents and information should already be largely available. Ideally, in the main part of the application, known as Part B, it is then sufficient to repeatedly refer to the feasibility study and the business plan in order to substantiate good arguments.

Feasibility study for the Innovation Fund: Which points should be addressed?

The feasibility study examines the project from all technical and operational perspectives. It begins with a general description of the process or product, including the envisaged production volume and an assessment of the availability of the necessary raw materials. This is also the right time to address the planned production site and clarify the acceptance of the relevant stakeholders (e.g. local residents). The technical maturity of the project is quantified along the established "Technological Readiness Level" (TRL) or the related "Manufacturing Readiness Level" (MRL). A risk analysis is also included in order to substantiate the techno-economic feasibility. Ecological and socio-economic effects must be analysed separately. The feasibility study is rounded off by summarising the greenhouse gas savings and other relevant key figures for the project. At best, all statements are supported by further annexes and evidence.

What characterises the project-specific business plan

The business plan is another important application document for the Innovation Fund. It provides the basis for evaluating your business idea and, ideally, convincingly sets out the chances of success as well as strategies for risk avoidance. Together with the financial information file and the detailed financial model, the Business Plan document presents the financial feasibility and maturity of the project. It starts with a well-rounded presentation of the basic project motivation. This includes the target market, competitive environment, regulations and, of course, the (innovative) business model that will be realised with all partners involved in the project.

All assumptions such as price, production volume or willingness to pay (WTP) are precisely justified, and important points such as market potential, possible trends, competitors or strategies for developing the market should be addressed in an in-depth market analysis. Classic business plan tools such as the SWOT analysis or the "Porter's Five Forces" industry structure analysis can also be used. They help to provide a plausible explanation for the calculation and to convince.

Do you need support for your application?

EurA has gained extensive experience with the EU Innovation Fund since the start of the programme. Are you also interested and would like to find out more? Then contact our EU team and we will be happy to help you!

Text: Rosmarie Reuss, Rupert Reiter