The current evaluation of the Central Innovation Programme for SMEs (Zentrales Innovationsprogramm Mittelstand, ZIM) highlights the crucial role of the programme in strengthening the innovative power of small and medium-sized enterprises (SMEs). ZIM is an established funding instrument for SMEs – and should be continued, according to the key findings of the study.
ZIM is characterised by high approval rates, attractive funding rates and prompt financial support following a positive funding decision – without a multi-stage process. This is extremely attractive for SMEs, as they often have limited human and financial resources for research and development (R&D) and are therefore dependent on the rapid realisation of their projects. They are also the programme's target group. The ZIM Evaluation Study 2024 was published on the ZIM website in July. It was conducted on behalf of the Federal Ministry for Economic Affairs and Climate Protection (Bundesministeriums für Wirtschaft und Klimaschutz, BMWK) and sheds light on the funding period from January 2020 to April 2024 under the 2020 funding guideline. In this blog article, we present the most important results of the study.
ZIM is the largest German SME funding programme in the field of research, development and innovation. Since 2020, a total of 14,000 projects with 2.3 billion euros have been approved under ZIM. The funding is used to support research and development projects (R&D projects) that are open to all topics and technologies as well as the network management of innovation networks. The approval rates (see chart) are up to 86%, depending on the services applied for.
The ZIM funding programme is divided into several forms:
The evaluation study shows that ZIM funding has a positive impact on the R&D activities of the companies receiving funding. For example, around 80% of the subsidised companies initiate additional R&D activities as a result of ZIM funding, which leads to a significant increase in these companies' expenditure on research and development . In terms of R&D expenditure, the leverage effect is estimated at around 1.9, i.e. for every euro of funding, companies spend an additional 90 cents on research and development. This is one of the most important results and one of the reasons for continuing the ZIM programme: A new ZIM funding guideline with optimised funding conditions is to be launched at the beginning of 2025.
Two of the ZIM funding services have only been available since the last revision of the 2020 guideline. The funding of feasibility studies is a low-threshold offer aimed primarily at young companies and companies without ZIM experience. This funding service focusses on technical feasibility studies and thus the potential analysis and validation of ideas in the run-up to R&D projects. This type of funding is in particularly high demand from service companies (72% share), resulting in enormous untapped potential for industrial companies.
The supplementary services for market launch, which were also introduced in 2020, can be applied for by companies carrying out approved individual or collaborative R&D projects. The study shows that applications for market launch services are submitted more frequently for individual R&D projects (23%) than for collaborative R&D projects (15%). Applications for market launch services are more frequently submitted by industrial companies (59%). The approval rate of 86% shows the high potential of this funding for the successful market launch of innovative ideas, which cannot usually be realised due to the low demand.
The benefits of membership in a ZIM-funded network are also interesting (see chart). The scientific exchange, the joint realisation of R&D projects and the application for funding for future R&D projects are at the top of the list. This demonstrates the great importance of ZIM innovation networks in technology transfer for both companies and research organisations. The valuable exchange between the network partners often leads to further R&D follow-up activities.
In principle, the ZIM programme is open to all sectors. Among the programme participants, companies in the mechanical engineering, electronics and metal goods industries are represented to an above-average extent. The proportion of industrial companies among ZIM participants is 54%. Within the service sectors, IT and media services are the most strongly represented among ZIM participants. Newcomers to funding are increasingly located in the service sectors.
From a regional perspective, companies from structurally weak regions are represented in ZIM to an above-average extent (see chart). Among others, the research-intensive federal states of North Rhine-Westphalia and Baden-Württemberg have a high number of application submissions (see chart).
Applicants opt for the ZIM funding programme for a variety of reasons (see chart). For companies, important reasons are the simpler application procedure, the openness of topics and faster approval. Recommendations from funding consultants play a very important role in individual projects. In collaborative projects, recommendations from funding consultants or the research institution are important arguments. For research organisations, the openness of topics and the rapid decision on the application are key reasons for participating in ZIM.
Although the ZIM application procedure is considered to be relatively simple, the support of a funding consultant makes the application much easier. For this reason, many companies seek external help with the application and project support. We are also happy to help you with the project description and processing of forms for the Central Innovation Programme for SMEs (ZIM). Above all, we will be happy to examine your project in a free initial consultation without obligation. Simply contact us and book an appointment.
Text: Birgit Miriam Hering
EurA AG
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