German Federal Ministry of Economy and Technology (BMWi)

The German Federal Ministry for Economics and Technology (Bundesministerium für Wirtschaft und Technologie, or ‘BMWi’) has undertaken the task of supporting the research activities of small and medium-sized enterprises (SMEs) in all sectors of industry. The three main funding programs are ‘Innovation’, ‘Research Co-operation’ and ‘Technological Consultation’.

Within the ‘Innovation’ program, financing is made available to young technology companies for the development and market-introduction of new products, procedures and services. First of all, the fund  ‘ERP-Startfonds’ is supporting young companies during their important early founding stages. Within the 'EIF/ERP-Dachfonds' Capital from the European Investment Fund is available to recently-founded companies who have applied for Venture Capital. The offer extends to all phases of the development processes. Finally, within  the fund ERP-Innovation innovative projects are supported by means of long-term favourable-interest loans. The program ‘Sponsors of Innovative Growth’ (Innovative Wachstumsträger, or ‘Inno Watts’) is supporting both SMEs and external industrial research establishments based in low-growth regions.

Withinthe‘Research Co-operation’ program, the exchange of knowledge and expertise between companies and research establishments will be strengthened. The development program ‘PRO INNO II’ is promoting co-operation between small and medium-sized enterprises and research establishments looking to make technological leaps and reach higher levels of co-operation. The ‘INNONET’ program supports research projects consisting of at least two research establishments with at least four SMEs. The generation of regional networks between SMEs and business-friendly research establishments based in the five Eastern Federal States will be headed by the program ‘Network Management East’ (Netzwerkmanagement-Ost, or ‘NEMO’).

The ‘Technological Consultation’ program aims to increase the expertise of medium-sized businesses with the use of the most modern techniques. For this, external vocational training and transfer of technology centers are being developed, and consulting initiatives supported.

To work alongside these three funding programs, the BMWi, together with industry-partners and the KfW banking group, initiated the 'High-Tech Foundation Fund' in August 2005.This is intended to support research-based start-ups with capital during the first to second years of their existence. Alltogether, 262 million EUR has been made available. Recently founded biotechnology companies can also apply for financial support.

Furthermore, with a set of start-up funding programs, the BMWi is supporting the needs of young entrepreneurs who are creating their own companies.