Octubre 2011, Where to get financial support for R&D?

PHIG.pl » Consejos de expertos » Octubre 2011, Where to get financial support for R&D?
  • Publicación 28 octubre 2011
  • Modificado 2011-11-02 09:29:34

EUR 320 M from EU funds, PLN 727 M from the government programme, PLN 650 M from the InnoTech programme waits for domestic and foreign investors who are ready to invest in the research and development activity in Poland. This also includes numerous international programmes like EUREKA, or the new InnoMed national programme, currently at the arrangement stage. Moreover, there are available tax exemptions under Special Economic Zones (SEZ), tax relief and technological credit. Even at the end of this year and at the beginning of the next year, a call for applications is planned for, among others, the InnoTech programme or for supporting innovation in Eastern Poland.

The complete range of currently available instruments supporting research and development activities is presented in the latest report prepared by Accreo Taxand consultants in cooperation with the Polish Information and Foreign Investment Agency.

Support of R&D investment activities
Research and development centres play an important part in building an economy based on knowledge and innovation, therefore the allotment of resources from European funds for the years 2007-2013 includes support for entrepreneurs to create new and expand existing R&D centres. From the moment of actual mobilization of funds within the present financial perspective, i.e., since 2008, a systematic increase of interest in acquiring grants for R&D investments is noticeable among entrepreneurs, which is also confirmed by the fact that some of the available funds are already depleted . However, there are still support instruments available for R&D investments within the business sector in which calls for applications are planned, in particular under Sub-Measure 4.5.2 of the Innovative Economy Operational Programme “Support for investments in the modern services sector“ as well as Measure 1.3 of the Development of Eastern Poland Operational Programme “Supporting innovation“.
For Sub-Measure 4.5.2, 78.1% of the budget amounting to EUR 1 billion has already been contracted out. 56 agreements were signed with investors and 36 of them relate to creating and expanding research and development centres. There is EUR 219 M left to be allocated.
In the case of EU funds for supporting innovation in Eastern Poland allowing for, among others, the development of R&D infrastructure in companies, 78.32% of available funds have been allocated, and over EUR 100 M is still available.

There is still over EUR 320 M available to be used from both measures for investments within the R&D sector. These funds are available for large, medium and small companies, where small and medium companies can acquire as much as 70% of the qualified investment costs. The condition for obtaining funding includes creating jobs for individuals with higher education and innovation of the project, providing a competitive advantage in the market.

Funds for supporting research and development projects are also planned for in national programmes. Entrepreneurs have an opportunity for acquiring support for investments of significant expenditures that will result in creating significant number of workplaces, and also for investments related to innovation within the area of new products, processes and technologies. The Programme for supporting investments of significant importance for the economy in years 2011-2020 is an important source of support from national funds for creating and expanding R&D centres. Its budget amounts to PLN 727 M. The programme assumes supporting research and development projects within the areas of environmental engineering, biotechnology, pharmaceutical industry, power industry and aviation.

Another form of support for investments in R&D in Poland are exemptions from the corporate income tax (CIT) for companies placing their business within SEZs (condition: in the case of creating a R&D centre, investment expenditures of at least PLN 10 M or an increase of employment by at least 50 new employees).
Support of research and development works
In Poland, research and development works are mainly carried out by scientific units and research institutes. In order to support entrepreneurs in starting R&D activities, support is planned for years 2007-2013 provided under the European funds for R&D works carried by the entrepreneurs operating alone or in cooperation with the science sector. An important instrument supporting companies in this area is the Measure 1.4 of the Innovative Economy Operational Programme “Support for goal-oriented projects“. However, funds available under this programme are already almost completely contracted out (97.6%); the biggest beneficiaries are the companies from the IT, machinery, construction, electronics and pharmaceutical sectors.

However, this does not mean that all the opportunities for financial support for research and development works in Poland are depleted. National funds are still available for entrepreneurs who are ready for starting R&D activities alone or in a consortium with the science sector. An important instrument supporting entrepreneurs in their R&D activity is the InnoTech programme for the years 2011-2013. This is a continuation of previous, already completed editions, i.e., The Technological Initiative Programme I (started in 2008) and the IniTech Programme (started in 2009). The current edition of the programme focuses on direct support of entrepreneurs planning to work alone or in cooperation with the science sector. Projects submitted during the first contest are currently undergoing evaluation. A total sum of PLN 650 M is to be allocated (2011-2013).

Other sources of R&D support in Poland
The importance of entrepreneurs’ R&D activity for the development of economy was also noted at the regional level. It is reflected in the rules of distribution of EU funds under Regional Operational Programmes for the years 2007-2013. Most voivodships have planned for instruments supporting entrepreneurs in this area. The degree of utilisation of funds varies between individual regions. In some of them, competitions have already finished which have depleted all available funds while in other regions applications are still planned.

Entrepreneurs planning research projects can also use the support under the EU’s Seventh Framework Programme for the years 2007-2013. It is worth noting that the European Commission is currently preparing a programme that will replace the Seventh Framework Programme. Horizon 2020 will include the amount of approx. EUR 80 billion and will support research projects within the 2014-2020 financial perspective.

Other sources worth noting include the technological tax relief, allowing for deducting from the CIT tax base up to 50% of expenditures related to the purchase of new technologies, the EUREKA initiative directed at partnership-based research and development projects in Europe, Polish-German and Polish-Israeli contests for research and development projects related to developing innovative products and technological solutions announced by the National Centre for Research and Development (NCBiR). Moreover, NCBiR is getting ready for starting a sector programme for innovative medicine (under a code name: InnoMed).

A downloadable version is available at www.taxand.pl and www.paiz.gov.pl .