Public competition for a support instrument: Co-financed grants for commercialization of innovations

The purpose of the support instrument for co-financed grants for commercialization of innovations is to encourage increased research and development activities in the private sector, to encourage cooperation between the private sector and higher education institutions and scientific-research institutions, as well as other forms of cooperation for commercialization of innovations.

The instrument is intended for enterprises that want to develop an innovative product, service or process, independently or in cooperation with another enterprise and/or institution that performs higher education activity, i.e. scientific-research activity. The instrument offers financial support to enterprises that are registered in the Republic of North Macedonia in order to enable them to develop and implement innovative solutions, including support for enterprises with high growth potential.

The support through this instrument shall be awarded to projects with a clear commercial purpose that are in the phase of a prototype (or appropriate phase depending on the type of innovative product, service, process) up to the pre-commercial (pre-market) phase.

Through this instrument, the Fund for Innovation and Technology Development provides financial support of a maximum amount of 20.000.000,00 (twenty million) denars, as follows:

• for enterprises with an average number of employees up to 50 (fifty) employees and whose annual income in the last two years is less than 2.000.000,00 (two million) Euros, financing up to 70% of the total project budget, that is,
• for enterprises with an average number of employees between 50 (fifty) and 250 (two hundred and fifty) employees and whose annual income in the last two years is more than 2.000.000,00 (two million) Euros, and less than 10.000.000, 00 (ten million) Euros, financing up to 60% of the total project budget.

The amount of realized annual income and the average number of employees shall be determined in accordance with the financial reports for 2021 and 2020.

• • the applicant should be a trade company established in accordance with the Law on Trade Companies and registered in the Central Register of the Republic of North Macedonia;
  • the annual income of the applicant should not exceed 10.000.000 (ten million) Euros, according to the financial reports for the previous two fiscal years;
  • the average number of employees according to the financial reports for the previous two years should not exceed 250 employees;
  • the applicant should not be connected (in accordance with the Company Law) with another enterprise whose annual income exceeds 10.000.000 (ten million) Euros and the average number of employees should not exceed 250 in the previous two fiscal years, except in case of connection with a higher education institution, that is, a scientific-research institution;
  • applicants with more than 3 (three) years of existence until the moment of application should not have suffered a loss in accordance with the financial reports for the last two calendar years, pursuant to Article 14 paragraph 1 indent 5 of the Rulebook and the provisions of the Public competition. Considering the economic crisis in 2020 caused by the Covid-19 pandemic, 2019 shall be considered applicable year for checking the realized loss;
  • the applicant, until the moment of application at the public call, should not have a current (active) project that is financially supported by the Fund on the basis of some of the support instruments;
  • there shouldn’t be an ongoing bankruptcy procedure or liquidation procedure against the applicant;
  • the applicant’s due liabilities on the basis of public fees and contributions should be settled;
  • no proceedings have been initiated against the applicant for forced execution of overdue monetary claims;
  • the applicant should meet the requirements of the Law on State Aid Control and the requirements of Article 6 of the Decree on the conditions and the procedure for granting horizontal aid.

   

  In an event of project proposals submitted by a consortium, the project proposal on behalf of the consortium shall be submitted by the lead applicant. The consortium members may include: companies, higher education institutions and scientific-research institutions from the country and abroad.

   

  Each consortium member should meet the following criteria:

  • the annual revenues should not exceed 10.000.000,00 (ten million) Euros, according to the financial reports for the previous two fiscal years, except in case when the consortium member is a higher education institution, i.e. a scientific-research institution;
  • the average number of employees according to the financial reports for the previous two years should not exceed 250 employees, except in case when the consortium member is a higher education institution, i.e. a scientific-research institution;
  • there shouldn’t be an ongoing bankruptcy procedure or liquidation procedure against the consortium member;
  • the due liabilities of the consortium member on the basis of public fees and contributions should be settled;
  • no proceedings have been initiated against the consortium member for forced execution of overdue monetary claims;
  • the consortium member should meet the requirements of the Law on State Aid Control and the requirements of Article 6 of the Decree on the conditions and the procedure for granting horizontal aid.

   

• • research and development activities;
  • testing activities;
  • activities related to intellectual property protection;
  • design;
  • development of pilot lines;
  • activities related to quality assurance;
  • marketing and sales activities (aimed at bringing the innovation to investment readiness and maturity for introduction in the market).

   

• • production, trade or service activities that are not in accordance with the law;
  • production and trade of tobacco, distilled alcoholic beverages and related products (beverages that contain alcohol, but are not obtained exclusively by distillation, but naturally distilled alcohol (obtained from a different but natural origin) can also be used for their production by giving the various vegetable or other products, whereby various alcoholic beverages are obtained through maceration, blending (mixing), flavoring, coloring, aging, etc., in which the ethyl alcohol content is usually higher than 15%, and they may include various types of liqueurs and cocktails and the like);
  • production and trade of weapons and ammunition of any kind;
  • casinos and other legal entities for organizing games of chance and other entertainment games;
  • research, development or technical requirements related to electronic data, programs or solutions, which refer to:
  1. a) support of any activity that is included in the above sectors from paragraphs 2, 3 and 4 of this article;
  2. b) internet gambling and online casinos and/or
  3. c) pornography;
  • natural – scientific research, development or technical applications relating to human cloning for research or therapeutic purposes; and/or for genetically modified organisms (GMOs).

   

• • gross salaries for the employees of the applicant and the consortium members who will be engaged in the project. The amounts of gross salaries of the employees engaged in the project should correspond to the established practices of the beneficiary before the commencement of the project, reduced by the amount of potential state subsidy received on the basis of salary; procurement and/or rental of equipment and consumables for research and development;
  • subcontracted research and development services (eg. testing, laboratory services, etc.);
  • engagement of research and development experts/advisors;
  • engagement of consultants for other needs that are directly related to the expected project results (expertise related to innovation management, financial management, asset mobilization, business development, marketing, legal affairs, intellectual property protection, etc.);
  • preparation and submission of a patent application, trademark and/or industrial design protection;
  • marketing costs;
  • office and business support (office space rental, overhead costs, bank fees, accounting services, hosting and other types of administrative assistance) in a maximum amount of 10% (ten percent) of the total project budget.

  Only costs incurred for activities that were carried out during the project, which are in accordance with the approved project budget and the rules and procedures of the Fund, shall be eligible for funding.

• salary supplements defined in accordance with the Law on Labour Relations;
• costs for procurement of goods, services and works from domestic public enterprises;
• repayment of interest or debt to another party;
• expenses and reservations for past and possible future losses or debts;
• exchange rate losses and penalties;
• entertainment and catering costs;
• staff recruitment costs (costs for publishing an advertisement, commissions from employment agencies, costs related to selection of candidates, etc.) and relocation costs;
• purchase of land or buildings, including renovation;
• cash payment from the project’s designated account;
• annual patent maintenance fees (with the exception of well-justified cases assessed as an allowed cost in the evaluation of the project proposals);
• costs for consulting services provided by the owner/s of the beneficiary/consortium member;
• costs for consulting services provided by persons employed by the beneficiary/consortium member;
• office space rental by a lessor who participates in the project activities or is related to the beneficiary/consortium member;
• procurement of freight transport vehicles by companies that perform freight road transport for a rent or a fee;
• procurement of passenger vehicles (with the exception of well-justified cases assessed as allowed cost in the evaluation of the project proposals);
• costs for realization of activities that were previously financed by other sources;
• costs for procurement of used equipment and
• value added tax (VAT) for all procurements referred to in paragraph 1 of this Article.
•  

• • degree of innovativeness;
  • project quality;
  • capacity of the project team;
  • market potential;
  •  

  The criteria and sub-criteria for project evaluation are indicated in the form – Evaluation Table.

Секое плаќање на ројалти се врши по стапка од 5% од годишниот приход на корисникот остварен со продажба на производот / услугата кои се резултат на проектот, до остварување на поврат на 100% (сто проценти) од износот исплатен од страна на Фондот или за период од пет години по завршувањето на проектот, во зависност од тоа кој услов е прв остварен.

Во случај доколку за времетраењето на проектот, а сѐ до одобрување на завршниот извештај од страна на Фондот, корисникот достави доказ за привлечен инвеститор кој вложил износ кој изнесува најмалку 50% од износот на финансиска поддршка доделена од страна на Фондот на корисникот, корисникот ќе биде ослободен од обврската за плаќање на ројалти. Како доказ за направената инвестиција ќе се смета договор, тековна состојба и доказ за направена уплата на инвестицијата.

The project duration for which funds have been allocated through this instrument can be up to 24 (twenty four) months.

For the purpose of financing projects under this competition for this Instrument, a total budget of 9.000.000,00 (nine million) Euros in denar counter-value has been provided.

You can download all application forms on “Download Application”.

The following should be orderly filled in, signed and printed:

• orderly filled in form for project application;
• orderly filled in form for the project budget;
• applicant’s statement on acceptance of the Fund’s requirements;
• orderly filled in questionnaire regarding the environment and
• notarized statement on the ownership – founding structure of the applicant.

Documentation provided by the Applicant:

• short biographies of the persons who are part of the project team engaged in the project (maximum for 5 (five) persons);

The project application, the project budget and the CVs should be submitted in Macedonian and English language (in PDF and Excel format) and should be attached to the application form by clicking the “Apply” button.

Other documentation related to the applicants should be submitted only in Macedonian language.

Рокот за аплицирање за јавниот конкурс за кофинансирани грантови за комерцијализација на иновациите е до 17.11.2022 година, до 14.00 часот.

• For additional information: Rulebook on the Support Instrument – Co-financed grants for commercialization of innovations

  For all additional information you can:

  • contact the e-mail address: komercijalizacija2022@fitr.mk