Technology investment programme for industrial enterprises

Viimati uuendatud (15. MARCH_SHORT 2010 12:37) Kirjutanud Raido 13. JANUARY_SHORT 2009 17:38

The technology investment programme for industrial enterprises is co-financed by the European Regional Development Fund. Applications are being processed in separate rounds.

Submission of applications for the third round of the technology investment grant programme starts on 8th of February 2010 and lasts until 30th of April 2010. Budget for third round is 229 million Estonian kroons.

In addition to the submission of applications for the abovementioned third round starting from 8th of February 2010 high impact investors and subcontrctors can apply for technology investment grant in a separate tender. The budget for the the tender is 100 million Estonian kroons and the tender ends when the grant decisions have reached to the 100 million budget.

Enterprise Estonia provides free application related consultancy for all the applicants throughout the entire period. In addition,  information events introducing the programme are held between 9th and 22nd of February in various locations around Estonia as scheduled here.

Conditions and procedure for supporting technological investment in an industrial enterprise: Regulation No 44 of the Minister of Economic Affairs and Communications of 4 June 2008.

The documents and application forms for the third round were published with the opening of the application period. Translations can be found here: Instruction for preparing the business plan, Instruction for preparing the investment project plan.

Objectives of the technology investment support for industrial enterprise

• To increase the productivity, export potential and added value of products of industrial enterprises.
• To open new markets.
• To support the re-location of employees to the jobs creating higher added value.

The investment must lead to expansion of the company, diversification of the product mix, or total re-organization of the production process. The investment project should not only replace an existing solution.

Who can apply for the support?

• Companies entered in the Estonian Commercial Registry with the investment project belonging to division C "Processing industry" according to EMTAK 2008.

That includes:

• High impact investors - companies entered in the Estonian Commercial Registry with planned technology investment exceeding 100 million kroons and creating over 100 new jobs during a 24-months period.
• Subcontractors - companies entered in the Estonian Commercial Registry with intended subcontract with high impact investor or large Estonian production company whose export sales exceeds 60% of turnover.
• Other companies already active in or starting with production.

NB! Companies with ongoing technology investment projects supported by Enterprise Estonia are not accepted to apply in the third round.

What is the support provided for?

The support can be sought for projects lasting up to 12 months for the acquisition of tangible assets, and for intangible assets that are required to bring the acquired tangible assets into use.

How big is the support?

Up to 40% of the project cost is provided to the small and medium-sized companies. Up to 20% of the project cost for large companies.

High impact investors and subcontractors which are large companies are supported with 25% of the cost, high impact investors and subcontractors which are SME's are supported with 40% of the cost.

In either case, the total project cost should be at least 1 million kroons.