European Commission - Internal Market, Industry, Entrepreneurship and SMEs

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Research and development/ innovation (Joint funding of the Salzburg state and the National Research Promotion FFG)

Title of measure
Full title in national language:
Forschung und Entwicklung/ Innovation - Eine Aktion des Landes Salzburg und der Forschungsförderungsgesellschaft des Bundes (FFG)
2008 to 2018
Policy objectives Plus
1.3. Research infrastructures
4.1. Direct funding to business R&D and innovation
Presentation of the measure:

At the core of this measure are research and innovation support for a future-oriented economic development of the Salzburg state. These are crucial elements of the regional technology and innovation policy. Primary goals are to increase research activities and broaden the research base of regional companies. Support can be granted to companies or consortia with research focus in Salzburg, individual researchers, research groups and research facilities located in Salzburg.
In the framework of this measure – that combines federal and regional funds – up to 70% of eligible project costs for research projects of regional companies can be supported. Funding is granted jointly by the federal state of Salzburg and the Austrian Research Promotion Agency (Forschungsförderungsgesellschaft, FFG), the national funding institution for industry-oriented research in Austria. Companies can apply for basic FFG funding; after a positive evaluation, a joint federal/regional support contract is developed. Eligible costs embrace all direct and additional costs related to the research project. Projects in applied and market-oriented research can be supported if research activities are mainly realised in Salzburg.
The federal/regional combination of support is realised as follows: Basic support of FFG with about 20% FFG grants and about 30% FFG loans (with fixed interest rate; duration: 3.5 years), and additional support for the Salzburg state with a loan of up to 20% of eligible project costs. Since 2015, an additional bonus (5% of eligible costs) can be granted for small and medium-sized enterprises. The state provides up to €2m for the years 2015 and 2016 for this regional support.
Project proposals can be submitted continuously, and the programme is open to all technologies and research fields.

Budget, source and type of funding
National public funds
Regional public funds2,000,000
EU Structural funds
Private funds
Form of funding provided
Subsidised loans (including interest allowances)
Policy learning
To what extent the measure can be considered as a success and worthy of policy learning?:
There is evidence of an impact of the measure based on verifiable indicators or an evaluation (e.g. sales generated from new products, jobs created, etc.)
Evidence of outcomes based on evaluation and other evidence:

Projects funded in the frame of FFG's basic programme are regularly evaluated. They show the high effectiveness of the measure in terms of innovation, research activities, their exploitation and commercialisation, as well as on employment, co-operation and new markets. Specifically for Salzburg, the 2016 report shows for instance the positive effects on the achievement of project goals, contacts and cooperations.

What are the most important “Do’s and Don’ts” that regional stakeholders should be aware of when launching a similar measure?:

The measure should be consistent with the economic structure and the technology and innovation strategy of the region and requires a certain budget. The interplay between federal and regional measures means that a higher amount of funding can be provided, which leads to higher leverage effects.

Would you recommend this measure as an example of regional good practice to policy-makers from other regions ?:
Evaluation report(s)