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The Productive Innovation Program is “a great opportunity for SMEs to make productive investments with the support of European funds” – Executive Summary

The Productive Innovation Program is “a great opportunity for SMEs to make productive investments with the support of European funds” – Executive Summary

Focusing on the industrial sector, Portugal’s new Productive Innovation Program 2030 (PT2030) offers “a great opportunity for small and medium-sized companies to carry out productive investments supported by European funds,” says Pedro Mendez, consultant at Capitalizar.

The predecessor of this initiative, the National Production Support Program (PAPN), launched in 2021 with an allocation of 100 million euros, has already closed. In all, more than 1,700 projects have been approved and some 20,000 jobs have been preserved, in a context characterized by extreme economic instability due to the Covid-19 pandemic.

Pedro Mendez, Innovation and Investment Finance Consultant at Capitalizar, explains that the main goals of PAPN were to stimulate national production, reduce dependence on foreign markets, and promote digital and environmental transformation of companies.

“The program has supported up to 60% of the volume of investments in production equipment and information technology, redesign or adaptation work, among other expenses, on a non-refundable basis for investment projects of between 20,000 and 235,000 euros. In order to obtain this support, Companies have to take on the obligation to keep the jobs created until the implementation of the project. This happened with about 20,000 publications, ”he confirms.

The specialist explains that the new PT2030 product innovation program has certain characteristics that go beyond those of the PAPN, that is, in terms of eligible expenditures and the type of beneficiaries required to be supported (industrial and tourism small and medium enterprises).

“Despite the very favorable conditions for the PAPN, this program does not have any prospects for reopening in the near future, so the new Portugal 2030 notice presents itself, especially for small and medium-sized companies located in mainland Portugal, as an opportunity to make productive investments with the support of European funds in the near future, “the consultant highlights.

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The maximum funding rate in the Productive Innovation Program is 40% non-refundable and depends on the size of the projects to be supported (from €250,000).

Eligible expenses relate to the purchase of machinery and equipment; acquisition of computer hardware, including software; construction or remodeling work; technology transfer by obtaining patent rights; license or software that is standard or specifically developed for a specific purpose; Studies, diagnoses, audits, marketing plans, architectural and engineering projects.

“The budget allocation of 400 million euros makes the incentive systems very competitive. In this way, only applications with high scores can be approved,” said Pedro Mendez, arguing that given the complexity of the current incentive system, “it is necessary for the promoter to carefully analyze the project, evaluate Subjective “from the very merit and uncompromising budget planning, because in order to start investing, it is necessary to apply.”

The tender is open until 09/29/2023 (third stage) and 12/15/2023 (fourth stage), and the investment project can be started immediately after submitting the application. In addition, this program also has more demanding indicators of achievement, namely in terms of job creation, increased turnover, increased exports, and reduced environmental impacts.