Eligibility Check: Is your project eligible for Innovation Grants?
- Arise Innovations
- Oct 13, 2024
- 17 min read
Why is grants eligibility crucial?
Imagine you want to run a marathon - but instead of training beforehand, you just lace up your shoes and start running. Doesn't sound like the best plan, does it? It's the same with applying for funding. Before you take the first step, you have to make sure that your project is even eligible for funding. This way you avoid putting time and energy into an application that has no chance from the start.
Funding programs often have very specific requirements. Whether it's about the level of innovation of your project or how it offers social or technological added value - it's worth checking these requirements carefully.
Yes, the process can be complicated - but with solid preparation you're already halfway there. And believe me, there's nothing more frustrating than realizing too late that your project falls outside the grid. So: check your eligibility before you start - that will put you on the road to success!
In this article, you will learn step by step how to check the grants eligibility of your project for funding - from the idea to the successful application. You will not only get an overview of the most important funding programs and their requirements, but also practical tips on how to avoid typical mistakes and maximize your chances of receiving funding . Whether it is a start-up, research and development or strategic partnerships - we provide you with the necessary know-how to prepare specifically for the funding applications. Your added value? Detailed instructions to put your project on the road to success - and that will save you time, stress and money!
Funding before and during the start-up
The early phase of a project is crucial and fortunately there are funding programs that specifically aim to support business start-ups and idea development . Here it is important to distinguish between academic and non-academic programs:
Academic start-up support: Programs such as eXIST are aimed at university graduates, scientists and students who want to implement an innovative business idea. The focus here is on the commercialization of research results . Support is provided for business plans , prototype construction and market analysis . The advantage of these programs: They offer not only financial support, but also advice and coaching to make the start-up idea ready for the market.
Non-academic start-up support: Programs such as the start-up bonus or KfW funding are aimed more at founders outside the university context. They aim to promote innovative ideas that have not arisen directly from scientific research. The focus here is often on economic benefit , with a focus on growth , creating jobs and innovative strength in competition.
The difference between the two approaches lies in the origin of the idea: While academic programs are strongly research-based, non-academic programs place emphasis on entrepreneurial added value and innovative strength.
Funding for research and development (R&D) after the company's founding
Once the company is founded and the first step has been taken, research and development (R&D) comes into play. There are a variety of funding opportunities at European, national and regional level that support companies in realising their innovation projects.
European funding: Programs such as Horizon Europe and the EIC Accelerator are important points of contact at the European level. They are aimed at particularly scalable and groundbreaking technologies. These often involve highly innovative projects that address both technological and societal challenges, for example in the areas of sustainability , digitalization or the circular economy.
National funding: In Germany, programs such as ZIM or KMU Innovativ are ideal for small and medium-sized companies that want to expand their research capacities. These programs particularly promote technological innovations that have the potential to transform markets. In addition to the technology, the economic viability of the project is also important.
Regional funding: Depending on the federal state, there are regional programs aimed at strengthening local innovation. These programs often offer grants to help cover R&D costs and are aimed at projects with a strong regional focus.
What is R&D? How do I know I'm doing research and development?
R&D stands for research and development and covers all activities aimed at creating new knowledge or further developing existing technologies and processes. It is crucial to understand the difference: not every small improvement to an existing product or process counts as R&D. The key is whether your project addresses a real technological or scientific challenge. But how exactly does the EU Commission define what counts as R&D?
The EU Commission distinguishes R&D into three main categories:
Basic research: This type of research is designed to gain new knowledge without immediately aiming for practical application. It deals with theoretical concepts and fundamental knowledge that could eventually serve as the basis for further developments. An example would be the investigation of new physical phenomena without already having a concrete application in mind.
Applied Research: Here, work is already being done on a specific application. Applied research aims to use new scientific findings to solve a specific problem or develop a new technology. It is about putting theory into practice. An example could be the development of a new drug based on basic biochemical research.
Industrial Development: Experimental development is about creating new products, processes or services based on existing scientific knowledge. This phase is closest to market launch - work is carried out on optimising and implementing research results, often with the aim of developing a marketable product or process. An example would be the development of a prototype for a new electric vehicle, developed on the basis of previous technical and scientific research.
So how do you know if your project is R&D?
It counts as research and development if you:
Addressing technological uncertainties or knowledge gaps that are currently unresolved.
Develop completely new products, processes or services that do not yet exist in this form.
Significantly exceed the state of the art – that is, achieve real progress that goes beyond what is currently available.
Example: Suppose you are developing a completely new method of data processing that is much faster and more efficient than anything that has existed before. Or you are working on a revolutionary material that is able to withstand extreme temperatures and is produced in an environmentally friendly way. In both cases, this is R&D because you are breaking new ground and not just aiming for a marginal improvement on existing solutions.
Typical criteria for evaluating funding applications
For your funding application to be successful, your project must meet certain criteria that are evaluated by the funders. Here are the most important points:
Level of innovation: How new and unique is your project? Funders want to know whether your idea represents a real breakthrough or just a small improvement. The higher the level of innovation, the better your chances.
Scientific and technological risks: Most funding programs are willing to support projects that involve a certain amount of risk. As long as you can demonstrate that your project will overcome technological challenges without appearing unrealistic, your chances of success increase.
Broad Impact: How broad is the social or economic benefit of your project? Funding programs such as Horizon Europe attach great importance to the fact that a project is not only economically successful, but also makes a positive contribution to societal goals such as sustainability or digital transformation.
Fit to the program : Each funding program has its own specific goals and priorities. Your project must reflect these. Check carefully what the program's priorities are and how your project fits in. ZIM, for example, could be about technological competitiveness, while Horizon Europe focuses on social benefits.
What benefit does the donor have?: Funders are not benefactors. They want to ensure that the funded project creates added value - be it through economic growth, new jobs or social progress. So clearly show why your project should be funded and how it creates long-term value.
Does your project fit the goals of the program?
Not every funding program is suitable for every project. Before you start applying, you should make sure that your project meets the strategic goals of the funding body. These programs want more than just technological innovations - they often have overarching social or economic goals that your project should support. So the question is: how can you be sure that your project meets the requirements?
How to ensure that your project is consistent with the funding agency's objectives
Funding bodies attach great importance to the fact that funded projects are not only innovative but also targeted. They often have very clear priorities, which are set out in the funding conditions or guidelines. The most common strategic objectives include:
Sustainability: Many programs - from EU funding such as Horizon Europe to national programs such as KMU Innovativ - focus on projects that make a positive contribution to the environment. Ask yourself: Does my project reduce resource consumption? Does it promote the energy transition? Does it contribute to reducing CO2 emissions? If your project has a sustainable component, you have a good chance of receiving a positive assessment.
Circular economy: The concept of the circular economy plays a central role in many funding programs. It is about using resources efficiently, minimizing waste and designing products so that they can be reused or recycled. If your project is able to support these principles, e.g. through recycling technologies or environmentally friendly production methods, it is an excellent fit for programs that focus on green technologies.
Artificial Intelligence (AI): AI is one of the future topics that is particularly supported by many funding bodies. Projects that aim at the development or application of AI technologies often have a special bonus - especially if they can be used in sectors such as healthcare, transport or Industry 4.0. Your project should consider the use of machine learning, automation or other innovative AI solutions.
Digitalization and Industry 4.0: Many programs, such as ZIM or Horizon Europe, support projects that drive digital transformation. If your project helps companies or industries to digitally reposition themselves, for example through automation, data analysis or the Internet of Things (IoT), then you've come to the right place.
Self-assessment checklist
To ensure that your project really fits the strategic goals of the funding program, you can go through this small checklist:
Is my project sustainable?
Yes: My project contributes to the reduction of CO2 emissions, resource management or energy efficiency.
No: My project has no direct impact on environmental issues.
Does my project contribute to the circular economy?
Yes: I have integrated measures for recycling and resource conservation.
No: The circular economy does not play a role in my project.
Does my project rely on innovative technologies such as AI?
Yes: I use artificial intelligence or other future technologies to develop a new solution.
No: My project focuses on other technological approaches.
Does my project support digital transformation?
Yes: My project helps companies or industries to reinvent themselves through digitalization.
No: Digitization is not a primary component of my project.
Does my project fit the specific objectives of the funding program?
Yes: My project meets several of the strategic objectives mentioned and supports the funding agency’s priority areas.
No: My project does not cover any of the stated priority objectives.
If you can answer most of these questions with "yes", there is a good chance that your project fits into the funding strategy. Programs such as Horizon Europe or ZIM have clear objectives that focus on sustainability, technological innovation and social benefits. By focusing on these goals, you can ensure the fit of your project - and increase your chances of success.
Assessing the level of innovation and economic viability
When it comes to applying for funding, two questions are crucial: How innovative is your project? and How economically viable is it? These two factors determine whether your application will be successful. Funding providers are not only looking for creative ideas, but also for those that are realistically feasible and sustainable.
What does “level of innovation” actually mean?
The level of innovation describes how novel and groundbreaking a project is. It's not just about whether you're doing something "new," but whether your project represents a real breakthrough and significantly advances the state of the art.
There are two central aspects that play a role in assessing the level of innovation:
Technological innovation: Your project should not just make small improvements to existing technologies, but offer a completely new approach or significant progress. Funding bodies prefer projects that represent a noticeable technological advancement and are forward-looking. Examples of this could be new methods in artificial intelligence, materials research or energy technology. A project that solves a problem more efficiently and quickly than all previous approaches will demonstrate a high level of innovation.
Closing a gap in the market: In addition to technological innovation, it is also important that your project has economic relevance . This means that it should either close an existing gap in the market or create a completely new market. Funding providers want to know whether your innovation is commercially viable and offers significant added value for companies or consumers. Is your product or service something that no one else has offered in this way before? Then you have a good chance here.
The level of innovation is so important because funding bodies want to ensure that the projects they finance have a long-term impact – both technologically and economically. They want their investments to help develop new technologies that will prevail in the market and have a lasting impact on various industries.
Economic factors: Is there a solid business case?
In addition to the level of innovation, your project must also be economically viable. A fascinating technical concept alone is not enough to secure funding. The economic viability of your project is also crucial because the funding bodies want to see that you have a realistic plan for how you want to finance and implement your innovation. Here are the most important factors:
Solid business case: Your project must have a clear market strategy. This means you should be able to show that there is a need for your innovation and that you have a market entry plan. Can you explain how and to whom you will sell your product? Is there a target audience willing to pay for it? Your business case should answer these questions.
Traceable expenses: Funding bodies want to ensure that you use the funds provided sensibly. The planned expenses of your project must therefore be transparent and traceable. A detailed cost breakdown - e.g. for materials, personnel, research expenses and prototype construction - shows that you know how you want to implement your project and that you practice sustainable financial management.
Long-term profitability: What is the plan after the project is implemented? Funders want to make sure that your project can support itself after funding. Do you have a financing plan that is sustainable in the long term? Are there investors or potential customers willing to invest in your product after development?
Why are these two factors so important?
Funding bodies are interested in investing their funds in projects that not only have short-term success, but also have a long-term impact on their industry or market. By assessing the level of innovation and economic viability, they try to ensure that funded projects:
Deliver real technological added value.
Achieve sustainable economic success.
Support the social or economic objectives of the funding programs.
A project that has a high degree of innovation and is well planned economically has the best chance of receiving funding. It is therefore worth thinking through these aspects thoroughly and clearly outlining them in your application.
Cooperations and networks
Many funding programs, especially in the area of research and development (R&D), rely on cooperation. The reason for this is simple: when several actors work together, innovations can be implemented more quickly and efficiently. Programs such as ZIM or Horizon Europe often require projects to be carried out in partnership with other companies, research institutions or universities. But how do you find the right partners - and what should you look out for?
Why are cooperations so important?
Funding bodies rely on cooperation because it promotes knowledge transfer and synergies between different actors. Companies, universities and research institutions often have different strengths and perspectives that can be combined in collaboration to create groundbreaking innovations.
In addition, cooperation shows funding bodies that your project is broadly positioned and combines various skills, which reduces risk and increases the chances of success. Projects that are anchored in a strong network are considered more stable and robust.
How do you find the right partners?
Finding the right partner can be crucial to the success of your project. Here are some tips on how to go about it:
Define clear goals: Before you start looking for partners, you should know exactly what skills and resources you need. Do you want to solve a technological challenge that requires special expertise? Or do you need a strong partner to support your market entry? The more precise your requirements are, the more specifically you can search for suitable cooperation partners.
Look for complementary strengths: A successful cooperation partner brings skills and expertise that you may not be able to cover in your own company. This could be technical know-how that you lack or access to important markets. Make sure that the partner complements your weak points so that you can strengthen each other.
Use existing networks: Platforms such as the Enterprise Europe Network (EEN) or cooperation exchanges of funding programs offer access to potential partners at national and European level. Here you can specifically search for partners who pursue similar goals. Industry networks , cluster initiatives and research associations are also good places to find suitable partners.
International perspective: Many funding programmes – especially at European level – require cooperation across national borders. This is especially important if you are working within Horizon Europe, where transnational cooperation is often a must. So don't be afraid to look for partners internationally.
What should you pay attention to when collaborating?
Not every partnership is automatically successful. There are a few important points you should consider to ensure that the collaboration runs smoothly:
Clearly defined roles and responsibilities: Each party should know exactly what part of the project they are responsible for. It is important that these tasks are clearly defined up front to avoid misunderstandings.
Communication and transparency: Successful cooperation depends on open and clear communication. Hold regular meetings and make sure that all partners are informed about the current status.
Shared goals and vision: The partner should have similar goals and vision for the project. Different ideas about the end results can lead to conflicts later. Make sure you are moving in the same direction.
Written agreements: Even though trust is the basis of any cooperation, everything important should be recorded in writing. This applies to the allocation of tasks as well as the distribution of profits and ownership rights to intellectual property (IP). Clear agreements create security for all parties involved.
Use existing networks and strategic partnerships
At Arise Innovations, we have built a strong network of strategic partners over the years that can help you find exactly the right collaborations. We work closely with experts in all related fields, such as IP, regulatory, financial, strategy, sales and marketing etc. who will support you in taking your project to the next level.
Whether you are looking for a cooperation partner for your research or someone to support you in commercializing your innovation - we can help you make the right contacts. Our network includes industry partners, universities, investors and consultants who can work with you to advance your vision.
Cooperation is often the key to success when it comes to funding programs. With the right partners at your side, you can both master the technological challenges and bring your project to market sustainably. Use existing networks, define clear goals and find partners who complement your strengths - then nothing stands in the way of successful cooperation!
documentation and evidence
The right documentation is the backbone of a successful funding application. Many good projects fail not because of the innovation itself, but because the necessary documents are either incomplete or do not meet the funding body's requirements. Thorough and precise documentation shows the reviewers that your project is well thought out and that you are well prepared. But which documents are crucial - and which typical mistakes should you avoid?
What documents do you need for a successful application?
Business plan: A solid business plan is often the heart of your proposal. It describes your project in detail, including the goals, target audience, market and financial plan. Your business plan should include a clear roadmap showing how you will take your project from the concept phase to market readiness. Make sure you also explain the business case : How will you generate revenue with your innovation? What market opportunities are there, and how big is the potential customer base?
Technical specifications: Research and development projects often require technical details. Here you must describe exactly which technological processes, products or procedures you are developing. Depending on the funding program, technological roadmaps, prototypes or initial results from pilot projects may also be necessary. Show that your project is technologically feasible and based on solid scientific or technical foundations.
Patents and intellectual property rights: A strong project protects its innovations. If you already have patents or intellectual property rights, you should definitely mention them in your application. Patents show that you are offering innovative solutions that are already legally protected. If you don't have any patents yet, you should still present a strategy for protecting intellectual property (IP). This signals to the funding bodies that you are acting with foresight.
Financing plan: A well-thought-out financial plan is essential. Here you specify in detail how you will use the funding and what costs will be incurred in the project. Typical items are personnel, material costs, research expenses or marketing expenses. Show that you have calculated the planned expenses in a comprehensible manner and have a realistic overview of the funds required.
Cooperation agreements (if relevant): If you are working within a consortium, you should also include the relevant cooperation agreements or letters of intent. These documents demonstrate that the partners are firmly on board and have made a binding commitment to work together. They should clearly define the roles and responsibilities of each partner.
Schedule: Many funding bodies expect a detailed project schedule that shows which milestones you want to achieve and when. A well-structured schedule signals that you have realistic expectations and can complete the project within a manageable framework.
Typical mistakes you should avoid
Even if your project is strong, mistakes in the application process can significantly reduce your chances. Here are some of the most common stumbling blocks - and how to avoid them:
Unclear or incomplete descriptions: One of the most common mistakes is that the application is not specific enough. Reviewers want to know exactly what you are doing, why you are doing it and how you are going to implement it. Avoid vague wording and instead describe your goals, technologies and methods clearly and precisely.
Missing or incorrect financial information: Incomplete or inaccurate financial plans can give the impression that you have not thought your project through. Make sure that all cost items are presented in a realistic and understandable way and also show how you will be profitable in the long term.
Overlooking formal requirements: Each grant application has specific formal requirements – whether it’s the length of the application, the format of the documents or the amount of information. Make sure you follow the program’s guidelines exactly to avoid formal rejections.
Too little focus on the fit with the program: A common problem is that the applicant has a good project, but it is not well tailored to the goals of the program. Every funding body has certain strategic priorities - be it sustainability, digitization or technological innovation. Your application should make it clear why your project fits exactly into these priorities.
Lack of evidence of the level of innovation: It is not enough to simply claim that your project is innovative. You must provide concrete evidence - this could be market analyses, technological comparisons or scientific publications that demonstrate the innovative nature of your project.
A successful application depends heavily on thorough and well-organized documentation. The key to success is to submit complete and well-thought-out documentation that presents your project as serious, innovative and viable from the outset. By avoiding typical mistakes and providing clear, precise information, you significantly increase your chances of securing funding.
Check it yourself or seek professional help?
Checking the eligibility of your project is undoubtedly a crucial step before you start submitting your application. An initial self-check can help you quickly see whether you meet the basic requirements of the funding program. With the right information and the right checklist, you can already cover many points: Does your project fit the goals of the program? Is it innovative enough? Is there a solid economic basis? These questions can often be answered well by yourself.
However, the deeper you go into the details, the more complex the process becomes. Many funding programs have specific criteria and formal requirements that are not obvious at first glance. Errors in the documentation, cost breakdown or technical specifications can later jeopardize the success of your application - even if your project is promising.
When does it make sense to seek professional help?
A more in-depth review of your project by an expert can help you identify subtleties that you may have overlooked. An experienced consultant understands the requirements of the various funding programs and knows exactly what is important when applying. They can help you:
Identify and correct weaknesses in the application.
Ensure that all formal requirements are met.
Present your project in a precise and convincing manner that meets the expectations of the reviewers.
Of course, you can cover the basics yourself, and that's also useful to get a feel for the suitability of your project. You can use our free tool for this:
But when it comes to the final details and fine-tuning, it's often worth bringing an expert on board to make sure everything is just right.
And this is where we come in: We are happy to support you in making your project eligible for funding - without replacing your own initiative, but as a supplement to ensure the best chance of success for your application. After all, it is important that all details are precisely coordinated, and this is exactly where professional help can make the crucial difference.
In short: An initial self-check is always a good idea, but if you want to make sure that everything is really correct, support from experts can give you the decisive advantage – because the competition never sleeps!
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