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3. State incentives for specific industries

3.1. Research, development and technological innovation

A) 2013-2020 Spanish Strategy for Science and Technology and for Innovation

Encouraging innovation, technological improvement and research and development projects continues to be one of the priority objectives of the Spanish public authorities, since this is a determining factor of the increase in a country’s competitiveness and economic and social development.

Science, Technology and Innovation Law 14/2011, of June 1, 2011, establishes the legal framework for the fostering of scientific and technical research, experimental development and innovation in Spain, founded on a scheme based on the approval of the related Spanish Strategies for Science, Technology and for Innovation, which serve as multi-year reference documents for reaching the statutory objectives and as a basis for the preparation of a State Plan through which to instrument in detail the initiatives required to perform such objectives.

In line with the foregoing, at the beginning of 2013 the Council of Ministers approved, in a combined document, “the Spanish Strategy for Science and Technology and for Innovation” for the 2013-2020 period, whose essential purpose is to promote the scientific, technological and business leadership of the country as a whole and to increase the innovation capacities of the Spanish company and the Spanish economy, defining in this connection the following general objectives:

  1. Recognizing and promoting R&D&I talent and its employability: With a view to improving the System’s R&D&I training capacities, boosting labor market integration and employability of the trained human resources, both in the public and in the business sectors, and facilitating their mobility among public institutions and between such institutions and the private sector for the pursuit of R&D&I activities.
  2. Fostering excellence in scientific and technical research: Promoting the creation of knowledge, increasing the scientific leadership of the country and its institutions and fostering the creation of new opportunities which lead to the future development of highly competitive technological and business capacities.
  3. Boosting business leadership in R&D&I: Increasing the competitiveness of the productive fabric by increasing R&D&I activities in all areas and, in particular, in those industries deemed to be strategic for growth and job creation in the economies of Spain and its Autonomous Communities.
  4. Fostering R&D&I activities aimed at meeting the global challenges currently facing Spanish society.

In order to attain the foregoing objectives, and having regard to the characteristics of the environment in which the agents of the Spanish System for Science, Technology and Innovation are to pursue their activities, six priority areas of transversal action were identified: (i) defining a favorable environment which enables the pursuit of R&D&I activities; (ii) specializing and aggregating the creation of knowledge and talent; (iii) stimulating knowledge transfer in open and flexible environments which favor interaction and encourage its conversion into innovative applications, whether commercial or non-commercial; (iv) supporting internationalization and promoting the international leadership of the System; (v) fostering the intelligent specialization of territories with a view to promoting a highly competitive regional framework; and (vi) disseminating a scientific, innovative and enterprising culture throughout society as a whole, with a view to achieving a higher degree of social and institutional acceptance of the entrepreneur.

The structure of the Spanish Strategy for Science and Technology and for Innovations aimed at aligning Spanish policies with the R&D&I objectives pursued by the European Union, defined in the framework program for the financing of “Horizonte 2020” R&D&I activities, with a view to intensifying the participation of the agents of the Spanish System for Science, Technology and Innovation in the development of the European Research Space, facilitating access to sources of financing at Community level.

In short, the 2013-2020 Spanish Strategy for Science and Technology and for Innovation, as an instrument used to foster the country’s economic growth and competitiveness, defines the conceptual framework used to instrument R&D&I policies in Spain, whose specific initiatives are implemented and instrumented in the related State Plans.

B) 2017-2020 State Plan for Scientific and Technical Research and for Innovation

On December 29, 2017 the Council of Ministers approved the 2017-2020 State Plan for Scientific and Technical Research and for Innovation. Following the State Plan for the 2013-2016 period, this State Plan constitutes the fundamental instrument of the Spanish national government for the pursuit and attainment of the goals of the 2013-2016 Spanish Strategy for Science, Technology and Innovation and the 2020 European Strategy of the European Commission, instrumenting for such purposes the state aid to be used for R&D&I.

This State Plan has the nature of a Strategic Plan pursuant to Subsidies Law 38/2003, of November 17, 2003, and the funds allocated thereunder are granted in accordance with the principles of publicity, transparency, competition, objectivity, efficiency and non-discrimination, and on the basis of a scientific and/or technical assessment performed by specific bodies according to public criteria set forth in the related orders of specifications and calls for aid applications.

The objectives of the 2017-2020 State Plan for Scientific and Technical Research and for Innovation are closely related to those of the 2013-2016 period, given that both Plans are associated with the 2013-2020 Spanish Strategy for Science, Technology and Innovation. Nonetheless, they were reviewed and brought into line with the priorities of the Spanish Science, Technology and Innovation System for the coming years, so that the projected initiatives have a greater impact, enhance the efficiency of the resources used and make it possible to exploit the strengths of the System as well as to work toward the elimination of its weaknesses.

In summary, the common denominator of all the goals of this State Plan is to contribute to and bolster the country’s scientific and technological leadership and innovative capacities, as essential elements in the creation of quality employment, the enhancement of productivity and business competitiveness, the improvement of the provision of public services and, ultimately, the development and welfare of citizens, including most notably the following objectives: (i) favoring the incorporation and training of human resources in R&D&I; (ii) enhancing the scientific leadership and research capacities of the R&D&I system; (iii) activating private investment in R&D&I and the technological attraction of the production fabric; (iv) boosting the potential and the impact of research and innovation aimed at meeting society’s challenges; (v) promoting an open and responsible R&D&I model resting on the company’s involvement; and (vi) coordinating synergies and efficiently implementing R&D&I policies and their financing at regional, state and European level.

The initiatives of the national government set forth in the Plan are organized into the following scheme:

State Programs
Promotion of talent and its employability.Generation of knowledge and scientific and technological enhancement of the R&D&I system.Business leadership in R&D&I.R&D&I aimed at the challenges of society.
State Subprograms
Strategic Actions
  • Training.
  • Incorporation.
  • Mobility.
  • Creation of knowledge.
  • Institutional strengthening.
  • Research infrastructures and scientific and technical equipment.
  • Business R&D&I.
  • Bolstering of enabling technologies.
  • Health, demographic change and welfare.
  • Bioeconomy: sustainability of primary and forestry production systems, food security and quality, marine and maritime research and bioproducts.
  • Safe, efficient and clean energy.
  • Intelligent, sustainable, connected and integrated transportation.
  • Climatic change and the use of natural resources and raw materials.
  • Social sciences and humanities and science with and for society.
  • Digital economy, society and culture.
  • Security, protection and defense.

  • Connected strategic action for industry 4.0.
  • Strategic action for health.
  • Strategic action for economy and digital society.

In the area of administrative management, the Plan attributes the management of the financing instruments provided for in the State Programs to the two R&D and IT financing agencies created under Science, Technology and Innovation Law 14/2011: the Center for Industrial Technological Development (Centro para el Desarrollo Tecnológico Industrial or CDTI) and the State Agency for Research (Agencia Estatal para la Investigación) soon to be created.

The Plan also covers the approval of Annual Action Programs as budgetary planning instruments which will detail the initiatives to be carried out during the year, the projected annual funding and the initiative’s indicators (management and the attainment of goals).

At the end of the year, all necessary data on each of the previous year’s initiatives will be uploaded into the Science, Technology and Innovation Data System, which will produce a definitive map of the initiatives offered, including management and monitoring indicators for each call for aid applications.

Notwithstanding the provisions of each call for applications for the respective programs and subprograms, in general, the aid included in the State Plan has the following characteristics:

BeneficiariesForms of funding
  • Individuals.
  • Public research agencies, pursuant to Science, Technology and Innovation Law 14/2011.
  • Public and private universities with proven R&D capacity, pursuant to Organic Law 6/2001 on Universities.
  • Other public R&D centers.
  • Public and private health entities and institutions related to or assisted by the National Health System.
  • Certified Health Research Institutes.
  • Public and private non-profit entities (foundations and associations) engaging in R&D activities.
  • Enterprises (including SMEs).
  • State technological centers.
  • State technological and innovation support centers.
  • Business groupings or associations (joint ventures, economic interest groupings, industry-wide business associations).
  • Innovative business groupings and technological platforms.
  • Organizations supporting technological transfer and technological and scientific dissemination and disclosure.

  • Subsidies.
  • Non-repayable loans.
  • Partially repayable loans.
  • Repayable advances.

For more information please see the following website of the Ministry of Science and Innovation (http://www.ciencia.gob.es/).

C) Strategic Action on Digital Economy and Society

This strategic action comprises a set of measures aimed at the progressive adoption of digital technologies and the development of the Information Society with a view to the transformation of the economy and society towards a digital environment that cuts across all sectors of business activity.

Included within this strategic action, led by the current Ministry of Economic Affairs and Digital Transformation, are the measures set out in the Digital Agenda for Spain approved in 2013 and structured into six headings: (i) boosting the roll-out of networks and services to guarantee digital connectivity; (ii) developing the digital economy for the growth, competitiveness and internationalization of Spanish enterprises; (iii) improving e-Government and adopting digital solutions for the efficient provision of public services; (iv) strengthening trust in the digital sphere; (v) promoting the R&D&I system in information and communication technology (ICT), and (vi) encouraging the inclusion and digital literacy and training of new ICT professionals.

The action is set to be implemented through various instruments such as competitive calls for applications for domestic and international aid, agreements with third parties, loans, venture capital, innovative public procurement, awareness initiatives, direct implementation programs and other European financing instruments.

The rules governing the grant of aid in the area of information and communication technology (ICT) and the Information Society, within the context of the strategic action on the economy and society, are contained in Order IET/786/2013, of May 7, 2013. The main features of this system of aid are as follows:

  • It can take the form of subsidies, loans or a combination of both, with maximum financing, in the case of loans, of up to 100% of the eligible cost of the projects or initiatives, with a variable interest rate to be specified in each call for applications and with a maximum repayment period of 5 years, including a grace period of 2 years.
  • The beneficiaries will be enterprises (distinguishing between SMEs, individual micro-enterprises, public corporate enterprises and state-owned business entities), research bodies and business groupings or associations (EIGs, joint ventures, industry business associations and innovation clusters).
  • The following will be eligible for aid: Industrial research projects (planned research or critical studies aimed at acquiring new knowledge and techniques useful for creating new products, processes or services) and experimental development projects (acquisition, combination and use of pre-existing knowledge and techniques, of a scientific, technological or business nature, for the development of plans, structures or designs of new, modified or improved products, processes or services).
  • The costs eligible for subsidies are, among others, personnel costs, instrument and material costs, contractual research costs, technical knowledge and patents acquired or obtained under a license and additional overhead costs directly deriving from the project.

D) Center for Industrial Technological Development (CDTI)

The CDTI (state-owned business entity under the auspices of the Ministry of Science and Innovation) promotes the technological innovation and development of enterprises, its main objective being to contribute to the improvement of the technological level of enterprises through the pursuit of the following activities:

  • Technical/economic evaluation and financing of R&D&I projects developed by enterprises.
  • Management and promotion of Spanish participation in international technological cooperation programs.
  • Promotion of the international transfer of business technology and support services for technological innovation.
  • Support for the creation and consolidation of technologically based enterprises.

Notwithstanding the more detailed presentation found on the CDTI website (www.cdti.es), the lines available to the CDTI for the financing of R&D&I projects include most notably the following:

1) R&D Projects:

This line has the purpose of financing applied business projects for the creation and significant improvement of a productive process, product or services, including both industrial research activities and experimental development.

Six categories of projects are eligible for financing under this line:

  • Individual R&D projects, for projects presented by a single enterprise.
  • National Cooperation R&D Projects for projects submitted by business groupings (EIGs or consortiums), made up of a minimum of two and a maximum of six autonomous companies.
  • International Technological Cooperation Projects, for projects presented by Spanish enterprises participating in international technological cooperation programs managed by the CDTI (multilateral, bilateral programs, international programs with certification and unilateral monitoring by this body).
  • European Technological Cooperation R&D Projects, related to the boosting of the technological capacity of Spanish companies in order to participate in the following initiatives and projects: (i) Important Projects of Common European Interest; (ii) Joint Technology Initiatives projects, and (iii) Projects deriving from ERANETS (European networks of public agencies dedicated to the financing of R&D&I at national/regional level).
  • International Technological Training R&D Projects, related to the boosting of the technological capacity of Spanish companies in order to participate in bidding processes for projects and programs managed by international organizations in which Spain is represented by the CDTI and with which the CDTI has cooperation agreements (major international scientific-technological facilities and international space programs).
  • R&D projects for the development of dual technologies, related to the boosting of the technological capacity of Spanish companies in order to bid in Defense and Security matters.

The minimum eligible budget for these projects of the participating companies is €175,000, the duration required being between 12 and 36 months for all individual projects and between 12 and 48 months for national cooperation projects.

The instruments for financing the projects included in this line consist of partially repayable loans (only a part of the aid granted must be repaid to the CDTI), for up to a maximum of 85% of the total budget of the approved project (the company must finance at least 15% of the budget for the project with its own funds). The non-repayable tranche is between 20% and 33% of the loan.

In these projects, the costs eligible for subsidies will be, among others, personnel costs, instrument and material costs, contractual research costs, technical knowledge and patents or certain costs deriving from consulting and equivalent services aimed exclusively at research activities, in addition to supplementary general expenses incurred directly on the research project and audit costs.

Regarding the advances of the aid that can be obtained, the CDTI offers a 35% advance of the aid granted, up to a limit of €250,000, without requiring additional guarantees. The loan is repayable within a period of 7 to 10 years, including a grace period of 2 to 3 years.

2) Direct Innovation Line

This financing instrument, directly managed by the CDTI and co-financed with Structural Funds through the Research, Development and Innovation Operating Program, under the “de minimis” rules, is aimed at enterprises which carry out technological innovation projects whose objectives cover one or more of the following cases: (i) active incorporation and adaptation of technologies entailing an innovation at the enterprise, as well as processes aimed at improving technologies and adapting them to new markets; (ii) the application of the industrial design and engineering of the product and process for technological improvement; or (iii) application of a new or significantly improved production or supply method (including significant changes in the area of techniques, equipment and/or software).

Projects cannot last less than 6 months or more than 18 months and the minimum eligible budget will be €175,000. The amount of the financing will be 75% of the eligible budget (CDTI funds), which can be increased to 85% if co-financed by ERDF funds.

Investments eligible for financing will include the acquisition of new fixed assets which imply a major technological advance for the company carrying out the project, personnel costs, material and consumables, external collaborations, overhead costs and audit costs.

It will be possible to opt for an advance of 35% of the aid granted (up to €400,000) without additional guarantees, or of up to 75% by providing guarantees in respect of the difference which the CDTI regards as being adequate.

3) Science and Innovation Missions

This program is aimed at providing support to major R&D-intense strategic initiatives implemented with public-private partnerships, which must have the significant participation of research bodies, technological centers and universities. The purpose of the program is to contribute to the implementation of the following missions: (i) providing safe, efficient and clean energy for the 21st century; (ii) ensuring sustainable and intelligent mobility; (iii) boosting a large, sustainable and healthy agri-food industry; (iv) boosting the Spanish industry in the 21st century industrial revolution; and (v) giving a sustainable response to disease and the needs of an aging population.

Aid granted under this program takes the form of subsidies targeted at large enterprises formed by between 3 and 8 shareholders, of which at least one must be an SME, and headed by a Large Enterprise (“Large Enterprises Mission”), and at SMEs formed by between 3 and 6 shareholders, all of which are SMEs, and headed by a Medium-Sized Enterprise (“SMEs Mission”). The minimum eligible budgets will be between €5 and €10 million (Large Enterprises Mission) and between €1.5 and €3 million (SMEs Mission), with a minimum budget per participant of €170,000, without any participant being responsible for more than 50% of the project’s budget. Industrial research must represent at least 85% of the eligible budget of the Large Enterprises Mission (60% in the case of the SMEs Mission). Also, at least 20% (Large Enterprises Mission) and 15% (SMEs Mission) of the budget must be outsourced to knowledge-generating centers.

The amount of the subsidies can attain the following maximum limits of the eligible budget, depending on the size of the enterprise: 65% Large Enterprise, 75% Medium-sized Enterprise and 80% Small Enterprise. Eligible expenses include staff costs, costs of instrumentation and materials able to be inventoried, costs of contractual research, technical know-how and patents acquired at market prices general expenses and additional operating expenses incurred directly on the project or audit costs.

4) INNODEMANDA Program

INNODEMANDA Program is a financing instrument to support the technological offer in innovative public procurement processes convened by the authorities. This program finances an enterprise’s innovation costs required in a particular public procurement process, in such a way that the contracting body has more competitive offers, fostering a greater use of innovative products and services by the Administration.

The operation of this program requires a synchronization between the scheduled time of a particular procurement and the time of application, analysis and resolution of the R&D by the CDTI required for participation in the tender.

To this end, it is necessary the formalization of a Adhesion Protocol between the CDTI and the contracting bodies, specifying, among others, the most significant milestones established in the invitation to tender, as well as the implementation deadlines, conditions and legislation applicable to the financing offered by the CDTI for R&D activities.

5) NEOTEC Initiative

The aid under the NEOTEC Initiative finances the start-up of new business projects that require the use of technologies or knowledge developed from a research activity, in which the business strategy is based on the technological development.

Technology and innovation must be competitive factors that help to set the enterprise apart and serve as a basis for its long-term business strategy and plan, with the maintenance of its own R&D lines.

The aid can be used for business projects in any technological and/or industrial area. The 2020 call for aid applications did not admit business projects whose business model was primarily based on services to third parties, without their own technological development.

The aid will take the form of subsidies, and beneficiaries must be innovative small companies.

The maximum budget of the 2020 call for aid applications was €25 million.

6) CIEN Strategic Projects

The Strategic Program of Consorcios de Investigación Empresarial Nacional (CIEN) (National Business Research Consortiums) finances major industrial research and experimental development projects, carried out by business groupings on the basis of effective cooperation and targeted at the performance of planned research in tomorrow’s strategic areas with potential international projection.

It also pursues the promotion of public-private cooperation in the area of R&D and, accordingly, requires the appropriate outsourcing of activities (representing at least 15% of the total budget) to research bodies (of which at least one must be public).

The eligible industrial research and experimental development activities are those defined in European legislation on state aid.

Since 2019, applications for CIEN projects have been able to be submitted on an ongoing basis, for an entire year.

The aid takes the form of partially repayable loans, for up to 85% of the approved budget, with a maturity period of between 7 and 10 years and a grace period of between 2 and 3 years.

The minimum budget which may be applied for is €5 million, the maximum being €20 million. Similarly, the loan includes a non-repayable tranche equal to 33% of the aid, calculated based on a maximum of 75% of the coverage of the loan.

7) INNVIERTE Program

The INNVIERTE Program was initiated in 2012 with a view to promoting business innovation through support to venture capital investments in Spanish technologically based or innovative enterprises.

In 2019, as part of this program, the CDTI started up a co-investment initiative open to investors regulated by the CNMV, such as venture capital companies and investment companies, also including the possibility of supporting professional investors, such as corporate investors.

This initiative, in which INNVIERTE accompanies professional private investors in periods of investment, delegating the management of investees to them, is instrumented in two phases: (i) official approval of professional private investors specializing in technology, through the execution of a co-investment agreement between them and INNVIERTE; and (ii) joint investment in technologically based companies that are in line with INNVIERTE’s investment strategy, presented by the approved co-investors pursuant to the co-investment agreement.

8) Multi-regional Operational Program for Intelligent Growth

The CDTI, as an ERDF funds manager, designed a regional instrument aimed at boosting the generation of innovative capacities in less developed areas through the funding of experimental development projects carried out by business consortiums: ERDF INNTERCONECTA.

With this instrument, the CDTI aimed to boost cooperation, on projects targeted at the regions’ needs and at generating innovative capacities that foster greater territorial cohesion.

In the 2014-2020 period, calls for aid applications will be co-funded through the Multi-regional Operational Program for Intelligent Growth. The basic requirements for a transaction to be selected are: (i) it must comply with national and Community legislation on European Structural and Investment Funds and on State Aid; (ii) it must be in line with the objectives of the related Operational Program; (iii) it must be in line with the strategy of the National R&D&I Plan; (iv) it must support R&D activities; and (v) it must help to generate a competitive advantage for the enterprises in their respective fields of action and, at the same time, serve to increase the level of technical knowledge in the industry in which they operate.

9) EIB Financing

The European Investment Bank (EIB) granted Spain a loan to serve as support for investment projects carried out by SMEs and mid-and small-cap companies with less than 3,000 workers.

The EIB financing is to be used for loans granted by the CDTI to R&D projects with a minimum term of 2 years. Projects of small size and investments with a projected maximum cost of €25 million can be financed, although the EIB’s contribution cannot exceed €12.5 million.

Potentially eligible are loans requested by companies established in an EU Member State and which are (i) independent SMEs with less than 250 workers prior to the investment; or (ii) independent mid-cap companies with less than 3,000 workers prior to the investment.

Nearly all economic industries are eligible, save for certain exceptions: weaponry, arms and ammunition production; military or police installations or infrastructures; materials or infrastructures used to limit individual rights or personal freedom; games of chance; tobacco-related industries; activities entailing the use of live animals for experimental or scientific purposes; activities whose impact on the environment cannot be mitigated or compensated; activities that are controversial for moral or ethical reasons; activities whose sole purpose is real estate speculation.

10) Cervera Technology Transfer R&D Projects

This financing line is aimed at business research and development projects of an applied nature for the creation or significant improvement of a production process, product or service, which can be shown to have a technological aspect which makes them different from the technologies existing in the market.

The essential characteristic of projects of this type is that they must necessarily be developed by a limited group of technological areas (Cervera priority technologies) and state-level Technological Centers must be contracted to perform certain activities in the project.

The Cervera priority technologies pertain to 10 main areas: (i) advanced materials; (ii) eco-innovation; (iii) energy transition; (iv) intelligent manufacturing; (v) health technologies; (vi) safety and health in the food chain; (vii) deep learning and artificial intelligence; (viii) advanced mobile networks; (ix) intelligent transport, and (x) the protection of data.

State-level Technological Centers must be given a relevant role in the projects, which cannot represent less than 10% of the total budget approved for the project.

This line of aid consists of partially repayable loans, with financial coverage of up to 85% of the approved budget and a repayment period of 7 or 10 years, including a grace period of between 2 and 3 years. The non-repayable tranche accounts for 33% of the aid and advances equal to 35% of the aid may be obtained, up to maximum of €250,000, without additional guarantees being required.

The minimum project budget is €175,000 and, for individual projects, the duration is between 1 and 3 years.

The items eligible for funding in the case of these projects include staff costs, costs of instrumentation and materials, contractual research costs, technical know-how and patents, certain consulting costs and equivalent services used exclusively for the purposes of the research activity, plus supplementary general costs generated directly by the research project, and audit costs.

11) Internationalization of R&D&I

At international level, the CDTI offers support to Spanish enterprises and promotes technological cooperation abroad through various programs aimed at financing cooperation projects and initiatives, including most notably:

  • EUROSTARS Program

    The aim of this EU Program is to aid the development of transnational market-based projects by SMEs engaging in intensive R&D activities. It is ultimately about favoring the generation of projects of this nature which represent a break with the technical state of the art and a commercial challenge in such a way as to enable these enterprises to take a significant qualitative leap in their position on the market.

    The mechanisms envisaged for materializing the aid designed under this program are fundamentally the following: (i) creating a sustainable European mechanism to support these organizations; (ii) promoting the creation of economic activities based on R&D findings and introducing products, processes and services on the market more rapidly; (iii) promoting technological and business development and the internationalization of such enterprises; and (iv) securing the public funding of those participating in the projects.

    In Spain, the Ministry of Science and Innovation, through the CDTI, is in charge of managing this program.

  • ERA–NET

    The ERA – NET scheme consists of a set of European networks of public bodies that provide financing for R&D&I at national level, with the objective of coordinating the research and innovation programs of the European states and regions, and of preparing and carrying out joint calls for aid applications aimed at boosting cross-border research, technological development and innovation projects.

    ERA-NET calls for aid applications comprise an international phase and a national phase, each of which has its own eligibility requirements and application procedures, it being essential to comply with all of them in order to obtain the financing (only projects approved in the international phase of the calls can become candidates eligible to receive CDTI financing).

  • PRIMA

    On June 13, 2017 the European Parliament approved the creation of PRIMA-Partnership on Research and Innovation in the Mediterranean Area, a new research and innovation initiative in the Mediterranean area aimed at fostering a more sustainable management of water, agricultural and agro-food chain systems. Through cooperation-based R&D projects, PRIMA has the goal of developing research and innovation capacities, as well as developing knowledge and common innovative solutions for agro-food and water supply systems in the Mediterranean area, so as to make them sustainable, in line with the Sustainable Development Goals of the 2030 UN agenda.

    The eligible consortium must be formed by 3 entities from three different PRIMA countries, of which at least one must be established in one of the following European States: Croatia, Cyprus, France, Germany, Greece, Italy, Luxembourg, Malta, Portugal, Slovenia and Spain, and at least one other in Algeria, Jordan, Egypt, Lebanon, Morocco, or a third country which shares borders with Israel, Tunisia or Turkey.

    This initiative is broken down into two sections: Section 1 (funded by the PRIMA Foundation) and Section 2 (funded by the national financing bodies of the participating countries). Section 1 has a total estimated budget of €33 million, while that of Section 2 is €38.15 million. The Annual Working Plan for 2020, with information on calls for aid applications, is posted on the initiative’s website http://prima-med.org/.

12) COVID-19 aid

Given the declaration of a state of emergency due to the COVID-19 public health crisis, as well as the measures adopted in Royal Decree-Law 8/2020, of March 17, 2020, on extraordinary emergency measures to confront the economic and social impact of the pandemic, the CDTI has implemented a number of important actions:

  • Exceptional measure, to support the maintenance of high value added activities and the creation of capacities for the reactivation of the economy, such as: (i) the exemption of guarantees under partially refundable aid for SMEs and midcaps; and (ii) increased flexibility for refunds of partially refundable and refundable aid.
  • Subsidies in favor of projects specifically targeted at confronting the public health crisis declared due to COVID-19, which permit short-term implementation and start-up with specific and early results appropriate to the current situation:
    • R&D projects referring to industrial research and/or experimental development activities (research on vaccines, medicinal products and treatments, medical devices and hospital and medical equipment, as well as their efficient production) commencing in 2020 and ending on October, 31, 2021 at the latest.
    • Investment projects for the manufacture of products in response to the pandemic (medical and pharmacological materials, medical devices, hospital equipment, etc.) commencing in 2020 and ending on October 31, 2020 at the latest.

    Potential beneficiaries of these subsidies are not only enterprises with tax domicile in Spain, but also Technological Centers and/or Innovation Support Centers. One subsidy will be granted per beneficiary, to be paid in a single payment upon the decision to grant it.

    With an initial budget of €12 million, aid will be granted directly, the maximum intensity will be 80% of the eligible budget (with a ceiling of €650,000 in the case of investment projects) and the amount able to be individualized will be determined in view of the real eligible cost of the project, the characteristics of the beneficiaries and the available budget.

The CDTI also provides personalized advice to companies and entrepreneurs on the financing instruments that are best suited to their R&D&I-related needs and projects. To access this service, interested companies need to fill out an electronic form and attach to it the documentation on the project being submitted to the CDTI for its assessment (more information at http://www.cdti.es).