Subsidies for innovative technological companies in Madrid

The subsidies for the development of young innovative technological companies (Start-up) and innovative SMEs, of the Community of Madrid, pursue a four-fold objective.

Firstly, to facilitate the start-up of new innovative technology-based companies with high added value and growth potential.

In addition, to promote the growth of new technology-based companies in terms of activity generation by supporting high growth potential activities included in their business development plan.

On the other hand, to foster the growth of innovative technology-based SMEs that promote the transfer of technology and technological development in Madrid, the increase of their productivity in terms of activity generation and the growth of qualified and young employment.

And finally, to promote the collaboration of the different agents of the support system to the innovative activity and the science and innovation system, as driving elements of new ideas and projects, developed by SMEs with innovative attitude and new young innovative technology-based companies (Start-up).

Grants for young innovative technological companies in Madrid

These subsidies are endowed with an amount of 12 million euros.

The maximum individual subsidy is €250,000.

Although the minimum budget must be €200,000.

The subsidies are calculated as a percentage of the project budget, according to the following table:

TYPE OF PROJECT	SMALL ENTERPRISES	MEDIUM-SIZED ENTERPRISES
Industrial research	70%	60%
Experimental development	45%	35%
Feasibility studies	50%	50%

There is the possibility of increasing the subsidy by 15% for Industrial Research and Experimental Development projects if the project involves effective collaboration with another company. Provided that at least one company is an SME.

Taking into account that no company can support more than 70% of the project.

And they must have a research and knowledge dissemination body, as a mandatory requirement. And that it has at least 10% of the budget. Having
the right to publish the results

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Who are the beneficiaries of these subsidies?

These subsidies are known as Line 3 of action, which extends the subsidies already presented in Lines 1 and 2. They are aimed at innovative technology-based SMEs that habitually carry out an economic activity aimed at the market.

The companies must have at least one work center in the Community of Madrid.

They must be more than 5 years old at the time of application.

And the projects must include a collaboration with a research center of the CAM of at least 10% of the budget.

Excluding the furniture and financial sectors.

Requirements to be considered an Innovative SME

To be considered an innovative SME, at least one of the following requirements must be met:

Submit a report certifying that the company will develop, in the foreseeable future, new or substantially improved products, services or processes compared to the state of the art in its sector, based on technology and/or developed through technological innovation, which carry an implicit risk of technological or industrial failure. The external expert must belong to a public research organization.
The research and development costs represent a minimum of:
- 10% from the start of its activity or
- 15% in at least one of the 3 years prior to the granting of the subsidy as certified by an external auditor.

This documentation shall be submitted after the application.

What types of projects are considered for subsidies for young innovative technological companies?

Projects must be related to the priority scientific-technological lines of RIS3:

Human and social processes.
Communications and digital transformation.
Advanced enabling technologies.
Ecological transition.
Global health.
Biotechnology and agri-food.

What expenses are eligible?

Among the expenses eligible for subsidies for young innovative technological companies, we have the following.

Firstly, personnel costs. Researchers, technicians and other auxiliary personnel of the beneficiary entity to the extent that they are dedicated to the project.

Also to be taken into account are the autonomous personnel who are partners of the company and who perform management and management functions and provide services for the company for profit and on a regular, personal and direct basis.

In addition, the costs of instruments and material, to the extent and during the period in which they are used for the project. Specifically the amortization of these, based on:

Laboratory material and equipment: 72 months (6 years).
Office furniture: 120 months (10 years).
Means of transportation: 72 months (6 years).
Computer equipment, photocopiers, faxes, telephones, radio equipment or others of a similar nature: 48 months (4 years).

Also, the costs of contractual research and development, know-how and patents acquired or obtained through licensing agreements from external sources.

The costs of advice and support for innovation and business development. Such as management consulting, technological assistance and innovation support, business development and market consulting (market research and testing).

Other external services: technical assistance, consultancy or equivalent in legal, economic and financial matters, business management, marketing, diffusion and commercialization.

Reports, certifications and audits performed by auditors or experts.

Other operating expenses. Such as travel and per diem expenses directly related to the project. The costs of economic-financial and industrial audits and project monitoring. Fees paid for services provided by incubators, incubators, science parks, and other Start-up hosting entities.