Innovative public procurement funding is intended for contracting entities referred to in the Act on Public Procurement and Concession Contracts such as municipalities, agencies and other publicly owned operators subject to the Procurement Act. The funding strives to develop innovative solutions to reform services and operations.
In Finland, the public sector spends approximately EUR 47 billion on procurements annually. Meeting the changing requirements of the coming decades requires unprejudiced development of solutions and operating models. By taking advantage of innovations, the public sector can provide better services to citizens at a lower cost. Thus, suppliers of services and products must also be required to innovate more. At its best, the public sector can contribute to the creation of new markets by supporting innovations by providing a development environment and acting as the first buyer of the solution.
Through innovative public procurement, your goal may be to add value, for example with:
We award grants up to 50% of the total costs of the preparation and development phase of the procurement. We pay the funding retrospectively on the basis of project reporting and expense reports.
You can use the Innovative Public Procurement funding for procurements that strive to reform your operations and services. Funding is not limited to a specific procurement procedure.
The funding terms and conditions describe the costs that Business Finland can fund, how we monitor your project costs, and how you should report on the progress of your project.
The funding calls are part of the EU Recovery and Resilience Facility (RRF), which promotes structural renewal in business and industry and a competitive edge based on Finnish companies' sustainable solutions. Some of the calls include funding for innovative public procurement.
Send your application and attachments via our online service. You can also keep track of the processing of your application in the online service.
In the application form, you will be asked to set 2–5 concrete and partly measurable goals for your project. The goals must relate to the concrete results of the project, the goals of the project are written in the financing decision and their implementation is monitored.
Examples of project goals:
Attach the project plan as part of the application. The plan can be either entered directly in the application form fields or attached to the application as a separate file.
We would like you to describe at least the following in the project plan:
Business Finland can accept costs starting from the date the application was submitted, at the earliest.
Eligible costs are research, development and innovation expenditure which:
Salaries and wages
The recipient of the funding may account for salaries and wages paid to a person on the basis of time monitoring from the salary allocated to the project.
Indirect personnel costs
A percentage of the salaries paid for effective working hours that have been approved for the project and laid out in the project cost estimate (max. 50%) can be accepted as indirect personnel costs.
The funder can accept up to 20% of the project's total salary and personnel costs as overheads.
Travel expenses must be in accordance with the project plan and the related working time must be recorded in the project's time monitoring.
Costs of materials and supplies
Materials and supplies purchased from externally can be accepted as invoiced; internal ones at cost price.
The cost of the equipment purchased for the project can be accepted as a direct cost of the project when it is mainly used by the project and the cost of the equipment can be recorded as expenses for the current accounting period according to the Accounting Act.
Depreciation and lease of equipment
If, according to the plan, the cost of machinery and equipment is capitalized and recognized as depreciation during its useful life, depreciation for the duration of the project is accepted.
In accordance with the project plan and invoicing, the costs of contract-based research, competence and patents, consultancy and similar services purchased from external sources on market terms or acquired under license may be accepted, when used exclusively for the project.
The following costs cannot be accepted as project costs
riikka.munne (at) businessfinland.fi
+358 50 5577 464
Plan a project and define its goals. Ensure the sufficiency of self-financing.
Submit your application through online services. Submit the additional information requested.
Business Finland will assess your application and notify you of its decision. Read the decision and its terms and conditions, and approve the decision in online services.
Arrange project accounting. Notify Business Finland of any changes.
Report your project's implementation and costs. Attach the additional information requested with your report.