Business Finland renews its funding service for company research and development activities
Business Finland encourages companies seeking growth to deepen their understanding of customer needs and to deliver intangible value to their customers. This is promoted by funding work included in research and development projects that prepares for the commercial utilisation and market launch of the solution being developed.
Learn more about the revised funding service
Possibilities of preparing for the utilisation of results during the R&D project
Business Finland has revised its research and development funding criteria and decided to place greater emphasis on the possibility of preparing for the commercial utilisation of results during the R&D project.
"Finland’s growth is increasingly driven by intangible capital. The decisive factor is how innovations related to products, services, or business processes are linked to customer insight, user experience, branding and commercialisation. Our goal is not only to generate a record amount of private R&D investment but also to leverage further investment in other high-productivity intangible and tangible assets. That is why we are revamping the content of our core funding service," says Timo Metsä-Tokila, Executive Director at Business Finland.
Photo: Susanna Lehto
"This is not a new funding service, but rather an opportunity to use research, development, and piloting funding for R&D work that accelerates the utilisation of project results," says Metsä-Tokila.
Our goal is not only to generate a record amount of private R&D investment but also to leverage further investment in other high-productivity intangible and tangible assets.
Funding to increase understanding of customer needs and markets
As part of an R&D project, Business Finland can provide funding for activities such as analysing customer needs, assessing the market situation, planning market entry strategies, as well as surveying distribution channels, target market legislation or the IPR landscape.
The funding can also be used for test marketing, i.e. testing the results of an R&D project with real customers. The duration and target audience of the test marketing campaign must be limited, and the information gathered about customers must be used to develop the new solution. Marketing a finished product is not the same as test marketing.
The measures described above must be directly related to the potential applications of the solution being developed in the R&D project, and the costs must meet the conditions for R&D funding.
Activities that promote utilisation may account for up to 20% of the approved cost estimate for the R&D project.
Funding for developing solutions that generate intangible value
In addition to or instead of tangible and technological solutions, R&D funding may also be provided for the development of services, business models, management, work organisation and other intangible elements, provided that the work qualifies as research and development.
Research related to developing intangible value may focus on aspects such as human behavioral patterns, identifying and defining user needs and problems, and conceptualising and framing value propositions.
Developing a solution that generates intangible value may involve improving usability and customer experience, for example. Development may also focus on the elements that will be used to build a brand or market position after R&D projects.
Developing intangible solutions may be part of an R&D project or its main or sole focus.
Funding for the international expansion of R&D projects
The preparation of Horizon Europe projects, European Defence Fund (EDF) projects and EU Innovation Fund projects may also be funded as part of a research, development, and piloting project if the goal is, for example, to expand the project or continue it as an international cooperation project. Examples of eligible preparation costs include expenses related to identifying and preparing for partnerships and cooperation opportunities. Funding is not provided for the preparation of EU grant applications.
Sales and marketing cannot be funded
EU State aid rules prohibit public funding for, among other things, the establishment of a distribution network, sales and marketing, as well as costs arising from commercial activities. For this reason, Business Finland cannot fund costs related to activities such as contract negotiations and securing funding.
Learn more about the revised funding service
Research, development, and piloting funding