As of May 24, Estonian businesses are able to apply for product development support from Enterprise Estonia on new conditions as the target group of the measure has been widened and the share of own contribution reduced.
The total budget of the support is €17 million, of which €14 million is targeted at businesses affected by the coronavirus (COVID-19) crisis, Enterprise Estonia said.
The amount of support ranges from €20,000 to €500,000 per project and the share of support from 25 to 45 percent of the total cost, depending on the size of the company.
Businesses which have suffered the negative consequences of the crisis, such as significant decline in revenue, suspension of production or disruption in supply chains, are able to apply for support with smaller own contribution, in which case the support accounts for 75 percent of the total cost of the project.
Eligible for support are companies whose average revenue for the past two financial years has been at least €200,000.
Member of the management board of Enterprise Estonia Sigrid Harjo said in a statement: "The objective of the product development support is to encourage businesses to invest in development and create internationally competitive new products and services that have been adapted to market needs."
Harjo said it is important that enterprises review their business model in the current crisis, and product development is a good way how to emerge stronger from this situation.
"In addition to production companies, service sector companies are also eligible for support for product and service development under the new conditions, such as providers of IT, telecommunication and other business services," Harjo said, adding that the support will mitigate businesses' risks and allow to proceed with development at a faster pace.
The support can be used for compensating product development costs, such as remuneration of R&D personnel as well as the materials and tools required in the process.
Prior consultation before applying for support is required during which Enterprise Estonia will conduct a preliminary assessment of the company's plans. Applications are reviewed on a first come first served basis.
The support is financed from the resources from the European Regional Development Fund.
Editor: Helen Wright