The “InnoEmpresa” Program to Support Innovation at Small- and Medium-sized Enterprises (2007-2013), which constitutes the main tool for supporting SMEs, incorporates significant improvements, including most notably the prioritization of aid lines directly related to improving the innovative capacity of enterprises (in a broad rather than a purely technological sense), the opening of all envisaged aid lines at the direct request of the SMEs, an increase in the maximum aid for investment in tangible or intangible assets, a specific focus on projects to be implemented by different companies and agencies under a collaboration or consortium arrangement, etc.

With a budget of €500 million for the 2007-2013 period, the InnoEmpresa Program also receives co-funding from the European Regional Development Fund (ERDF) of approximately €110 million, and further financing from the Autonomous Community Governments that so desire, within the framework of the SME Industry-wide Conference.

On May 14, 2010 the Council of Ministers approved the allocation among the various Autonomous Communities of the funds from the Innoempresa Program, which was endowed with €65 million in 2010, broken down as follows: €45.6 million allocated among the various Autonomous Communities; €11.4 million contributed by the Autonomous Communities; and €8 million contributed by the department managing the funds for financing supra-regional projects.

The aid lines envisaged in the InnoEmpresa Program are classed in three groups: (i) Organizational Innovation and Advanced Management; (ii) Technological Innovation and Quality (iii) Innovation projects under collaboration arrangements.

SMEs belonging to the following industries are eligible for the aid granted under the InnoEmpresa Program: (i) industry, including agrofood; (ii) construction; (iii) tourism; (iv) businesses; and (iv) services, as well as the so-called “intermediary bodies” (i.e., public or private non-profit organizations which habitually provide services supporting innovation at SMEs and which have sufficient material and human resources) which pursue activities supporting SMEs in the foregoing sectors.

During the first two quarters of 2010, the Autonomous Communities published calls for aid applications for regional projects under the InnoEmpresa Program, the management of which has been entrusted to them.

In turn, projects of a supra-regional nature (involving enterprises from various Autonomous Communities) are included in the National Program for Innovation Projects, specifically, in the Instrumental Action Line for R&D&I projects. The deadline for applications was April 9, 2010.

In addition to the InnoEmpresa Program, SMEs may be eligible for other aid instruments, including most notably (i) the Línea ICO-Inversión Nacional 2010 (2010 ICO-National Investment Line), (ii) the Línea ICO–Emprendedores (ICO-Entrepreneurs Line) and (iii) the Línea ICO-Liquidez (ICO-Liquidity Line).

Also of interest is the Program to foster “business angels” networks, the purpose of which is to help innovative SMEs obtain financing from the private investors operating in those networks. “Business angels networks” refers to organizations whose objective is to group private investors together, serving to intermediate between them (as potential suppliers of capital) and the financing demands of companies needing resources in order to undertake innovative projects.

With this aid, the Ministry of Industry, Tourism and Trade, through its Directorate-General of SME Policy, intends to bolster the provision of services by “business angels” networks, helping to make them more professional and to regularize the intermediation between SMEs needing capital in order to undertake innovation projects and the “nearest investor” or “Business Angel” potentially interested in financing those projects.

The most recent news is that on June 4, 2010 the Ministry of Industry, Tourism and Trade submitted a report to the Council of Ministers on the Business Continuity Plan, set up as a measure principally aimed at facilitating the transfer of SMEs in danger of disappearing for reasons other than those which are merely economic (i.e., the owner’s retirement, a partner’s health problems or death, a lack of successors, etc.).

In 2010 this Business Continuity Plan is set up as a pilot initiative to be implemented in conjunction with 11 Chambers of Commerce and has a line of credit endowed with a maximum of €20 million which is to be managed by the National Innovation Enterprise (Empresa Nacional de Innovación or ENISA).

 

For more information on Investment aid & incentives, you can download the following document:

Investment aid and incentives (1572kb.)

Prepared by Garrigues

Last updated: 20|07|2010