Subsidies and funding for innovations and product development

Why are subsidies important for product development and R&D?

Innovation is rarely a straight line. New products go through multiple phases: from concept development and a proof of concept to prototyping, testing, and scaling up. Especially with energy innovations, the costs and technical uncertainties in these phases can quickly add up.

Subsidies are intended to make the right steps possible:

• They lower the financial threshold for research and development (R&D).
• They encourage experimenting and testing at an early stage.
• They reduce risks for entrepreneurs and investors.
• Lastly, they accelerate innovations that contribute to societal goals, such as CO2 reduction and energy efficiency.

For many organizations, subsidies make the difference between an idea that remains on the shelf and a product that is actually developed.

How subsidies accelerate innovation and product development

Subsidies mainly support the phases of product development in which uncertainties and risks are greatest. They provide room to:

• est the technical feasibility of an idea.
• Realize a proof of concept or first prototype.
• Identify showstoppers at an early stage.
• Give investors and stakeholders confidence.
• Work in a controlled way towards market introduction.

Especially for energy innovations, these steps are crucial. A well-executed development process prevents major adjustments from being needed later on.

The Dutch government stimulates innovations

The Dutch government actively stimulates companies that develop innovative products. They do this through tax benefits, an innovation credit, or subsidies. The reason for this is that innovative companies create economic growth and more employment. In addition, the government benefits from companies that help solve societal problems, such as ageing.

9 innovation subsidies

There are many different subsidies and funding options around innovation and product development. We have listed the most important 9 for you below.

1. Proof-of-concept funding: With a loan from Proof-of-concept funding, startups and SME entrepreneurs can investigate whether their innovative idea has a chance of succeeding in the market.
2. Innovation credit: The innovation credit is a loan for part of the technical development costs of a new product, service, or process.
3. WBSO (Tax Credit for Research and Development): The WBSO is a subsidy for organizations that want to develop technically innovative processes, products, or software. This involves innovative matters for the organization’s own business.
4. Innovation box: The innovation box is a tax scheme that allows you to pay less corporate income tax on profits from innovative activities.
5. MIT (SME Innovation Stimulation for Top Sectors): The MIT is a scheme that supports innovative SME entrepreneurs and startups in setting up and carrying out projects aimed at the development or renewal of products, services, or production processes.
6. EKOO (Energy & Climate Research and Development): EKOO is intended for companies working on circular products, sustainable energy solutions, and climate-friendly industrial processes.
7. DEI+ (Demonstration of Energy and Climate Innovation): The most important Dutch subsidy program for pilots and demonstration projects focused on new innovations in the field of energy and CO2 reduction is DEI+.
8. MOOI (Mission-driven Research, Development and Innovation): The MOOI scheme is a subsidy for innovations that contribute to CO2 reduction. It is specifically aimed at innovations in industry, the built environment, and the electricity sector.
9. TSE Industry Studies: TSE (Top Sector Energy) Industry Studies helps organizations that want to test or demonstrate an innovation or fully developed technology in industry.

A large part of the above innovation subsidies is carried out by the Netherlands Enterprise Agency (RVO). The different subsidy opportunities depend on the industry you work in and your innovation. With the subsidy and funding guide, you can check which ones you qualify for with your innovation.

European innovation subsidies

In addition to regional schemes, there are also European subsidies that stimulate innovation. European funds often focus on collaboration, knowledge sharing, and scalable innovations. In general, the budgets for European subsidies are larger. However, they are more complicated to apply for and in many cases involve long lead times.

The role of Beeliners within innovation and subsidy trajectories

We help organizations with all aspects of product development. Our team is happy to think along about the product strategy, how you turn ideas into prototypes, and which funding options and innovation subsidies fit best. We are here for you at any stage of a product development process and are happy to take a critical look with a fresh perspective. We also gladly advise you on the various subsidies that may be possible for your innovation.

Curious about what we can achieve together with you? Or would you simply like to brainstorm about which subsidy opportunities fit your innovation? Feel free to contact us!