The subject of the Program for Collaborative grants for innovation is the award of grants to MSMEs that carry out research and development projects with the aim of developing new products, services, technologies or processes in cooperation with “organizations for research and dissemination of knowledge”.
The main objective of the Program is to encourage micro, small and medium-sized enterprises to actively and meaningfully collaborate with “research and knowledge dissemination organizations” or “research organizations“.
Project funds can be used to co-finance technological development phases between TRL 2 and TRL 8 on the scale of the Technological Readiness Level (TRL). Projects must be related to research and development activities, i.e. they must start with the industrial research phase, which includes planned research or critical review with the aim of acquiring new knowledge and skills for the development of new products, processes or services, i.e. to achieve a significant improvement of existing products, processes or service (from TRL 2 or TRL 3).
The immediate results that are expected immediately after the completion of the implementation of the projects are as follows:
- Improvement of specific staff skills in MSMEs;
- Increasing the involvement of personnel in MSMEs and ROs in research and development activities;
- Increasing commercialization of the results activities of joint research by MSMEs and ROs;
- Improved cooperation in research activities between ROs and MSMEs;
- Increased technology and knowledge transfer activities from ROs to MSMEs.
ELIGIBLE APPLICANTS
Under this Public Call, eligible applicants are MSME as Applicant and “organization for research and dissemination of knowledge” or “research organization”, established in Montenegro as Co-applicant.
MSMEs that fall into one of three categories are eligible:
| Company category | Number of employees | Annual income | or | Total assets | |
| Medium enterprises | < 250 | ≤ € 50 million | ≤ € 43 million | ||
| Small enterprises | < 50 | ≤ € 10 million | ≤ € 10 million | ||
| Micro enterprises | < 10 | ≤ € 2 million | ≤ € 2 million | ||
MSMEs must meet the following conditions:
- that they comply with the definition in Annex 1 of the GBER Regulation;
- that they are registered in the Central Register of Business Entities of Montenegro;
- that they are based in the territory of Montenegro;
- that they have fulfilled all obligations of regular payment of taxes and contributions;
- that they are not in pre-bankruptcy, bankruptcy, liquidation proceedings, that they have not suspended regular business activity or similar in accordance with national regulations;
- that in the balance sheet on the date 31/12/2023. have a positive capital value;
- that they did not use financial assistance from public national and international funding sources, or donor programs for the same activities included in the project application. If the applicant has applied for funds from other providers of state aid for the same justified expenses, it is necessary to submit a statement stating the amount and status of this support.
Eligible co-applicants are research organizations that must meet two conditions:
- They must be “organizations for research and dissemination of knowledge” or “research organizations,”
- They must be registered in the register of centers of excellence, licensed institutions, and organizational units in accordance with the Law on Scientific Research Activities (“Official Gazette of Montenegro”, No. 80/2010, 40/2011 – other law, 57/2014, and 82/2020).
AMOUNT OF FINANCING
The Innovation Fund of Montenegro allocated funds in the total amount of 1.000.000,00 EUR for the co-financing of innovative projects according to this Public Call.
The lowest and highest amount of grants that can be awarded to an individual applicant and co-applicant and project is:
- the lowest amount is 50.000,00 EUR;
- the highest amount is 200.000,00 EUR.
In accordance with the Program:
The maximum intensity of small value aid (de minimis aid) that is awarded within this Public Call is up to 80% of eligible costs.
The applicant and the co-applicant are obliged to provide the remaining amount of funds from his own sources.
VII ELIGIBLE COSTS
The following categories of costs can be financed under this call:
Eligible direct costs are:
- Staff salary costs (gross 2) – human resources of the applicant and co-applicant and other employed and newly employed project staff who will work on project implementation.
- Equipment and material costs for the applicant and co-applicant in the scope and in the period in which they are used for the project.
- Costs of materials and small inventory for the purposes of the project for the applicant and co-applicant.
- Costs of external services for the applicant
- Costs of education, training of staff and costs of promotion of the results of research and development resulting from the project, for the applicant and co-applicant.
- VAT on eligible expenses for which the applicant and co-applicant cannot ensure his return.
DURATION OF PROJECTS
The period of implementation of the selected projects is at least 12 and at most 36 months.
CONTENTS OF THE PROJECT APPLICATION
The project application must contain the following documentation:
- Application form
- Financial plan
- Biographies of project team members
- Statement of the applicant
- Statement of the co-applicant
- Co-applicant’s statement on non-economic activities
- Statement on (ir)recoverability of VAT for the applicant and co-applicant
- Applicant’s related party disclosure
- Balance sheet and income statement for the applicant on December 31, 2023
- Project presentation (for projects that enter the second round of evaluation)
Application documentation must be submitted in the same format as on the Fund’s website. All statements must be stamped and signed by an authorized person.
DEADLINE FOR APPLICATIONS
Applications for the Public Call are submitted through the Fund’s portal from 29.05.2024., to 02.09.2024., until 15:00h.
CONTACT
Email:cgi@fondzainovacije.me
Phone: 020 653 891
Co-Applicant Statement on NON-economic activities
Statement on (ir) recoverability of VAT for the applicant
Statement on (IR) recoverability of VAT for the co-applicant
Check list for administrative criteria
Applicant related party disclosure
Instruction for filling out the application form collaborative grants
Dokumentation - year 2022.
Who can apply for the Collaborative Program for Innovation?
The Public Call for the Collaborative Program for Innovation is open to a consortium consisting of at least two members:
- a micro, small and medium-sized enterprise (hereinafter: MSMEs), established as a legal entity with headquarter in Montenegro, as the main applicant in front of the consortium and
- a licensed Research and Development Organization (hereinafter: R&D institutions), established in Montenegro or a micro, small or medium-sized enterprise (MSME), established as a legal entity with headquarter in Montenegro, as the main co-applicant in front of the consortium.
Can a licensed R&D institution be the main applicant?
No. The main applicant is exclusively a MSME.
Can a partner from abroad participate in the consortium? And can an NGO be a partner in the project?
International partner institutions can be included in the consortium, but they cannot declare their costs and claim funds within this Public Call. Therefore, they can be a formal part of the consortium, but not in the role of Lead Applicant or Lead Co-Applicant.
The same applies to NGOs.
On the other hand, the Program allows the Applicant to use services of domestic or international experts (professional, advisory, consulting services) and this cost category is limited to 20% of the total amount of the grant.
Can additional partners join the consortium later, after the project has been approved for funding?
It is not possible to subsequently include a member of the consortium. All of the members must be fully presented at the beginning of the process, as a part of the project documentation which must be submitted when applying for the Collaborative Program for Innovation.
Do innovations from certain economic activities have priority, or the projects compete equally regardless of the economic branch?
This Program is aligned with the Smart Specialization Strategy 2021-2024, which focuses on four priority domains:
- Sustainable agriculture and the food value chain;
- Energy and sustainable environment;
- Sustainable and health tourism
- Information and communication technologies.
At least 70% of IF’s funding for this Program will be allocated for Applications in the abovementioned priority domains of the Smart Specialization Strategy, subject to availability of good quality projects.
Can we apply for financial support for basic research?
No, basic research is not supported through the Collaborative Program for Innovation. The proposed project should be focused on marketable research, i.e. to an innovation that will find its commercial use.
Does this mean that the project needs to be aimed at creating a product or service that will be immediately ready for market entry?
The project proposal can be conceived around market-ready innovations, but also around commercially applicable research with the long-term market benefit. Project funds can be used to co-finance technological development phases between TRL 4 and TRL 8 (TRL scale has levels from 1 to 9, where 9 represents the most mature technology). For the detailed explanation, please refer to the Collaborative Program for Innovation Manual, point 2.2, Types of projects that can be financed.
Is it mandatory for the Lead Applicant and Lead Co-Applicant to be registered innovative organizations in order to apply for the Program? Should other partners also be registered in the Register of Innovation Activities?
In order to sign the Grant Agreement and receive funding from the Fund, the Lead Applicant must be registered in the Register of Innovation Activities. The Lead Applicant doesn’t have to be registered in this Register at the time of project submission. In case Lead Co-Applicant is MSME, the same condition is required. The procedure of registration in the Register of Innovation Activities has started in October 2021 and is continuously available to all interested subjects of innovation activity. Registration is available at the following web portal: www.inovacije.gov.me.
The other partners are not obliged to be registered in the Register of Innovation Activities.
Can the Lead Applicant and Lead Co-Applicant submit more than one application to the Collaborative Program for Innovation?
Only one application per Lead Applicant is possible within this Public Call. On the other hand, one R&D institution or one MSME can participate in more than one project as the Lead Co-Applicant or partner/consortium member.
Can the same company be a beneficiary of financial support from the Innovation Fund for both the Innovation Vouchers Program and the Collaborative Program for Innovation?
Yes, one applicant can be a beneficiary of both Public Calls from the Fund, if it meets the predefined approval criteria. The support provided to MSMEs through innovation projects will be implemented through the de minimis rule on the state aid granting (state aid of small value), which implies that the total amount of de minimis aid granted to one beneficiary may not cumulatively exceed the amount of EUR 200,000 during any three consecutive fiscal year.
Our partner applied for a call announced by the Ministry of Science and Technological Development. Can the applicant apply for funds from other state aid providers for the same justified expenses? Could this be problematic?
One of the conditions for the participation in the Public Call is that the applicant does not use financial assistance from other public, national and international funding sources or donor programs for the same activities included in the project application. If, on the other hand, the Main applicant or the Main co-applicant applied for funds from other state aid providers for the needs of another project, it is necessary to submit the statement declaring the amount and status of this support. One should always keep in mind the above de minimis state aid rule, according to which the total amount of de minimis aid awarded to one beneficiary cannot cumulatively exceed the amount of EUR 200,000 during any three consecutive fiscal years.
Since the funding through this Public Call is considered as a grant, does this mean that under no circumstances we are obligated to return the amount of the grant or part of the grant back to the Fund?
As long as the funds are spent in accordance with the rules defined in the Financing Agreement and the Approved Project Budget, there is no obligation to return/pay any amount back to the Innovation Fund of Montenegro. However, if unauthorized expenses are incurred by the consortium, the Fund will reduce its next payment by the Fund’s proportional share in those unauthorized expenses. In special circumstances (e.g., in case of violation of the Financing Agreement, violation of the budget plan defined in the Approved Budget of the project, inappropriate spending of funds, etc.), the Beneficiary may be required to return part or all of the funds paid by the Fund.
How is the payment of the approved grant scheduled?
After the project is approved for financing and the Applicant signs the Financing Agreement with the Fund, the Applicant officially becomes a Beneficiary. The applicant shall open a separate bank account for the purposes of implementing their project, which shall be used only for transactions for the project related activities presented in the respective Approved Project Budget. The Fund pays its co-financing for the project to the specified bank account, but only after the Beneficiary pays its own co-financing in accordance with the agreed payment schedule. Under standard circumstances, the Fund pays out its co-financing once every six months, at the beginning of that period. If the project requires a specific time frame, for example 10 months, the first period shall be 6 months and the second 4 months.
Are all the payments made from the one account, or does each project partner have its own account and manage its own expenses?
All payments are made from an unique account opened for the needs of the project. The account is managed by the Lead Applicant.
Can VAT be paid from the grant?
Yes, if VAT is part of the cost that is acceptable and approved (e.g. purchase of the equipment), the VAT included invoice is taken into account.
Should the consortium provide the entire amount of co-financing at the time of submitting the application or perhaps at the time of signing the contract?
No, the Applicant is not obliged to have the full amount of co-financing available at the time of application or at the time of signing the contract with the Fund. The project payments by the Beneficiary and by the Fund are made on a six months basis, where the Beneficiary is obliged to provide the necessary amount of co-financing at the beginning of each six months period and to deposit these funds into the bank account (opened specifically for the project needs) before the payment by the Fund.
What happens if the consortium fails to achieve the planned results/goals after the implementation of the project?
There is no sanction or financial penalty if the development process does not ultimately result in the desired outcome, provided that the project is implemented in accordance with the procedural requirements of the Collaborative Program for Innovation. The Fund with its financing and the consortium with its co-financing proportionally share the funds placement risk.
If I am a MSME and I have the idea of building an urban garden, which belongs to sustainable agriculture and which stands out as one of the priority branches supported by the Innovation Fund, am I a suitable candidate for financing through this Public Call?
What you have stated, belonging to the MSME segment and the nature of your business idea, are the appropriate eligibility criteria for the Collaborative Program for Innovation. However, there many other criteria defined by the Program. Please see the Collaborative Program for Innovation Manual, point 2 – Eligibility Requirements for the detailed information.
Who owns the intellectual property created as a result of the project implementation?
The question of ownership of the intellectual property created during the implementation of the project must be agreed between the members of the consortium. The Fund will have no influence on how the issue of ultimate ownership of intellectual property will be resolved, nor will it be involved in any way in this aspect of the project. However, before signing the Funding Agreement with the Fund, the Beneficiary is obliged to submit the Consortium Agreement to the Fund which, among other things, defines intellectual property rights, especially regarding access to existing knowledge, use of knowledge, publications and confidentiality of information.
Does the ownership structure matter when choosing a partner? For instance, Zidar Ltd is 51% owned by Gradnja Ltd. and 49% owned by Fabrika Ltd. Would it be a problem if Gradnja Ltd. and Fabrika Ltd. are the Lead Applicant and the Lead Co-Applicant for a collaborative grant?
This Public Call implies a collaborative nature of partnerships. Co-applicants who are directly related (through equity or legal ties) to either the Lead Applicant or Lead Co-Applicant may be included in the consortium as participants, but may not report their costs and must have their own budgets. Specifically in relation to your question, this means that Gradnja Ltd. and Fabrika Ltd. cannot be the Laed Applicant and the Lead Co-applicant, but one of them can be the Lead Applicant and should find another Lead Co-applicant. In this case, another of two related companies could be a partner in the consortium.
Can the Lead Applicant bear one cost while Lead Co-applicant can bear all other costs? What is the minimum number of expenses that are financed?
In general, just one type of cost cannot be applied by the Applicant (e.g., it would not be acceptable to have only personnel costs, it is also necessary to state other costs directly related to innovation – e.g. the purchase of the equipment or the purchase of the material), but one partner can be the bearer of one type of cost. The minimum number of costs depends on the type of project and number of candidate activities.
We have read the evaluation process in detail and what we would like to ask is related to the “live pitch” to the Investment Committee. Namely, are we obliged to present the project in English or a translator will be provided by the Fund for this purpose? We are more comfortable to present our business verbally in the Montenegrin language.
Almost the entire application documentation (Collaborative Program for Innovation Manual, point 3 – How to apply and what procedures to follow) is provided in English. The “live pitch” is also planned to be in English. The reason for this lies in the fact that the evaluation will be conducted by an international evaluation commission, i.e. internationally recognized experts from the field that the project comes from will conduct a conversation with the project representatives.
If the project application implies an ethical issue, the Applicant is obliged to submit the consent of the Ethics Committee (if applicable) and/or provide other relevant evidence on the resolution of the ethical issue. What exactly does it mean? Can the question remain unanswered?
It is desirable to answer each question. Every project has ethical issues. Depending on the type of the project, ethical issues may relate to data protection, confidentiality, participation consent, relations between partners, conflicts of interest, security standards… If the project does not involve ethical issues, it only needs to be writen down.
