SUBJECT OF THE PUBLIC CALL

The subject of this Public Call is the allocation of grants to enterprises and research organizations for addressing challenges in the public sector, with the aim of improving the efficiency and quality of services that public institutions provide to citizens and businesses.

OBJECTIVE OF THE CALL

The objective of the Call is to encourage public sector institutions to use modern technologies to improve service delivery and operational efficiency. Through this program, the Innovation Fund enables public institutions to adopt modern technologies in order to improve their services and respond more effectively to the needs of citizens. At the same time, the Call provides an opportunity for technology companies and research organizations to develop and test solutions with high potential for application in the public sector.

ELIGIBLE APPLICANTS

Eligible applicants under this Public Call are:

1. a) Micro, small and medium-sized enterprises (MSMEs), as well as start-ups
   b) Research and knowledge-dissemination organizations or research organizations

Eligible MSMEs fall into one of the following three categories:

Enterprise category	Number of employees	Annual turnover	or	Total assets
Medium enterprises	< 250	≤ €50 million		≤ €43 million
Small enterprises	< 50	≤ €10 million		≤ €10 million
Micro enterprises	< 10	≤ €2 million		≤ €2 million

The enterprise must be established at least thirty (30) days prior to the date of publication of the Public Call.

Enterprises must meet the following conditions:

• be in accordance with the definition set out in Annex 1 of the GBER Regulation;
• be registered in the Central Register of Business Entities of Montenegro;
• have their registered office in the territory of Montenegro;
• have fulfilled all obligations related to the regular payment of taxes and social contributions;
• not be subject to pre-bankruptcy, bankruptcy or liquidation proceedings, nor have suspended regular business activities, in accordance with national regulations;
• have a positive equity value in the balance sheet as of 31 December 2025 (for newly established enterprises, interim financial statements – balance sheet and income statement from the date of establishment until 31 December 2025 – must be submitted in order to determine MSME status and positive equity);
• not have received financial assistance from public national or international funding sources or donor programs for the same activities covered by the project application. If the applicant has applied for funding from other state aid providers for the same eligible costs, a statement specifying the amount and status of such support must be submitted.

If a company and its founders hold more than a 20% ownership stake in another company (related parties within the meaning of the Law on Business Organizations (“Official Gazette of Montenegro”, Nos. 065/20, 146/21 and 4/2024)), both companies may not apply. If related parties submit two or more project applications, only the application submitted first under the Public Call will be accepted.

Each enterprise (MSME) may receive a maximum of one grant under this Public Call.

Research and Knowledge-Dissemination Organizations

Research and knowledge-dissemination organizations must meet the following conditions:

• be entities (such as universities or research institutes, technology transfer agencies, innovation intermediaries or virtual collaborative entities focused on research), regardless of their legal status (public or private law organization) or method of financing, whose primary objective is to independently conduct basic research, industrial research or experimental development, or to disseminate the results of such activities to the general public through teaching, publication or knowledge transfer, in accordance with the Community Framework for State Aid for Research, Development and Innovation (2022/C 414/01), Chapter 1.3, point 16(ff);
• be registered in the register of centers of excellence, licensed institutions and organizational units in accordance with the Law on Scientific Research Activity (“Official Gazette of Montenegro”, Nos. 80/2010, 40/2011 – other law, 57/2014 and 82/2020).

If economic activities consisting of offering goods or services on a given market do not exceed 20% of the organization’s total annual capacity, a research and knowledge-dissemination organization may apply with multiple project proposals and may receive support for more than one project, provided that:

• the same or substantially similar activities and costs are not financed through different projects of the same applicant;
• the participation of project staff employed by the organization in the implementation of projects financed under this Program does not exceed 50% of their full working time;
• for a challenge defined by a specific faculty, another faculty of the same university may not apply. This provision aims to prevent faculties within the same university from applying for projects that would, in practice, serve to address their own internal challenges.

Applicants must apply individually. Partner organizations and partnerships of any kind are not eligible.

AMOUNT OF FUNDING

The Innovation Fund of Montenegro (hereinafter: the Fund) has allocated a total of EUR 2,000,000.00 to co-finance innovative solutions (hereinafter: projects) under this Public Call.

The maximum amount of funding that may be awarded depends on whether the solution is entirely new to the market or represents an adaptation of an existing solution developed for the public sector:

• For the development of a completely new solution that does not exist on the market, the Fund may award up to EUR 200,000;
• For the development and adaptation of an existing solution to meet the needs of a public sector entity, the Fund may award up to EUR 100,000.

In accordance with the Program, the grant may cover a maximum percentage of the total eligible project costs, depending on the type of beneficiary:

• Enterprises: up to 80% of total eligible costs. The grant beneficiary must co-finance the remaining amount, at least 20% of the total approved amount.
• Knowledge-dissemination organizations: up to 90% of total eligible costs. The grant beneficiary must co-finance the remaining amount, at least 10% of the total approved amount.

Support granted under this Program to entities engaged in economic activity, regardless of their legal status or method of financing, will be provided under the de minimis aid regime.

The remaining amount of project funding must be secured by the applicant from its own sources.

ELIGIBLE PROJECT ACTIVITIES

Projects under this Program must reach Technology Readiness Level (TRL) 7 or TRL 8, meaning that the developed technology must be ready for real-world application.

Eligible activities include:

• Development of innovative prototypes
• Development of a Minimum Viable Product (MVP)
• Adaptation of existing technologies
• Development and implementation of digital tools
• Automation and improvement of business processes
• Integration of new technologies
• Protection and use of intellectual property and external services aimed at developing innovative ideas (products, processes, technologies, services)
• Training and education of public sector employees to ensure successful implementation of newly developed technologies and systems in everyday institutional work

Additional eligible activities throughout the project duration may include:

• new hiring and engagement of existing company staff;
• engagement of external highly qualified and other expert personnel;
• investment in instruments and equipment.

Contractual obligation-related activities:

• project audit.

ELIGIBLE COSTS

The following cost categories may be financed under this Call:

1. a) Eligible direct costs:

1. Personnel costs (gross salary 2) of employees and newly hired staff working on the project. Gross annual salary includes the actual current salary plus social contributions. Total Fund co-financing for this cost category may not exceed 80% of the awarded grant amount.
2. Costs of equipment and materials for research and development used exclusively for project implementation. Equipment refers to items with a unit value exceeding EUR 300 (excluding VAT). Total Fund co-financing for this category may not exceed 30% of the awarded grant amount.
3. Costs of materials and small inventory items for project needs. Small inventory refers to items with a unit value below EUR 300 (excluding VAT). Total Fund co-financing for this category may not exceed 10% of the awarded grant amount.
4. Costs of external research and development services. Total Fund co-financing for this category may not exceed 30% of the awarded grant amount.
5. Costs of training and education of public sector employees to ensure successful implementation of newly developed technologies and systems. Total Fund co-financing for this category may not exceed 10% of the awarded grant amount.
6. VAT on eligible costs where the applicant cannot obtain a refund.

1. b) Indirect costs

Indirect costs directly resulting from project implementation may be calculated as a flat rate of up to 7% of the total eligible direct project costs.

PROJECT DURATION

The implementation period of selected projects is up to 18 months.

CONTENT OF THE PROJECT APPLICATION

The project application must include the following documentation:

• Application form – solution proposal
• Completed and signed applicant’s statement
• Financial plan
• CVs of the project manager and key project team members
• Solution presentation in free format (in the second evaluation round)
• Completed environmental and social impact assessment questionnaire

Additional for MSMEs:

• Statement on VAT (non-)recoverability
• Statement on related parties
• Balance sheet and income statement for 2025, or interim financial statements from establishment until 31 December 2025 for newly established enterprises

Additional for knowledge-dissemination organizations:

• Statement on non-economic activities

APPLICATION DEADLINE

Applications must be submitted via the Fund’s portal from 02 February 2026 until 13 March 2026 at 3:00 PM.

APPLICATION PROCEDURE

To apply, the applicant must first register on the Fund’s portal via www.programifonda.me. Account registration requests are automatically approved, after which applicants receive their credentials by email. Once registered, applicants may submit their application directly through the portal.

By submitting a project proposal, applicants agree to provide, upon request of the Fund, basic research-related information and additional documentation to be used for evaluating the impact of the Program.

The Program for Financing Innovative Solutions in the Public Sector, together with all documents governing this Public Call, is available on the Fund’s website.

CONTACT

E-mail: govtech@fondzainovacije.me
Phone: +382 20 653 891