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Innovation incentive system

Stimulating investment in innovation (including structural investment) involves producing new goods and services in Portugal or significantly upgrading current production by transferring and applying knowledge or organisational innovations and expanding production capacity in technological sectors or sectors with dynamic international demand. Preference will go to supporting highly innovative and structural investment projects (with a demonstrative, knock-on effect on businesses).

Scope

Support for investment projects in productive innovation undertaken by companies individually or in cooperation.

Goals

  • To promote innovation in businesses through the production of new goods, services and processes that foster their progression in the value chain;
  • To make technological improvements and boost their orientation towards international markets;
  • To stimulate qualified entrepreneurship and structural investment in new areas with growth potential. 

Beneficiaries

Companies.

Sectors

1. To be defined in the tender announcements, though the following CAEs are generally eligible:

  • Industry: divisions 05 to 33
  • Commerce: divisions 45 to 47 (only for SMEs)
  • Services: divisions 37 to 39, 58, 59, 62, 63, 69, 70 to 74, 77 excluding group 771 and subclass 77210, 78, 80 to 82, 90 excluding subclass 90040, 91 excluding subclasses 91041, 91042 and 95, in groups 016, 022, 024 and 799 and in subclass 64202;
  • Tourism: division 55 in groups 561, 563, 771 and 791; activities declared of interest to tourism in subclasses 77210, 90040, 91041, 91042, 93110, 93192, 93210, 93292, 93293, 93294 and 96040;
  • Energy: divisions of 35 (only generation);
  • Transport and logistics: groups 493 and 494 and division 52.

2. Casuistically and exceptionally, in duly justified cases and on the basis of their strategic size, the board may consider supporting investment projects in other sectors.

3. Within the scope of collective efficiency strategies, other sectors may also be considered. They will be set out in separate regulations.

4. Support for projects belonging to sectors subject to specific EU restrictions on state aid must abide by the applicable community regulations.

Applications

1. Applications (with the exception of special scheme projects and projects of strategic interest) are submitted in response to calls for applications.

2. Applications are sent online on the form available on the Incentivos QREN portal.

3. Announcements of calls for applications are not only published via the established legal media but also on the boards' websites and the Incentivos QREN portal.

Nature of the incentive

Repayable incentive. For certain eligible expenses established by law the incentive is non-repayable. 
  
Maximum incentive rates
Incentive rates and increases
Maximum base rate increases
35% type of company

  • 10 p.p. for medium-sized companies, with the exception of projects with eligible expenses of over 50 million euros and projects in the transport sector.
  • 20 p.p. for small companies, with the exception of projects with eligible expenses of over 50 million euros and projects in the transport sector.
      Type of strategy
  • 10 p.p. for productive innovation projects provided that they are included in territorial- or sectoral-based collective efficiency strategies.

Women's and young people's entrepreneurship

  • 10 p.p. for women's or young people's entrepreneurship projects, subject to a favourable opinion from the Citizenship and Gender Equality Commission or Instituto Português da Juventude, as applicable.

An overall incentive may not exceed the maximum rates expressed as a gross grant equivalent (GGE), except for support for investments in human resource training.

Special scheme projects

These are any projects that are of special interest to the national economy due to their structural effect on the development, diversification and internationalisation of the economy or of strategic sectors, regions and areas.

Projects must correspond to a minimum eligible expense of 25 million euros and are subject to a special negotiation process following a pre-allocation by the board as to the maximum incentive to be granted in exchange for acceptance of economic targets and additional obligations by the promoters in the incentive grant agreement.

Support granted for special scheme projects may exceed the limits mentioned, exceptionally and in duly justified cases, provided that the minimum GGE rates set out in the chart for regional aid are respected.