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Grant Analysis

Purpose & Target

This grant aims to support innovative development projects focused on creating new or improved products, processes, or services. It targets businesses with legal personality, non-profit organizations, and public-law organizations engaged in economic activity. The grant is SECTOR-AGNOSTIC, applicable across all industries.

Core Objective: To fund innovative development projects that strengthen and transform businesses in the Flemish Region.
Target Recipients: Businesses (including future businesses), non-profit organizations, and public-law organizations carrying out economic activities.
Geographic Scope: Operational activities must be in the Flemish Region of Belgium.
Key Filtering Criteria: Focus on innovation, active operations in Flanders, and not being an 'undertaking in difficulty'.
Grant Frequency: Permanent open call, with individual applications processed continuously.

Financial Structure

Minimum grant amount per project: €25,000.
Maximum grant amount per project: €3,000,000.
Base funding rate: 25% of accepted project costs.
Increased funding rates are possible based on specific conditions, up to a total maximum:
+10% for collaboration between at least two independent companies, provided at least one is an SME and no single company bears more than 70% of the project costs.
+15% for interregional or international cooperation within a VLAIO-recognized Research, Development & Innovation (R&D&I) initiative, involving at least two independent companies (with no single company bearing more than 70% of costs).
+10% for medium-sized enterprises.
+20% for small enterprises.
Overall maximum funding rate: 50% of accepted costs (60% if the project involves interregional or international cooperation).
Eligible costs: All necessary knowledge-acquisition activities, both technological and non-technological, that contribute to the innovation's development and validation of results. This includes activities following the main development phase if a significant hurdle remains before market entry (e.g., demonstrator, scaling, pilot projects).
Ineligible costs: Costs incurred before the official project start date, which can be no earlier than the first working day of the month following the full application submission.
Cumulation: Other forms of government aid for the same eligible costs will be taken into account when determining the final grant amount. Personnel costs that are already covered by the 'Exemption from remittance of wage withholding tax for researchers - Young Innovative Company (YIC)' cannot be included in the project budget.
Tax implications: The R&D aid granted through this measure is exempt from corporate tax in Belgium.

Eligibility Requirements

Organization Type

Businesses with legal personality (legal entity).
Non-profit organizations and public-law organizations that undertake economic activities.

Geographic Location

Must have operational activities in the Flemish Region of Belgium, or at least a clear intention to establish them there.

Financial Status

Exclusion: Must NOT be classified as an 'undertaking in difficulty' (Onderneming in moeilijkheden - OIM) according to European Union definitions.
Exceptions for OIMs (Under Specific Conditions): - If recent, attested financial figures (maximum 3 months old) demonstrate that the organization is no longer an OIM.
For single-company projects: OIMs may apply if they submit a mandatory OIM-remediation plan. Proof of successful remediation must be provided within 4 months after the subsidy decision date.
For projects within a European cooperation framework involving a common European evaluation: OIMs may apply if they submit a mandatory OIM-remediation plan. Proof of successful remediation must be provided before the international ranking of eligible projects is determined.
Small and medium-sized enterprises (SMEs) that have existed for less than 3 years are never considered OIMs, as per the General Block Exemption Regulation (AGVV).
Small enterprises existing between 3 and 5 years may, in some cases, receive funding as OIMs if the support is specifically for startup initiatives, though this comes with capped support and specific obligations.

Legal Structure

Applications can be submitted before a legal personality exists, but the subsidy will only be disbursed once the legal entity is formally established.

Track Record

Projects should involve overcoming significant challenges during the development of the innovation. This implies a need for risk-taking and an innovative approach.

Application Process

Application Submission

The application period is permanently open; proposals are accepted on a continuous, individual basis.
Submissions are made digitally via the VLAIO e-loket ondernemers portal.
Applicants must register and choose between Dutch or English for the application; this language choice is final and applies to all partners.
After registration, the main applicant receives a specific link to complete the application and upload required templates.
Any project partners added will also receive individual links to complete their respective sections digitally.
The application can be finalized and submitted by the legal representative or a mandated authorized person.
It is crucial to thoroughly review all information and figures (e.g., budget) for consistency before submission, as no changes are possible once submitted.

Required Documentation

A document to determine the size of the enterprise.
A mandatory remediation plan for 'undertakings in difficulty' (OIM), if applicable (see 'Eligibility Requirements' for exceptions).
A mandatory cash flow plan for startups (SMEs younger than 3 years) and for OIMs.
The official application template containing the project description.
The Excel template for the project budget, along with supporting documentation for 'external services' (externe prestaties).

Evaluation Process & Timeline

VLAIO aims to process applications faster than the statutory 18-week period, though actual processing times may vary based on application volume and completeness.
Following submission, VLAIO checks for admissibility, usually providing feedback within approximately 2 weeks.
An 'explanation meeting' with a VLAIO project advisor will be scheduled. This meeting is crucial for presenting the business case and project quality.
The ultimate funding decision is made by the decision committee of the 'Fonds voor Innoveren & Ondernemen' (FIO).
Applicants are notified of the decision via email, including the reasoning. A subsidy agreement is established upon a positive decision.
Additional information or advice from external experts might be requested during the evaluation process, particularly for large or complex projects.

Project Implementation & Duration

The standard project duration is a maximum of 24 months.
For projects involving later-stage development activities (such as demonstrators, scaling, or pilot installations), the duration can be extended up to 4 years, provided there is sufficient justification.
Eligible costs can commence from the first working day of the month immediately following the month in which the complete application is submitted.

Evaluation Criteria

General Scoring System

Applications are assessed using a scoring system where points are assigned for each criterion:
'CRITICAL': Leads to exclusion (automatic rejection).
'REASONABLE': -1 point.
'GOOD': 0 points.
'VERY GOOD': +1 point.

Minimum Scoring Thresholds

No 'CRITICAL' score is allowed in any criterion.
The sum of all scores on the 'quality axis' must be greater than or equal to -3.
The sum of all scores on the 'impact axis' must be greater than or equal to -3.
The sum of scores from both the quality and impact axes combined must be greater than or equal to -5.
This system implies that a project can have a maximum of three uncompensated 'reasonable' scores (-1 points) per axis while still remaining eligible.

Impact Expectations

Valorization in Flanders: The expected value generated in Flanders must be at least 10 times the requested subsidy amount. This 'valorisation' is calculated based on either:
New employment and investments made in Flanders.
Or, growth in labor productivity during the valorization period (up to 5 years after the project's completion).
Social Impact: Projects demonstrating significant social impact can receive bonus points during the evaluation process.

Project Quality

A well-substantiated and robust business case is a critical requirement for a successful application.
The 'explanation meeting' with VLAIO project advisors is a decisive part of the evaluation, and its success is contingent upon the quality of the submitted application.

Compliance & Special Requirements

Military Finality Projects

As of April 4, 2025, support for projects with a military finality is now possible under this grant.
Such projects are subject to a binding advisory opinion from the 'Ethisch en Strategisch Adviescomité' (ESAC), unless they are already governed by ethical guidelines within European or federal military programs.
Research specifically related to weapon systems that violate international law remains strictly excluded from funding.
Applicants for military-focused projects must ensure compliance with Flemish export obligations, managed by the 'Dienst Controle Strategische Goederen'.

Confidentiality and Data Protection

All applications are treated confidentially, and measures are in place to ensure this.
External experts involved in the evaluation process are bound by confidentiality for a period of 5 years.
VLAIO will only publicly disclose information about project partners and the granted subsidy amount after consultation and agreement with the applicant.
Successful applicants are encouraged to acknowledge VLAIO's support in their future communications regarding project realization.

Ethical Standards

While not explicitly detailed, the involvement of an 'Ethisch en Strategisch Adviescomité' for military projects implies broader ethical considerations for all funded innovations.

Legal Framework Compliance

The grant's eligibility criteria, particularly concerning 'undertakings in difficulty', are strictly aligned with European Union regulations, including the General Block Exemption Regulation (AGVV) and its amendments.

Strategic Opportunities

The grant provides a strategic opportunity for businesses in the Flemish Region to de-risk and accelerate the development of innovative products, processes, or services.
Collaboration between companies, especially involving SMEs, is encouraged through increased funding rates, fostering a collaborative innovation ecosystem.

Grant Details