Product development in Estonia gains higher support from the state
The state has designated a new grant for product development in order to encourage small and average size industrial undertakings to develop new products and services with the help of the state. The purpose of such direction is to add value and raise export results already in destination countries but also to upgrade competitiveness while entering new markets.
As the product development is deemed as a field of high risk thus the state has determined an additional aid to manage the risks of the undertakings. The focus is on industrial sector as almost 70% of export is comprised of manufacturing industry. With such instrument the state hopes to motivate industrial enterprises to invest more in the development, increase the added value created by product development and to develop new products with export potential.
Enterprise Estonia shall be responsible for distributing these financial contributions and also carries out supervision of funds provided to the applicant. The maximum amount of support for one project is EUR 200 000 and minimum EUR 20 000 while the entrepreneur's contribution is 30% of the total cost of the project, duration of the project must not exceed 3,5 years. Also the average sales revenue of the company for the last two financial years must be at least EUR 200 000 in order to receive such support.
It must be noted that Enterprise Estonia is a foundation funded by the state which provides supportive services to not only to entrepreneurs active in the industrial sector but to various companies and entrepreneurs, such as financial assistance, cooperation opportunities and various trainings and seminars for entrepreneurs in several fields.