Southern Italy: half a billion on the way for research and development – priority given to SMEs

Advanced manufacturing systems, cybersecurity solutions and artificial intelligence programmes. These are some of the industrial research and experimental development projects in Southern Italy that the Ministry for Enterprise aims to fund with an allocation of nearly 506 million. The scope is clearly defined. Meanwhile, the decree signed yesterday refers to Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily.

It then identifies six key enabling technologies, listed in the attached text: advanced materials and nanotechnology, photonics and micro/nanoelectronics, advanced manufacturing systems, life sciences technologies, artificial intelligence, and digital connectivity and security. Pure research is not enough: proposals ‘must lead to significant technological advances’. In other words: prototypes, pilot products and testing under real-world operating conditions. Eligible expenditure ranges from 1 to 5 million per project, with a duration of between 18 and 36 months.

The scheme is always collaborative. Participants may join as a partnership – comprising up to three entities, including at least one SME, each contributing a minimum of 10% of the costs – or as an individual SME supported by research organisations or consultants, with a minimum external contribution of 10%. 60% of the funding is reserved for SMEs and business networks; of this amount, 25% is allocated to micro and small enterprises.

The support measures combine a subsidised loan covering 40 per cent of the costs, with no guarantees required, and a direct grant at varying rates: 40 per cent for small enterprises, 35 per cent for medium-sized enterprises, and 30 per cent for large enterprises. For research organisations, the grant rises to 60 per cent for industrial research activities and to 40 per cent for experimental development. The subsidised rate is set at 20% of the EU reference rate in force on the date the funding is granted. The funding comprises 279.7 million from the Sustainable Growth Fund and 225.8 million in grants from previous programmes.

Admission is based on a ranking system: the position depends on a set of ‘qualitative and quantitative criteria’ divided into three areas. The first is the applicant’s financial soundness. Some examples include: the ability to repay the loan, coverage of fixed assets, and the ratio of financial charges to turnover. The second is the quality of the proposal. Particular attention is paid to innovation, with scores awarded depending on whether the proposal represents a ‘significant improvement’ to a product or process or is an entirely new development. The third is impact: industrial relevance and the ability to generate positive spillover effects in other sectors as well.