Monaco currently has two coexisting government programmes to offer financing to companies that develop innovative projects: * the Monegasque Fund for Innovation * the Monegasque “EUREKA” fund.
In July 1998, the Monegasque government created a financing programme dedicated to supporting innovation by Monegasque companies with individual innovation projects: the Monegasque Fund for Innovation.
This fund, which provides support from project conception and feasibility through industrial pre-launch of the innovation, aims to finance companies so they can develop technologically innovative products, processes or services (which offer significant technological progress or bring something new to the market) and have solid commercial prospects.
The expenses within its scope include:
- internal expenses (payroll, etc.) and external expenses (sub-contracting, etc.)
- tangible and intangible investments linked to the project,
...including costs incurred during the early phases of the project:
- project feasibility
- project design and definition,
- development of the innovation (R&D, design expenses, etc.)
- the search for partners
- industrial property costs (prior art search, patent filing or extensions, etc.)
- industrial pilot and pre-industrialisation, etc.
The Fund’s financing takes the form of a subsidy or an interest-free advance which must be repaid, depending on the type of project and its status.
This financing can cover up to 50% of the eligible cost base defined for the project.
Since its creation, the Monegasque Fund for Innovation has committed €7.3 M to 68 projects by 47 companies from the Principality.
Eureka, an intergovernmental European initiative, was launched jointly by Germany and France in 1985 with the goal of structuring European research and development in response to international competition. Monaco has been a member of the initiative since 2005.
This network, which now involves 41 members and the European Commission, aims to enable one or more companies, labs, research centres or universities in at least two member countries to create a balanced cooperative partnership (ideally 50/50) based on a contract for an innovative project which should go to market in the short-term, with each participant receiving financing from its country of origin.
It is this idea of a balanced consortium of partners which distinguishes Eureka Fund projects from Monegasque Fund for Innovation projects.
While the partnerships are European, the financing is national and is not provided by the European Commission.
The Monegasque government has created the Monegasque Eureka Fund, which operates on the same principles and with the same objective as the Fund for Innovation: same due diligence, same type of financing, with the specific goal of financing cooperative EUREKA projects.
Since its creation, seven projects have received a total of €963K in financing.
The Monegasque government is currently working with the Directorate-General for Research and Innovation to assess the possibility of giving Monegasque companies access to the calls for projects launched through the “H2020” and the future “Framework Program 9” programmes.
We should also note that Monegasque companies which are subject to the tax on profits may be eligible for a tax credit for research expenses incurred during the year.
With regard to industrial property, the cost of a prior art search with the European Patent Office may be covered as part of a project financed by the Fund for Innovation.
Finally, since December 2005, Monegasque SME-SMIs have been eligible for a free “pre-diagnosis” service provided by an industrial property expert. This study provides a holistic report on all aspects of the company’s industrial property: patents, brands, drawings and models, and can be used to define areas for action.
