Prime - Programa de Incentivos à Modernização da Economia

MEASURE FACT SHEET

Supports research and technological development projects (R&TD) aimed at reinforcing enterprise productivity and competitiveness and their entry into the global market, through the development of industrial research and/or pre-competition development activities.

Goals

To develop new products, processes and/or systems;
To introduce significant improvements in existing products, processes and/or systems.

Beneficiaries

Enterprises.

Activity Sectors

Industry, building industry, transport, commerce, tourism and services, with the following EAC:

Activity Sectors
Eligible EAC

Industry 10 to 37

Building Industry 45

Commerce* 50 to 52 (except 5231)

Tourism 551, 552, 553, 554, 633, 711, 9232, 9233, 9234, 9261, 9262, 9272, 93041 and 93042

Services 72, 73, 7420, 7430, 9211, 01410, 02012 and 02020

Transport 602, 622, 631, 632 and 634

*Only SME (Commission Recommendation 2003/361/EC).

Eligibility Requirements

For the Promoter

To be legally established and registered, according to the legislation in force;
To satisfy the conditions required to carry out its activity, namely having been granted the necessary licenses;
To have fulfilled all obligations related to taxes and social security, and towards the incentive paying agencies;
To have an organised accounting system, according to the National Accounting System;
To assume the commitment of allocating the investment co-financed by SIME RTD to the relevant activity, for a minimum period of five years, starting from the date of conclusion of the investment;
To maintain the geographical location established in the project for a minimum period of five years, from the date of conclusion of the investment;
To have a balanced economic and financial situation;
To have the technical and management capabilities suitable for the project and for the subsequent commercialisation of the knowledge generated by it, or to demonstrate that such capabilities shall be achieved as a result from the participation in the project of entities from the scientific and technological system;
To have a monitoring system suitable for analysis and follow-up.

For the Project

Whenever legally required, architectural plans or investment specifications shall be previously approved;
To correspond to a minimum eligible investment of € 50.000 or € 200.000, respectively for small and medium enterprises (SMEs) and for non-SMEs;
Not having started before the application submission date (except in the cases provided for in the regulating Order in Council);
To prove having ensured the necessary financing sources;
To have a maximum life span of two years, beginning on the investment start-up date, except in duly justified and authorised cases;
To be based on a strategic analysis that demonstrates the opportunity of the project and highlights its contribution to the promoter's competitiveness;
To employ qualified human resources;
To have an innovative nature and to integrate significant technological developments;
To present a detailed budget based on a cost structure adequate to the goals to be achieved;
To fulfil the Community regulations applicable to State aid.

Eligible Expenses

Adaptation of buildings and facilities up to a limit of 10% of the eligible expenses of the project;
Equipment and software specifically purchased for the project;
Components and raw materials;
Technical staff employed by the promoter and exclusively assigned to R&D activities;
Technical and scientific assistance;
Technology transfer or technology acquisition processes that translate into an effective local development by the promoter; the expenses in intangible investment for the purchasing of patents, operation licenses and technical knowledge cannot exceed 25% of the eligible expenses, for non-SMEs, and 50% for SMEs;
Dissemination and promotion of the results, in the case of innovation in products or processes with commercial value, up to a 10% limit;
Intervention of certified public accountants to endorse the project's financial implementation.

Non-Eligible Expenses

Purchase of second-hand goods;
Interests of bank loans;
Purchase of motor vehicles and other transport equipment;
Work developed by the enterprise for itself;
Working capital.
Bank guarantee costs;
Furniture;
Adverstising.

Selection Criteria

The Value of each project is estimated according to the following formula:

V = 0,20 A + 0,25 B+ 0,15 C+0,25 D+0,15 E

In which:

B = 0,30 B i + 0,35 B ii + 0,35 B iii

C = 0,25 C i + 0,25 C ii + 0,25 C iii + 0,25C iv

Criterion A – The coherence and reasonableness of the economic, financial, scientific, technological and organisational aspects of the project, with a view to achieving its results efficiently;

Criterion B – Impact on the enterprise, in the following aspects:

i) Increasing the competitiveness of the capacity to penetrate international markets;

ii) Establishing stable and lasting cooperation relations with the National Scientific and Technological System;

iii) Internal reinforcement of technological innovation capacities.

Criterion C – Impact on the economic system, namely in relation to:

i) Product technology;

ii) Disseminating potential;

iii) Proven dynamism in results valorisation;

iv) International nature of the project.

Criterion D – Duly proven innovative nature of the project within the national economy;

Criterion E – Research team with a profile suitable to project development.

The projects that obtain a zero score in one of the criteria and a value lesser than 2,5 are not eligible.

Incentive

Non-refundable incentive up to a maximum limit of 1 million euro.
Refundable incentive for the amount exceeding 1 million euro, whenever this amount is not lesser than 100.000 euro and up to a total incentive maximum limit of 4,5 million euro.

The refundable incentive is granted under the form of equivalent to loan interests of the same amount, according to the following conditions:

a) The 6-month interest rate Euribor plus 2 p.p.

b) The financing time period is 7 years, with a grace period of 3 years and redemptions paid in equal and consecutive instalments.

The incentive base rate to be granted varies between 30% and 55%, depending on the type of activities developed (research, industrial development or pre-competition).

Surcharges

Investment located outside NUT II of LVT - 5 p.p.;
Investment promoted by SMEs - 10 p.p.;
Projects with the participation of entities from the NSTS (National Scientific and Technological System) in R&TD (Research and Technologial Development) activities, provided it represents at least 5% of total eligible expenses - 10 p.p.;
Projects involving cross-border cooperation with at least one independent partner from another Member State of the European Union - 10 p.p.

The global incentive rate per project in Gross Grant Equivalent shall not exceed 75% for industrial research activities, or 50% for other activities.

Submission of Applications

The submission of applications follows a non-stop regime.

Applications should be sent via the Internet, through an electronic form, or delivered at one of the reception desks of the Ministry of Economic Affairs and Innovation.

In addition to the non-stop regime specific stages and/or tenders may be open.

Applications to this Measure are now suspended (Ministerial Order no. 19624-B/2006, of 25 September).

Bodies in Charge

Coordinating Bodies

API - Portuguese Investment Agency

IAPMEI - Institute for the Support to Small and Medium-Size Enterprises and Investment

ITP - Portuguese Tourism Board

Specialised Body

AdI - Innovation Agency

Geographical Area

Mainland Portugal and the Autonomous Regions.

This information does not dispense with consulting the legislation.