Technology and Research Funding

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Technology and research funding increases innovativeness

Innovativeness becomes increasingly a main column in the global competition of companies. Project financing today does not only consist of equity and debt financing. Fundings in form of non-reimbursable grants and concessional loans are a third major source of financing in Germany, which every clever business person should take advantage of. This makes sense, as Germany is in competition with other economies, which in turn also heavily support their industries.

Goal of the technology funding is to reduce the technological and economic risk of companies, which are given when developing a new product or process. With the support via non-reimbursable grants companies are able to risk venturing into innovative projects, without having to carry the entire financial risk and burden on their own. The state profits as well, as the economy maintains its level of innovativeness and can increase it. Additionally, technology funding acts as a first impulse to pursue an idea.

A company which utilizes research funding consistently, on average develops more positively than a company which does not. The following diagram depicts an exemplary enterprise value with and without technology funding.

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