Changes to many of Business Finland’s funding services

Business Finland is renewing its funding services. The following services will face changes: 

1. Innovation Voucher 

2. Young Innovative Companies 

3. Tempo 

4. Exhibition Explorer 

5. Energy Aid 

6. Innovative Public Procurement 

7. Orchestration of Growth Engines 

8. Material Audit 

There are also changes to the funding levels of research and development funding and the de minimis funding conditions. 

If you have any questions about the above instruments or any other funding related topic, do contact our experts: Grannenfelt Finance team

1 Innovation Voucher 

The renewed Innovation voucher is intended for small companies under 5 years old that have a new product or service idea with international potential. 

The uses of the voucher have been specified in such a way that the funding encourages companies to engage in R&D. The renewed uses are: 

• development of product or service prototypes 

• examinations of the protectability of industrial rights (patents, utility models, design protections, trademarks) and the application process for these first applications 

• measurement and testing services related to innovation activities 

In the revised voucher, the amount of the grant is 75 % of the value-added tax-free amount of the purchased expert services and max 4,500 euros. The self-financing share is 25 % of the eligible costs. 

2 Young Innovative Companies (NIY) 

Young Innovative Company funding is intended for startups with a high business potential that have been in operation for less than five years. 

The funding service has been renewed on January 1, 2024. In the renewed form, the funding is entirely a grant instead of the previous grant-loan combination. Also, the amount of funding changes so that the company can be granted a grant of up to EUR 1 million, which is divided into three phases (1st phase 250,000 e, 2nd phase 250,000 e and 3rd phase 500,000 e).   

3 Tempo 

Tempo funding is intended for under 5 years old startup companies with a new product or service idea. 

The financial service is reformed in such a way that the company is required to have a realistic follow-up plan for research and development measures to put the idea into practice, if Tempo project´s results encourage it. The opening of the call will be announced later. 

4 Exhibition Explorer 

The Exhibition Explorer funding is aid for participation in international B2B trade fairs held outside Finland. The financing is intended for SMEs and midcap companies that want to increase the export of their own products or services. 

If the amendment to the regulation that is in the opinion round enters into force, the funding will be reformed so that funding is granted to an individual company for a maximum of one trade fair event during the calendar year. The new requirement is also that the company must have a committed team of at least two people working in Finland. In addition, freight costs and fair training are no longer acceptable costs. The grant is maximum of 50 % of the eligible costs, which applies not only to SMEs but also to midcap companies. 

5 Energy Aid 

Based on the 2024 state budget, there will be a significant drop in the amount of the energy aid authority, which will lead to a tightening of the funding criteria.  

There will be more information about the funding criteria for 2024 and the opening of the application service during February. 

6 Innovative Public Procurement 

Innovative public procurement funding is intended for contracting entities referred to in the Act on Public Procurement and Concession Contracts such as municipalities, agencies and other publicly owned operators subject to the Procurement Act.   

Funding criteria has been updated so that at least 80 % of the project costs must consist of research and development. R&D work of the project will be evaluated project-by-project. 

7 Growth Engine Orchestration Funding 

The funding of new growth engine orchestration projects will be stopped for the time being. The last date for applying for funding is January 29, 2024. 

8 Material Audit Funding 

The funding for material audits will be stopped for the time being. The last date for applying for funding is January 29, 2024. 

All De Minimis Aid 

De minimis aid refers to public funding granted to companies, governed by the European Commission's regulation.  

With the new de minimis regulation that entered into force at the beginning of 2024, the applicant for funding must declare all de minimis aid granted to Finnish companies in the same group or same control over the period of 3 years preceding the time of submitting the application. Business Finland's aid, together with other de minimis aid, must not exceed EUR 300,000 during any three-year period. 

The conditions for all de minimis based financial services have been supplemented so that when reporting the results of the funded project, the recipient of the funding must be able to demonstrate how the project plan has been implemented and what has been achieved as a result of the measures. 

Funding for R&D Projects 

In the research and development funding service, a higher grant level has been introduced for research projects which are purely industrial research. Projects can be joint projects of companies or projects of one company. When the project is purely industrial research, grant funding for SMEs is 60 % of the total eligible costs (when it is 50 % in other research projects) and 50 % for midcap and other large companies (when it is 40 % in other research projects). 

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