Funds for innovative projects´ growth
About this good practice
73% of the local fabric employs between 1-2 workers in San Sebastian. 87% of the local fabric employs between 1 and 5 employees. Therefore, size is one of the main issues/challenges confronted by our local companies, a matter specially relevant in the case of innovative projects. The launch of funds to help innovative companies´ growth remains at the core of Fomento San Sebastian´s strategy in order to foster our R&D private ecosystem.
The maximum amount will reach 20,000 euros, with limits for the following concepts:
• New Hiring of young highly qualified people from San Sebastián (a maximum fund of 13,000 euros per hire).
• Access to financing: a maximum aid of 10,000 euros, and 70% of costs are eligible (consultancy, investment, etc.).
• Product/Service Innovation: for the development of the first product or a new product: (a maximum of €15,000 for assessments, new equipment, etc. at a 70% rate).
• Technological development protection: a maximum aid of €15,000 (eligible costs at a 70% rate).
• Strategy and business models linked to innovation: a maximum aid of €10,000 (eligible at a 70% rate).
• Development of international markets: a maximum aid of €6,000 (eligible at a 70% rate)
The main stakeholders and beneficiaries are small companies with its work center located in San Sebastián, which will be where the subsidized activities are carried out. Those companies must present both innovative or R&D+i projects and a scalable business model.
Resources needed
Between 2012 and 2022, almost 13 million € have been invested, that has led to excellent results. Besides, a specific team of 4 members (apart from the necessary external evaluators) is required to manage those funds, analyze and evaluate the candidates and do the follow up and impact analyses.
Evidence of success
Since 2012, the following results have been achieved thanks to the Funds for innovative projects´ growth:
• More than 1300 companies have been beneficiaries of the different concepts.
• Almost 400 people have been hired by innovative companies.
• The investment has raised from 540.000 euros in 2015 to almost 1.000.000 euros in 2022, showing the relevance of this tool. A tool that has been increased its budget due to the excellent results achieved on a yearly basis.
Potential for learning or transfer
This should be a transferable practice for every institution dedicated to fostering innovative entrepreneurship, as well as innovative companies. It is key to analyse the ecosystem´s needs and to customize the fundings. In order to do so, the work on a daily basis with the ecosystem is also a key factor.
Another key factor is to analyse the impact on a yearly basis to be able to modify the resources allocated each year.
Furthermore, it is crucial to gather a strong team that is able to manage a complex call, but that can also analyse the companies´ needs and proposals, as well as to do the follow up of the calls.
Finally, this must be a mid-long term investment bet, where impact can last longer than the first year or couple of years. The mid-long term approach is also crucial to let this tool reach the expected impact.