Regional Grants for Research Projects for Aerospace Economy and Critical Infrastucters Design

By project MAE

Published on 17 January 2025

Italy

Emilia-Romagna

About this good practice

After a many-month dialogue with regional stakeholders, in July 2023, Region Emilia-Romagna launched its first- and much awaited - call for proposal for aerospace reaserch projects by enterprises.
The grant (5ml Euros in total) supports experimental research and development projects, with particular reference to the aerospace economy and to critical infrastructures.
Beneficiaries are:
• individual businesses and other entities registered at the local chambers of commerce;
• consortia with external activity;
• formal networks of businesses.
Regional contribution is granted on a non-repayable basis with the following maximum aid intensities:
• 45% of eligible expenses for industrial research activities;
• 20% of eligible expenses related to experimental development activities.
Maximum contribution was 0,5ml Euros per project (0,7ml Euros if not SME/s).
Additional evaluation points were awarded if researchers were hired and if a cooperation was set up with members of the Emilia-Romagna High-tech Network.
Among the assessment criteria, 10 out of 60 points were awarded if the project addressed climate change and embedded circular economy features.
9 proposal were approved (out of 10 received) and grants were awarded for a total of 2,5ml Euros.
Projects ranged from a total budget of 314k Euros to 1,8ml Euros, for an average 720k Euros per project and cofinancing of 50/60% (as a result of the combination of industrial research and expertimental development activitives).

Expert opinion

This is a good example of a public grant scheme in a new and upcoming technological field. While there is a lot of talk about aerospace in light of the Russian war of aggression in Ukraine and the potential of dual use for drone technology, it is nonetheless a field where transition towards established business models and use cases requires knowledge and investments most SMEs do not have ready at hand. Grant schemes like these can nudge the local technology sector as well as bridge the funding market gap in the early stages. Other regions seeking to boos their aerospace industry can surely learn from the set up of this grant scheme in Region Emilia-Romagna. However, the lower-than-expected rate of applications could also be potentially explained by a mismatch between the political will and excitement in a new technological area and the readiness of the business sector to enter into this new field. Nonetheless, it can be expected that the first round of applications enables to showcase success stories and role models to ensure a higher interest in the second round, and eventually a bigger momentum and growth in the sector within the region.

Mart Veliste

Works at Interreg Europe Policy Learning Platform

Resources needed

5ml Euro: 2ml Euro and 3ml Euro Cohesion Fund.
The grants are awarded by Region Emilia-Romagna within the Regional Operational Programme 2021-2027, Priority 1 – Research, Innovation & Competitiveness, Action 1.1.1 Support to Research Projects, Experimental Development & Innovation in Enterprises.

Evidence of success

Aerospace is a growing economy, however it has become clear that transition towards it requires knowledge and investments most SMEs do not have ready at hand. Grants can provide the resources SMEs need to take a step towards aerospace and the chance for the regional policy makers to put the money where their mouth is.
There’s a caveat, though: proposals amounted to less than the earmarked resources: insight needs to be collected on the issues faced by applicants.

Potential for learning or transfer

This GP highlights a replicable funding model to support SMEs transitioning to the aerospace economy. Embedded in the Emilia-Romagna Regional Operational Programme 2021-2027, it promotes innovation through grants targeting SMEs, with incentives for collaboration with high-tech networks and a focus on climate change and circular economy goals. With measurable success—9 approved projects and 50-60% co-financing—the initiative demonstrates how tailored funding schemes can drive innovation ecosystems. Challenges like low application rates offer critical lessons for improving SME participation. The practice’s scalability, integration of sustainability, and focus on knowledge-sharing make it a strong candidate for transfer within Interreg Europe, offering valuable insights for regions aiming to bridge gaps in SME resources and capabilities. Its results and learnings make it a model for fostering resilient and innovative economies.