ZIM Guideline 2026: Funding Conditions, Grants and Tips

ZIM Guideline 2026: Funding Conditions and Grants

The ZIM Guideline has improved significantly since January 1, 2025 for small and medium sized enterprises (SMEs). The Central Innovation Programme for SMEs run by the Federal Ministry for Economic Affairs and Climate Action (BMWK) now offers higher grants and expanded funding opportunities, supporting SMEs even more effectively in implementing innovative research and development projects. The most important changes include increased funding budgets, simplified application requirements, and better opportunities for young companies.

What is the ZIM Guideline?

The ZIM Guideline forms the legal basis for Germany’s most important funding programme for small and medium sized enterprises. It is designed to be technology and industry neutral and is aimed at companies with fewer than 500 full time employees, a maximum annual turnover of 50 million euros, or a balance sheet total of 43 million euros. Since the revision, young companies and research institutions can also participate more actively in innovation networks.
‍

The programme aims to strengthen the innovative capacity and competitiveness of German SMEs. It supports both individual projects and collaborations between companies, or between companies and research institutions. A place of business in Germany is required at the time of disbursement.

New expansion of eligible target groups

A key aspect of the revised ZIM Guideline is the expansion of eligible applicant groups. In addition to traditional SMEs, young companies that were founded less than 10 years ago can now benefit from special conditions. Research institutions receive expanded participation opportunities, particularly in innovation networks.
‍

The rules for international collaborations have also been clarified. In cooperation networks, up to 1,000 employees per company are allowed, which opens up new opportunities for larger mid sized businesses.

Eligible projects and new opportunities

Individual projects

Companies can carry out independent research and development projects. These must have a clear innovative character and must not have started before the application is submitted. Routine development work and purely adapting existing products are excluded.

Collaborative projects

At least two companies, or one company together with a research institution or university, can jointly develop innovative projects. Collaborations enable higher funding rates and access to complementary expertise.

Innovation networks

National networks require at least six SMEs, while international networks require at least four German and two foreign SMEs plus a research institution. These networks promote systematic knowledge transfer and long term cooperation.

Complementary measures

Feasibility studies can be funded with a term of up to 12 months. Market launch measures have an application period of up to 18 months and support the transition from development to commercial exploitation.

ZIM funding: Grants and funding levels 2025

Funding rates vary depending on company size, age, location, and project type:
‍

Small companies in structurally weak regions:
‍

• Individual projects: up to 45%
• Collaborative projects: up to 55%
• International collaborations: up to 60%

Small young companies:
‍

• Individual projects: up to 45%
• Collaborative projects: up to 50%
• International collaborations: up to 60%

Medium sized companies:
‍

• Individual projects: up to 35%
• Collaborative projects: up to 40%
• International collaborations: up to 50%

The maximum funding budgets have been significantly increased. Individual projects can now receive up to 690,000 euros (previously 550,000 euros), and collaboration partners up to 560,000 euros (previously 450,000 euros). For research institutions, the upper limit is 280,000 euros (previously 220,000 euros). The total project amount can be up to 3 million euros.

Eligible costs in detail

Personnel costs: Direct labor costs of employees who are directly involved in research and development. This includes engineers, technicians, and scientific staff. Administration, management, and sales are not eligible for funding.
‍

External services: Contracts awarded to qualified third parties for specialized development work or testing services. The use of freelancers is possible, but pure consulting services are excluded.
‍

Overhead flat rate: A flat rate supplement of up to 20% for electricity, materials, and consumables. With additional items such as the employer’s share of social security contributions, building rent, or depreciation of machinery, up to 100% of overhead costs can be claimed.

ZIM projects: Application process and evaluation criteria

Application offices and responsibilities

Since 2025, the application process has been standardized:
‍

• Individual projects and networks: VDI/VDE-IT
• Collaborative projects: AiF Projekt GmbH

Applications can be submitted at any time and must always be submitted before the project begins. Submitting early increases the chances of quick approval and enables the project to start promptly.

Evaluation criteria for successful applications

Degree of innovation: The project must go beyond existing technologies and deliver measurable technical progress.
‍

Market potential: A well founded market analysis with realistic sales forecasts is required. Economic exploitation must be presented plausibly.
‍

Technical feasibility: The project plan must be realistic, and technical risks must be manageable.
‍

Team qualifications: The professional competencies of the involved employees must be suitable for carrying out the project.

International collaborations as a success factor

Projects with foreign partners receive higher funding rates for German participants. Foreign companies do not receive direct ZIM funding, but they may be supported through their own national programmes. This gives German SMEs access to international markets and technologies.

ZIM Form Center: Digital application process

The ZIM Form Center is the central platform for digital application submission. All forms, guidelines, and document templates are available there and are updated regularly.

Key documents for the application

Project description: Detailed presentation of technical objectives, work packages, and milestones.
‍

Exploitation plan: Presentation of the planned commercial use of the project results.
‍

Cost and financing plan: Breakdown of all project related expenses and the share of own funds.
‍

Proof of qualifications: Evidence of the professional suitability of the involved employees.

Reporting obligations and documentation

During the project term, interim reports are required depending on the project type. Timesheets must be kept in detail and proof of use must be prepared. In collaborative projects, additional reports and payment requests are required. A structured final report summarizes the results and documents the proper use of funds.

Distinction from the R and D tax allowance

ZIM funding and the tax based R and D allowance under Section 3 of the Research Allowance Act (FZulG) follow different approaches to R and D support:
‍

ZIM funding:
‍

• Project specific, non repayable grant
• Application required before project start
• Detailed project description and evaluation by reviewers
• Funding rates between 25% and 60% depending on company and project
• Maximum funding amounts limited depending on project type
• Administrative support during the project term

R and D tax allowance:
‍

• Tax based support independent of specific projects
• Retroactive claim via the tax return
• Flat rate funding of 25% of R and D expenses
• Maximum funding amount: 4 million euros per year (corresponding to 16 million euros in R and D expenses)
• No content based project evaluation required

Combination options and strategies

In principle, both funding instruments can be used in parallel, but not for identical cost items. A smart combination enables optimal support, using ZIM for specific high risk innovation projects and the R and D tax allowance for continuous R and D activities and basic research.
‍

For SMEs with limited R and D budgets, ZIM is often more attractive because funding rates are higher and no pre financing with own funds is required. Larger companies with continuous R and D activities benefit more from the predictable tax based R and D allowance.

Strategies for maximum funding

Optimal project design

The project concept should align with the evaluation criteria. A balanced relationship between technical ambition and a feasible benefit increases approval chances. Involving external partners can both strengthen expertise and enable higher funding rates.

Timing and preparation

Careful preparation is essential. Market analyses, patent searches, and technical preliminary studies should be available before applying. Assembling a qualified project team and clarifying cooperation modalities in collaborative projects saves time later and avoids delays.

Professional support

The complexity of the application process makes professional advice valuable. Experienced funding consultants know the specific requirements and can optimize both the chances of approval and the funding amount. The investment in qualified support usually pays off with the first successful application.

Conclusion: ZIM as an innovation engine for SMEs

The revised ZIM Guideline substantially strengthens the position of German SMEs in international innovation competition. Higher funding budgets, expanded target groups, and simplified procedures make the programme more attractive than ever. The improved conditions for young companies and international collaborations, in particular, open up new strategic opportunities.
‍

The clear distinction from the R and D tax allowance enables an optimal combination of different funding instruments. Companies can finance their R and D activities comprehensively while minimizing risks.
‍

Act now: Review your current development projects for ZIM eligibility and use the improved conditions of the new guideline to gain an innovation advantage. Felsaris supports you with optimal application preparation and maximizes your funding.

‍

Frequently asked questions about the ZIM Guideline

Which companies have become additionally eligible to apply since 2025?

In addition to traditional SMEs, young companies that were founded less than 10 years ago and expanded research institutions can now participate in the programme. In collaborations, companies with up to 1,000 employees are permitted.

By how much have the maximum funding amounts increased?

Individual projects can now receive up to 690,000 euros (an increase of 25%), collaboration partners up to 560,000 euros (plus 24%), and research institutions up to 280,000 euros (plus 27%). The total project amount can be up to 3 million euros.

Can ZIM funding and the R and D tax allowance be combined?

Yes, both instruments can be used in parallel, but not for identical cost items. A strategic combination enables optimal R and D financing across different project types.

How did the application process change in 2025?

The process was standardized. Individual projects and networks are managed by VDI/VDE-IT, while collaborative projects are managed by AiF Projekt GmbH. Applications can still be submitted at any time and must be filed before the project starts.

What advantages do international collaborative projects offer?

German partners receive increased funding rates of up to 60%. In addition, international collaborations provide access to foreign markets, technologies, and research expertise with expanded participant groups.