Unlock Direct Funding for Your R&D and Innovation Projects.

What Is Direct Innovation Financing?

Direct innovation financing refers to non-dilutive public funding (grants, subsidies, repayable advances, and public loans) allocated by governments, regional authorities, and international institutions to stimulate research, development, and technological innovation.

Direct public funding is designed to de-risk innovation investment and accelerate the commercialisation of new products, processes, and services. From early-stage feasibility to industrial-scale deployment, direct funding instruments exist at every stage of the innovation value chain, and for companies across all sectors and sizes.

Key distinction

Direct financing (grants, subsidies) differs from tax incentives such as R&D tax credits. Both are complementary tools. ABGi advises on both, but this page focuses on direct funding instruments only.

Understanding the Main Funding Instruments

Grants & Subsidies

Grants provide a contribution to eligible project costs, typically expressed as a percentage of total qualifying expenditure, without any obligation of repayment. They are awarded on a competitive basis by public bodies, and are generally subject to ongoing reporting requirements and the possibility of audit. Grant rates vary significantly depending on the jurisdiction, the size of the company, and the nature and strategic priority of the project.

Repayable Advances

Also known as soft loans or conditional advances, these instruments provide upfront financing that is repaid only if the project achieves commercial success. They are well suited to higher-risk, pre-commercial development projects where the outcome is uncertain. Several national programmes in France, Germany, and the UK operate primarily through this model.

Collaborative projects

Many public funding programmes specifically support projects involving multiple partners (companies, universities, and research organisations) often across national borders. These instruments encourage knowledge transfer, shared investment in frontier research, and the formation of durable innovation ecosystems. The European Union’s framework programmes are the most prominent example, but similar collaborative models exist at national level in most of the countries where ABGi operates.

Who Qualifies and for What?

A common misconception

Many companies believe public grants are only accessible to start-ups or public research organisations. In reality, mid-size and large industrial companies consistently represent a major share of successful applicants, particularly in collaborative and industrial deployment programmes.

Eligibility criteria vary significantly by programme, but a number of structural factors consistently determine access to public innovation financing:

Company Profile

Size (SME, mid-cap, large group), legal status, country of establishment. Some programmes are SME-exclusive; others require a lead partner of a certain scale.

Project nature and TRL

Technology Readiness Level (TRL 1–9) determines applicable instruments. Basic research, applied R&D, pilot lines, and industrial deployment are funded by different schemes.

Strategic alignment

Projects must align with public priorities: green transition, digitalisation, health, strategic autonomy, etc. Fit with policy objectives is often as important as technical quality.

Additionality

Public funding must demonstrably enable something that would not have occurred — or occurred to the same extent — without public support. This concept is fundamental to eligibility.

Geographic footprint

Where R&D activities are conducted, where results are exploited, and where jobs are created all influence eligibility across regional and national programmes.

How ABGi Supports Your Funding Journey

Accessing direct innovation funding is a structured process. It requires strategic positioning, rigorous technical writing, and sustained programme management. ABGi acts as your integrated advisor at every stage.

1. Opportunity Mapping

We audit your innovation pipeline and map eligible activities against national, regional, and European programmes, identifying the highest-value funding opportunities for your specific context.

2. Strategy & Positioning

We advise on programme selection, consortium strategy (where relevant), and the positioning of your project to maximise both eligibility and scoring criteria.

3. Application Writing

Our experts co-write proposals with your teams, combining deep technical understanding with mastery of evaluators’ expectations. We translate your innovation into the language of funding bodies.

4. Grant Management

Once funded, we support reporting, cost eligibility, milestone management, and audit readiness ; ensuring compliance and protecting the grant throughout the project lifecycle.

An International Expert with Deep Local Expertise

ABGi is a specialist consultancy dedicated exclusively to innovation finacing. Our sole focus is helping companies access the public funding they deserve for their innovation investments.

With over 30 years of experience and offices across the world, we combine a global network with in-country expertise, understanding both the strategic landscape and the operational realities of each funding programme in each market. Our multidisciplinary teams include former evaluators, scientists, engineers, and finance specialists who bring both technical credibility and funding expertise to every mandate.

xxxM+

€ secured for clients annually

offices worlwide

4500

clients supported worldwide

35 years

of innovation finance expertise