Drive Growth Though Innovation Grants
About this good practice
The program implemented by the Fund for Innovation and Technology Development in North Macedonia aims to boost innovation and competitiveness among SMEs and start-ups. It promotes risk-taking, new product development, and adoption of advanced technologies to enhance productivity and bridge the gap between local and global industries.
The program offers four types of grants to foster innovation and business growth:
• Start-up and spin-off grants cover up to 85% of the project budget, with a maximum of €30,000, supporting R&D for new products and services.
• Commercialization grants help businesses bring innovations to market, with funding based on company size.
• Technological extension grants cover 50% of project costs, up to €500,000, helping SMEs adopt innovative technologies and advanced processes, improving operational efficiency and competitiveness.
• Business-technological accelerator grants finance up to 75% of the budget, with a maximum of €500,000, to establish accelerators providing office space, mentorship, consulting, and investment opportunities for start-ups.
These grants strengthen the innovation ecosystem, enhance industry competitiveness, and create growth opportunities. Key stakeholders include the Fund for Innovation and Technological Development, the World Bank, the Macedonian government, and financial institutions. Beneficiaries, such as start-ups, SMEs, and accelerators, receive financial support to foster innovation and improve processes.
Resources needed
The projects were co-financed through the World Bank program (SDIS) with a total value of 12.99 million euros. Additionally, the combined program of the World Bank SDIS and the Government’s Plan for Economic Growth provided co-financing with a total value of 19.68 million euros.
Evidence of success
This practice is successful due to its positive impact on supported companies. It co-financed 271 projects, including 171 Start-Up/Spin-offs, 93 Commercialization, 4 Technology Extension, and 3 Business Accelerator projects. Measurable results include a 197% revenue increase and 37% salary growth for Start-Up/Spin-offs, while Commercialization projects experienced a 19% revenue increase and 71% profit growth. These figures clearly demonstrate the program’s impact on business growth.
Potential for learning or transfer
North Macedonia's approach to fostering startups offers a valuable blueprint, focusing on innovation-driven growth and leveraging public and private funding. The Fund for Innovation and Technology Development (FITD) has improved the competitiveness of SMEs and startups. Key success factors for transferring this practice include strong partnerships between government bodies, the private sector, and international institutions, along with financial support and mentorship. FITD’s communication campaigns raised awareness, increasing the fund's budget from less than US$400,000 to over US$18 million by 2021. Initially funded by the World Bank, its contribution decreased as the Government took on a greater role. FITD also partnered with local banks for co-funding. Challenges to transferring this model include the availability of similar funding, the local context, and capacity for implementation, particularly in regions with limited innovation ecosystems.
Further information
Good practice owner
You can contact the good practice owner below for more detailed information.
Fund for Innovation and Technology Development
