Subsidy scheme for SMEs Innovation stimulation Top sectors
Published on 19 February 2019
Netherlands
Drenthe
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Over 42 million has been granted in the last 4 years in this region, making it one of the biggest subsidy-programmes the province has. Problem was the amount of SME’s that we wanted to reach. Zuid-Holland is a region rich with innovative SME’s, ranging from f.e. horticulture to space innovations. Our goal is to reach as many of these as possible. Often, big administrative demands turn applicants away. Also the maze of obligatory files needed to be attached to the applications doesn’t help the applicant.
Therefore we have decided to drastically drop the compliance demands and attachments. Now, only one document is necessary: the projectplan. As a result the amount of applicants has increased enormously and is still increasing annually.
Therefore we have decided to drastically drop the compliance demands and attachments. Now, only one document is necessary: the projectplan. As a result the amount of applicants has increased enormously and is still increasing annually.
Expert opinion
The programme subsidy scheme for SMEs aims to stir innovation and research and development (R&D) activities in regional small and medium enterprises (SMEs) in selected sectors. The programme offers two different financial support instruments: (1) the first one aims to support SMEs in their proof-of-concept, and (2) the second one aims to promote interregional R&D collaborative projects. The innovative aspect of this practice resides in its reduced administrative burden to be granted the financial support scheme. Indeed, in contrast to many regions offering similar schemes, the Zuid-Holland region only requires SMEs to submit the projectplan.
Suggestions for potential Good Practice transfer:
-Regions with subsidy schemes to promote R&D activities in SMEs that have significant administrative procedures to grant R&D subsidies could learn from the experience of the Zuid-Holland region in reducing administrative burden.
-Regions that aim to reduce administrative burden for subsidy schemes should have enough capabilities to properly assess applications. Moreover, a regional system of checks and balances must exist to not favour rent-seeking and policy capture behaviours from SMEs.
Suggestions for potential Good Practice transfer:
-Regions with subsidy schemes to promote R&D activities in SMEs that have significant administrative procedures to grant R&D subsidies could learn from the experience of the Zuid-Holland region in reducing administrative burden.
-Regions that aim to reduce administrative burden for subsidy schemes should have enough capabilities to properly assess applications. Moreover, a regional system of checks and balances must exist to not favour rent-seeking and policy capture behaviours from SMEs.
Works at
Interreg Europe Policy Learning Platform
Resources needed
2 people policy (1,2 FTE), 1 administration (0,5 FTE), 4% of 14 mln administrative funding for salaries, website, information-events etc
Evidence of success
The amount of applications: 565 SME’s have been subsidized over the last 4 years in Zuid-Holland. Also the amount of money granted: € 42 mln. Compared to other provinces (and of course due to the amount of innovative SME’s in our region) this is high. We hope this is also because of the accessibility of the grant: we ask for less mandatory attachments (SME-tests, registrations etc) than other regions. Also our compliance-demand is less and more in sync with the pay-off of the grant.
Potential for learning or transfer
Potential for learning is high. Many grants are directed at a target group instead of derived from the questions that target group has. This is also the case with the compliance-aspects of the grant. Even if those demands seem logical for a governmental institution, the resulting burden needs to be shouldered by the applicants. This is not always taken into account.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Province of Zuid-Holland
Netherlands
Zuid-Holland
Contact
Policy Advisor Europe