At the end of July, two funding rounds will open, through which the state will allocate a total of 20 million euros for applied research—15 million for general applied research and 5 million for the development of food resource valorization technologies.

Under this program, companies can apply for a prepayment of up to 30% of the total project cost. Simplified reporting allows the focus to remain on achieving results. All companies registered in Estonia are eligible to apply, regardless of size—collaboration between startups, the industrial sector, and research institutions is encouraged. Funding amounts range from 250,000 to 2 million euros for general projects and 150,000 to 1.5 million euros for food-related innovations.

According to Minister of Economic Affairs and Industry Erkki Keldo, the program has already proven its value: "In technology development, timing is critical. The new applied research logic helps companies start projects more quickly and confidently while reducing administrative burden. ... The productivity of supported companies has grown by as much as 120% above the EU average."

Sigrid Harjo, board member of EIS, highlighted the expansion of the food resource-focused round, stating: "The food resource valorization call is based on the TAIE 2021–2035 strategy ... and supports the development of internationally competitive products and services."

The results so far demonstrate the program's effectiveness. For example, Frankenburg Technologies is working on a cost-effective anti-drone system, Estanc is developing a hydrogen storage solution, and Spacedrip is creating a mobile wastewater treatment unit—together covering more than 30 technology fields.

Pre-consultation for the applied research program is available on a rolling basis. Entrepreneurs receive support with both technological and business planning from an expert, which improves project quality and enhances chances of success.

The new call offers companies the opportunity to develop prototypes and conduct initial testing. The expected outcome is the creation of higher value-added products and services that strengthen Estonia’s economic competitiveness and resilience in times of crisis.

The next call of the applied research program will open on July 28. If you have an innovation in mind that needs support, consider applying.