SMART path - for whom?

SMART path - an introduction

You have probably heard about grants from the so-called "SMART Path". If you are looking for more in-depth information on this topic, and especially interested in whether you can take advantage of this funding - you are in the right place. In this article you will find all the most important information about this grant, given in an accessible form.

Remember, however, that the SMART Path is only one of dozens of currently available financing solutions. If you want to learn about other European funds as well as other solutions, check out our guide - DostepneDotacje.pl ;

I encourage you to read on, and if you are still left short of knowledge at the end, you can always contact us.

SMART path - basic information

The SMART path is a grant under the broader FENG (European Funds for a Modern Economy) program. These are funds allocated to Poland as part of the European budget for 2021-2027. The main purpose of this funding is to support the implementation of R&D (research and development) work in companies and the introduction of their results to the market.

For this reason, already at this stage it is worth emphasizing that support will be available primarily to companies that plan to implement innovations. Importantly, this must be an innovative solution at least on a national scale. We are not talking about a new website or the purchase of software, but about groundbreaking (in a given industry) technological solutions.

A huge amount of money - more than 4 billion euros - has been allocated to finance projects under the SMART Path.

Compulsory modules and optional modules

When applying for funding from the SMART Path, the applicant is required to select at least one of the mandatory modules. These are the R&D module and the innovation implementation module. You can choose one of the two above-mentioned modules or both.

In addition, you can although you don't have to also choose additional (optional) modules such as:

• R&D infrastructure module;
• digitization module;
• enterprise greening module;
• competency module;
• internationalization module.

Each module is dedicated to different activities. Consequently, the allocation of funds is different and depends on the characteristics of the module. Also, the level of funding may vary.

As indicated above, one of the modules is mandatory: R&D or innovation implementation, so if your business development plan does not include the above elements, the SMART path will not be the solution for you. The best chances are for those projects that will implement R&D (research and development), that is, scientific research (using scientific personnel) on innovative solutions, which will then be implemented in the conducted business.

What can the funds received be used for?

The allocation of funds depends on the nature of the module in question. Below is a catalog of sample eligible costs under each module:

R&D Module:

• remuneration of research and development personnel,
• Purchase of external services (subcontracting for research and consulting services related to the project) - a maximum of 70% of eligible industrial research and development costs incurred in the R&D Module,
• Depreciation costs for scientific and research equipment and building depreciation,
• The cost of leasing and perpetual use of land,
• acquisition of intangible assets,
• Operating costs and the purchase of materials and supplies directly related to R&D work,
• indirect (overhead) costs. 

Innovation Implementation Module:

• Purchase or lease of land and developed real estate,
• Purchase or lease of fixed assets other than real estate,
• Acquisition of works and construction materials,
• acquisition of intangible assets,
• Purchase of external services related to innovation support,
• purchase of consulting services,
• costs associated with the establishment of additional security for the grant agreement.

R&D infrastructure module:

• Purchase or lease of land and developed real estate,
• Purchase or lease of fixed assets other than real estate,
• Acquisition of works and construction materials,
• acquisition of intangible assets.

Digitization module:

• Purchase or lease of land and developed real estate,
• Purchase or lease of fixed assets other than real estate,
• Acquisition of works and construction materials,
• acquisition of intangible assets,
• Purchase of external services related to innovation support,
• purchase of consulting services.

Enterprise greening module:

• Purchase of land and developed properties,
• Purchase of fixed assets other than real estate,
• Acquisition of works and construction materials,
• acquisition of intangible assets,
• Purchase of consulting services (e.g., environmental technology verification, environmental life cycle assessment),
• Purchase of external services related to innovation support,
• The cost of compliance with stricter or future environmental standards,
• Increasing energy efficiency, 
• Investments in high-efficiency cogeneration systems,
• Promoting energy from renewable sources,
• Costs of consulting services including conducting an energy audit,
• LCA and PEF costs,
• Introduction of effective waste management. 

Module Competency:

• Purchase of training services at home and abroad,
• Travel and accommodation costs associated with the training.

Internationalization module:

• Covering the costs of participation in trade fairs or fair and conference events (e.g., costs of organizing a booth, transportation, employee business travel),
• Covering business travel costs of employees participating in foreign economic missions (e.g., transportation, accommodation, per diems),
• External services related to participation in trade fairs, foreign trade missions and inbound economic missions of international stature,
• services and fees related to the protection (and defense) of industrial property rights.

Funding level

Calculating the level of funding under the SMART Path is relatively complicated, as the level depends on several factors. These include the location of the project or the selection of modules and eligible costs within a module.

In general, the maximum level of funding is 80% of eligible costs. At the same time, the R&D module should include no less than 20% of total project costs.

The level of subsidy is influenced by the so-called "regional aid map." Under this criterion, companies from the eastern provinces, which are considered to be: the Warmian-Masurian, Podlasie, Lublin, Subcarpathian and Świętokrzyskie provinces, are particularly privileged. It is worth familiarizing oneself with the entire map of regional aid, as the level of subsidies may differ even within a single province (this is the case, among others, in Mazowieckie). The map can be found on the website of the Polish Agency for Enterprise Development.

Call dates

The current call for SME companies runs until October 30, 2023. Remember, however, that it takes at least a month to professionally develop an application. Therefore, if you are serious about taking advantage of this subsidy already in this call, it is best to start working on the application in September at the latest.

Also until October 30, 2023, the "Accessibility" thematic call is ongoing, also implemented under the SMART Path. The purpose of this program is to meet the needs of people with special needs, such as disabilities. Again, there are mandatory and optional modules.

From October 26 to 2023. until January 9, 2024, there will be a call under the SMART Path for consortia. By consortium is meant the cooperation of a company from the SME sector with a large company or a company with a scientific unit or a research or non-governmental organization.

The next calls for SME companies under the SMART Path are planned for 2024, but there is no exact schedule as of today. It is likely to be March and April 2024.

It is worth mentioning that large companies can also apply for funding from this program, but in their case, the National Center for Research and Development (NCBiR), rather than the Polish Agency for Enterprise Development (PARP), is responsible for the call.

See if you have a chance to get financing

To quickly see if you have a realistic chance of getting a grant from the SMART Path program ask yourself some basic questions:

1. Do you have the necessary own contribution (pay attention to the regional aid map and the location of your project!)?
2. Is your project related to the development and implementation of an innovation that represents a breakthrough solution at least on a national scale?
3. Is the value of your project at least PLN 1 million?

If you answer positively to all of the above questions, it is worth considering applying for financial support from the SMART Path. Best of all, get back to us then so that we can analyze your potential project free of charge and plan activities to obtain financing.

Otherwise, that is, when one of the answers is negative, I recommend looking for other financing options, and there are quite a few.

What instead of the SMART Path?

The SMART path although it is probably currently the most popular grant is not the only one. There are other solutions, both under regional (provincial), national and pan-European programs.

If you would like to learn about these other opportunities (a full, continuously updated list) then I invite you to sign up for our newsletter at: https://dostepnedotacje.pl ;

At the same time, remember that subsidies are not the only option for financing company development. Some companies can successfully apply for external financing from sources such as private investors or bank loans (as well as soft loans). It's worth considering these options as well, and we'll be happy to tell you more about them during our conversation.

SMART path - summary

The SMART path is designed to support the development of a product or process innovation by entrepreneurs. These activities should result in the implementation of an innovative solution. The implementation of product innovation is expected to contribute to increasing the level of innovation in the Polish economy.

There is an instrument dedicated to micro, small and medium-sized enterprises, but also to large companies.

Optional modules seem to be particularly attractive from the entrepreneur's point of view. They make it possible, for example, to increase the presence in foreign markets (internationalization of enterprises), raise the competence of personnel or green transformation of the enterprise.

Among the program's goals are such elements as improving employee competence, creating innovative entrepreneur-owned products, measures to increase energy efficiency, developing new business models, supporting research and development (implementation of the research agenda), operating research infrastructure, improving waste management or digital transformation of production activities. These are just examples of the goals. However, it should be remembered that the primary objective is to base the project on R&D work and implementation of innovations.

SMART path - questions and answers

Q: I run a company in Warsaw - is the SMART Path a solution for me?

A: Because of the regional aid intensity map, probably not.

Q: How is the innovativeness of my (proposed) solution verified?

A: This is examined in detail at the application evaluation stage and the expert panel. Projects that are not innovative have no chance. The evaluating expert may ask for additional documents confirming the innovativeness of the solution

Q: Is it possible to take only an optional module such as internationalization?

A: This is not possible. The project must include at least one mandatory module from the list.

Didn't find the answer to your question? Write to us at info@welldonebusiness.com