Vlada Republike Srbije Sekretarijat za Javne politike The World Bank

Based on the Article 8 of the Budget Law of the Republic of Serbia for year 2017 (“Official Gazette of RS” No. 99/16) and Government Decision RS 05 No. 401-807/2017 dated February 3, 2017, for the purpose of implementing the Law on the ratification of the Loan Agreement (Competitiveness and Jobs Project) between Republic of Serbia and International Bank for Reconstruction and Development (“Official Gazette of RS” – International Agreements No. 24/15-4)

The Innovation Fund


Public Call for the Matching Grants Program

Program objectives are:

  • To stimulate commercialization of R&D and further knowledge-based development of innovative enterprises;
  • To stimulate establishment of collaboration/partnerships with international companies/organizations;
  • To increase the number of technology-based companies and prepare them for additional investment opportunities.

Duration of projects under the Matching Grants Program can be up to 2 years.

The amount of financing that Innovation Fund awards under the Matching Grants Program will cover a maximum of 70% of total approved project budget for micro and small enterprises and a maximum of 60% of total approved project budget for medium sized enterprises, but the Innovation Fund financing cannot exceed more than EUR 300,000 per project. The minimum of 30% of the total approved project budget for small and micro enterprises and 40% for medium sized enterprises is to be secured by the Applicant from other, private sector sources, independently of the Innovation Fund.

Royalty payments are obligations of the Awardees in the event of a successful outcome of the funded project (if the project results with revenue), entailing payment to the Innovation Fund up to 120% of the financing received during five (5) years after project completion. The Innovation Fund shares the risk with the Applicant in case of unsuccessful product/service/technology development, and thus will not seek royalty payments in such case.

Terms of Participation in the Program

Conditions to be met by Applicants for financing under the Matching Grants Program, as described in the Matching Grants Program Manual:

  • The Applicant is a legal business entity , incorporated under applicable/current Serbian Company Law, registered at the Serbian Business Registration Agency (SBRA) and located in Serbia;
  • The Applicant is a micro, small or medium sized company in accordance with the definition of European Commission (European Commission – 2003/361/EC,  EU definition of SMEs http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en);
  • The Applicant is a private sector company (at least 51% privately owned).

Not eligible Applicants for Matching Grants Program:

  • Applicant has received financing from any other Innovation Fund financing program for the same activities.
  • Applicant had revenue over EUR 50,000,000 in any of the previous two years;
  • Applicant is under control and/or majority owned (greater than 50%) by a parent company that is an operating or holding company that had revenue, or is part of the group that had revenue over EUR 50,000,000 in any of the prior two years;
  • Applicant that is against liquidation or bankruptcy cases at the time of submitting the Application;
  • Applicant that has been banned, permanently and temporarily, from running its business operations;
  • Applicant that has not paid all due taxes, contributions and other levies in conformity with national regulations;
  • Applicant that is submitting for a third time an Application substantially the same as any two previously submitted Applications (i.e. based on the substantially same or similar innovative technology, product or service and business plan).

The allocation of funds under the Matching Grants Program is conducted in accordance to the State aid regulations, as described in the Innovation Fund’s Rulebook on applying state aid rules as well as applicable law governing state aid rules.

Funds for implementation under the MATCHING GRANTS Program can be used for financing of the following expense categories:

  • Salaries (inclusive of all social benefits for employees working on the project);
  • Small equipment and R&D supplies;
  • Offices and business support;
  • R&D services, subcontracts;
  • R&D experts/advisors;
  • Patent application and fees, certifications

Funds of Matching Grants Program can’t be used for financing of the following expense categories:

  • Interest or debt owed to any party;
  • Expenditures and provisions for possible future losses or debts;
  • Taxes, including VAT, duties and charges;
  • Items already financed through another framework, program or company/institution;
  • Currency exchange losses, fees and penalties;
  • Marketing, sales and distribution costs for promoting the technology, product or service;
  • Entertainment and hospitality expenses;
  • Recruitment, relocation or subscription costs;
  • Travel costs (including per diems);
  • Purchase of land or buildings, including any renovation;
  • Any activities outlined in the Annex A (Exclusions) of the Environmental and Social Management Framework publicly disclosed on May 8, 2015 available at: http://www.innovationfund.rs/documents/Mini_Grants_2017/Environmental_and_Social_Management_Framework_ENG.pdf;
  • Cash payments from the dedicated project account;
  • Advance payments unless proof of purchase (i.e., invoices, delivery reports, consultant reports) is provided and/or advance payment is secured by advance payment guarantee.

Application documentation

In order for any Application to be evaluated, it needs to be submitted as a complete, structured documentation package within the given submission deadline, both electronically through the Innovation Fund’s portal and in hard copy for the Innovation Fund’s archive where required. A complete set of necessary Application documentation can be found on the Innovation Fund’s website and the Matching Grants Program portal (www.innovationfund.rs/matching-grants-about-the-program/). Applicants are obligated to use predefined document templates provided by Innovation Fund stated below:

  • Applicant Statement;
  • Business Plan;
  • Project Budget;
  • Project presentation;
  • Financial Forecast (Projected income statements for the next 5 years).
  • Environmental Screening Questionnaire (ESQ);
  • CVs of the key personnel engaged in the project (maximum 5).
  • Audited financial statements for the last two years, where applicable

Due to the international two-phase evaluation process,  submitted project proposal documentation must be in English, except in situations where this is not applicable.

It is possible to submit only one application.

The deadline for Application submission is September 1, by 15h.

Incomplete Applications, as well as Applications that are not submitted both electronically via Innovation Funds website and in hard copy until the submission deadline will not be considered for further evaluation.

Manual which details the conditions of the Matching Grants Program and set of the required documents are available at: www.innovationfund.rs/matching-grants-about-the-program/

Plese use the following link for application: http://www.innovationfund.rs/apply/


Innovation Fund

Science Technology Park Belgrade

54/B4/2 Veljka Dugoševića St

Contact: matchinggrants@inovacionifond.rs