ZIM funding: grants for development projects in the Mittelstand

The Zentrales Innovationsprogramm Mittelstand, ZIM for short, is the German federal government’s most important technology-neutral grant programme for the Mittelstand. It funds development projects whose outcome is not yet certain at the outset, carried out in-house, in cooperation with partners or within an innovation network.

Since 7 July 2026, ZIM has not been accepting new applications due to high demand. Open international calls are exempt. Applications are expected to resume in early 2027. In the meantime, regional, national and European funding programmes for research, digitalisation, energy and international cooperation remain available. Our free funding check helps identify the right alternative for your project.

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Facts up front

Budget

€3m/project

Deadline

Suspended

Location

National

ZIM – key facts at a glance

This page explains who is eligible to apply, how much funding is available, which funding lines exist and how the application works in practice. Since 7 July 2026, ZIM has been subject to a temporary freeze on new applications and project outlines.

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Funding rate

25 to 60 per cent of eligible costs, depending on company size, location and project type

Bonus for international cooperation

up to 10 percentage points, capped at the upper limit of 60 per cent

Project duration

Depends on the project format. R&D projects often up to 3 years, feasibility studies up to 12 months, networks in two phases

Current directive

in force since 1 January 2025

Application formats

Individual project, cooperation project, innovation network; in addition, feasibility studies and market launch services

Status

temporary application freeze, reopening dependent on the 2027 federal budget

Details on ZIM

Since 7 July 2026, ZIM has been subject to a temporary freeze on new applications and project outlines. Applications with international partners under open bilateral or multilateral calls are exempt. A decision on reopening depends on the 2027 federal budget; the aim is early 2027. Ongoing and approved projects are not affected.

For your project, this does not mean that no funding is possible. Development projects that would qualify for ZIM often also meet the requirements of other instruments. The Forschungszulage is the most obvious route, because it works independently of application windows and can be claimed retroactively for up to four years.

At the same time, it is worth preparing ZIM projects now, both technically and structurally. Anyone who is ready with a mature project concept when applications reopen loses no time.

ZIM is aimed at small and medium-sized enterprises and other Mittelstand companies with a site or branch in Germany. Research institutions can take part in cooperation projects. Company size and project format determine the funding rate.

The funding rate depends on company size and project format. Depending on location and company age, small companies receive up to 45 per cent for individual projects, up to 55 per cent for national cooperation projects and up to 60 per cent for international cooperation projects.

Medium-sized companies receive less, and other Mittelstand companies receive reduced funding rates. Research institutions in cooperation projects can generally be funded at 100 per cent.

We check the exact rate on the basis of your company size, affiliated companies, location and project structure.

ZIM is not a single instrument but a family of funding lines for different constellations. Which one fits depends less on the topic than on whether you work alone or with partners, and on the stage your project is at.

Individual projects. Development projects carried out by one company on its own.
Cooperation projects. Joint projects of several companies, or of companies and research institutions, national or international.
Innovation networks. Setting up and managing a network of several participating companies, from which separate funding applications emerge.
Feasibility studies. A preliminary check of whether a development project is technically feasible.
Market launch services. Support on the way to market once development is complete.

The innovation networks are described in detail on a separate page, where you will also find the networks we manage.

Funding goes to development projects involving technical uncertainty. What matters is that the outcome is not certain at the outset and that a skilled person could not simply look up and implement the solution. Merely applying known methods, standard integration or routine development is not eligible. ZIM is technology-neutral and does not prescribe any subject areas.

Under the ZIM directive in force since 2025, R&D projects can in particular include personnel costs, other project-related costs, contracts with third parties, R&D contracts and the temporary hiring of qualified staff. The specific amount of funding follows from the eligible costs and the applicable funding rate.

Upper limits for eligible costs

Individual R&D project: up to 690,000 euros per company
R&D cooperation project: up to 560,000 euros per company sub-project
Research institution in a cooperation project: up to 280,000 euros
Cooperation project in total: a maximum of 3 million euros in funding
Feasibility studies: up to 125,000 euros per company, up to 250,000 euros in total for cooperative studies
Market launch services: up to 100,000 euros in total costs per funded R&D project, of which 50 per cent as a grant

As ZIM is currently paused, cost types, maximum amounts and forms should be checked again before a new application is submitted. The values stated apply under the 2025 directive. Details may change when applications are accepted again.

The ZIM procedure does not run directly through the ministry but through appointed project management agencies. Since the 2025 directive, AiF Projekt GmbH has been responsible for cooperation projects. VDI/VDE Innovation und Technik handles individual projects, feasibility studies and innovation networks. Applications are submitted digitally via the Förderzentrale Deutschland.

Assess the project. The first step is to clarify whether the project is eligible and which funding line fits. This decision determines everything that follows, because individual projects, cooperation projects and networks come with different requirements.
Structure the project. Work packages, schedule and cost plan are set up so that they fit the funding logic and can later be accounted for in an audit-proof way.
Write the application. The application is written along the evaluation criteria, not along the project description. Its core is a comprehensible account of the technical uncertainty.
Submission to the project management agency. Submission takes place digitally with the responsible project management agency.
Evaluation and decision. The project management agency checks the application technically and formally. Queries are common and not a bad sign.

Why ZIM applications fail in practice

The technical uncertainty is not visible. The project is described as a finished implementation plan instead of a development task with an open solution path. What is then missing is precisely the feature that establishes eligibility.
No delimitation from day-to-day business. If it is not clear where the funded project ends, problems arise in the evaluation and later in the proof of use.
The cost plan does not match the project structure. Work packages and costs have to match, otherwise funding is cut.
Started too late. With ZIM, the application must be submitted before the project starts. A binding development contract, an order or the start of eligible work before the application can rule out funding.

A ZIM application depends on describing technical uncertainty in a comprehensible way. That is exactly what development teams find difficult, because they have solved the problem and no longer see the uncertainty in hindsight.

Eligibility check and choice of funding line
Setting up work packages, schedule and cost plan
Preparation of the complete application
Communication with the project management agency, including queries
After approval: time recording, fund drawdowns and proof of use

What does a funding advisor do?

A funding advisor is an expert who guides companies through the complex process of applying for public funding and secures the best funding for their projects – from selecting the right programmes through the application to the final report.

At Ignite we work success-driven: we only make you an offer when we are convinced your project is eligible. You are supported comprehensively throughout the process while you concentrate on your core business – we take on the time-consuming part.

Our services as funding advisors

Analysis and identification

Assess company & project
Find the right programmes
Aimed at maximum grants

Strategy development

Tailor-made strategy
Aligned with your goals
Combine programmes

Application and documentation

Complete application drafting
Documents complete & correct
Higher approval chances

Communication with funding bodies

Contact with authorities
Coordination with funding bodies
Representing your interests

Project support and aftercare

Support across the project term
Meeting funding conditions
Disbursement & final report

The advantages of our funding advisory

Time saved

Focus on your core business
The workload sits with us
A faster application

Access to hidden funding opportunities

Lesser-known programmes
Clever combinations
Full funding potential

A higher success rate

Expertise from many applications
Better approval chances
Fewer rejections

Maximising the funding amount

The highest possible funding
Every lever used
More from every project

Legal certainty

All requirements met
Audit-proof evidence
No clawback risk

Numbers you can hold us to

15,000⁺

Funding applications in the last five years

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A team of specialists at your service

AilaLindenau

Network Consultant

Frequently asked questions about ZIM

The Zentrales Innovationsprogramm Mittelstand is a technology-neutral federal grant programme. It funds development projects of Mittelstand companies, on their own, in cooperation or within a network.

No. Since 7 July 2026, a temporary application freeze has been in place; open international calls are exempt. Reopening depends on the 2027 federal budget, and the aim is early 2027. Preparing is still worthwhile.

For development projects, the Forschungszulage is the most obvious route. It is independent of application windows, open to all companies liable to tax in Germany and can be claimed retroactively. Depending on the project, thematic federal programmes or European instruments may also be an option.

Depending on company size, location and project type, the funding rate for companies is between 25 and 60 per cent of eligible costs. Cooperation projects receive higher rates than individual projects. International cooperation can additionally benefit from up to 10 percentage points, but only up to the upper limit of 60 per cent.

No. ZIM also funds individual projects. A cooperation can, however, strengthen the application and raise the funding rate, especially with international partners.

Only after the application has been submitted. A binding development contract, an order or the start of eligible work before the application can rule out funding.

No. ZIM is technology-neutral and does not prescribe any subject areas. What matters is the technical uncertainty of the project, not the sector.