Funding for SMEs and Start-ups

The funding of small and medium-sized enterprises (SMEs) as well as of business start-ups is an important cross-sectional task of both the National Research Strategy BioEconomy and the Health Research Framework Programme.

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Biotechnology and medical technology in particular are affected by small and medium-sized enterprises (SMEs). The BMBF has created the funding initiative "KMU-innovativ" to target innovative SMEs.

Biotechnology in Germany has undergone considerable development since the mid-1990s. The BioRegio Competition, which was launched by the BMBF in 1995, triggered a wave of start-ups, as shown by the Evaluation of Funding Measures BioRegio and BioProfile (in German only). Today, Germany has around 550 companies based solely in biotechnology, as well as a further 125 companies with biotechnological activities. The majority of these businesses are small and medium-sized enterprises (SMEs). As high-tech companies, they invest disproportionately high amounts in research and development (R&D).  

Established medium-sized enterprises - for example, in the fields of pharmaceuticals, plant and animal breeding, food and feed, environmental analysis, and medical diagnostics - are increasingly applying methods from modern life sciences. And conversely, the life science sector is becoming increasingly interested in supplier industry - for example, in machine and plant construction that offers solutions for laboratory automation.

In medical technology, Germany has traditionally been a strong competitor, and next to Japan and the USA is amoung the world's leaders. Germany's medical technology branch is characterized by innovative technology, high growth rates and important contributions to improving general health care. The foundation of this success is the large innovative strength of medical technology. Around one third of medical products on the market today are less than three years old. SMEs play a major role - they are an important driver of innovation and a crucial hub for the transfer of research findings from science to industry.

Business start-ups are essential to continually renew the private sector. Science-based start-ups contribute to the commercialization of new technologies and the sustainment of industry's innovative strength. To ensure a steady flow of start-ups in the life sciences, the BMBF has launched, for example, the competition Go-Bio. The competition offers financial and ideational support in the initial start-up phases to entrepreneurial teams from all branches of life sciences including adjacent disciplines.