Market opportunity in (a) developing market(s)

Your company has (an) identified market opportunity/ies in (a) developing market(s). The eligible target markets include well over 100 developing countries from least developed to upper-middle income countries, as defined by the OECD. A funding for Co-Innovation in developing markets project can cover several developing markets.

If you are still exploring market opportunities in developing markets, consider the Team Finland market opportunities service. Each year we identify a wide range of market opportunities relevant for Finnish solutions.

See the OECD list of developing countries

See Team Finland market opportunities service

Sustainable and innovative solution with development impact

Your company is developing an innovative solution – product, service, process or business model – that addresses a specific challenge or a need in the target market(s) and can contribute to achieving at least one of the 17 SDGs. The innovative solution must have potential to contribute in some way to some positive development impacts in the local target market(s). Examples of possible positive development impacts in the target market include, but are not limited to:

• Reduced pollution, carbon footprint or environmental degradation
• Food security and sustainable management of natural resources such as forests and water
• Better access to health services, quality education, clean water, energy, financial services or Internet
• Enhanced gender equality or empowerment of vulnerable groups such as minorities
• Better infrastructure such as roads, bridges, railways, ports or rural or urban settlements
• Increased decent employment, income generation and better workplace safety
• Support for entrepreneurship and industrialization
• Improved security and enhanced governance
• Increased capacity and skills development
• Higher tax revenues

Read more about sustainable development goals

Need for Co-Development and Co-Creation with (a) local partner(s)

Your company needs to (further) co-develop and co-create (an) innovative solution(s) jointly with (a) local partner(s) in (a) developing market(s) – for example, to enhance the relevance of the solution(s) to the local contexts and needs. Most of the funding for co-innovation in developing markets must be used for purchasing services from the local partners for collaborative co-development, co-creation and co-innovation.

If you do not yet have (a) suitable local partner(s) identified in the potential target developing market(s), consider reaching out to the global network of Business Finland. We help you to find meaningful and valuable contacts for your market needs.

See access to business contacts service

R&D project funded by Business Finland

Your company has, has recently had or is willing to apply for an R&D project funded by Business Finland according to its regular funding principles and criteria. R&D project can be already ongoing or recently ended project or your company can apply for a new R&D project in parallel with the funding for co-innovation in developing markets application.

The funding for co-innovation in developing markets project must be tangibly linked to the R&D project. It must:

• Contribute to the achievement of the goals of the R&D project.
• Further develop the solution developed under the R&D project.
• Improve the conditions for the commercialization of the solution developed under the R&D project.

The funding for co-innovation in developing markets project can run in tandem, as an expansion or as a continuation to the R&D project.

Read more about R&D funding

Company with sufficient resources

Your company has a Finnish business identity code and sufficient financial and human resources available for the project implementation. Both SMEs and large companies can apply for the funding for co-innovation in developing markets.

The purpose of the funding for co-innovation in developing markets is to enable local co-development and co-creation of sustainable innovations jointly with local partners in developing markets. The funding can be used for (further) co-developing innovative solutions – products, services, processes or business models – conducive to at least one of the 17 SDGs. Activities funded with the funding for co-innovation in developing markets project must be linked to a regular R&D project funded by Business Finland.

Most of the funding for co-innovation in developing markets must be used for collaborative co-development and co-innovation with (a) local partner(s) in developing markets. The funding is provided to customer companies that can in turn purchase services from the local partners. The purchased services from the local partners need to be at least half of the project costs.

In this context, possible uses of the funding for co-innovation in developing markets include:

• Research, development and innovation activities, including business model development and commercialization of research results.
• Identification of customers, partners and product-market-fit in relation to innovative solutions being developed.
• Network development, for example, to identify investors and pilot sites or to explore distribution channels regarding innovative solutions under development.
• Feasibility studies, especially covering ESG/SDG aspects, for innovative solutions under development.
• Expert services related to demonstrations, testing and piloting related to the innovative solutions being developed.
• Planning for local training and capacity building for solutions under development.

What the funding cannot be used for

Examples of what the funding cannot be used for include:

• Sales, export and marketing activities.
• Establishment and operation of distribution channels.
• Conducting education and training activities.

Identify (a) suitable local partner(s)

The funding for co-innovation in developing markets must be used for collaborative co-development and co-creation with (a) local partner(s) in developing markets. The funding is provided to customer companies that can in turn purchase services from the local partners. The purchased services from the local partners need to be at least half of the project costs.

At the application stage, the company must have identified (a) suitable local partner(s) in the target developing market(s), provide information on the partner(s) and describe the planned activities with the partner(s). Suitable local partners can be, for example, local companies, research organizations or non-governmental organizations in the target developing market(s).

If you do not yet have (a) suitable local partner(s) identified in the potential target developing market(s), consider reaching out to the global network of Business Finland. We help you to find meaningful and valuable contacts for your market needs.

See access to business contacts service

Check your R&D project options

The funding for co-innovation in developing markets must be tangibly linked to an R&D project funded by Business Finland. The funding for co-innovation in developing markets project must:

• Contribute to the achievement of the goals of the R&D project.
• Further develop the solution developed under the R&D project.
• Improve the conditions for the commercialization of the solution developed under the R&D project.

The R&D project can be already ongoing or recently ended project or your company can apply for a new R&D project in parallel with the funding for co-innovation in developing markets application. The R&D project – such as research, development and piloting or co-innovation -project – must meet the regular funding principles and criteria of Business Finland. The R&D project does not have to focus specifically on developing markets.

When applying for the funding for co-innovation in developing markets, the company must refer to an ongoing, a recently ended or a newly (applied and) approved R&D project funded by Business Finland. The R&D project and the funding for co-innovation in developing markets project must belong to the same entity in the case of a group of companies.

Read more about R&D funding

Check De minimis funding

The funding for co-innovation in developing markets is de minimis aid. Your company can receive de minimis funding no more than 300 000 EUR over any period of three years. Such de minimis aid is granted by a range of public organizations, such as Finnvera and the ELY Centers.

At the application stage, the company must assess how much de minimis funding it has received in the previous years. Companies belonging to the same group or controlled by the same party – for example, by the same majority owner – are considered as one company.

Read more about De minimis funding

Ensure availability of sufficient resources

The company must have sufficient resources available for the implementation of the funding for co-innovation in developing markets project, including sufficient human resources. While the funding for co-innovation in developing markets grant is maximum 300 000 EUR and 75% of the accepted project costs, the company must self-finance the rest of the project costs.

In the case of SMEs, 70% of the funding for co-innovation in developing markets grant can be paid in advance and the rest against the real costs at the end of the project. An SME needs to ensure funds equivalent to some 50% of the total project costs upfront for implementation.

In the case of large companies, all the grant is paid against the real costs at the end of the funding for co-innovation in developing markets project. A large company needs to ensure funds equivalent to all project costs upfront for implementation.

At the application stage, Business Finland assesses the company's financial situation. An up-to-date income statement and balance sheet must be attached to the application. When assessing the adequacy of available resources, Business Finland considers also the resource needs of company's other operations, which will continue alongside the funding for co-innovation in developing markets project.

Check general requirements for financing

Business Finland will not grant funding if:

• The company has arrears, payment defaults or other outstanding financial obligations related to previous loans granted by Tekes or Business Finland.
• The company has not submitted its financial statements to the Finnish Patent and Registration Office in accordance with the Limited Liability Companies Act.
• The company's financial statements have not been audited in accordance with the Auditing Act.
• The company is not in the prepayment register.
• According to the Finnish Tax Administration, the company has overdue taxes or payments for which a payment plan has not been agreed upon.
• The company has neglected registration, notification or payment obligations related to other statutory obligations.

Check the funding terms and conditions

The terms and conditions of funding indicate what costs Business Finland can finance, how project costs will be monitored and how the progress of the project must be reported.

Read the terms and conditions for funding

Contact Business Finland before filling out the application

If your company already has a contact person at Business Finland, please get in touch with them before filling out the application. 

Please send your application and its required attachments via the online service of Business Finland. You can also keep track of the processing of your application in the online service.

Go to Online service

Instructions for online application

When preparing your application for the funding for co-innovation in developing markets in our online service, please do the following:

• Regarding ‘funding service’, please select ‘accelerators and preparations for international projects’.
• Regarding ‘programs and other connections’, please select ‘Developing Markets Platform (DevPlat)’.

Please note that when applying for the funding for co-innovation in developing markets, the company must refer to an ongoing, a recently ended or a newly (applied and) approved R&D project funded by Business Finland. The R&D project must be referred to as the parent project in the online application.

The online service requires that each section of the online form is filled out, although not all sections are relevant for the funding for co-innovation in developing markets application. In several sections, a simple reference can be made to the parent project that is the R&D project funded by Business Finland, to which the funding for co-innovation in developing markets application is linked. Please note this for the following sections:

• For the section ‘company's current status / company's business description’, please write ‘information available in the documentation concerning the parent project’.
• For the section ‘company's current status / company's ownership, structure, resources and the contribution of key personnel to the company’, please write ‘information available in the documentation concerning the parent project’.
• For the section ‘growth vision’, please write ‘information available in the documentation concerning the parent project’.
• For the section ‘project goals’, please write ‘information available in the documentation concerning the parent project’.

When filling in the section ‘project implementation / basic details’, please note the following:

• For the point ‘name of the project’, please write down a specific name for the funding for co-innovation in developing markets project and include the abbreviation ‘DevPlat’ at the beginning of the name.
• For the points ‘start date’ and ‘end date’, please indicate the timetable for the funding for co-innovation in developing markets project.
• For the ‘municipality where the project is primarily carried out’, please refer to the municipality concerning the parent project.
• For ‘the applicant's own project identifier’, please indicate an independent abbreviation for the funding for co-innovation in developing markets project.

Please include in your online application a duly filled SDG-form for funding application as an PDF-attachment under the section ‘project implementation’.

When filling in the section ‘budget and funding’, please note the following:

• For the point ‘estimated cost of project’, please ensure that the numbers correspond to those indicated in the SDG-form for funding application.
• For the point ‘funding applied for from Business Finland’, please consider the budget concerning the funding for co-innovation in developing markets project.

In the section ‘summary and sending of the application / free-form cover note’, please write down ‘this application relates to the following parent project funded by Business Finland [name of the parent project / identity number of the parent project].

SDG-form for funding application

Please include in your online application a duly filled SDG-form for funding application as an PDF-attachment. The SDG-form template includes the following sections:

• Basic information
• Project overview
• Resources
• Collaboration with local partners
• Compatibility with sustainable development

The SDG-form serves as the project plan for the funding for co-innovation in developing markets application. You are expected to outline the key need or challenge identified in the target market(s), describe your objectives for the funding for co-innovation in developing markets project as well as detailing the related key activities and resources. Please also outline how the proposed funding for co-innovation in developing markets project and collaboration with local partner(s) relate to the parent project, which is the R&D project funded by Business Finland.

The SDG-form focuses on collaboration with the local partner(s) in the target developing markets(s) and the most significant development impacts the project expects to generate. You are expected to detail information on your local partner(s) as well as outlining how your funding for co-innovation in developing markets project is expected to contribute to (one or more) SDGs and bring about (some) development impacts. Please also consider and describe potential risks related to your funding for co-innovation in developing markets project in the target developing country context and how you plan to manage and mitigate those risks.

Please note that the project information as described in the SDG-form for funding application will be shared with the MFA and Finnpartnership. The information may also be disclosed for other partners relating to the activities of DevPlat if there is a legal basis for sharing of project information. When applying for the funding for co-innovation in developing markets, you give permission to share and use the project information for the purpose of identifying potential funding overlaps, synergies and pathways as well as for monitoring progress, results and impact of the project.

The MFA will assess the SDG-form from the development policy and co-operation standpoint, as the funding for co-innovation in developing markets is derived from the official development co-operation funds of Finland. A positive assessment by the MFA is a prerequisite for a positive funding for co-innovation in developing markets decision by Business Finland.

See the SDG-form for funding application (docx)

Information about the company financies

SMEs must attach to their funding for co-innovation in developing markets application an income statement and a balance sheet from the current financial period. These documents shall not be more than two months old.

In the application, the company must assess how much de minimis funding it has received in the previous years. Companies belonging to the same group or controlled by the same party – for example, same majority owner – are considered as one company.

Eligible costs

The maximum amount of the acceptable costs for a funding for co-innovation in developing markets project is 300 000 EUR. Costs can be accepted starting from the day on which the funding for co-innovation in developing markets application was submitted.

Eligible costs include:

• Salaries of own staff for the work in the target country/ies.
• Purchased services from the identified local partner(s) in developing markets. Please do not conclude a binding contract for the provision of services before submitting the application.
• Indirect personnel costs up to 50% of own staff salaries.
• Other costs up to 20 % of salaries and purchased services. Other costs can include travel costs, administrative costs, rent, materials, equipment and alike, as defined in in the terms and conditions of the de minimis funding.

See the funding terms and conditions for de minimis aid

How does Business Finland funding work?

1. Before you apply

Check that you are eligible for the funding for co-innovation in developing markets. Consider your options regarding the local partner, the R&D project funded by Business Finland, de minimis funding and resourcing. Sketch your project, including its goals, contribution to SDGs and expected development impacts. Get in touch and discuss with Business Finland as needed.

2. Apply for funding

Submit your application and its required attachments through our online service. Submit additional information as requested.

3. Approve the funding decision

Business Finland will assess your funding for co-innovation in developing markets application. The MFA will assess the SDG-form attached to your application from the development policy and co-operation standpoint. Business Finland will notify you of the funding decision. Read the decision, including its terms and conditions, and approve the decision in our online service.

4. Use the funding

Arrange your project accounting. Notify Business Finland of any changes.

5. Report on your project

Report on the implementation of your project and the related costs. Attach the additional information requested with your report.