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Evaluation of the
Central Innovation Programme
for SMEs (ZIM)

Client

Federal Ministry for Economic Affairs and Climate Action (BMWK)

Year

2024

Partner

Centre for European Economic Research (ZEW)


Small and medium-sized enterprises (SMEs) often have limited human and financial resources for research and development (R&D). In addition, the environment for many SMEs has changed since 2020 due to various external factors. Companies are facing additional challenges due to a shortage of skilled labour, inflation, supply chain bottlenecks and rising energy prices. Delays and rising costs are hampering innovation projects.

The Central Innovation Programme for SMEs (ZIM) has been an instrument of market-oriented R&D funding in the federal government's funding portfolio for 15 years. The aim of the programme is to strengthen the innovation performance of SMEs.

On behalf of the Federal Ministry for Economic Affairs and Climate Protection (BMWK), Prognos, together with the Centre for European Economic Research (ZEW), evaluated the ZIM with a focus on the funding that has been provided in accordance with the funding guidelines in force since 2020.

Increase in R&D employment and R&D expenditure by companies

Since 2020, ZIM has approved and supported a total of around 14,000 research and development projects with 2.3 billion euros.

The evaluation shows that by promoting national and international research and development collaborations and networks, ZIM is particularly effective as an instrument of technology transfer.

Further results are:

  • In addition to R&D employment, companies' expenditure on research and development has also increased as a result of ZIM funding.
  • The leverage effect is estimated at around 1.9 - companies spend an additional 90 cents on research and development for every euro of funding.
  • The positive effects are particularly pronounced for R&D newcomers and small and medium-sized enterprises with a low R&D intensity.
  • The feasibility studies introduced in 2020 primarily support young companies and companies without ZIM experience as low-threshold funding in the preparation of more extensive R&D projects.

Recommendations for action based on the evaluation results

Due to the positive effects of ZIM funding, the evaluation recommends continuing the Central Innovation Programme for SMEs. Furthermore, the programme's openness in terms of topics, continuous application and intensive advice from the project management agencies should be considered as success factors.

With regard to the changed innovation funding landscape following the introduction of tax-incentivised R&D funding, the ZIM should position itself as a programme for market-oriented technology transfer, particularly for newcomers to R&D and smaller companies as a target group.

The results of the evaluation provided valuable impetus for detailed improvements to ZIM.

Our approach

The evaluation was based, on the one hand, on the binding evaluation plan agreed between the Federal Government and the European Commission and, on the other hand, on the requirements of the Federal Budget Code (BHO), which stipulates three components for monitoring the success of financially effective measures. These components comprise a target achievement control, an impact control and an efficiency control.

The target achievement control checked the achievement of the programme objectives defined in advance (target/actual comparison). It also assessed the extent to which the objectives remain valid.

The impact assessment analysed the causality of the measures for the achievement of the objectives. This allows conclusions to be drawn about the suitability of the measure. Prognos used the impact model from the 2019 evaluation as a guide, which was reviewed to determine whether adjustments were necessary in light of the modifications to the directive.

The cost-effectiveness of the measure was examined using a cost-benefit analysis, whereby the relationship between programme activities, programme effects and programme costs was considered.

Prognos was responsible for the overall coordination of the evaluation, as well as the qualitative interviews with experts, the environmental analysis and the organisation of focus groups. 

Links and downloads

To the evaluation report (PDF, german)

To the ZIM press release (german)

To the summary of the evaluation (PDF, german)

Further information on the ZIM

Project team: Michael Astor, Thomas Danneil, Isabel Schöfl, Dr Thomas Stehnken

Last update: 31.10.2024

Do you have questions?

Your contact at Prognos

Michael Astor

Partner, Director

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Dr Thomas Stehnken

Senior Project Manager

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