“Industrial joint research” is also considered a core element of SME policy in politics. However, the business department canceled the contract with the previous partner.
The medium-sized companies network AiF sees the funding of research projects for small and medium-sized industrial companies at risk. According to the AiF, the background is plans by the Federal Ministry of Economics for the implementation of the “Industrial Community Research” (IGF) funding program. The tried-and-tested, open-topic, joint research funding without competition from companies could be damaged, warned AiF President Sebastian Bauer.
The Working Group of Industrial Research Associations (AiF) brings medium-sized companies and research together. In contrast to large corporations, small and medium-sized companies often do not have their own research and development department. Access to technologies should be made easier for them via the AiF network with 100 research associations, more than 50,000 integrated medium-sized companies and 1200 participating research institutions. This is also possible through the “Industrial Joint Research” (IGF) funding program, which is about pre-competitive research.
Problems with procurement law
The Federal Ministry of Economics wants to advertise a classic project sponsorship for the future implementation of the funding program and has therefore terminated the contract with the AiF on December 31, 2023. The business department justifies this by saying that the contract is not compatible with the applicable procurement law. However, the successful “industrial joint research” should be continued. Funding programs are usually carried out by authorities or on the basis of a publicly advertised project management contract, it said. “This is also planned for the IGF.”
The AiF, on the other hand, maintains that the contract from 1996 is not an order that is subject to public procurement law. Because you do not receive any payment from the ministry for the AiF services. The AiF also complains that a proposal by the Federal Court of Auditors for a legally compliant design, namely not to change tried-and-tested structures, has so far been rejected. However, the success of joint research lies in the structure of the AiF and its research associations as a network. The “incomprehensible and worrying development” only allows the conclusion that the Ministry of Economic Affairs no longer sees the AiF as a partner.
conflict of interest?
In a 2015 audit report, the Federal Court of Auditors had shown the ministry a “systemic conflict of interest”. This relates to the point that the AiF acts like a project sponsor on the one hand, and on the other hand has a high level of self-interest in promoting its members. According to the ministry, a possible construction to make the AiF the sole beneficiary of the IGF was examined and ultimately rejected. The conflict of interest would continue to exist, and the Ministry of Economics’ control of subsidies in the context of “significant joint industrial research” would be impaired.
AiF President Bauer argues that the program is only effective because of the AiF network. The AiF ensures that small and medium-sized companies have access to technological progress and can build innovation networks. IGF projects have about 25,000 direct company investments every year. In this way, it is possible to achieve effective promotion of innovative strength in medium-sized companies with comparatively little public funding.
The AiF had recorded an increasing need for IGF funds, the number of project applications had increased significantly. For a long time, IGF funding stagnated at 169 million euros. In 2020, the IGF budget was increased to 200 million euros for the first time. In an evaluation of the program for the period from September 2017 to December 2020, Kienbaum consultants came to the conclusion that competition for funding had intensified. IGF serves the transfer of knowledge and technology into the economy and facilitates access to research results.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
