An industrial supplier of specialised components may occupy an important position in a technology value chain. A biotechnology company may be preparing to move a validated process into production. Both situations warrant an assessment of the STEP Digital and Biotechnology calls, provided the technology and investment satisfy the criticality conditions.
Developing and manufacturing critical technologies
STEP covers digital technologies, deep-tech innovation and biotechnology, including medicines on the Union list of critical medicines and their components. The scope includes final products, specific components and machinery, relevant critical raw materials and specialised services critical to development and manufacturing.
The opportunity therefore extends beyond the business selling the final product. The investment must have a clear connection to a technology within the call's domains. Buying business software, automating administration or using standard artificial-intelligence tools does not, on its own, establish eligibility.
What evidence strengthens the case?
The innovation condition requires at least two of the specified innovative, emerging or cutting-edge factors, together with economic potential in the internal market. The alternative strategic-dependency condition also requires at least two factors, such as European manufacturing capacity, supply security or EU technological leadership.
The company should explain the technological or industrial problem, who needs the solution, how it compares with alternatives and why it matters to Europe. Technical specifications, competitor analysis, identified demand and supply-chain evidence make the argument verifiable.
Productive Innovation or R&D&I?
MPr-2026-10 allocates €107.95m to individual Productive Innovation projects. It may suit companies implementing eligible manufacturing investment. The reference expenditure range is €3m to less than €25m, subject to justified exceptions; these thresholds do not apply in Algarve. The normal duration is 24 months.
MPr-2026-9 allocates €76m to consortium projects combining R&D and productive investment. The reference range is €5m to less than €25m, under the call's conditions, with a normal duration of 36 months. Corrected eligible expenditure below €5m following appraisal is not supported. The choice depends on the activities required to take the technology to market.
Where can investment be located?
Both calls cover Norte, Centro, Alentejo and Algarve. In the R&D&I call, Algarve investment requires an application separate from investment in the other three regions. Location is assessed by the establishment implementing the project, together with regional rules and company size.
For Productive Innovation, the maximum stated rate is 70% under COMPETE 2030 and 50% under the Algarve programme. For R&D&I, the 80% ceiling concerns business R&D and should not be applied to the total budget. Actual support requires a beneficiary-specific calculation and assessment of aid limits.
Three situations worth exploring
- A manufacturer adding capacity for a critical semiconductor component. - A company industrialising a biotechnological process associated with eligible products. - A consortium developing a critical technology, validating performance and preparing commercial production.
These are illustrative possibilities subject to technical and financial assessment. A product label does not establish eligibility.
Preparing an application as an investment decision
Technological differentiation needs a market opportunity and an executable operation. The plan should cover productive capacity, costs, people, intellectual property, supplies and financing. The English technical annex, limited to 45 pages, must align with financial forecasts and proposed expenditure.
Fenix Capital helps connect eligibility, application structure, the business plan and financing. A description of the technology, location and investment provides a useful starting point.