The allocation of funding from the Innovation, Technology and Circular Economy Fund (FITEC) is governed by the provisions of Council of Ministers Resolution 84/2016 of December 21, Decree-Law 86-C/2016 of December 29 and Ministerial Order 258/2017 of August 21. What are the objectives
and what is Base Funding for?

This funding will serve to empower the Interface Centers through the allocation of multi-annual funding, which will allow them to increase their levels of financial stability and define medium-long term strategies. This initiative is part of the Interface Program and its main objectives are:

• Promoting the Interface Centers’ relationship with higher education institutions;
• The development of your internal capacity;
• An increase in qualified human resources;
• Promoting internationalization;
• The development of new areas of competence.

The Core Funding will be used exclusively to support the development of non-economic activities of a pre-competitive nature (acting on “market failures”) by these Centers, and is not intended for commercial activities. The funding will be based on an action plan with quantitative and qualitative objectives, which will serve as the basis for evaluating it. The level of overall funding for Interface Centers will be linked to the achievement of these objectives.

Entities recognized as Interface Centres (IC) under the terms of Article 7(3) of Ministerial Order No. 258/2017, of August 21, may apply for funding on the date they submit their application to the respective Notices, provided their tax and social security situation is in order. However, the FITEC Executive Committee will regularly issue Notices, depending on existing budget availability, to allow applications from entities not yet recognized as ICs on the date of entry into force of this regulation.

The budget for the next 6 years is 80M€.

The allocation for the first year of funding for Call No. 1 is €12M.

The application consists of two main parts:

• Part A asks for a detailed characterization of the Interface Centre with the identification of quantitative objectives (KPIs for characterization and future performance), also including a SWOT analysis, technological and innovation objectives – more details are available in the application guide.
• Part B calls for the preparation of a Strategic Action Plan – SAP (which should reflect the institution’s overall strategy and not just the part relating to the funding to be requested) and a Global Investment Plan (corresponding to the entity’s overall investment plan, which should be a tool for demonstrating the sustainability and feasibility of the SAP and the capacity for efficient management of resources) – more details are available in the application guide.

Yes. Each entity can receive a maximum of €3M distributed over the 3 years of funding, taking into account the classification obtained in the evaluation process and the average sales and services provided by each entity (2013-2015).

No. The maximum incentive to be contracted, for each entity and per year, will correspond to a maximum of 33% of the average sales and provision of services for the period 2013-2015, without prejudice to the additional restrictions laid down (annual maximums, evaluation, etc.).

On the date of the Annual Progress Reports, based on existing certified financial statements, for the second and third year of funding, the maximum contracted value may be revised downwards – if the financial statements made available show a decrease in the PSV in relation to the average used for the calculation at the time of the application.

Example: A given CI has an average PSV for the period 2013-2015 of 1 million. The maximum amount contracted for the three years of the incentive is 990,000 euros for the three years. Without prejudice to other applicable restrictions, the contracted amount (€990,000) will in any case be the maximum eligible for that entity.

Applications open until May 23, 2018.

See the question “Will all Interface Centers receive the same amount of multi-annual funding?”.

This standard should be applied to the accounting and disclosure of subsidies and other forms of government support. The accounting policy adopted should be disclosed, as well as the nature and extent of the subsidies from which the entity has benefited.

The application and form must be written in Portuguese, and in English in the fields marked.

Non-economic activity means activity that is not commercial or competitive on the market. For this purpose, the European Commission’s definition will be used, according to the Commission Communication – Framework for State Aid for Research, Development and Innovation (2014/C 198/1)¹.

¹ http://www.pofc.qren.pt/ResourcesUser/2014/Legislacao/JOUE_2014_C198_01_RegulamentoIDI.pdf

The European Commission considers that the following activities are generally non-economic in nature:

a) Primary activities of research organizations and research infrastructures, in particular:

• Education in order to obtain human resources with more and better qualifications;
• Independent R&D activities aimed at more knowledge and understanding, including collaborative R&D in which the research organization or infrastructure engages in effective collaboration;
• Broad dissemination of research results on a non-exclusive and non-discriminatory basis, for example through teaching, open-access databases, public publications or software;

b) Knowledge transfer activities, when carried out by or jointly with the research organization or infrastructure (including its departments or subsidiaries), or on behalf of other similar entities, and when all profits from such activities are reinvested in the primary activities of the research organization or infrastructure.

• The non-economic nature of these activities is not prejudiced by the subcontracting of the provision of corresponding services to third parties through the organization of public tenders.

If a research organization or research infrastructure is used for both economic and non-economic activities, public funding is covered by state aid rules only to the extent that it covers costs related to economic activities.

If the research organization or infrastructure is used almost exclusively for a non-economic activity, its funding may, in its entirety, be excluded from the scope of the State aid rules, provided that the economic use remains purely ancillary, i.e. that it corresponds to an activity that is directly related to the functioning of the research organization or infrastructure, or is necessary for it, or is intrinsically linked to its main non-economic use, and is limited in scope. For the purposes of this framework, the Commission will consider this to be the case if the economic activities consume exactly the same inputs (such as material, equipment, labor and fixed capital) as the non-economic activities and if the annual capacity allocated to those economic activities does not exceed 20 % of the overall annual capacity of the relevant entity.

Without prejudice to the previous two paragraphs, when research organizations or infrastructures are used to carry out economic activities, such as renting equipment or laboratories to companies, providing services to companies or carrying out research under contract, the public funding of these economic activities will, as a general rule, be considered State aid.

However, the Commission will not consider that the research organization or infrastructure is a beneficiary of State aid if it acts as a mere intermediary, transferring to the final beneficiaries all the public funding or any other advantage acquired through that funding. This is usually the case in the following instances:

a) Both the public funding and any advantage acquired through the funding are
quantifiable and demonstrable, and there is an appropriate mechanism to ensure that they are
fully passed on to the final beneficiaries, for example through a reduction in
prices.

b) No other advantage is granted to the intermediary because it is selected by public tender or because public funding is available to all entities that meet the necessary objective conditions, so that clients, as final beneficiaries, are entitled to purchase equivalent services from any relevant intermediary.

If the conditions set out in the previous paragraph are met, the state aid rules apply at the level of the final beneficiaries.

Note: see Commission Communication Framework for State aid for research , development and innovation (2014/C 198/1)

This analysis will have to be done on a case-by-case basis, according to the European Commission’s definition of non-economic activities. However, if Sales and Service Support activities are considered, they could be considered economic activities.

Investment in buildings is not eligible. Expenditure on property rents is also not eligible.

Acquisition and amortization can be considered.

No overhead costs are taken into account.

• Start of the calendar year?
• Application submission?
• Contract support for three years?

Expenditure for funding purposes is only eligible from the deadline for submitting the application – May 23, 2018. The entity is free to submit a strategic activity plan starting no later than the moment the contract is signed.

If this is established during the execution of the project, the unrealized amount can be allocated to another activity, provided it is justified and related to the project. If this is established at the end of the 3 years of the project, the remaining funds can be included in the next base funding period.

As stipulated in paragraph 5 of Chapter XV of the Basic Financing Regulation, “In the event of a mid-term evaluation, the FITEC Executive Committee, on the basis of a reasoned proposal from ANI, may alter the funding amounts, without prejudice to the maximum amounts set, in accordance with the budget allocation provided for in the Notice, and under the terms laid down therein.”

Example: if €100,000 is planned to be spent on a piece of equipment in year 2, and the investment is made for a lesser amount, the remaining funds can be reallocated to another item, subject to justification by the entity and assessment by ANI.

With regard to the hiring of qualified human resources by interface centers, objective 3 of the regulation is clear in its reference to young doctorates and other young specialized staff. Chapter V(2)(b) states that, in order to strengthen scientific employment, a training program is needed to justify the hiring of X human resources for an indefinite or uncertain term.

The hiring of eligible human resources in this context must have an additional effect on the entity’s initial number of HR and not simply a conversion of category or functions of existing HR.

Example: if the hiring of the doctorate concerns a human resource who has already been hired (albeit in a different role or category), the “human resources under contract” KPI will remain the same, with no additionality effect.

Doctoral students carrying out research at the organization (including those funded through research grants) can be hired after completing their doctorate (and the end of the grant to which it was associated, if applicable). Expenditure on research grants is therefore not eligible.

The plan to be evaluated consists of an overall strategy and budget for the three-year period. The combination of funding sources is important and will be taken into account for the evaluation. If there is the possibility of professional internships in the interface centers, financed by the Institute for Employment and Professional Training, I.P. (IEFP), these will be considered positively.

Link: https://www.iefp.pt/documents/10181/7118590/Regulamentos+EP_2+revis%C3%A3o-23-01-2018/32b038b4-24bb-457e-843e-2168fa43743f

Yes, Third Party Agreements (including the assignment of qualified human resources) can be accepted.

No, they can’t have legal personality.

The merit of the application will be taken into account by applying the following coefficients to the terms calculated in the previous questions:

• Excellent – 100% of the maximum incentive;
• Very good – 80% of the maximum incentive;
• Good – 60% (sixty percent) of the maximum incentive;
• Insufficient – no funding.

For evaluation purposes, the proposal can only obtain maximum points if it includes at least 20% of the expenditure to be financed in qualified human resources.

After the competition closes, the evaluation period will take place within 40 working days, plus 10 working days as a prior hearing period.

The final decision must be communicated within 5 working days of the evaluation period and prior hearing.

The 80% percentage refers to the amount of funding in the first year and for applications considered “excellent” – whose evaluation corresponds to 100% of the funding. 20% of the incentive for the first year will be blocked, and its payment will be conditional on the overall assessment of the plan’s implementation, i.e. the full realization of the three-year plan.

For example: an entity has an approved three-year plan of €1.5 million and therefore, for the first year, €500 thousand. That entity will see 20% of that amount, €100,000, held in escrow, which will be released after the final assessment of the three-year plan, if it is fully implemented.

The proposed positioning of the application is based on various objectives and funding sources. Although the basic funding is for specific actions within an overall strategy, the assessment will focus on the overall proposal and its implementation. In view of this, the KPIs assessed are those relating to the total plan.

For example: if the overall plan includes the hiring of 3 PhDs, even if only 1 PhD is funded through the basic financing, the assessment will be made on the overall action planned for the organization, i.e. the hiring of the 3 human resources.

As far as the form is concerned, it asks for information about the organization’s characterization and outlook, which has already been used in previous versions. Despite this, there is nothing to prevent the organization from suggesting new indicators or metrics in view of the planned positioning.

The application is made on the basis of the years of funding, starting in May 2018. The three-year period ends in May 2021.

In the first year of financing (2018), a single transfer will be made 30 days after the financing contract is signed.

No. The total value of transfers relating to Core Funding may not exceed 40% of the total maximum contracted amount to be funded in the 2018-2020 three-year period.

The remaining transfers (2019-2020) will be made 30 days after submission and evaluation of the half-yearly and annual reports requested. As payments are made in advance, some kind of adjustment to the amounts already financed may be made, if applicable, after the final assessment of the overall implementation of the plan.

Implementation will be monitored by evaluating the implementation reports of the activity plan approved with the application.

Expenses associated with carrying out activities must be accounted for in accordance with current accounting standards. In order to show the costs and income of non-economic activities and to safeguard against possible audits, this accounting must be segregated by project.

Given that the funding is intended for non-economic activities – within the meaning of the European Commission’s Communication on the Framework for State Aid for Research, Development and Innovation (2014/C 198/01) – the Interface Center must demonstrate that it is able to identify economic and non-economic activities in its accounts in a segregated manner, and the entity must therefore maintain an analytical accounting system for this purpose.

In order to show this separation of activities, each entity must include a specific section in the Annex to the Balance Sheet and Income Statement, in the Annual Report, aggregating the costs, income and financing of each of the major cost centers (Economic Activities and Non-Economic Activities).

The regime approved by Decree-Law 57/2016 of August 29 only applies to the hiring of doctoral graduates on a fixed-term basis, using public funding, to carry out scientific research, technological development, management and science and technology communication activities in SCTN institutions, with a view to their strategic development and strengthening investment in science and technology.

Within the scope of Basic Multiannual Financing, this decree-law applies to both public and private entities.

Without prejudice to compliance with the other provisions, the opening of the tender procedure must be published on the website http://www.eracareers.pt , administered by the FCT.

No, the regime approved by Decree-Law 57/2016, of August 29, applies to the fixed-term hiring of doctoral graduates for R&D and other related activities (see above). The hiring of PhDs on an open-ended basis must be carried out under the terms of the Labor Code and other applicable legislation.

However, if the contract is awarded through a call for tenders, it must be advertised on the portal http://www.eracareers.pt, administered by the FCT.

As stated in Notice 01/FITEC/2018, for the purposes of fulfilling Objective 3 of the Core Funding (Strengthening scientific employment by hiring young doctoral graduates and other young specialized technical staff), only doctoral graduates aged no more than 40 (forty) years in the year of hiring will be admissible.

Yes. As also mentioned in Notice 01/FITEC/2018, for the purposes of fulfilling Objective 3 of this Core Funding, the Interface Center must demonstrate that it has hired at least 50% of the PhD students on an indefinite basis.

The 1st implementation report is due 6 months after the signing of the financing contract (December 2018), and at the following intervals:

• Year 1:
  • Half-yearly Interim Report, within 30 days of the end of the first semester, from the date the contract was signed (December 2018).
  • Annual Progress Report, within 90 days of the end of Year 1 (the start date of Year 1 is set out in clause 4 of each TIC contract).
• Year 2:
  • Half-yearly Interim Report, within 30 days of the end of the first semester;
  • Annual Progress Report, within 90 days of the end of Year 2.
• Year 3:
  • Half-yearly Interim Report, within 30 days of the end of the first semester;
  • Final Report, within 90 days of the end of Year 3.

The start of the funding period for each Interface Center is the one mentioned in clause 4 of the Funding Agreement (“Funding Period“). This date marks the beginning of Year 1 of funding.

• Example 1: a TIC whose project started in June 2018 will only have to submit its 1st implementation report in June 2019. This 1st report corresponds to the Annual Progress Report for Year 1.
• Example 2: a CIT whose project started in November 2018, will have to submit the 1st execution report in June 2019 (which corresponds to its Half-Yearly Progress Report), submitting the Annual Progress Report in November 2019.

ANI has made available a guide with the rules for publicizing the support, mentioning the situations in which the funding obtained should be publicized, the logos to be considered, the minimum dimensions of the publicity material and the necessary templates.

No, the start date of the project, recorded in clause 4 of the Financing Grant Agreement, cannot be changed. The end date of the project is 36 months after the start date.

Any change or occurrence that puts or is likely to put into question the assumptions regarding the access conditions that allowed the application to be approved must be communicated.

For example:

• significant changes to the structure of the Strategic Action Plan (SAP) that could jeopardize the implementation of some of the planned activities;
• significant changes in the planned investment;
• significant changes in the objectives to be achieved.

It is not necessary to communicate or request prior authorization for minor adjustments to the planned investment amounts or to the dates for acquiring services and equipment. These situations should be reported in the half-yearly and annual execution reports. These documents should summarize the most relevant aspects that occurred in the period to which they refer, as well as the results achieved and deviations from what was planned in the application.