Published on : 10 June 20203 min reading time
An innovative project requires good equipment and human resources, and must be financed at every stage of its creation and evolution. This is why many aids for “innovative companies” are set up to encourage them, whether it is technological, social or digital innovation.
FINANCIAL AID FOR INNOVATIVE COMPANIES
Innovative project leaders can tie up financial aid that is specifically targeted at them. Among these aids are grants that can be received from regional councils to push the funding of research and development projects. They can also be offered by specialised organisations . There is also aid for “innovative companies” offered to the winner of an innovation-related competition in which participants present their project. As for the innovation loan offered by BPI France to encourage innovative SMEs, its aim is to help them commercialise their innovations. .
TAX AID FOR INNOVATIVE COMPANIES
Innovative companies that are created with a research and development project can obtain tax aid which are mainly the innovation tax credit (CCI), the research tax credit (CCR) and the status of young innovative company (JEI). The ITC is an open assistance for innovations that incur expenses for research and development pursued through a tax credit deducted from income or corporate income tax. The ITC is rather a complement to the CIR which aims to finance particularly the design or installation of new innovative products. While the status of young innovative company is a tax aid adopted to support young start-ups. It is a simplified status in order to reduce the company’s tax burden through an exemption for a defined period.
SOCIAL INNOVATION AID FOR ENTERPRISES
Aid for “innovative enterprises” can also be social aid, which is particularly intended for enterprises benefiting from the status of Young Innovative Enterprise or YIE. They are characterised by an exemption from employers’ social security contributions on remuneration paid to employees in connection with research and development operations, such as researchers and technicians. This is in fact a system of decreasing employer’s social security contributions over 7 years. However, it does not cover all contributions, but only those related to sickness, maternity, disability, family allowances, old age and death. The exemption from employers’ social security contributions is also available to directors or managers who are treated as employees. Thus, they must contribute to research and development projects or to the design of prototypes of new products.