KMU-innovativ: photonics and quantum technologies

Up to 70% funding for leading-edge research in photonics and quantum technologies, cut to fit SMEs.

KMU-innovativ photonics and quantum technologies is the BMFTR's funding line for small and medium-sized companies carrying out high-risk leading-edge research in optical technologies, photonics, quantum computing, quantum communication or quantum sensing. The project management agency is VDI Technologiezentrum (VDI TZ, Düsseldorf). The procedure has two stages: first a project outline (10–12 pages) by the deadline of 15 April or 15 October, then a full application on invitation. Eligible costs per SME share are a guide figure of €500,000; small SMEs receive up to 70% for industrial research, and up to 85% in cooperation with a research institution.

Eligibility

SME status under the EU definition (GBER Annex I): fewer than 250 employees AND annual turnover of no more than €50m or a balance sheet total of no more than €43m; linked and partner companies are counted pro rata
The operating site and registered office are in Germany
The project's research core lies in photonics and/or quantum technologies (optical technologies, lasers, sensors, photonic integrated circuits, biomedical photonics, quantum computing, quantum communication, quantum sensing, quantum materials); pure software or AI projects with no photonic or quantum core are excluded
Leading-edge character: high scientific and technical risk and significant innovation beyond the international state of research. Merely integrating commercial photonics or quantum components isn't enough
The project qualifies as industrial research or experimental development within the meaning of Art. 25 GBER
Evidenced R&D capability in photonics or quantum: at least one qualified R&D specialist (with a doctorate or MSc in physics, optics, photonics, electrical engineering or quantum information, for instance) or cooperation with a relevant research institution
Not an undertaking in difficulty under Art. 2 no. 18 GBER; no outstanding EU recovery order (Art. 1 (4) GBER)
For joint projects: the SME has to lead the consortium. Universities and research institutions cannot be consortium leader
The project must not have begun at the time of application; no early start before the funding decision (§ 44 BHO, Art. 6 GBER)
For sensitive technologies (high-power lasers, quantum communication hardware, cryptographically relevant methods): export control compliance under the Dual-Use Regulation (EU) 2021/821 and German foreign trade law has to be ensured

Eligible costs

Staff costs: gross pay including the employer's social security contribution, multiplied by the R&D time share; typical roles in photonics and quantum are physicists, optical engineers, cleanroom technicians and quantum engineers
Materials and consumables: optical components (lenses, mirrors, filters, waveguides), substrates (Si, SiO₂, InP, LiNbO₃, diamond), specialist gases and cryogens (helium-3, helium-4, liquid nitrogen), laser diodes, photodiodes, SNSPDs/SPADs, semiconductor wafers, photoresists, cleanroom consumables
Equipment and plant (depreciation share): pro rata depreciation on equipment used on the project (femtosecond lasers, OPCPA systems, streak cameras, spectrometers, vacuum chambers, cryostats, cleanroom equipment, quantum measurement technology); for large equipment with a useful life well beyond the project term, only a pro rata depreciation claim
Travel: project-related business travel under the BRKG, for instance conferences (SPIE Photonics, CLEO, OSA, APS March Meeting), consortium meetings, cleanroom stays with research partners
External services and subcontracts: cleanroom fabrication (Fraunhofer IPMS, IMS-CHIPS, FBH, AMO), lithography and etching services, specialist coatings (HR/AR), external characterisation (SIMS, XRD, TEM), fibre splicing services, optical polishing and grinding services
IP costs: patent filing and maintenance fees (patent attorney, search and filing fees at the DPMA/EPO), pro rata, with no double funding alongside the FZulG
Universities (AZA): staff expenditure, material expenditure, travel and external services plus a 20% project flat rate on the total grant

Common pitfalls

Missing the deadline

The deadlines of 15 April and 15 October are fixed. Miss one and you wait at least 6 months for the next assessment round. Finalise the outline at least 2–3 weeks earlier; the easy-Online system can be overloaded on the deadline day.

An outline that's too long or too thin

The project outline has to run to exactly 10–12 pages (A4, 11pt, 1.5 line spacing). Pages beyond 12 aren't read. Additional annexes aren't permitted at the outline stage.

No leading-edge character

Merely integrating commercial optical or quantum components with no methodological research contribution is rejected. The outline has to provide quantitative benchmarks against the state of the art (wavelength, pulse duration, linewidth, gate fidelity, T1/T2 times) and evidence the distance to the international state of research.

The wrong project management agency

For photonics and quantum technology projects only VDI Technologiezentrum (VDI TZ, Düsseldorf) is responsible, not VDI/VDE-IT (the ICT-SWS line) and not DLR-PT, PT Jülich or PTKA. Submitting to the wrong agency leads to delay or rejection.

A consortium without SME leadership

In joint projects an SME necessarily has to lead the consortium. Universities and research institutions (including Fraunhofer institutes) cannot be consortium leader, even where they carry out the cleanroom fabrication. A consortium without an SME lead is formally rejected.

Starting the work early

No equipment orders (lasers, cryostats, SNSPDs, optical benches), contracts or hiring for the project before the funding decision. Submitting the outline doesn't count as starting the project, but the approval period is 2–3 months after the full application, so factor long lead times for specialist hardware into your planning.

Supply chain and export control risks not addressed

High-value photonics and quantum hardware (dilution cryostats with lead times above 12 months, SNSPD modules, EUV optics, export-controlled femtosecond lasers) has to be met in the work plan with buffer time and backup strategies. Also check export control compliance under Dual-Use Regulation 2021/821 early, particularly with international consortium partners.

Double funding with other quantum technology lines

The same cost items may not be funded in parallel through other BMFTR quantum funding lines (the quantum technologies action plan, EuroQCI, the quantum initiative) or through ZIM or Horizon Europe. Set the delimitation out openly in the financing plan.

The application process

1 — Clarify SME status and the thematic field. Check SME status under GBER Annex I (employees, turnover, balance sheet total, linked and partner companies). Make sure the research core lies in photonics or quantum technologies. For borderline cases use the VDI TZ hotline: Tue 9–11, Thu 13–15, phone +49 211 6214-572 or email kmui-photonik@vdi.de.
2 — Secure the consortium and cleanroom access. For joint projects, designate the SME as consortium leader. For photonic integrated circuit, quantum device or semiconductor photonics projects, obtain a letter of intent from the cleanroom or foundry partner (Fraunhofer IPMS, IMS-CHIPS, FBH). Carry out the export control classification for sensitive technologies.
3 — Write and submit the project outline. The outline runs to exactly 10–12 pages with the objective, the international state of research (state-of-the-art specifications), the R&D approach, a work plan (measurable milestones, supply chain buffers), an exploitation plan (IP strategy, manufacturing concept, market potential) and the team's qualifications. Submit through easy-Online (https://foerderportal.bund.de/easyonline/) or VDI TZ's outline tool by the deadline of 15 April or 15 October. Next deadline: 15 October 2026.
4 — Wait for the assessment. VDI TZ's review panel assesses the outlines and gives feedback around 2 months after the deadline. Positively assessed outlines receive an invitation to submit a full application.
5 — Prepare and submit the full application. After a positive outline assessment: submit the full application through easy-Online within the set deadline (typically 3 months after the invitation). Required: the form AZK (companies) or AZA (universities), a detailed project description, an SME declaration under GBER Annex I, an exploitation plan, the last 2 sets of annual accounts, a commercial register extract, CVs of the key people, and where relevant a cooperation agreement and letters of intent.
6 — Approval and project start. The funding decision arrives around 2–3 months after the full application. The project may only begin once the decision has been received: no equipment orders and no binding foundry or cleanroom slots before that point. Funds are drawn down through profi-Online.

How upsmart helps

We match your project against more than 2,000 programmes and show you whether the photonics and quantum technologies line or another KMU-innovativ line fits better, with a calculation of your funding rate by SME size, R&D category and cooperation bonus (Art. 25 GBER). We keep an eye on the 15 April and 15 October deadlines and get in touch before the slot gets tight. We write the draft application ready for assessment, including the AZK cost calculation with the right allocation of equipment depreciation, cleanroom external services and material costs; your team decides.

Combining it with other programmes

Combination with the Forschungszulage (FZulG) is possible provided no cost item is claimed twice: your own contribution and staff costs not covered by KMU-innovativ can be used in the FZulG assessment base. No cumulation with ZIM or Horizon Europe for the same costs. For quantum projects, no double funding with other BMFTR quantum funding lines (the quantum technologies action plan, EuroQCI) for the same cost items. The total aid intensity may not exceed the ceilings in Art. 25 (5)–(6) GBER.

Frequently asked questions

Only SMEs as defined by the EU can apply: fewer than 250 employees and annual turnover of no more than €50m or a balance sheet total of no more than €43m. The registered office has to be in Germany. In joint projects, universities and research institutions can take part as partners, but the SME has to lead the consortium. Larger companies and groups are excluded.

Small SMEs receive up to 70% for industrial research and up to 45% for experimental development. Medium-sized SMEs receive 60% and 35% respectively. If your SME cooperates effectively with a research institution (Fraunhofer IOF, MPQ, FBH), the funding rate rises by 15 percentage points, so a maximum of 85% for small SMEs in industrial research. As a guide, eligible costs per SME share are capped at €500,000.

The procedure has two stages. First you submit a project outline (10–12 pages, strictly) through easy-Online or VDI TZ's outline tool by the deadline of 15 April or 15 October. After a positive assessment (around 2 months' wait) you are invited to apply in full. You submit the full application also through easy-Online, typically within 3 months of the invitation.

KMU-innovativ photonics demands a leading-edge standard with an international benchmark and a photonic or quantum research core; ZIM also accepts applied development without that high-risk R&D character. KMU-innovativ has two stages (outline plus full application), ZIM one. In return KMU-innovativ is more generous for industrial research at up to 85% than ZIM. The two programmes cannot be combined for the same costs.

Yes, but only for different cost blocks. Costs you claim under KMU-innovativ photonics may not also be included in the FZulG assessment base. Your own contribution and staff costs not covered by KMU-innovativ can still be claimed for the Forschungszulage. For material-intensive photonics and quantum projects it can make sense to fund material and equipment costs through KMU-innovativ and staff costs (partly) through the FZulG.

Read on in the blog

Funding strategy across the innovation process

Primary sources

BMFTR: KMU-innovativ overview (federal ministry)— Federal Ministry of Research, Technology and Space (BMFTR)
VDI TZ: project management agency for photonics and quantum technologies— VDI Technologiezentrum GmbH (VDI TZ), Düsseldorf
Photonikforschung.de: topic portal for photonics and quantum technologies— VDI Technologiezentrum GmbH / BMFTR
easy-Online: submission portal for project outlines and full applications— Federal Ministry of Education and Research / DLR project management agency
KMU-innovativ funding guideline (BAnz AT 01.12.2025 B3)— Federal Ministry of Research, Technology and Space (BMFTR, formerly BMBF)

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