The Zentrales Innovationsprogramm Mittelstand (ZIM) is the federal government's largest technology- and sector-open R&D funding instrument for mid-sized companies. Since 2008 it has funded market-oriented research and development projects at companies with up to 1,000 employees, and cooperating research institutions[6]. This guide gives an overview of eligibility, funding amounts, project types and the application process. What the 2025/2026 reform changes in concrete terms is covered in the deeper article ZIM 2026: what the reform changes for Mittelstand applications.
What is ZIM?
ZIM is a grant programme. Unlike the Forschungszulage there is an approval decision by a project management agency and a formal notice, not a tax credit. The legal basis for the aid element is Article 25 of the General Block Exemption Regulation (GBER), which sets the maximum aid intensities for industrial research and experimental development[8].
The programme has three funding formats. Single projects fund individual companies. Cooperation projects connect at least two companies, or a company with a research institution. Innovation networks bring together at least six cooperating companies. In addition, feasibility studies are subsidised, positioned since the reform as an entry format for those new to R&D[2]. The external evaluation by Prognos and ZEW documents around 14,000 approved projects since 2020 with a funding volume of €2.3 billion and a leverage effect of about 1.9[5].
Who is eligible?
Legally independent mid-sized companies with up to 1,000 employees can apply, as can research institutions in cooperation projects and networks[6]. ZIM is open to all technologies and sectors: there are no prescribed thematic fields. What matters is that the project is a demanding R&D project with recognisable technical risk and a market-oriented exploitation objective.
One often overlooked rule concerns repeat applications: since September 2023, up to two approvals within twelve months per company are possible again; the previous 24-month bar was lifted and this was confirmed in the 2025 guideline[7]. A company with two clearly separable R&D strands can therefore address both in one funding year, provided the projects don't touch the same expenditure.
Funding amounts and rates
The funding rate differs by company size, project type, location in a structurally weak area and international cooperation. For single projects the rates run between 25 and 45 per cent of eligible costs: small companies in structurally weak regions reach 45 per cent, medium-sized companies typically 35 per cent, large companies 25 per cent[3]. For cooperation projects the rates rise by five percentage points; in international cooperations through the IraSME initiative, overall rates of 55 to 60 per cent are achievable. Research institutions in cooperation projects receive 100 per cent of their non-economic costs.
The maximum eligible costs were raised with the reform. For single projects they rise to €690,000, for cooperation partners to €560,000 per company, with a ceiling of €3 million per cooperation project[3]. The limit on contracts with third parties within an R&D project is 35 per cent of direct staff costs[2]. The exact caps by project type and their effect on pipeline planning are broken down in the article ZIM 2026.
In state aid terms, ZIM stays within the GBER. Article 25 permits intensities of up to 50 per cent for industrial research and 25 per cent for experimental development, in each case with SME uplifts and cooperation bonuses; for experimental development an overall cap of 80 per cent is permitted[8]. The ZIM rates are normally well below that, and the state aid headroom only becomes relevant in combination cases.
The application process
ZIM works without fixed deadlines. Applications can be submitted all year and exclusively digitally through the Förderzentrale Deutschland (FZD); they are processed in the order they arrive[4]. The time of submission is the legally decisive date for assigning rates.
Since 1 January 2025 the agency responsibilities have been redrawn: AiF Projekt GmbH is solely responsible for cooperation projects, while VDI/VDE Innovation + Technik GmbH handles single projects, feasibility studies and innovation networks[4]. Operationally that splits into the ZIM-KOOP (AiF) and ZIM-Foyer (VDI/VDE) portals. For companies with parallel single and cooperation projects that means two agencies with separate status logics but a unified application standard.
Two constraints deserve attention. First the budget proviso: approvals are subject to available budget, and if the federal budget moves into provisional management, approvals can be suspended temporarily. For 2026 the budget is set at €558 million in departmental budget 09[9]. Second the two-week rule for cooperation projects: the individual project partners' applications have to reach the agency within fourteen days for them to count as belonging together[3].
Common mistakes
The most common mistake is failing to delimit R&D from routine work. Pure contract manufacturing, market adaptation or routine integration are not eligible; what is required is a demanding project with recognisable technical risk[2]. Second mistake: the 35 per cent limit on contracting out is misunderstood. It relates exclusively to direct staff costs, not to the total assessment base, and every external service has to make an independent, documented research contribution[2].
Third mistake: the ban on cumulation. The same eligible costs may not be funded twice from EU, federal or state money. ZIM can be combined with the Forschungszulage under the FZulG, provided the same person-hour isn't claimed twice; ZIM cannot be combined with other federal funding for the same expenditure[8]. Fourth mistake: sequencing in cooperation projects. If one partner delays submission beyond the 14-day window, the arrival date of the whole project shifts[3].
FAQ
How much is ZIM funding? For single projects, between 25 and 45 per cent of eligible costs depending on company size and region; for cooperation projects, five percentage points more[3].
Who can apply for ZIM? Mid-sized companies with up to 1,000 employees and cooperating research institutions; the programme is open to all technologies and sectors[6].
Are there fixed application deadlines? No. Applications can be submitted digitally all year through the Förderzentrale Deutschland; they are processed in the order they arrive[4].
Can I combine ZIM and the Forschungszulage? Yes, provided the same person-hour isn't claimed twice. A clean separation at cost type level is required[8].
In 2026 a good ZIM application portfolio depends less on whether you submit at all than on sequencing, project scoping and the right agency. That is exactly where upsmart comes in: as an AI infrastructure for innovation management, the platform brings everything belonging to a project together in one place, and we take on the project delimitation, the choice of project type, the calculation within the caps and the cumulation check against the FZulG and state programmes.
- [1]Guideline "Zentrales Innovationsprogramm Mittelstand (ZIM) — R&D funding", Bundesanzeiger AT 11.12.2024 B1Bundesanzeiger Verlag / BMWK · 2024Open source
- [2]ZIM guideline 2025 — publication page with full text and key contentBMWE / ZIM (zim.de) · 2025Open source
- [3]Guideline "Zentrales Innovationsprogramm Mittelstand (ZIM)" — consolidated PDF versionFederal Ministry for Economic Affairs and Climate Action (BMWK) · 2024Open source
- [4]Applications open under the 2025 ZIM guidelineBMWE / ZIM office · 2025Open source
- [5]Evaluation confirms the positive effects of the Zentrales Innovationsprogramm Mittelstand (Prognos / ZEW, commissioned by the BMWK)BMWK / Prognos AG / ZEW Mannheim · 2024Open source
- [6]Zentrales Innovationsprogramm Mittelstand (ZIM) — programme pageFederal Ministry for Economic Affairs and Energy (BMWE) · 2025Open source
- [7]ZIM: two approvals within twelve months are possible again in ZIMAiF Projekt GmbH (ZIM agency for cooperation projects) · 2023Open source
- [8]Regulation (EU) No 651/2014 (General Block Exemption Regulation, GBER), Article 25 — aid for research and development projectsEuropean Commission, EUR-Lex · 2014Open source
- [9]2026 budget — BMWE page with the ZIM allocation in departmental budget 09Federal Ministry for Economic Affairs and Energy (BMWE) · 2025Open source
- ZIM 2026: what the ministry's reform changes for Mittelstand applications
- ZIM eligibility in 2026: what you have to meet
- ZIM funding rate: what percentage you get, by company size
- ZIM cooperation project: finding partners and the process
- Filing a ZIM application: the process step by step
- ZIM funding amounts and caps explained
- ZIM rejected: reasons, appeal and next steps
- ZIM single project vs cooperation project: which suits your plan?
- ZIM: which costs are eligible
ZIM 2026: what the ministry's reform changes for Mittelstand applications
New rates, new priorities, new deadlines, and what innovation managers should adjust in their pipeline planning now.
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