When it comes to investments, many entrepreneurs instinctively think of venture capital or the next funding round. State or EU funding? Sounds bureaucratic, time-consuming, and complicated. However, there are exceptions. The research grant in Germany, for instance, is one of the few funding instruments that perfectly aligns with the pace of companies. Therefore, it is strategically indispensable for startups, small and medium-sized enterprises – if used correctly.

Funding programs are often perceived as complex, time-consuming, and tied to strict deadlines. This is, unfortunately, often true. Germany is well-known for its bureaucratic and slow administrative processes. However, the research grant is an exception. As the only R&D funding, it can be applied for retroactively for up to four years and allows companies to receive grants worth millions annually.

Due to recent changes, it has gained additional attractiveness for 2026, particularly for UAS technology. Whether it’s autonomous flight control, AI-supported image analysis, sensor integration, BVLOS technologies, or new industrial drone applications, many developments in and for the drone economy meet the criteria for funding eligibility in technological research and development. For companies, the research grant can thus become a crucial source of financing to accelerate development cycles and enhance technological competitive advantages.

What is the research grant?

The research grant is a tax incentive for research and development (R&D). Companies receive subsidies for personnel costs, for the proportionate cost of contract research, and for entrepreneurs’ own contributions when conducting innovative projects. Starting in 2024, under certain conditions, depreciation (AfA) for movable assets used in the project will also be considered. The special thing about the research grant is that it is open to all industries and technologies, regardless of company size.