Funding Cross-Border R&D: A Practical Guide to the Application – International Cooperation Programme

If you are a Czech small or medium-sized enterprise (SME) working with a foreign partner on joint research and development, there is a funding programme specifically designed for you. The Application – International Cooperation call, administered by the Czech Ministry of Industry and Trade (MPO), supports industrial research and experimental development carried out in cooperation with at least one international partner. The results must lead to higher-order innovations and products competitive on world markets.

This article explains how the programme works, what makes it particularly attractive, and how to navigate the application process.

What Is the Application – International Cooperation Programme?

The Application – International Cooperation call is an extension of the well-established Application programme for industrial R&D. The key difference is that every project must involve at least one foreign partner, and the project must be submitted through one of the recognised international networks: IraSME, CORNET, or another bilateral/multilateral cooperation framework.

Call timeline: Open from October 2024 to November 2026

Total allocation: CZK 500 million

Grant per project: CZK 3 million – CZK 50 million

Maximum project duration: 42 months (physical completion by 30 June 2029)

Territory: Must be implemented in the Czech Republic outside the City of Prague

The programme is comparatively undersubscribed: as of the latest available data, only 16 projects have been submitted against an allocation of CZK 500 million, with 4 already approved and CZK 210 million committed. This makes it less competitive than standard Application calls – a significant advantage for well-prepared applicants.

Two International Networks: IraSME and CORNET

Projects under this call must be submitted through one of two international networks. Choosing the right one depends on the nature of your research and the structure of your consortium.

IraSME – For Companies Developing Specific Products

IraSME (International Research Agendas for SMEs) connects SMEs and research organisations across participating countries to jointly develop new products, processes or technologies. The results are intended for the direct commercial use of the participating companies – not for the industry at large.

IraSME is the right choice when you have a specific foreign business partner, and you want to develop something together for your own market. The administrative burden is lower than CORNET, and the consortium requirements are minimal.

CORNET – For Sector-Wide, Pre-Competitive Research

CORNET (Collective Research Networking) is a network of national R&D programmes for associations of SMEs. Unlike IraSME, the research results must benefit an entire industry sector and must be made publicly available after the project ends. CORNET is best suited for trade associations or industry groups that want to fund research addressing a shared technological challenge.

IraSME in Depth

Who Is It For?

IraSME is designed for SMEs that want to jointly develop a specific product, process or technology with a foreign partner for their own commercial exploitation. Key eligibility criteria for the project itself include:

The research must significantly advance the current state of the art.
There must be substantial technical risk for both partners.
The minimum consortium is 2 companies (SMEs) from 2 different participating countries.
A research organisation may participate as a partner but is not required.
Call frequency: IraSME calls are issued twice a year (typically spring and autumn).

The “Three Applications” Principle

One of the defining features of IraSME is that what appears to be three separate applications is, in practice, one coordinated process. Here is how it works:

Czech national application — feasibility study and its attachments have to be submitted via MS2021+, Ministry of industry and trade evaluation is the deciding factor, budget covers Czech side only
Foreign partner’s national application — submitted simultaneously to their own agency (e.g. ZIM/AiF in Germany), in their language and format
Joint IraSME Application Form — technical summary for international coordinators, not independently evaluated, with Gantt chart and draft Consortium Agreement as mandatory attachments

The national application is always the priority. The IraSME-level review is largely formal – approval at that level is essentially guaranteed if both national funders approve. The key is therefore to ensure that the project is approved by both the Czech Ministry of industry and trade and the foreign partner’s national agency.

The “Money Does Not Cross Borders” Principle

Each partner is funded entirely by their own country’s programme.

Czech partner: Funded by Ministry of industry and Trade through the Application – International Cooperation call.

Foreign partner – for example from Germany: Typically funded through the ZIM programme (Zentrales Innovationsprogramm Mittelstand) administered by AiF.

The foreign partner’s costs are not part of the Czech application or Czech budget.

Step-by-Step: How to Apply via IraSME

Step 1	Early consultation	The Czech partner consults the project concept with the Ministry of Industry and Trade (MPO). The foreign partner consults with their national agency (e.g. in Germany: AiF Projekt GmbH / ZIM programme). This is strongly recommended before detailed documentation is prepared.
Step 2	Prepare the joint IraSME application form	The full consortium jointly completes the IraSME Application Form in English. This document serves as the technical summary of the project for international coordinators. Mandatory attachments: Gantt chart and a draft Consortium Agreement.
Step 3	Parallel submission of national applications	Czech partner: submits application to the Application – International Cooperation programme via the MS2021+ system. Foreign partner: submits their application to their own national agency according to local rules. The signed IraSME international application is a mandatory attachment to the national application.
Step 4	Send the international application	The complete international application package (Application Form + Gantt chart + draft Consortium Agreement) is sent by email to: info@ira-sme.net before the deadline of the respective IraSME call.
Step 5	Evaluation and approval	Each national provider evaluates the project independently using its own criteria. The project can only receive funding if all participating national agencies approve it. If one partner fails to secure funding, the project as a whole does not proceed.

Who Can Apply (Czech Side)?

Eligible applicants under the Czech call include:

Small and medium-sized enterprises (primary target group)
Large enterprises with more than 3,000 employees – only in cooperation with SMEs (providing at least 30% of the budget) or with SMEs (20%) and a research organisation (10%)
Mid-cap companies (up to 3,000 employees, not classified as SME)
Small mid-cap companies (up to 499 employees, not classified as SME)
Research organisations in a partner (non-lead) role only

Applicants must also meet standard eligibility criteria, including being a registered income-tax payer in an EU member state for at least 2 years, not being in financial difficulty, and having published financial statements.

Funding Rates

The grant intensity depends on company size and type of activity. The rates below include a bonus for effective collaboration between consortium members.

Activity	Small Enterprise	Medium Enterprise	Large Enterprise	Research Org.
Industrial Research	80%	75%	65%	85%
Experimental Development	60%	50%	40%	85%

Effective collaboration conditions: at least one SME in the consortium, with no single company covering more than 70% of eligible costs; or a company and research organisation, where the research organisation covers at least 10% of eligible costs and has the right to publish its own research results.

Eligible Costs

Personnel costs
External services: contracted research, R&D consultancy, other operational costs – max. 30% of total eligible costs
Depreciation – max. 20% of total eligible costs
Material and component costs
Overhead costs (flat rate of 15% of personnel costs)

Practical Recommendations

Based on the structure of the programme, we recommend the following approach for Czech companies considering this route:

Identify your foreign partner first. The entire process is built around a bilateral (or multilateral) partnership. Before preparing any documentation, confirm that your partner is eligible under their national programme and willing to apply simultaneously.
Investigate the German side (if relevant). Germany is the most common partner country. The ZIM programme has its own eligibility criteria, budget rules and timelines. It is essential to understand both sides of the equation before investing time in documentation.
Prioritise the national application. The Czech feasibility study submitted to MPO is the most critical document. The IraSME Application Form in English is largely a summary of what you have already prepared in Czech.
Watch the call calendar. IraSME calls open twice a year. Make sure both you and your foreign partner are targeting the same call.
Consult us early. Given the complexity of the parallel submission process, early contact is strongly recommended.

Summary

The Application – International Cooperation programme offers Czech SMEs an attractive route to co-fund cross-border R&D with a foreign partner. With a CZK 500 million allocation, low competition to date, and grant rates of up to 80% for small enterprises, it is one of the more favourable funding opportunities currently available in the Czech Republic for internationally active companies.

The most important success factor is coordination: both national applications must be submitted simultaneously to the respective call deadlines, and both must be approved for the project to proceed. Starting the process with thorough preparation and early consultation on both sides of the border significantly increases the chances of success.

And we can fully help you with that! Please get in touch. Our services include coordination and preparation of all project documentation. We also stay with you throughout the whole project cycle, taking the administrative burden off your shoulders.