Innovation Made Simple – Funding Research and New Products in Malta

How to turn your idea into a funded innovation project

In Malta, innovation is not just encouraged – it is actively funded. Startups and SMEs with a focus on technology, product development or applied research can access significant public support through Malta Enterprise and European Structural Funds. Whether you are planning a prototype, technical feasibility study or market-ready product, public co-financing of up to 70 percent is available.

Why innovation funding matters in Malta

Innovation funding helps reduce risk, accelerate development, and open doors to international markets. Malta offers a reliable and growing support environment for innovative enterprises, especially those operating in sectors like ICT, manufacturing, biotech, energy, and engineering. With a smartly structured grant application, even early-stage companies can access funding for research, testing, or product launch.

What is considered an innovation project

In Malta, an innovation project must involve one or more of the following:

• Development of a new or significantly improved product, service, or process
• Resolution of scientific or technological uncertainty
• Clear pathway to commercialisation

Support is typically offered through schemes such as:

• Innovate – for SMEs working with research institutions
• R&D Scheme – supporting industrial and experimental development
• ERDF Innovation Actions – part of EU-funded measures for business competitiveness

What costs are eligible

Depending on the selected funding scheme, the following costs may be covered:

• Salaries of researchers, engineers, or specialists working on the project
• Equipment and tools (purchase, leasing, or depreciation)
• Testing materials, prototypes, software licences
• External consultancy, contract research, technical documentation
• Feasibility studies before the project starts
• Limited overhead costs (e.g. utilities, consumables)

All costs must be directly related to the innovation activity. Marketing or general administration is not eligible.

How to prepare a successful funding application

The key to success lies in clarity and alignment with the goals of the programme.

First, define the innovation in measurable terms. What is being developed? What is the market need? What uncertainty or challenge does the project address?

Second, build a structured plan with a timeline, roles, tasks, and costs. The more tangible the plan, the stronger the application.

Third, focus on commercialisation. Funders want to know that your innovation has market potential. Describe your target customers, competitors, and revenue model.

Finally, demonstrate capacity. Present your team, partners, technical capabilities, and risk management.

Requirements and timing

Applications must be submitted before the project starts. Companies must be registered in Malta and in good standing (tax, social security). Documentation typically includes business plans, financials, CVs of key personnel, and detailed budgets.

Conclusion

If you are planning an innovation project in Malta, public funding can help you go further, faster. Whether you are working on energy-efficient devices, smart software, food tech, or digital services – funding opportunities are open and accessible.

Need help?

Our team supports companies in structuring innovation projects, aligning with local funding criteria, and preparing successful grant applications. Contact us for a consultation.