R&D Power: Research funding according to the 1-2-10 principle

R&D Power: Research funding according to the 1-2-10 principle

  • Posted by Gerhard Pramhas
  • On 11. September 2017


Building up expertise, ensuring the continuation of the company, securing jobs – funding offers ideal opportunities for realizing these visions. Financing process optimization in your own company through grant funding may at first sound more utopian than is actually the case. Especially in the area of research and development (R&D), the market offers a variety of national as well as international funding programs that pursue a shared goal: Driving technology forward!
What goals can now be pursued with funding?

Building up expertise

The goal of a research project: All participants (companies, partners, employees) should know more at the end of the project than they did at the beginning. The state of technology should be expanded at least incrementally and a solution should be found for the initial problem which can subsequently be offered on the market.

Guaranteeing the continuation of your company

The continuation of your company is guaranteed by its research and development achievements. So act sustainably in this regard. Technologically oriented companies only survive when they constantly innovate. Savings in the area of R&D can end up costing your company a great deal of money in the long-term. After all, it is not only the directly involved developers who benefit from R&D but also the entire innovation department and its upstream areas such as sales and purchasing.

Securing and creating jobs in production

Of the greatest economic interest are the jobs in production which are either maintained through research and development activities or, ideally, actually created. It is precisely these areas that are currently making a very large contribution to the tax revenue from which the majority of research funding is subsequently drawn. In other words: Your production workers finance the further development of your products, which in turn secure your jobs.

What does the 1-2-10 principle mentioned at the beginning mean?

1, 2 and 10 are the numbers that combine both the foundation and the benefits of research funding in a single principle. Specifically, this means:
ONE publicly funded research project in one technology company secures one job for an innovative engineer.
TWO additional jobs (e.g. purchasing and sales) will be secured by the expansion of your team supporting the innovative engineer just mentioned.
TEN additional jobs in the area of specialist and support staff are required at least to ensure the production and sales of the innovation.
It is precisely these 13 jobs that will pay the taxes that will finance the next round of research funding – thus closing the funding circle.

And for the public authorities that award research funding must apply, projects that are based on this principle have to receive  higher grants.

Are you planning your next innovation and would like to benefit from the 1-2-10 principle? We can certainly find the most suitable funding agency for you as well by working together. Contact me!