DHI: Export support through Demontration projects
The subsidy program DHI (Demonstration projects, Feasibility study, Investment preparation study) aims at supporting Dutch companies in realizing the international ambitions. These ambitions can be export or investments in foreign markets; developing countries, emerging markets and developed countries. For developing countries a positive impact on sustainable developments is a condition.
The DHI program comprises 3 modules, 1 focused on investments and 2 focused on export support:
- Investment preparation study; focused on the preparation of investments of Dutch SME in foreign markets, stand alone or in joint venture.
- Feasibility study; focused on the support of export of a Dutch SME by supporting the potential client in executing a feasibility study related to the potential export;
- Demonstration project; focused on support of export of a Dutch SME by demonstrating a for the target country new technology.
The general characteristics of the DHI program, applicable for all modules, can be found in "DHI: Demonstration project- Feasibility study - Investment preparation study". Among others the following information can be found:
- DHI is a tender program;
- Only Dutch SME's can apply;
- The maximum subsidy;
- For which countries can be applied;
- Which conditions need to be fulfilled;
- How an application can be submitted;
The specific information of modules focusing on export support by Demonstration Project is summarized hereafter.
Demonstration Project (3)
You want to demonstrate a technology, capital good or service in one of the DHI countries. Your aim is to show local parties (potential clients, governments etc.) that your technology, capital good or service can be applied successfully, is effective and profitable in the country.
To make use of the DHI program for Demonstration projects, your demonstration project has to comply with the following conditions.
- Your technology, capital good or service is new in the DHI country.
- The demonstration project is executed in a DHI country;
- You demonstrate the technology, capital good or service on a small scale in a realistic situation. You show that it has added value and can be applied under local circumstances. DHI is not meant for presentation on an exhibition.
- The demonstration project may not be larger than strictly needed. The activities need to focus on demonstration.
- The expected export potential is at least 10 times the amount of subsidy and can be realized within 3 years.
- During the demonstration period no technology or services may be supplied to that market. This is not in line with European regulations for export support. After the demonstration project you have to provide a statement to clarify what was done with the hardware. The hardware can be brought back to the Netherlands, destroyed or left behind for zero for a local party.
- Supply can only start after the Demonstration project is completely finalized and the target group is convinced of the added value and possibilities for applying the technology.
The term for executing the demonstration project is not longer than is needed to reach the targets set. The maximum term is 3 years, but normally 6 months is enough.
The maximum amount of subsidy is € 200.000, 50% of the costs of the demonstration project. The potential export should be 10 times the subsidy amount and should be realistically reached in a period of maximum 3 years.
The subsidy for the hardware is based on depreciation during the project period.
Costs which are not subsidized
- Development costs for the technology
- Market research costs
- Training costs related to the supply of the technology. Training costs that are needed to ensure that the demonstration project is successful, can be included.
- The development or licences for software. The adjustment of existing software might be included in the budget.
Agriment has extensive experience in preparing successful applications for subsidy for similar programs. Additionally, Agriment has extensive experience in execution demonstration projects. With our contribution in terms of project coordination and management, we ensure that the granted subsidy is received based on the real time spent and costs made during the project.
In case you have doubts whether your project could apply successfully for subsidy, or you want support in formulating the Quick scan and application and/or execution of the project, please contact us.