What is an IPCEI?

IPCEIs are open to large enterprises, innovative SMEs, startups and knowledge institutions across EU Member States. Projects must demonstrate breakthrough innovation, cross-border collaboration, and contribution to European strategic objectives. Participants need to show that their project addresses market failure and generates positive spillovers beyond the immediate beneficiaries.

The IPCEI process typically takes 18-36 months from initial concept to approval. It begins with concept development and eligibility assessment, followed by national selection (6-12 months), pre-notification discussions with national authorities, formal application preparation and submission, and finally the European Commission review process which includes multiple rounds of Requests for Information (RFI). Early preparation and expert guidance can significantly streamline this timeline.

The Funding Gap Analysis is a cornerstone requirement of IPCEI applications. It demonstrates the difference between total project costs and the revenue the project could generate without public subsidy (the counterfactual scenario). This analysis must prove that the project would not be commercially viable without state aid. The European Commission uses this to determine the maximum aid intensity, which can reach up to 100% of eligible costs. A well-structured Funding Gap Analysis is often the difference between approval and rejection.

Eligible costs include operational expenses (OPEX) and depreciation for research and development activities, First Industrial Deployment (FID) at TRL8, and construction costs for open infrastructures. This covers personnel costs, equipment and materials, costs for buildings and land, contractual research, knowledge patents, and overheads. The aid intensity varies depending on the type of activity, organization size, and specific project characteristics, ranging from 30-60% on average, up to 100% in exceptional cases.

After formal notification, the European Commission typically takes 12-18 months to review and approve an IPCEI. This includes multiple rounds of Requests for Information (RFI) where the Commission asks for clarifications, additional data, and refinements to the application. During this phase, strong technical documentation, robust financial modeling, and clear demonstration of innovation advantages are essential. Our experience with 30 IPCEI applications helps navigate these RFI rounds efficiently.

Generally, IPCEI funding is intended for new projects or clearly defined new phases of existing projects. Projects that have already commenced significant activities or made irreversible investment decisions typically do not qualify. However, if your project is in early concept or planning stages, or if you're planning a distinct new phase with breakthrough innovation, it may still be eligible. We can assess your specific situation during our readiness evaluation.

Breakthrough innovation for IPCEI purposes means going significantly beyond the state-of-the-art in your sector. This includes developing first-of-a-kind technologies, achieving substantial improvements over existing solutions (not just incremental), addressing major technical challenges with high risk, and creating innovations with wide applicability and spillover potential. Our technical classification service helps clearly articulate your project's innovation advantages and demonstrates how they meet IPCEI thresholds.

Yes, cross-border collaboration is a fundamental IPCEI requirement. Your project must involve direct cooperation with partners in at least one other Member State. This collaboration should demonstrate clear interdependencies, knowledge sharing, and contribution to European value chains. The partnership structure must show how the combined effort achieves outcomes beyond what individual partners could accomplish alone.

Following approval, you enter the implementation phase with ongoing reporting and compliance obligations. This includes regular progress reports to national authorities and the European Commission, compliance with all stated milestones and deliverables, demonstration of spillover effects and knowledge dissemination, financial audits and cost verification, and adherence to any conditions specified in the approval decision. We provide end-to-end support throughout the implementation phase to ensure you meet all requirements.

Our fees are structured around project scope, complexity and the level of support required. Engagement models range from a free IPCEI fit check and fixed-price Go/No-Go assessment to full-mission support through Commission approval. We aim for a funding gap the Commission accepts — built on defensible counterfactuals and precedent, not on optimistic assumptions. A large part of our fees can qualify as IPCEI-eligible costs, and part of our remuneration is tied to the aid actually notified. Contact us for a quote based on your specific project.