NITEC – Incentive System for creating R&D nuclei in the company sector

Contact person 
Deolinda Silva
Innovation Agency
Do you want to share an instrument/policy or a knowledge Transfer practice? 
Innovation instrument(policy)
What are the following keywords/priorities which better fit the instrument/policy?  
Direct support of business R&D (grants and loans)
Indicate the country from which the instrument (or policy) is 
What is the title/name of the instrument/policy? 
NITEC – Incentive System for creating R&D nuclei in the company sector
Indicate the target group/beneficiaries of the instrument/policy 
All companies
What is the aim/objective? 
The NITEC measure is aimed at supporting the creation of R&D teams and R&D Centres in business firms. More specifically, the purpose is to strengthen companies' in-house R&D capabilities and absorptive capacity as well as to stimulate company efforts regarding the development and implementation of new products or processes and the absorption and upgrading of external technologies. R&D teams include a maximum of three people (for purposes of financial suppport) specifically concerned with the internalisation and development of technological competencies. This measure includes now two sub-measures: - NITEC, corresponding to R&D teams set up in SMEs aiming at upgrading their R&D and innovation management capabilities; and - CITEC, R&D Centres, set up by R&D performing companies, which already have an R&D team. CITECs correspond to an upgrading of NITECs.
Give an overview of the instrument 
The NITEC programme is envisaged as an instrument to respond to the low R&D performance of Portuguese companies. It is expected that, by supporting the creation of a small R&D team with people focused on R&D activities, companies will step-by-step understand the advantages of enhancing in-house R&D capabilities, while at same time having a stronger internal basis to engage into external R&D cooperation with other companies or with S&T organisations. NITECs may be considered as an important step to encourage a stronger commitment to R&D activities and therefore an important instrument towards the Barcelona 3% objective.
What is the date of creation of this instrument? 
Wednesday, January 1, 2003
Is the instrument/policy still active? 
Identify the main outputs/results (quantitative and qualitative) of the implementation of this instrument 
The main findings of the evaluation, still in the context of the POE/PRIME programme, regarding the 2004-2006 triennium, were the following: (1) high take up; (2) significative influence in the upgrading of firms' in-house capabilities as well as in their absorptive capacity; and (3) encouragement of the relationships between the firms concerned and R&D organisations. The overall assessment was very positive. This led, as mentioned above, to continue and extend the measure under the 2007-2013 CFOP/Compete. With regard to the post-2007 period, it seems that the results achieved are less positive. The take up of the measure declined. Probably, the most relevant candidates to set up NITECs were covered in 2004-2006. Amother possible explanation is the lower commitment of the technical agencies in charge of the measure to address and entice potential candidates to engage in the programme.
What is the co-financing/maximum rate allowed by the instrument/policy (if appl.)? 
Is this instrument/policy linked to a KT practice?