In particular, joint projects in the pre-competitive sector are funded that will
strengthen the business performance of SMEs and make Germany a more
attractive business location.

Consortia should consist of a limited, manageable number of applicants.
These may involve other actors in the research project by placing orders.
Multinational research partnerships, e.g., under the EUREKA European
research initiative, will be received favourably.
There are two ways to obtain project funding:

1. Participate in a competition relating to a new research subject

There is normally one national call to tender for a specific subject in the form
of a competition. The process has four phases:

• Phase 1 - Draw up and submit project outlines
• Phase 2 - Assess and select the best outlines for funding
                with the participation of an independent jury
• Phase 3 - The competition winner submits an application
• Phase 4 - Applications are received, agreed and approved,
                and the project commences

2. Submit an individual project proposal

Particularly innovative and attractive ideas can also be funded as individual
projects. To this end, outlines can be submitted to the Project Management
Agency. Once the Project Management Agency has inspected the outline and
made any improvements, the proposal is assessed by qualified experts. If it is
successful, the process is then as described in phases three and four above.