Small and medium enterprises in the South Aegean region of Greece will receive 2 million euros in regional grant funding to strengthen innovation and research partnerships.
The pre-announced initiative aims to reinforce the local innovation ecosystem by building stronger ties between commercial companies and research institutions. The public expenditure for the action totals 2 million euros, with provision for an over-commitment rate of up to 150 percent.
Funding for the initiative is co-financed by the European Union through the European Regional Development Fund alongside Greek national contribution. Under the grant rules, individual investment plans submitted by a single enterprise can receive subsidized budgets ranging between 50,000 euros and 250,000 euros.
For joint applications submitted by two or more enterprises working in collaboration, the eligible subsidized project budget increases to between 80,000 euros and 400,000 euros. All participating businesses must be legally operating micro, small, or medium-sized enterprises located within the South Aegean Region.
Targeted economic sectors and research rules
The funding program targets four key economic sectors vital to the Aegean islands: experiential tourism, which encompasses culture and the creative industry, agrifood, fisheries and aquaculture, and renewable energy sources. Every proposed project must feature mandatory research, development, and innovation activities. In addition, all products or services involved must be developed by the businesses themselves or in direct partnership with research entities.
Businesses can participate in the scheme through three eligible structures. A single enterprise can apply using its own existing internal research department, or by forming a contract with recognized research and knowledge dissemination organizations. Alternatively, multiple businesses can group together using their own research units or joint contracts with external research institutions.
Regional island economy and European backing
The South Aegean region forms an administrative territory of Greece comprising island groups such as the Cyclades and Dodecanese. Local businesses in island communities often face geographical challenges and higher logistics costs, making technological modernization and economic diversification essential for long-term commercial sustainability.
The European Regional Development Fund serves as one of the primary financial instruments of European Union regional policy, designed to reduce economic disparities across member states by supporting local business innovation. Following the preliminary publication of the scheme's guidelines, eligible Aegean enterprises can prepare project partnerships before official application submissions begin.
