Spin-off Fellowship – FAQs on applications

The answers to the questions are provided for general information purposes only and should not be considered complete or applicable to every situation. They represent the opinion and interpretation of the FFG and are not legally binding. Last updated on 13 June 2022.

3. How would you assess the chances of success for life science projects in the context of the short 18-month duration? Does it make sense to apply for a spin-off fellowship if the project is a life science project?

APPLICATION & SELECTION PROCESS

1. How should the application be submitted?

Applications may only be submitted electronically via eCall. As part of the electronic application, attachments must be uploaded using the eCall upload function (for mandatory attachments, see section 5.2 of the application guidelines). The project description and costs should be entered directly online.

2. In which language can the application be written?

The funding application must be written in German or English.

3. What else can I include in my application to convince the evaluation committee of my idea?

We recommend creating a separate work package that outlines all activities related to business development, but does not include costs. This allows you to describe all activities that will be carried out by the fellows in parallel to the project but are not eligible for funding.

In addition, it may be useful to present project management activities and further training activities (guideline: 80 hours per fellow) in a separate work package.

4. How does the selection process work exactly?

In a first step, the funding application is evaluated by two external experts for its scientific and content-related quality. This is followed by a written preliminary evaluation of the funding applications by the evaluation committee, consisting of national and international experts. On this basis, the funding applications are given a preliminary ranking. If there are a large number of funding applications, this may lead to a pre-selection for invitation to the hearing. The hearing consists of a short presentation by the fellows and a question and answer session with the evaluation commitee.

5. How does a hearing work and in which language must it be conducted?

The hearing consists of a short presentation by the fellows and a question and answer session with the members of the evaluation committee. The fellows will receive guidelines for their presentation in preparation for the hearing. The pitch is not purely a presentation for investors; the evaluation committee must also be able to identify the R&D component and the challenges of the project. The slides should therefore focus more on the facts than on the emotional side.

The following topics should be addressed in the hearing: What has happened so far? What should be covered by the fellowship funding? What are the plans beyond the start-up phase? Are the risks and financing requirements realistically assessed?

The evaluation committee meeting will be held in German, but it is possible that the hearing can also be held in English.

6. Who can be a host and what are his/her tasks?

A host is a supervisor (e.g. institute or department head) who is hierarchically above the fellow. The host supports the project and provides a complete workplace and standard laboratory and/or workshop equipment. However, these services are to be considered as the university or research institution's own contribution and cannot be invoiced through the project!

7. Should the host's letter of motivation be written per fellowship application or per fellow?

The host's letter of motivation must be written for one application. If it is a team, the letter of motivation must refer to the team.

Please refer to the template with guiding questions in the download centre of the respective open call for applications.

8. Do the fellows have to be employed at the university/research institution BEFORE the start of the project?

No.

9. Do the fellows have to be employed at the university or research institution to carry out the project?

Yes, fellows must be employed by the eligible organisation for the entire duration of the project. Fellows must focus 100% on the project and may not engage in teaching, publishing or other research activities during the project period. The fellowship is also not a scholarship for a master's or PhD thesis.

10. Can a rejected application be resubmitted by the next deadline?

Yes, resubmission is possible. A corresponding note can be entered in eCall. We recommend that you discuss the rejection with the programme management.

11. What is meant by ‘collaborating staff’?

First and foremost, the personnel costs are intended for the fellows, i.e. those individuals who are seeking to start a business. However, depending on the project circumstances, it may be necessary for a technician to require the services of a medical professional for their project, for example. If these services are available in-house, they can be charged to personnel costs; if they are external, they can be charged to third-party costs. Additional personnel (possibly future employees) may also be hired by the organisation specifically for the duration of the fellowship, with a focus on the product development process. Personnel/infrastructure services (e.g. routine analyses, operation of special machines or equipment) that are only available centrally may be charged internally. These should be significant or substantial contributions to the fellowship.

12. Is it considered ‘collaborating personnel’ if, in a fellowship...

12.1. ... an employee who is employed by the organisation on a full-time basis for the project but does not wish to co-found the company?

Yes, this is possible, but must be explained plausibly in the application.

12.2. ... an employee is only employed on a minor or part-time basis, e.g. for software development?

Yes, this is possible, but must be explained plausibly in the application.

12.3. Can a person who is financed from global budget funds participate? Can this person be included in the calculation?

Yes, with the exception of the costs for the host. The host, internal coaching, economic and technical mentoring are services provided by the organisations themselves and therefore cannot be included in the calculation.

Back to the table of contents

GENERAL

1. Is the place of residence of a fellow relevant for the application (i.e. must they be resident in Austria, and if so, from when)?

The place of residence of the fellow at the time of application (the application is submitted by the Austrian research institution) is not a formal exclusion criterion. It is important that the project increases the chance that the results of this funding will lead to the establishment of an FTI-oriented company in Austria – see also point 3 of the call guidelines.

2. Can I pursue a secondary occupation or self-employment alongside the fellowship?

Any type of secondary occupation (especially self-employment) must not interfere with the objectives of the Spin-off Fellowship Programme and must be examined on a case-by-case basis. It is up to the evaluation committee to decide whether the programme objectives can be achieved.

3. How do you rate the chances of success for life science projects given the short duration of 18 months? Does it even make sense to apply for a Spin-off Fellowship if it's a life science project?

In principle, the subject of life sciences and an early stage of development are not an obstacle to submitting an application for a spin-off fellowship. Each project must be considered and decided on an individual basis. Since the personalities of the founders also play an important role, it is not possible to make a general statement here.

In any case, the evaluation committee considers a comprehensible long-term plan for the project to be very important.

Therefore, the evaluation committee attaches particular importance to the following points in such projects:

a comprehensible analysis of the patent situation and a further patent strategy,
a clear presentation of the stage of development (maturity level) and the further development strategy,
a sufficient concept for the future high financing requirements.
Ideally, the host, someone from the team or the business mentor should already have experience in the field.

Back to table of contents

INTELLECTUAL PROPERTY (IP) EXPLOITATION AGREEMENT

1. Does the exploitation agreement have to be a contract or is a non-binding letter of intent (LOI) sufficient at the time of application?

The IP exploitation agreement to be attached to the application must be binding in the sense of a term sheet and must be based on the IP exploitation strategy of the university or research institution, if available. The exploitation interest of the applicant organisation must be clearly stated. The term sheet is intended to provide security for the fellows so that the basic terms and conditions are already known in the event of a start-up. The actual exploitation agreement can only be signed when the spin-off is established, but must comply with the framework defined in the term sheet, unless there are serious reasons that make an adjustment absolutely necessary.

2. Is the IP agreement legally binding?

No, but the IP agreement should serve as a guideline for subsequent negotiations on the transfer/licensing of the IP.

3. What kind of intellectual property is involved?

In most cases, it involves early-stage technologies as well as mature technologies for which there are good reasons to expect commercial exploitation, but which have not yet been licensed in their current form or used in a commercial context for the creation or as components of goods and services.

Developments in the fields of development and exploitation of the arts and (humanities, social sciences and cultural studies are concepts, measures, techniques, practices or processes for which there are good reasons to expect commercial exploitation, but which have not yet been licensed in their current form or used in an economic context for the creation or as components of goods and services.

4. Which aspects must be covered in the IP exploitation agreement?

The IP exploitation agreement is based on all IP that is necessary for the implementation of a downstream spin-off and thus covers both the background and foreground of the IP. Furthermore, the IP exploitation agreement must clearly state that the research results or know-how originated at this university or research institution (scientific work, results from previous projects, etc.). The exploitation interest of the organisation itself must be stated. Therefore, the conditions for newly created knowledge and future exploitation by a spin-off must be outlined.

5. How can the ownership of intellectual property by a university or research institution be proven if it does not involve inventions or software?

The IP exploitation agreement must clearly state that the knowledge, know-how or research results were generated at this research institution (scientific work, results from previous projects, etc.). The organisation's own interest in exploitation must be demonstrated. Furthermore, the conditions for future exploitation by a spin-off must be outlined. A declaration of intent from the respective university or research institution must be available, setting out the relevant content.

6. Since one of the prerequisites for a fellowship is that the IP is owned by the university/research institution, the ‘exploitation agreement’ can only be a licence – is that correct?

The focus is on commercial exploitation on market terms (e.g. licence agreement, purchase agreement/transfer for consideration, participation, etc.), whereby the procedure and conditions are specified in the IP exploitation agreement, but the actual agreement is not yet concluded.

7. Can the university/research institution transfer the exploitation rights to the fellow without consideration?

No, for reasons of state aid law, the IP must be transferred on market terms.

Back to the table of contents

COSTS

1. What types of costs are eligible for funding?

Personnel costs (fellows, collaborating staff)
Material costs (e.g. consumables)
Costs for use of equipment (e.g. machine hours)
Third-party costs (e.g. further training, patent attorneys)
Travel

2. Which types of costs are NOT eligible for funding?

For example, costs for representation, hospitality, business plan preparation, marketing, sales and patent maintenance
The final amount of the total eligible project costs and the funding will only be determined after completion of the project in the course of the invoice verification.

3. Where can I find information on cost accounting?

General information on cost accounting can be found on the FFG website ‘Cost recognition in FFG projects’. There you will also find FAQs on individual cost items and a short film on the topic of project accounting.

4. Can overhead costs be claimed for the fellowship?

No. Overheads are the university/research institution's own contribution.

5. When can the fellow claim costs?

Costs can be claimed from the earliest possible start date according to the call guidelines.

6. How should personnel costs be budgeted?

Personnel costs must be budgeted in accordance with the FFG cost guidelines in version 2.1.

7. Are project management costs eligible for funding?

In general, project management costs are eligible costs. Costs incurred when fellows are supported by, for example, TTOs (technology transfer offices) or other units of the university/research institution – for example, in the preparation of reports or in the accounting of the project – are not eligible.

8. Can a fellow purchase services from another university/research institution?

Yes, the purchase of third-party services is possible in principle and must be accounted for under third-party costs.

9. Can a fellow purchase services from other institutes/organisational units of the host organisation?

No, the purchase of such services is not possible; instead, they must be accounted for in the respective cost category like other project-related costs (these are usually personnel and/or material costs, or use of equipment, if applicable).

10. When must comparative offers be obtained?

Comparative offers do not have to be available at the time of application. In general, the provisions of the Federal Procurement Act 2006, BGBl. I No. 17/2006, apply. Requirements of internal procurement departments must be clarified internally.

11. Is it sufficient to provide a well-founded explanation as to why there is only one provider for a certain service?

As the Spin-off Fellowship programme provides 100% funding and the sponsoring organisation is therefore not required to finance any of the costs itself, the application must include a well-founded explanation of the reasons for selecting third-party providers. If you already know who the third-party provider will be at the time of application, a meaningful offer should be available in addition to the substantive justification (in the cost planning in eCall) and uploaded to eCall under costs.

12. Are costs for websites, PR activities or dissemination eligible for funding?

Marketing costs, PR activities and the costs of creating or operating a website are not eligible for funding under the fellowship.

Dissemination (presentations at conferences and trade fairs to gather customer feedback) may be funded to a certain extent and with good justification.

13. Can costs for folders, roll-ups and, for example, external support for the creation of graphics be funded by the Spin-off Fellowship Programme?

In general, marketing costs are not eligible costs. Marketing materials created for the spin-off to be founded are also not eligible costs (company folders, company logo, business cards, etc.).

However, if the documents contain research results and are used to familiarise potential users with the technology (e.g. at trade fairs), this is possible.

However, the following must be observed:

The documents primarily describe the technology (please note possible violations of protection strategies).
It must be clearly recognisable that this is an R&D project of the respective research institution.
A note must be included stating that this is a project funded by the FFG/BMBWF as part of the Spin-off Fellowship Programme.

If these points are met, the costs can be recognised by the FFG. Compliance with these requirements will be checked during the final report review.

14. Are market research costs eligible for funding?

No, market research costs are not eligible for funding. Only costs directly related to R&D are eligible.

15. Can machine hours be charged?

Yes, further information can be found in the FFG Cost Guide 2.1 and the FAQ on the Cost Guide.

16. Can infrastructure be purchased as part of the fellowship?

No infrastructure can be purchased as part of the spin-off fellowship. The host must provide the fellow with a workplace and the usual laboratory or workshop equipment. If special equipment that incurs costs is shared, the costs for using this R&D-related equipment can be billed through the fellowship.

17. Are patent attorney fees eligible for funding?

Patent attorney fees are eligible for funding if they relate to results that arose directly from the fellowship; these should be listed under third-party costs.

18. Can costs for patent applications or other property rights be claimed?

Yes, but only for IP that is to be newly registered (e.g. a priority patent application).

19. Are costs for existing patents eligible, e.g. continuation of a PCT application (Patent Cooperation Treaty)?

No, patent maintenance costs are generally not eligible. Patent application costs are eligible if the patent is filed during the term and significant parts of the development were carried out within the framework of the spin-off fellowship.

20. In which cost category should costs relating to a patent application be classified or invoiced?

The costs should be included under third-party costs.

21. Are patent search costs eligible for funding?

Yes, they are eligible.

22. Can costs for the mentor/host be claimed?

Mentors and hosts work on a voluntary basis and therefore cannot claim any costs. If coaching services have been purchased, these can be invoiced under third-party costs, provided that a direct R&D link to the project can be demonstrated.

23. Can costs for certifications be claimed?

No, as these costs are not related to R&D and are already attributable to exploitation and marketing.

24. Can/may the fellows – based on the project idea from the fellowship project – also submit other funding applications, e.g. to Horizon Europe, during the project period?

In principle, costs for writing funding applications or the effort involved in submitting applications for competitions, awards, etc. are NOT recognised as eligible costs. Furthermore, there must be NO double funding.

Back to the table of contents

DISTINCTION FROM OTHER FUNDING

1. Can the fellowship funding be combined with the WTZ patent funding by aws?

No, this is not possible. There must be a clear distinction between the funding programmes.

2. How is the distinction made between prototype funding for universities and universities of applied sciences provided by aws?

Costs that are funded by aws prototype funding cannot be claimed under the fellowship funding. This also applies vice versa.

3. How is the transition to aws PreSeed and Seed funding made?

Applications for such funding can be submitted during the term of the fellowship (max. 6 months before the end of the fellowship). Costs for a Pre-Seed or Seed grant from aws can only be recognised after the end of the fellowship. Work on preparing and submitting applications for these programmes is not eligible for funding under the fellowship programme.

4. How does the transition to the aws AplusB Scale-up Programme work?

As soon as funding has been approved or acceptance into the programme has been confirmed, the fellowship must be terminated or funding can only be provided after the fellowship has ended. Work on preparing and submitting applications for these programmes is not eligible for funding under the fellowship programme.

Back to the table of contents

More information

eCall

Learn more

Einreichung

Learn more