Investments in AI (Artificial Intelligence), blockchain and IoT(Internet of Things) are the recipients of a new funding fund from the MiSE (Ministry of Economic Development), which is so meager that it was exhausted within hours.
The transition and technological development of domestic enterprises in strategic sectors such as those under consideration need at least two more zeros.
For all intents and purposes we report the sectors, beneficiaries, terms and methods of access (1.2) to this missed opportunity to instead finance an extra-budgetary expenditure of € 12.5 billion in arms, by a government not even more entitled to go beyond the management of current activities. (1,2)
1) AI, blockchain, IoT. Goals
The Fund for the Development of Artificial Intelligence Technologies and Applications,
blockchain
and internet of things is aimed at expanding digital innovation processes in domestic enterprises. In keeping with the Transition 4.0 Plan, also covered on this site.
Funding covers:
- research, development and innovation projects in the above-mentioned three digital technologies,
- Initiatives to achieve specific technological and application goals,
- operational and administrative support activities aimed at generating impact in enterprises, SMEs especially.
2) Priority sectors and regions of intervention.
The priority strategic sectors identified for implementation are numerous and of particular importance to the national economy. Among them:
- industry and manufacturing,
- educational system,
- agribusiness,
- health,
- environment and infrastructure,
- culture and tourism,
- logistics and mobility,
- security and information technology,
- aerospace.
Regions in southern Italy-Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sardinia and Sicily-are allocated 34 percent of the total funding. These resources will be re-allocated if appropriate to projects in other regions after six months if they are not used in the aforementioned regions.
3) Beneficiaries
Public and private entities can participate either individually or in mixed form. These include:
- Agro-industrial enterprises carrying out mainly industrial activities,
- Goods and services production industries, logistics and transportation enterprises, including craft enterprises,
- Enterprises that carry out the auxiliary activities for the benefit of the aforementioned,
- research centers.
Mixed participation is limited to a maximum of five companies and/or research centers, and contractual forms of collaboration (e.g., network contracts, consortia, partnership agreements) must be used. Large enterprises are allowed only if they cooperate with SMEs.
4) Eligible projects
Proposed projects may use one or more of the technologies covered by the call (AI,
blockchain
, IoT) and must be launched in Italy within three months of the grant award, for a duration of 24-30 months. Funding varies between € 500 thousand and 2 million (in >10% share for each proponent in cases of joint projects).
The activities should lead to the following results:
(a) in the ‘industrial research’ and ‘experimental development’ categories, respectively,
- study design, implementation, and testing of a prototype in a laboratory environment (or in an environment equipped with simulation interfaces to existing systems) and the implementation of pilot lines, for the purpose of validating the technologies under the fund,
- The construction of prototypes, demonstration, implementation of pilot products, testing and validation of new or improved products, processes or services,
(b) in the categories ‘organization innovation’ and ‘process innovation’, respectively.
- The application of new organizational methods in the business practices, workplace organization or external relations of an enterprise,
- The application of a new or significantly improved method of production or distribution (including significant changes in techniques, equipment, or software).
5) Eligible expenses
The following expenses are also differentiated, and in the case of industrial research and experimental development activities, the following expenses are eligible for subsidies:
(a) personnel expenses. Researchers, technicians and other auxiliary personnel to the extent that they are employed in the project,
(b) costs related to instrumentation and equipment to the extent and for the period they are used for the project,
(c) costs for contract research, knowledge and patents acquired or licensed from external sources under normal market conditions, as well as costs for consulting and equivalent services used exclusively for the purposes of the project,
(d) additional overhead and other operating costs, including costs of materials, supplies and similar products, directly attributable to the project.
For activities pertaining to ‘process innovation’ and ‘organizational innovation’ are eligible for subsidies:
(a) personnel expenses, which shall not exceed 60 percent of total costs,
(b) costs related to instrumentation, equipment, to the extent and time of use for the project,
(c) costs of contract research, expertise and patents acquired or licensed from external sources at normal market conditions,
(d) additional overhead and other operating costs, including costs of materials, supplies and similar products, directly attributable to the project.
6) Magnitude of funds and types of facilities
The total resources available are €45 million, divided into €25 million for AI development and €20 million divided equally between blockchain and IoT(Internet of Things) technology development. Sixty percent of these resources are earmarked for research, development and innovation projects proposed by SMEs and business networks.
Facilities can come in the forms of subsidized financing, plant or capital contribution, direct contribution to expenditure, interest account, and venture capital participation. As an alternative to facilitation, participation through pre-commercial procurement or public procurement of innovative solutions is possible under certain conditions.
The maximum amount of these facilities varies, for industrial research and experimental development activities, can respectively cover:
- 70 and 45 percent for micro and small enterprises,
- 60 and 35 percent for medium-sized enterprises,
- 50 and 25 percent for large enterprises and research organizations.
7) Deadline and how to apply
The application for relief must be submitted electronically as of 9/21/22, from 10 a.m. to 6 p.m. Monday through Friday (working days) using the procedure in the website of the Infratel fund manager, complying with the template in Annex 1 and with the documentation in Annex 2 (3,4).
Even before the application is submitted, it is possible to prepare the facilitation application and the documentation to be attached, using the special procedure also made available by Infratel, as early as 14.9.22.
Facilities may be granted to beneficiaries as long as they are available. In case resources are exhausted, projects are not funded. It is possible to increase the fund’s endowment by voluntary payments from organizations, associations, businesses or individuals to the State Provincial Treasury.
Dario Dongo and Andrea Adelmo Della Penna
Notes
(1) DM 6.12.21. Criteria and procedures for using the resources of the fund for interventions to promote the development of artificial intelligence, blockchain and internet of things technologies and applications. https://www.gazzettaufficiale.it/eli/id/2022/01/31/22A00630/sg
(2) Directorial Decree 24.6.22. Fund artificial intelligence, blockchain and the internet of things. Terms and conditions for granting and disbursement of facilities. https://www.mise.gov.it/images/stories/normativa/Block_chain_-_DD_def_-_24giugno2022REV_2.pdf
(3) https://www.mise.gov.it/images/stories/documenti/Allegati_DD_Blockchain_-__3_2022.zip
(4) https://appfte.invitalia.it/
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Graduated in Food Technologies and Biotechnologies, qualified food technologist, he follows the research and development area. With particular regard to European research projects (in Horizon 2020, PRIMA) where the FARE division of WIISE Srl, a benefit company, participates.
, blockchain and IoT (Internet of Things) are the recipients of a new, modest funding fund from MiSE (Ministry of Economic Development).){kind=link}