Fit 4 Innovation
"Fit 4 Innovation" is a subsidised programme aimed at supporting SMEs and SMIs. It is managed by Luxinnovation and has been developed in partnership with the Ministry of the Economy.
- The aim of this programme is to help owners of SMEs/SMIs to improve the performance of their companies.
- Its ultimate goal is to achieve the following:Increase the competitiveness of SMEs and SMIs based in Luxembourg.
- Improve their performance and ability to innovate.
- Develop and ensure the continued existence of companies by sustainably increasing activity.
Luxinnovation is assisted in this task by organisation consultants and change management experts who have extensive experience of such projects.
Added value and purpose of the "Fit 4 Innovation" programme
- Offering company managers an external perspective on their ideas.
- Identifying potential for improvement and assessing progress.
- Defining issues and priorities.
- Facilitating decision-making.
- Improving performance → Developing companies and ensuring their sustainability.
Through "Fit 4 Innovation", Luxinnovation facilitates SMEs' access to the expertise they need to improve their competitiveness. The approach is based on projects with a 4- to 6-week “diagnostic” phase and a 6- to 24-month “project” phase.
Both “diagnostics” and ”projects” are run by qualified experts. These experts focus on three areas aimed at improving SMEs' overall performance:
- Costs: achieving savings by eliminating waste in current business processes.
- Productivity: increasing company activity by using untapped productive resources and rationalising current business processes.
- Deadlines/quality: increasing customer satisfaction and sales by improving perception of existing product and service quality.
Participation and targeted companies
- The company must be established within the territory of the Grand Duchy of Luxembourg.
- Company interested in launching innovation projects within a period of 2 to 3 years.
- Company employing between 50 and 200 full-time equivalent staff are the main targets. It does prevent smaller companies from applying. “Eligibility” will be assessed on a case by case basis.
- The cap set for ‘de minimis’ aid has not been reached (EUR 200.000 cumulated over a period of three year - the last completed fiscal exercise).
The “diagnostic” is performed on the SME's premises and purports to determine and quantify the potential for performance improvement. The experts spend between 8 and 12 man-days on-site to perform the analysis over a period of 6 to 8 weeks.
The SME may decide not to continue with the “project” phase after the initial “diagnostic” phase.
Commitment on the part of the consultancy/expert
To ensure that the expert quantifies realistic objectives within the “diagnostic” phase with respect to improving performance and guaranteeing faultless implementation of the “Project” phase, they must undertake to:
- Guarantee the SME a visible return of at least twice the sum of the fees charged within 6 to 12 months of project launch. This is achieved by tapping the identified potential for improvement.
- Accept that 50% of their fees for the “project” phase be variable and made conditional on the degree of achievement of the goals set during the “diagnostic” phase.
Consulting firms interested in becoming Luxinnovation’s partner within “Fit for Innovation” programme must fulfil a certain number of conditions. All information will be given on-demand.
Role of Luxinnovation
Luxinnovation acts as an intermediary between companies and experts, ensuring that projects run to plan. Luxinnovation promotes the programme to SMEs and helps them draw up the joint funding application. 50% of the “Diagnostic” fees and 25% of the “Project” fees (billed by the external experts) are eligible for co-funding.