Portugal's vision for 2030 for the Strategic Technologies Platform (STEP)

In a global scenario marked by geopolitical volatility and a critical dependence on powers such as China and the USA, Europe has decided to retake the reins of its industrial destiny. The Strategic Technologies for Europe Platform (STEP) emerges as the European Union's robust response to ensure sovereignty, resilience, and technological leadership.

For Portugal, STEP is not just another support programme; it is a historic opportunity to redefine its role within the single market. Unlike past initiatives, this platform focuses on industrial scaling-up and the autonomy of value chains, transforming the country from a technology user into an exporter of high-value-added solutions.

In this article, we explore how the STEP Platform is shaping the future of industry in Portugal and how your company can benefit from unique co-financing conditions and the strategic "Sovereignty Seal" labelling.

How does STEP work in Portugal?

The implementation of the STEP Platform in Portugal acts as a cross-cutting strategic benchmark of high intensity, "traversing" existing operational programmes to grant absolute priority and subsidised conditions to superior merit projects that demonstrate global leadership capacity.

For the Portuguese economy, STEP represents a historic opportunity to reverse the trend of technological dependence. By focusing on the development and manufacture of critical technologies, Portugal positions itself not just as a receiver of innovation, but as an exporter of high-value-added solutions for the European single market.

The "Strategic Label" Model and European Sovereignty

The main mechanism lies in assigning a "STEP Priority" label to specific application calls. In practice, this means that projects aimed at manufacturing critical technologies are no longer evaluated solely on their local economic viability or regional competitiveness, but are integrated into a logic of European Sovereignty.

This model allows Portuguese companies to leverage the scale of the single market to compete globally. By ensuring that disruptive technologies — such as power semiconductors or advanced biotechnology — are produced on national soil, companies guarantee the resilience of European Union supply chains, reducing external vulnerability to economic blocs like the USA and China.

How is STEP financed in Portugal?

The financing of the STEP Platform in Portugal is based on a robust hybrid financial architecture, designed to overcome traditional barriers to high-risk industrial investment. The effectiveness of this platform derives not only from capital injection but from the flexibility of State Aid rules, allowing for the mobilisation of intensive capital for projects that, due to their disruptive nature and technical complexity, often face the so-called "valley of death" between research and commercialisation.

Portugal's decision to reprogramme Portugal 2030 to allocate approximately €1.1 billion exclusively to STEP priorities is a clear political and economic signal. This move was not limited to a simple budget transfer; it altered the budgetary density of critical calls, allowing Portugal to respond competitively to global subsidy packages. This extraordinary allocation ensures that industrial-scale projects (such as Gigafactories or biotechnology units) have guaranteed liquidity without sacrificing resources destined for traditional SMEs.

Support Intensity and the "STEP Bonus" Mechanics

The major competitive advantage for companies established in Portugal is the "STEP Bonus". This enhancement mechanism raises incentive rates to levels rarely seen in shared management programmes:

1. Geographic Enhancement of 10 p.p.: Under the new Regional Aid Map (2022-2027), projects located in the North, Centre, and Alentejo regions benefit from an additional 10 percentage points on their base rate. In practice, a medium-sized company that would normally receive 40% support can reach 50% or 60% in non-repayable grants.
2. R&D Intensities up to 85%: For consortia involving universities (ENESII) and companies, aid intensities for industrial research can reach 85%. This drastic reduction in initial capex is vital for attracting Deep-tech projects that require long maturation periods before generating revenue.

Synergies and the Sovereignty Seal (STEP Seal)

Projects that obtain the STEP Seal in direct management competitions (such as the Innovation Fund) benefit in Portugal from a "Facilitated Access" mechanism. This means that national management authorities can use the €1.1 billion to finance these projects through "Direct Award" or simplified application processes, as technical excellence has already been validated by the European Commission.

Which companies can apply for STEP in Portugal?

The STEP Platform in Portugal adopts an inclusive eligibility policy, recognising that technological sovereignty is not built in isolation but through a collaborative ecosystem. Entities demonstrating technical and financial capacity to execute high-complexity projects in defined strategic sectors are eligible to apply.

Types of Eligible Beneficiaries

The range of beneficiaries is purposefully broad to ensure knowledge flows from the laboratory to the production line:

• Micro, Small, and Medium-sized Enterprises (SMEs): Including technology-based startups (Deep-tech) that require support for industrial proof of concept and first scaling.
• Small Mid-caps and Mid-caps: Companies with up to 499 employees or intermediate dimensions that already possess export capacity but need intensive investment to lead new technological niches.
• Large Companies and their Role in Sovereignty: STEP calls enable direct financing for large companies in strategic projects. This opening recognises that these organisations possess the indispensable robustness, in structure and resources, to lead large-scale projects. They act as engines for massive industrial innovation, capable of converting cutting-edge research into globally competitive production capacity.
• Non-Business Entities (ENESII): Universities, polytechnic institutes, technology interface centres, and collaborative laboratories. These entities are frequent beneficiaries in Co-promoted Business R&D projects, where they provide the scientific knowledge necessary for technological disruption.

The Sovereignty Ecosystems Model

The eligibility of large companies and mid-caps within STEP is not merely an administrative concession, but a strategic economic decision based on the high multiplier effect these organisations exert on the national business fabric. By integrating these projects, large companies take on the role of catalysts for technology and knowledge transfer, allowing cutting-edge know-how developed in global R&D networks to be channelled to Portuguese SMEs and scientific system entities.

From a macroeconomic perspective, this model fosters the strengthening and diversification of productive activity. It allows consolidated industries in Portugal to transition into new high-tech market segments, reducing the risk of obsolescence and diversifying their asset portfolios against global volatility.

This diversification is accompanied by reinforced external competitiveness, as STEP financing enables investments in industrial infrastructures that would otherwise have an unbearable payback period for the private sector alone. Furthermore, the creation of these ecosystems is fundamental for consolidating value chains in Europe. By securing anchor units (such as semiconductor plants or bioprocessing units) in Portugal, the country contributes to the continent's industrial densification, mitigating exposure to geopolitical shocks and external supply disruptions.

What are STEP's priority domains in Portugal?

The selection of priority domains in Portugal for the STEP Platform reflects a strategic choice based on the convergence between national smart specialisation (RIS3) and the European Union's sovereignty needs. Funding is channelled into three fundamental technological pillars that sustain the country's economic resilience.

I. Digital Technologies and Deep-Tech Innovation

This domain aims to ensure Portugal participates at the forefront of the digital revolution, moving beyond the role of a mere user to become a producer of critical hardware and software.

• Strategic Focus: Advanced semiconductors (microelectronics and photonics), quantum computing, Artificial Intelligence applied to industry, cybersecurity, and secure connectivity (5G/6G).
• Economic Objective: Reduce dependence on non-European powers in data management and critical infrastructure, promoting the export of high-performance computing services and precision hardware.

II. Clean and Efficient Technologies (Clean-Tech)

Aligned with the Net-Zero Industry Act, this pillar is the engine of Portugal's green reindustrialisation.

• Strategic Focus: Manufacture of components for the Green Hydrogen value chain (electrolysers and fuel cells), energy storage systems (next-generation batteries), carbon capture and storage (CCS) technologies, and infrastructure for cutting-edge renewable energies.
• Economic Objective: Transform Portugal into a net exporter of decarbonisation technologies, capitalising on natural resources (solar, wind, and lithium) to densify the national industrial fabric and ensure compliance with European Green Deal goals.

III. Biotechnologies and Health Resilience

This domain focuses on pharmaceutical autonomy and innovation in life sciences, areas where Portugal already holds a vibrant ecosystem of research centres and internationally renowned pharmaceutical companies.

• Strategic Focus: Industrial production of critical Active Pharmaceutical Ingredients (APIs), advanced biomanufacturing, development of innovative vaccines and therapies, and industrial biotechnology for circular processes.
• Economic Objective: Ensure the continuity of essential medicine supply in the EU and attract large-scale investment in biotechnological production units that generate highly qualified employment and significant gross value added (GVA).

Projects eligible for STEP

For an investment to be eligible under the STEP Platform in Portugal, it must go beyond incremental innovation. Projects must demonstrate an unequivocal contribution to technological sovereignty and the strengthening of industrial value chains. In Portugal, eligibility is divided into two main intervention types, depending on the promoter's ultimate objective.

A. Productive Innovation Projects (STEP)

These projects focus on industrial scaling and increasing manufacturing capacity. They are ideal for companies intending to set up new units or expand existing ones to produce critical technologies.

• Eligible Actions: Creation of a new establishment; increasing the capacity of an existing establishment; diversifying production into products not previously manufactured; fundamental change in the overall production process.
• Practical Examples: Installation of a production line for high-efficiency photovoltaic modules; expansion of a bioprocessing unit for active pharmaceutical ingredients; creation of an assembly plant for advanced sensors for autonomous vehicles.
• Economic Focus: Scaling-up and massive industrialisation to replace extra-community imports.

B. Business R&D Projects (STEP)

Focus on developing new technological solutions that are not yet ready for mass commercialisation but present high disruptive potential.

• Eligible Actions: Industrial research and experimental development; creation of prototypes and pilot lines for technological validation; registration of intellectual property and patents.
• Practical Examples: Development of a new AI algorithm for cyber threat detection in smart networks; research into new composite materials for wind turbine blades; creation of a pilot line for validating solid-state batteries.
• Economic Focus: Creation of European intellectual property and ensuring that tomorrow's innovation is born on national soil.

Technological Readiness Levels within STEP

The assessment of a technology-based project's maturity uses the international Technology Readiness Levels (TRL) scale, ranging from 1 (basic research) to 9 (proven system in operational environment). In the context of the STEP Platform, TRL acts as the universal metric to measure a project's progress towards industrial sovereignty.

TRL as a Selection Filter and Progress Metric

It is essential to understand that the required maturity levels are not fixed and vary according to the specific application call. Each Portugal 2030 call defines its own entry and exit thresholds, allowing funding to be adapted to the reality of each technological domain.

However, STEP's structuring logic is based on demonstrating a significant technological leap:

• Baseline TRL: The technology's maturity state at the time of application.
• Target TRL: The maturity level intended to be reached with the investment.

Differentiation by Intervention Type

Although numbers vary by call, STEP's philosophy divides TRL requirements into two main blocks:

1. R&D Projects (Research and Development): These projects typically operate in the transition phase from the laboratory to the relevant industrial environment. They focus on overcoming the technical challenges of prototyping and validation. R&D calls tend to require lower entry TRLs but with a clear commitment to reaching demonstration or pilot phases.
2. Productive Innovation Projects: These projects operate at the highest levels of the scale (close to the market). The objective is to support large-scale industrialisation and entry into a real operational environment. Here, the technology is expected to have already been validated in prototype or pilot scale.

Quality Pillars and Strategic Project Impact

The success of a project within the STEP Platform depends on demonstrating excellence that transcends immediate commercial viability. The project must be presented as a strategic asset for the European Union, encompassing a set of pillars that ensure technical robustness and long-term industrial impact.

I. Alignment with Sovereignty Priorities (Strategic Fit)

The project must prove it is not just "technological" but "critical". This involves demonstrating how its implementation directly contributes to the Net-Zero Industry Act (NZIA) or the Critical Raw Materials Act (CRMA). The focus must be on quantifiable reduction of dependence on external suppliers.

II. Viability and Robustness of Technological Implementation

Focuses on the actual capacity to transform research into industrial reality. The project must present a clear Maturation Roadmap (TRL Jump) and evidence of Technical and Operational Capacity.

III. Economic Solidity and Financial Sustainability

Even with high support intensities, the project must demonstrate a sustainable business model. The company's ability to secure necessary co-financing and its expected profitability in the Cruising Year are evaluated.

IV. Systemic Impact and Value Chain Integration

The project is valued for its ability to generate spillover effects in the economy, including partnerships with local suppliers and knowledge transfer to SMEs.

V. Environmental Responsibility and DNSH Compliance

Compliance with the "Do No Significant Harm" (DNSH) principle is a quality pillar, ensuring that industrial implementation respects planetary boundaries and uses resources efficiently.

Where to find Portugal 2030 Calls under STEP?

To find specific calls under the STEP Platform, you should primarily consult:

• Yunit Consulting Incentives Page: On this portal, we provide a detailed analysis of Portugal 2030 calls, including information on budget allocations and enhanced co-financing rates.
• Specialised Newsletters: Subscribing to our newsletter is the most effective way to receive immediate alerts about new STEP application windows in COMPETE 2030 and Regional Programmes.
• Portugal 2030 Incentives HUB: You can also consult all calls and the calls calendar on the Portugal 2030 website.

Subscribe to the Yunit Consulting newsletter to ensure you don't miss any strategic opportunities for your business.