Portugal launches new RRP instrument with 300 million euros to boost business innovation

The Portuguese Government has officially launched the Financial Instrument for Innovation and Competitiveness (IFIC), integrated into Component 05 of the Recovery and Resilience Plan (RRP) and managed by the Banco Português de Fomento (BPF). With an initial budget of 300 million euros, the new mechanism aims to accelerate the execution of European funds and support business projects that promote innovation, competitiveness, and technological modernisation.

The creation of the IFIC results from the need to ensure the full execution of the RRP by 2026, by channelling funds that were at risk of not being used in other programmes. The instrument thus emerges as a response to the urgency of supporting companies in strategic areas for the national economy, combining non-repayable grants with repayable financing or guarantees, in a logic of flexibility that seeks to adapt to the reality of each project.

In its start-up phase, the IFIC contemplates three main support lines. The “Reindustrialise” line, with a budget of 150 million euros, targets industrial diversification projects and the production of high value-added goods and services. The “AI for SMEs” line, with a budget of 100 million euros, is intended to accelerate the adoption of artificial intelligence solutions by micro, small, and medium-sized enterprises, focusing on digitalisation and operational efficiency. The “Defence and Security Economy” line, with 50 million euros, aims to reinforce the technological and industrial base in strategic sectors, supporting research and development activities, productive investment, and internationalisation.

“The RRP represents a unique opportunity to transform challenges into opportunities for the Portuguese economy. It is a moment to reinforce competitiveness, bet on innovation, and create conditions for companies to grow sustainably.”

Bernardo Maciel, CEO of Yunit Consulting, in a recent interview with CNN Portugal

Added to these lines is the possibility of medium and long-term financing through the MLP strand, which allows supporting up to 50% of the eligible investment, with a limit of 15 million euros per project. In the case of grant lines, incentive rates can reach 80%, with investments ranging between 500,000 euros and 25 million euros, while for the AI line, applications may go up to 300,000 euros per company.

Application rules establish that projects must start after the submission of the application and be completed within a maximum period of 24 months, demonstrate economic-financial viability, and respect the European DNSH (Do No Significant Harm) principle, which mandates not causing significant harm to the environment. Research and development projects also require independent technical opinions.

The evaluation of applications is based on merit, distributed across three criteria: quality and relevance of the project, impact on the company's competitiveness, and contribution to the national economy. Each project will be classified on a scale of 1 to 5 points, according to the formula defined by the Ordinance, with only those achieving a minimum score of three points being considered eligible.

The deadlines for submitting applications are short and have already been announced. The Reindustrialise line and the Defence and Security line will have two application phases: from 30 September to 14 November and from 14 November to 29 December. The AI for SMEs line will have a first phase between 30 September and 31 October and a second from 31 October to 28 November.

For entrepreneurs and managers, the new instrument represents a strategic financing opportunity, but also a challenge. Competition will be high, and the short timeframe requires early preparation of solid applications that demonstrate innovation, financial robustness, and structural impact on the economy. Ultimately, the IFIC seeks to transform the pressure of RRP deadlines into a lever to accelerate investment and the modernisation of the Portuguese business fabric.

Learn everything about the IFIC here.

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Last update: 1 October 2025