STEP productive innovation supports innovative productive investment projects aimed at manufacturing critical digital and biotechnology technologies or strengthening and securing their value chains. In doing so, it contributes to reinforcing strategic industrial capacity and technological sovereignty within the European framework.
Programme details
Application deadline: 30 April 2026
Beneficiary entities: Large companies, SMEs, micro-enterprises and startups
Benefit: 50% for micro and small enterprises, 40% for medium enterprises and 30% for small mid-caps and large enterprises.
+5 percentage points for projects located in certain areas of Algarve
+10 percentage points for projects located in the remaining mainland Portugal- Minimum investment: €3,000,000
Geographic scope: Mainland Portugal (excluding Lisbon area)
About the funding
STEP Productive Innovation for Digital and Biotechnology is a funding incentive aimed at supporting innovative productive investment projects.
The call focuses on the creation of new establishments, diversification of production, introduction of new products or services, or fundamental changes to production processes. Eligible projects must contribute to the manufacturing of critical technologies or to reinforcing their value chains in the areas of digital technologies, including deep tech aligned with the Digital Decade 2030 objectives, and biotechnologies, including critical medicines and their components.
This initiative follows the strategic framework defined under the European Strategic Technologies for Europe Platform (STEP), reinforcing the role of advanced technologies in strengthening European value chains.
How it works
This call supports productive investment projects that integrate technological innovation and advanced knowledge into manufacturing activities.
Eligible projects must demonstrate:
- Strategic relevance for the European Union
- Contribution to innovation or value-chain reinforcement
- Economic viability
- Impact on competitiveness, exports and qualified employment
The maximum project duration is typically 24 months. The incentive is designed to support structurally relevant investments rather than incremental or routine improvements.
Eligible investment expenses
Eligible expenses under STEP Productive Innovation for Digital and Biotechnology include:
Tangible assets such as machinery, equipment, production lines, IT equipment and associated installation costs
Intangible assets including patents, licenses, technical know-how and software
For SMEs, additional eligible costs may include engineering services, studies, audits, certification, DNSH alignment studies, marketing plans and architecture and engineering projects
Construction or refurbishment of buildings, when duly justified and within defined percentage limits
All expenses must be directly related to the productive investment and incurred after the submission of the application.
Who can benefit from this incentive
This incentive is aimed at companies that develop innovation-driven investment projects in digital technologies, deep-tech or biotechnology.
It is particularly relevant for businesses that:
Operate in knowledge-intensive sectors
Develop technology-based products or processes
Contribute to innovation within complex value chains
Seek to strengthen productivity and international competitiveness
Understanding the rules and eligibility criteria of each incentive is essential to assess its relevance and potential impact within a company’s broader investment and tax strategy.
For clarification or further information, reach out through our contact form.
