ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of April 13, 2022 No. 243

About approval of the Program of support of digital innovations and technological startups

Based on article 11 of the Law No. 179/2016 on the small and medium companies (The official monitor of the Republic of Moldova, 2016, Art. No. 306-313, 651), with subsequent changes, DECIDES: the Government

1. Approve:

1) the Program of support of digital innovations and technological startups, according to appendix No. 1;

2) the Plan of implementation of actions within the Program of support of digital innovations and technological startups, according to appendix No. 2.

2. Implementation of the Program of support of digital innovations and technological startups to assign to Public organization "Organization for Development of Entrepreneurship".

3. To public organization "Organization for Development of Entrepreneurship" to develop the operational management necessary for implementation of the Program of support of digital innovations and technological startups which will provide stages and procedure for implementation, and also to provide publication of the reference book on submission of applications for participation in the Program on the official web page of the organization.

4. Activities for financing within the Program of support of digital innovations and technological startups represent the scheme of the little significant help and fall under operation of the Law No. 139/2012 on government assistance and the Regulations on the little significant help approved by the decision of plenum of Competition council No. 01/2020.

5. Financing of the actions provided by the Program of support of digital innovations and technological startups to perform for the account and within the assignments approved by the annual law on the budget at the expense of grants, projects financed from external sources, and other incomes provided by regulations.

6. To impose control over the implementation of this resolution on the Ministry of Economics.

Countersign: the Deputy Prime Minister on digital development

Yury to Tsurkan

Minister of Economic Affairs

Serdzhiu Gaybu

Appendix 1

Approved by the Order of the Government of the Republic of Moldova of April 13, 2022 No. 243

Program of support of digital innovations and technological startups

Chapter I General provisions

1. The purpose of the Program of support of digital innovations and technological startups (further - the Program) is provision to the innovative small and medium companies (further - MSP) and to startups of non-paid financing on products and services in the field of information technologies and communication, new technologies for the purpose of stimulation of researches and development in the field of information technologies and communication, prototyping and innovations in the field of steady industrial production and ecological technologies.

2. This Program keeps by means of non-paid financing development and market promotion of products and/or services for commercial purposes, according to thematic components of financing:

1) digital innovation – the innovative ideas and methods leading to development of digital or electronic products, services and/or models of operating;

2) technological innovation – activities for the purpose of creation and implementation of innovations and innovative processing equipment, including by transfer of technologies, for the purpose of production of new competitive or advanced products, and also use of processes, services and technologies;

3) green technologies – the achievements in the field of researches and developments leading to emergence of the new technological products and services intended for material substitution, machines, processes and systems which create negative effects for the environment;

4) steady production – development of innovative processes, the practician and the appendices transforming the existing models of industrial production for the purpose of promotion of tsirkulyarnost of resources.

3. Ceased to be valid according to the Order of the Government of the Republic of Moldova of 26.09.2023 No. 726

4. The program is intended for the direction of support of the Government and donors on development of dynamic innovative ecosystem in priority areas.

5. The principles which are the cornerstone of financing of digital innovations and technological startups are:

1) transparency - observance of the procedures, standards and criteria established concerning payment of grants, assessment of applicants, appointment of consultants and financial management;

2) the competition - observance of the statutory rules and regulations regulating the announcement of the procedure of acceptance from the companies corresponding to eligibility criterions, bids on financing by means of provision of grant;

3) equality - carrying out necessary assessment of grants for the purpose of providing the equal, objective and fair attitude towards all applicants;

4) variety - respect for the principles of impartiality and nondiscrimination concerning all applicants, irrespective of their ethnic origin, religion, race and nationality, according to eligibility criterions;

5) responsibility - observance of the regulated standards of the reporting and disclosure of fiducial information for the purpose of ensuring responsibility for process of acceptance of finance solutions and operational assessment concerning key performance indicators for all lifecycle of this Program.

6. For the purposes of this Program the following concepts are used:

the expert - the local or foreign specialist having high qualification in one of the fields of intervention of this Program;

digital innovation - the innovation providing the high-quality growth of efficiency of processes or products, best-selling in the market, which are based on digital technologies, taking into account the established evaluation criteria and the international practice in the field of innovations, including criteria of the Organization for cooperation and economic development;

grant - the free financial aid provided in the form of the money allocated from the Program or at the expense of donors on development and market promotion for commercial purposes of products and/or services according to the thematic components of financing specified in Item 2;

digital products and services - the products and services in digital format developed by technological startups which promote development and increase in efficiency of activities of the companies, and also access to the foreign markets;

technological startup - the small and medium companies developing innovative technological product according to the thematic components of financing specified in Item 2.

7. This Program provides accomplishment of mission of key funding mechanism by it for the purpose of acceleration of realization and goal achievement of the Program.

8. For realization of the established mission within this Program the following specific purposes are set:

1) promotion of development of the industries with high value added within the large-scale innovative ecosystem consisting of the cooperating concerned parties which represent the Government, MSP, civil society, the academic circle, financial institutions, and also local and foreign partners on development;

2) acceleration of implementation of digital, circular and ecological economy due to technological progress for the purpose of creation of attractive workplaces, increase in economic competitiveness and protection of natural ecosystems;

3) investment attraction in the startups having the potential of the accelerated growth in the specified sectors and the industries and the export potential;

4) assistance to entrepreneurship in testing of the innovative ideas and the ideas on expansion of innovations;

5) growth of economic competitiveness of the Republic of Moldova in the field of digital innovations, ecological technologies and steady production;

6) performance improvement and dynamism of MSP for the purpose of use of the existing comparative advantages in case of simultaneous stimulation of flow of investments into comparative advantages;

7) stimulation of researches and developments in strategic areas and the industries for the purpose of mobilization of technological innovations and use of economic value of the closed models of production and consumption;

8) change of culture and approaches in the industry by provision of non-paid grants to the entrepreneurs testing steady and green technologies for viability;

9) stimulation of creation of workplaces in the field of information technologies, and also increase in interest of investors in this sphere;

10) creation of alternative funding mechanism for innovations and business development for startups with high potential in the field of digital innovations, information technologies and communication, ecological technologies and steady production.

Chapter II Criteria and acceptable areas

9. Purpose of the financial resources provided in the form of grant is:

1) purchase of the hardware (hardware) of information and communication technologies and other accompanying devices and the equipment, including expenses on installation, the configuration, commissioning proved from the point of view of implementation of the investment project;

2) acquisition, development and/or adaptation of the appendices of the software (software)/licenses necessary for implementation of the project, configuration and implementation of databases, migration and integration of the different existing structures of data within 50% of maximum amount of grant (500 000 lei);

3) purchase of processing equipment, new systems, machines, equipment and working tools necessary for implementation of the investment project;

4) covering of necessary expenses on market researches, marketing services in promotion of product and/or business, within 50% of maximum amount of grant (500 000 lei);

5) covering of necessary expenses on purchase of the services Cloud and SaaS, within 50% of maximum amount of grant (500 000 lei);

6) covering of necessary expenses on purchase of the services in strengthening of cybernetic safety applicable to the software (software)/hosting/networks, within 50% of maximum amount of grant (500 000 lei);

7) covering of expenses on involvement of the specialists necessary for implementation of the investment project, and net spendings on compensation in the amount of no more than 50% of maximum amount of grant (500 000 lei);

8) covering of necessary expenses on access to the permitted data, within no more than 20% of maximum amount of grant (500 000 lei);

9) covering of the traveling expenses connected with product introduction and/or services in the amount of no more than 20% of maximum amount of grant (500 000 lei).

10. The expenses specified in the subitem 7) of Item 9, shall be predicted to reflect the purposes of product and/or service on which financing is requested and also are properly proved. Only the expenses connected with development and promotion of product and/or service according to the established budget are subject to financing.

11. Unacceptable expenses due to non-paid financing, and also at the expense of own contribution within this Program are:

1) the cost of goods and services covered at the expense of other tools / projects / aid programs;

2) adverse differences of the currency rate;

3) the expenses incurred before submission of the form in component II - non-paid financial support;

4) acquisition of second-hand goods;

5) taxes and fees;

6) property shipping charges;

7) cash payments;

8) financing of leasing expenses, credit expenses and related interest rates and commissions;

9) expenses on lease/employment of the rooms/offices/sites necessary for activities implementation;

10) consumable materials and administrative expenses, except for the expenses specified in Item 9.

12. Beneficiaries of this Program are the microcompanies, the small and medium companies which definitions are given in article 4 of the Law No. 179/2016 on the small and medium companies, irrespective of type of property and form of business, and also the physical persons intending to create business, except for the physical persons performing activities based on the patent and legal entities of the public law.

13. The technological startups which are in process of insolvency or liquidation and/or restructuring as a result of insolvency or those which business activity is suspended or which constitute subject of process of law of declaring in one of these situations cannot use financing at the expense of means of this Program.

14. Applicants of the Program shall correspond to the following eligibility criterions:

1) develop/create product and/or service according to the components of thematic financing specified in Item 2 and have growth potential;

2) are performed or intend to perform business activity in the territory of the Republic of Moldova;

3) ceased to be valid;

4) ceased to be valid according to the Order of the Government of the Republic of Moldova of 26.09.2023 No. 726

15. Unacceptable spheres of activity within this Program are:

1) activities of the companies provided in part (3) article 12 of the Law No. 179/2016 on the small and medium companies, irrespective of type of property and form of business;

2) arms trade;

3) trade, except for sales of goods and/or the services received as a result of own economic activity, and also intermediary activities in the field of electronic trading (marketpleys) for realization of exclusively domestic goods and/or services;

4) activities for import, production and sale of alcoholic beverages, and also the activities connected with cultivation and processing of tobacco, production and sale of tobacco products, adjacent products, devices and accessories to their use, to reloading or heating.

16. The covering of expenses on acquisition of subscriber services (CRM, ERP, SaaS, Cloud, the domain) is provided maximum for 12 months from the date of the conclusion of the contract for them, with presentation of supporting documents.

Chapter III Program Components

17. This Program offers integrated approach to support and stimulation of technological startups for the purpose of development and implementation of digital tools and consists of the following components:

1) component I - awareness, informing, promotion and communication;

2) component II - free financial aid;

3) component III - monitoring, mentorship and assessment.

The Section 1 Component I - awareness, informing, promotion and communication

18. The component I includes number of the complex actions performed at the national and local levels for promotion of this Program and distribution of information on the course of realization of all stages, including for publicizing of successful business undertakings.

19. The public organization "Organization for Development of Entrepreneurship" (further – PU ORP) will render to business incubators, organizations and the organizations of support of business information support for the purpose of assistance to technological innovations. In case of PU ORP the network of national consultants for rendering assistance and consultation in the course of development and consideration of investment projects will be created.

20. PU ORP will develop promomateriala and will organize actions for promotion of this Program, namely:

1) sessions on informing and notification, thematic actions;

2) TV and broadcasts on national and local TV channels and radio stations;

3) other elements of recognition.

21. For the purpose of creation of information and methodological tools PU ORP will develop packet of promomaterial and practical tools for beneficiaries:

1) the web page devoted to this Program;

2) the base of online resources containing relevant information;

3) questionnaire for check and self-assessment of requirements of the company;

4) the recognition elements showing possibilities of digital innovation of MSP and history of success.

The Section 2 Component II - free financial aid

22. Grants will be allocated for development and market promotion for commercial purposes of the products and/or services created according to components of thematic financing, specified in Item 2.

23. Ceased to be valid according to the Order of the Government of the Republic of Moldova of 26.09.2023 No. 726

24. The technological startup receives non-paid financing in the form of grants within 80 percent, but no more than 500 000 lei. The procedure of financing, stages and the sizes are established in the agreement on provision of grant according to operational management on implementation of this Program.

25. PU ORP will carry out with network of experts of consultation in the course of consideration of requests for receipt of grant.

26. Submission due dates of the file for participation in tender on selection of requests for provision of grant will be published on the official web page PU ORP.

27. Assessment procedures of document packages and selection of potential beneficiaries of grants are performed according to operational management on implementation of this Program.

28. Financing of the selected products and/or services is performed within the budget of this Program provided for the corresponding year.

29. Ceased to be valid according to the Order of the Government of the Republic of Moldova of 26.09.2023 No. 726

30. The grant can be listed in several trenches according to the specific criteria for each stage of financing provided in operational management on implementation of this Program.

31. The beneficiaries which do not have sufficient own resources for implementation of the approved investment project will be able to cover lack of the capital at the expense of borrowing facilities. In this respect the technological startup can use, in case of need, the financial guarantee issued by Fund of guaranteeing the credits for the small and medium companies based on Regulations on the organization, functioning and use of Fund of the guaranteeing the credits for the small and medium companies approved by the Order of the Government No. 709/2022.

32. Beneficiaries can submit the application for provision of financial aid in limits of the top level established in this Program.

33. Within this Program for her beneficiaries / applicants conflict of interest use of the status of the founder/administrator of the company in private interests or for the benefit of affiliates for the purpose of carrying out dummy transactions with beneficiaries of this Program for reasons for the investment performed due to non-paid financing is considered.

34. The spouses/spouse, relatives or cousins-in-laws of the founder and/or the administrator of the company to the second degree of relationship/property using Program provisions are considered as affiliates.

The Section 3 Component III - monitoring, mentorship and assessment

35. PU ORP performs actions for assessment of use of grants by beneficiaries, identification and decrease in the risks fraught with abuses, determination of tactics of communication with beneficiaries, and also according to impact that assumes:

1) monitoring of the beneficiary. The period of monitoring of beneficiaries of this Program will constitute 36 months from the date of the conclusion of the agreement on provision of grant;

2) control of observance of conditions and use of financial resources on the purpose established in the agreement on provision of гранта$

36. Ceased to be valid according to the Order of the Government of the Republic of Moldova of 26.09.2023 No. 726

37. In case of non-compliance with terms of the contract about provision of grant the beneficiary will shall return the provided financial resources in full.

38. PU ORP performs, if necessary, together with profile associations activities for mentorship, monitoring and support for the purpose of improvement of the results achieved by beneficiaries of grants.

39. PU ORP will perform monitoring at stages of prefinancing and post-financing, to carry out the final inspection connected with monitoring and will periodically request the reports on achievements containing necessary information.

Chapter IV Monitoring of implementation process of the Program

Section 1 Term of Program Implementation and Expense Estimation

40. The term of implementation of this Program constitutes 36 months with possibility of the subsequent prolongation in the presence of additional financial resources.

41. The expected annual budget for implementation of this Program constitutes 20 million lei, and the general budget of the Program for the three-year period of realization will average 60 million lei with possibility of further expansion with assistance of local and external donors.

Section 2 Program Indicators

42. Product indicators:

1) 5 media and information actions for the purpose of promotion of this Program are organized;

2) at least 250 innovative projects for business idea representation are selected;

3) at least 100 technological and innovative startups are financed.

43. Result indicators:

1) at least 50% of the beneficiaries who achieved growth of turnover;

2) at least 30% of the beneficiaries which realized innovative products / services in the foreign market;

3) at least 100 kept and/or new created workplaces;

4) increase approximately at 50 million lei of the volume of investment into national economy.

Section 3 Realization and coordinating of the Program

44. The realization of this Program is enabled by PU ORP according to operational management. For the purpose of effective management PU ORP will connect this Program to information system of internal management.

45. PU ORP constitutes and PU ORP and to the Ministry of Economics represents to Council annual reports on implementation of this Program and achievement of the planned progress and performance indicators.

46. Committee on financing and risks PU ORP considers the valuation report of the file of applicants on receipt of financial support within the Program and makes the decision on their acceptance or variation.

47. In the course of assessment Committee on financing and risks PU ORP is guided by priorities of this Program, viability of business, feasibility and justification of implementation of the proposed solutions, and also the expected results and influence on common economic and social development.

Section 4. Monitoring and coordinating of the Program

48. Function of supervision, assessment of activities and implementation of this Program PU ORP performs Council.

49. Proceeding from the functional powers and the rights of Council PU ORP stated in the Order of the Government No. 487/2022 about the organization and functioning of public organization "Organization for Development of Entrepreneurship" for the purpose of effective management of the ORP this Council of PU Program performs the following powers:

1) is approved by operational management on implementation of this Program;

2) is approved by the annual statement about implementation of this Program;

3) resolves other issues which are not contradicting provisions of appendix No. 1 to the Order of the Government No. 487/2022 and legislation;

50. All decisions of Council PU ORP are entered in protocols of its meetings.

Appendix 2

Approved by the Order of the Government of the Republic of Moldova of April 13, 2022 No. 243

The plan of implementation of actions within the Program of support of digital innovations and technological startups

See Appendix 2 (22Kb In original language)

 

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