Franco-German cooperation: key drivers of innovation funding and European industrial sovereignty

Against a backdrop of global technological competition and growing efforts to strengthen European industrial sovereignty, Franco-German cooperation plays a key role in financing innovation, defence and research. Through strategic instruments such as IPCEIs, EDIP and the Forschungszulage, Europe is demonstrating its commitment to supporting competitive, collaborative industrial ecosystems firmly focused on the technologies of the future.

IPCEI ME/CT: A Franco-German Driver of European Microelectronics Innovation

The IPCEI Microelectronics and Communication Technologies (ME/CT) is currently the largest European funding programme dedicated to microelectronics, with more than €8 billion mobilised under Franco-German leadership. This “Important Project of Common European Interest” aims to strengthen Europe’s technological sovereignty by bringing together a unique ecosystem in which start-ups, SMEs, mid-sized companies and major industrial groups collaborate on high-impact strategic projects.

One of the key challenges of IPCEI ME/CT is to translate innovation into tangible outcomes. The selected projects cover the entire value chain, from sensors to communications, across a wide range of Technology Readiness Levels (TRLs), helping accelerate the transition from the laboratory to the market. This dynamic fosters synergies between public and private stakeholders and supports the emergence of European champions.

ABGi & IPCEI ME/CT

To maximise the visibility of the programme’s progress and facilitate exchanges across the ecosystem, ABGi actively supports the programme’s governance in the areas of Management, Dissemination and Communication. This includes co-organising General Assemblies, hosting networking events and webinars, managing collaborative tools and technical reporting, and creating content for the website and social media.

 

EDIP – European Defence Industry Programme

Following the 25th Franco-German Council of Ministers held on 29 August 2025 in Toulon, during which France and Germany reaffirmed their commitment to strengthening coordination on security, defence and industrial sovereignty, the EDIP – European Defence Industry Programme – is emerging as a new strategic instrument for the European defence industry.

The Council notably highlighted the importance of the “Franco-German reflex”, the need to translate the European agenda into concrete action, as well as a “shared determination to build greater strategic intimacy” and strengthen major joint projects.

With a budget of approximately €1.5 billion, EDIP aims to consolidate Europe’s defence industrial and technological base, increase production capacity, secure supply chains and support industrial investment, including the CAPEX required to scale up production.

A collaborative approach is central to the programme: projects involving several European stakeholders, particularly within a Franco-German framework, directly support the objectives of pooling capabilities, structuring industrial value chains and promoting European preference.

For companies, joining a Franco-German consortium can therefore strengthen the credibility of a project, broaden access to the European market and align it with public and industrial priorities supported at the highest level.

Deutschlands Forschungszulage : Ein strategisches Signal für Innovation und eupäische Wettbewerbsfähigkeit

Deutschland stärkt seine Innovationspolitik zunehmend durch die Forschungszulage – ein steuerliches Förderinstrument, das dem französischen Crédit d’Impôt Recherche (CIR) ähnelt. Mit diesem vergleichsweise neuen Mechanismus verfolgt die Bundesregierung das Ziel, private Investitionen in Forschung und Entwicklung nachhaltig zu fördern und den Standort Deutschland international wettbewerbsfähiger zu machen. Dabei sind inzwischen Förderungen von bis zu 2.5 Mio. € (3.5 Mio € für KMU) pro Jahr und Unternehmensgruppe möglich. Besonders im deutsch-französischen Umfeld eröffnet die Kombination der deutschen Forschungszulage mit dem französischen CIR sowie europäischen Förderprogrammen wie Horizon Europe erhebliche Synergien. Unternehmen können dadurch ihre Innovationsprojekte effizienter finanzieren und technologische Risiken reduzieren.Die Herausforderungen dieses Fördermodells sind jedoch zweifach: Einerseits erfordert die Antragstellung sehr kurze, aber technisch äußerst präzise Anträge, um die Bescheinigungsstelle für Forschungszulage (BSFZ) zu überzeugen. Andererseits spielt auch die lückenlose Dokumentation der förderfähigen Ausgaben eine zentrale Rolle. Die Forschungszulage sendet damit ein klares Signal: Deutschland will Forschung, Technologie und industrielle Innovation gezielt stärken.

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ABGi Supports You

Beyond the support we provide to our clients to facilitate access to these three funding instruments, ABGi has been supporting companies for 35 years in designing, financing and implementing their strategic transformations.

Drawing on the expertise of more than 700 professionals, ABGi delivers a value proposition built around four key strategic priorities:

  • Innovation: structuring innovation management and funding to accelerate business growth.
  • Operations: optimising flows, controlling costs and securing the value chain.
  • Technology: leveraging technologies as drivers of performance and transformation.
  • ESG: enhancing non-financial performance to support sustainable transformation.

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