Jun 17, 2025
Founders Plan Selective Share Purchases to Support Share Price
Munich, June 17, 2025 — The two primary innoscripta SE shareholders, Michael Hohenester (through Hohenester Beteiligungs-UG) and Alexander Meyer (through Meyer Beteiligungs-UG), have announced their intention to purchase a limited number of innoscripta SE shares through the stock exchange. The total volume is planned to be up to €12 million, with €10 million from Hohenester Beteiligungs-UG and €2 million from Meyer Beteiligungs-UG.
The acquired shares are subject to existing lock-up obligations and may be sold no earlier than after the respective periods following the IPO have expired. Any subsequent sale will only be considered if there is a substantial and sustained recovery in the share price compared to the IPO placement price of €120. Attention will be paid to a market-compatible increase in the free float.
This initiative is exclusively financed from the shareholders’ private funds and demonstrates their long-term confidence in innoscripta SE’s business model and prospects.
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Aug 08, 2025
Patents and their impact on Research Allowance in Germany
What is a patent? What could be patented? These are the common questions in the mind of stakeholders of a company with R&D projects and innovations. In Germany, the patent is part of the industrial property right that grants the holder the exclusive right to use their innovation. The answer to what could be patented is broad as it is not limited to any type of invention, sectors of organisations or their size, but will be granted based on the newness, non-obviousness and industrial applicability of the invention. To get an invention patented the application must be sent to the German Patent and Trade Mark Office (Deutsches Patent- und Markenamt, DPMA). The applicant needs to disclose the details of the invention including its technical specifications, and should ensure transparency in a way that a specialist should be able to use or reproduce it without the need for any further information. It is not possible to add additional information after the submission of the application. The application for the patent can be submitted in two ways, either by submitting in writing via a patent information centre or electronically via DPMAdirektPro software.After the application submission, there is a statutory examination process to determine the eligibility of the invention to be patented. The detailed examination process includes compliance assessment, classification under the International Patent Classification (IPC), and validation of the novelty of the invention. Once an invention is patented, it has a validity up to 20 years, subject to the renewal charges starting from the third year. It will be published in the Gazette (Patentblatt) and the information will also be available on websites such as EPATISnet and DPMAregister.The Forschungszulage, is a tax incentive programme focusing on promoting R&D projects and innovations. Here, the financial assistance is given as tax credits to the companies with qualified research projects and it is granted on the basis of the eligible R&D costs incurred for the project. A project's eligibility is defined by analysing its aspects based on criteria outlined in Frascati Manual, which mandates that the features like novelty, creativity, uncertainty, and systematic approach be present in it. The validation to determine whether a project qualifies as R&D is handled by BSFZ (Bescheinigungsstelle Forschungszulage), and it is the first step in the process of claiming the research allowance to acquire a BSFZ certificate which states the qualification of the project as an R&D project. And, the second step being claiming the research allowance by submitting the application to the tax office. Why is a patent important for R&D?A patent is a protection given to the inventor or company to exclusively use their work and avoid the duplication or replication of it by others. Germany follows a strict criteria to grant patents to any inventions and only technical inventions are eligible. To be eligible to receive the patent, an invention is required to meet the following criteria under Section 1(1) of the Patent Act:Novelty: The invention needs to be brand new and delineable to the state of the art. It should not be publicly disclosed before through written or oral descriptions, or exhibitions. Inventive steps: The invention should not be obvious and it must have a technical advancement from what is already known.Industrial applicability: The invention should be usable in any industry with the scope to be reproducible. These aspects closely align with the criteria that defines an R&D project regarding Research Allowance. For example, the Frascati Manual states that R&D work must generate new knowledge, should not be routine work, and include uncertainties.Novelty as a Criterion: For Patent and Forschungszulage ClaimNovelty is a common concept in both, patent and Forschungszulage approval. For patents, the way novelty is defined is very strict and global. The application of a particular invention for patent will be denied if the same type of knowledge is available to the public anywhere in the world by any means before the date of filing the application.In the Forschungszulage application process, the novelty is assessed in the framework of business enterprise. Based on the specifications in the Frascati Manual, an R&D project must generate novel knowledge which is not already present in the industry and new to the business. Reproducing existing work and known results and reverse engineering are not considered novel. A new application or use case for an existing technology with all its associated risks and uncertainties could be eligible for the Forschungszulage, even if it is not patentable. Overall, the eligibility standards for the Forschungszulage are lower than those for patents.How Does a Patent Add Value During the BSFZ Review Process?Even though a patent is not mandatory in the process of claiming the Forschungszulage, it can add significant value to the project during the BSFZ review. Following are a few reasons:Proven Novelty: A patent proves the novelty of an invention satisfying a core R&D criterion. There will not be any room for doubt of the newness of the project that has received a patent by fulfilling all the complex requirements. Inventive step confirmation: One of the conditions to receive the patent for an invention is its non-obviousness. This closely aligns with the criteria of creativity and systematic approach, proving the project is qualified as R&D. Evident systematic documentation: The application for the patent itself requires detailed and accurate documentation and this reflects positively while seeking research allowance and resulting in a successful application. Note: The cost incurred to apply for a patent is not eligible to be added under the expenses in the Forschungszulage claim. The eligible expenses are purely the ones incurred for research and development activities and not any administrative costs. Practical recommendations for companies regarding patents and Research AllowanceTo leverage the best out of patent and research allowance, the companies can consider these practical steps:1. Maintaining the confidentiality of the invention: Before filing for the patent, the details of the invention need to be kept confidential including in presentations or internal meetings with all stakeholders to maintain its novelty and avoid duplication due to early disclosure. At this stage, applying simultaneously for the research allowance and a patent can be beneficial, as it helps companies to navigate the complex documentation in a single process, saving a considerable amount of time. 2. Using patent documents to support Forschungszulage claim: Similar to Research Allowance application, patent application needs detailed technical documentation and this structured information can be strong evidence while claiming the allowance as it reflects the systematic approach and reproducibility of the research work during BSFZ review. 3. Applying early for the Research Allowance:Even though it is possible to claim the research allowance retroactively for up to four years, applying early has its own advantages, such as faster approval. This can help a company maintain liquidity and budget for new innovation.Conclusion: A patent is a strong ally but not a requirementAlthough a patent is not mandatory to claim Forschungszulage, it can add substantial value during the application process by demonstrating the eligibility of the R&D project highlighting elements such as novelty and systematic approach. Ultimately, companies need to consider patents as a strategic ally to research allowance, not essential, but potentially can contribute value when integrated carefully with research objectives and timelines.
Jun 30, 2025
Contract Research under the German Research Allowance (Forschungszulage)
The Research Allowance is a top funding initiative by the German government providing monetary support to companies investing in and performing R&D projects. The objective of this programme is to encourage innovation and the eligible research projects that match pre-defined criteria can obtain financial support from the government in terms of tax reduction or cash refunds.The Research Allowance has a wider eligibility criteria where companies across industries including corporations, SMEs, partnerships, sole proprietorship and early-stage start-ups can benefit. The eligibility of the project to receive research allowance is decided based on the defined criteria namely, Frascati Criteria, that include elements such as newness, uncertainty in expected outcomes and structured methodology. The expenditures incurred for the purpose of salaries or wages, materials and consumables used directly in the research, depreciation of movable fixed assets and contract research (up to 70% of the total value) are categorized as the expenses based on which the allowance will be issued, and costs for routine software updates, market research and test marketing are in the list of excluded expenses.A two-step application process is followed for the research allowance, the first step is to obtain a BSFZ certificate that implies the particular project is eligible to receive funding and the second step is the application is to be sent to the tax office seeking the financial support. It calls for carefully drafting the application at each stage with all needed information and proofs to avoid rejections or delay in approvals. The applicant needs to produce documentation, particularly including a project description with proof of innovation and uncertainty in the expected results, details of timesheets and payroll, details of contract research, depreciation details of movable fixed assets used for the research purpose, and details of other funding received if any.Out of these expenses, contract research catches attention regarding its definition, how it is funded, the eligible amount, and the criteria for the application. Contract research means a research project in which the principal researcher outsources the research activity to the third party research institution. The third party research institution could be an academic institution, research institution or another company. In the year 2025, as per the recent update, up to 70% of the total expenses are allowed to claim the research allowance. The research allowance application is to be submitted by the commissioning party and not the contractor as the former is entitled to receive the financial support.Contract Research vs In house ResearchWhat is Contract Research?Contract Research takes place when the R&D project is outsourced to a third party, for example, a research institution, university or private organisation. In the case of contract research, the company (not the service provider) is eligible to apply for the research allowance.Eligibility criteria:The official contract between the parties is mandatoryThe contractor is not eligible to claim the research allowance, the commissioning party alone can apply.The contract research should meet the pre-defined criteria of an R&D project.Note: The application for the research allowance must always be submitted by the client (commissioning party) – not by the commissioned research institution (contractor). Only the client is entitled to apply for and claim state funding for the costs incurred in the context of contract research.Funding details for Contract Research as per new updates:70% of the total contract value is eligible (previously it was 60%)17.5% is the effective funding rate; it is 24.5% in the case of SMEsSample Calculations:1. Calculating the eligible amount to claim the research allowanceTotal cost - 10,000,000Percentage of eligible expenditure - 70%Eligible expenditure = 10,000,000 x 70% = 7,000,0002. Calculating the research allowance for companies with standard rate of 25%7,000,000 x 25% = 1,750,0003. Calculating the research allowance for SMEs with the rate of 35%7,000,000 x 35% = 2,450,000The effective funding rate will be 17.5% for the companies and 24.5% will be for the SMEs.The effective funding rate is derived as the following,4. For the companies with standard rate:Eligible amount x Subsidy rate/Total expenses7,000,000 x 25% / 10,000,000 = 17.5%5. For the companies with SMEs rate: 7,000,000 x 35% / 10,000,000 = 24.5%What is In-House Research?The R&D activities conducted using their own resources throughout the project are termed as internal research or in-house research. Here, 100% of the expenditure is considered while applying for the research funding and 25% is the standard funding rate, and for SMEs, it is 35%.Sample Calculations:1. Calculating the eligible amount to claim the research allowanceTotal cost - 10,000,000Percentage of eligible expenditure - 100%Eligible expenditure = 10,000,000 x 100% = 10,000,0002. Calculating the research allowance for companies with standard rate of 25%10,000,000 x 25% = 2,500,0003. Calculating the research allowance for SMEs with the rate of 35%10,000,000 x 35% = 3,500,000Overview of key differencesElementsContract ResearchIn-House ResearchEligibility70% of the total eligible R&D costs100% of the total value of the total R&D costsEffective funding rate17.5% for other companies and 24.5% for SMEs25% standard rate and 35% for SMEsIdeal forCompanies without the R&D teamCompanies with an expert R&D teamFunding received byCommissioning party (not the contractor who works on the project)The same organisationConclusionContract research is an option taken by the companies venturing into an R&D project but do not have a strong internal R&D team. The research project should meet all the pre-defined criteria to be eligible for the financial support from the government in the form of research allowance. The application process to obtain research allowance remains the same as for in-house research in the case of contract research, first to apply for the BSFZ certificate and upon receiving the certificate one should proceed to apply to the tax office seeking the monetary benefits in terms of tax reduction or cash refund.
