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Ideas & Updates from innoscripta
Explore stories, insights, and innovations from the people building the future of R&D and digital tax technology.
Nov 19, 2025
NebenwerteWelt podcast: innoscripta – Rethinking R&D management
The NebenwerteWelt podcast features Sebastian Schwertlein, COO of innoscripta SE, discussing the digital transformation of R&D funding processes and the impact of the Clusterix platform. The episode highlights how companies can manage and document innovation projects more efficiently, innoscripta’s development following the IPO, and why the company is gaining attention among tech-focused investors.Listen to the full episode: https://nebenwertewelt.podigee.io/28-innoscripta
Nov 12, 2025
Forschungszulage for software development: Overcoming common application pitfalls
Germany is globally known as a high-tech hub with an increasing amount of innovation, building transformative solutions and disruptive software development. The advancements of software solutions in verticals like artificial intelligence, blockchain, internet of things (IoT), robotics, and augmented reality are deeply aligned with the country's technological leadership. Companies across industries employ software tools to enhance productivity and competitive advantage. Fields like biometrics, aviation, drone technology, embedded systems, and industry 4.0 are a few examples where software helps streamline work processes.Significant innovation in the industry of software development in Germany could be seen in fields such as generative AI integration, cloud-native architectures, and growing start-up ecosystems. The Research Allowance Act (Forschungszulagengesetz - FZulG) was introduced by the German government recognising these advancements and the continued focus on research and innovation in software development among other areas. The main objective of the Forschungszulage initiative is to financially support organisations that invest in R&D and companies receive monetary assistance in form of tax credits, which reduces the amount of tax payable. If the company does not have a tax liability, then it will receive direct cash refunds based on its eligible R&D project expenditure. For the software development industry, in spite of having promising work, the projects frequently fall short while claiming research allowance. Deeply understanding the elements contributing to success and failure of a Forschungszulage application helps companies to navigate effectively through the process and obtain the support they deserve for their innovative software project. What type of software development projects qualify for the Research Allowance?To be eligible for the research allowance in Germany, software development projects must be classified as R&D work. The research project should match the Frascati Criteria which outline the characteristics of an R&D work and also the guidelines from the BSFZ that validate the project for the research allowance. The qualifying research activities are mainly divided into three categories:1. Basic ResearchThese research activities are primarily undertaken to obtain new knowledge without having any immediate practical and direct commercial application. In software development, this could include:Development of new algorithms in theoretical computer scienceDeveloping brand-new principles for programming languagesCreating new ways for developing software 2. Industrial ResearchResearch projects conducted to acquire new knowledge and expertise either to develop new products, services or processes or to significantly improve the existing products, services or processes are considered as industrial research. It involves projects such as:Developing software tools for specialised application like e.g. image processingDesigning innovative programming languagesDeveloping new data management systems3. Experimental developmentExperimental development projects use and combine existing knowledge to develop a new product, service or process. Activities related to formation, planning, and documentation of new products are considered as experimental development. In the software development field, this includes:Creating experimental AI or machine learning modelsPrototyping new software architectureDeveloping new data processing pipelinesProjects that adhere to these criteria and have technical uncertainty and development risks are considered as strong candidates for the research allowance. Why are software development projects frequently rejected?Despite pre-defined eligibility guidelines, software development projects are frequently being rejected for research allowance. Several reasons leading to this include:Vague definition of innovationThe BSFZ requires applicants to define the innovation process, including the problems and uncertainties addressed precisely. Many applications fail because they merely focus on describing the final product without providing enough information showing new scientific or technical knowledge. Due to the absence of a detailed narrative regarding the technical challenges, the newness, and the risks, the application often fails to succeed.High emphasis on implementationA usual pitfall for software development projects is presenting the ones that emphasize the implementation of existing solutions. Routine activities like adapting existing software and integrating known libraries do not qualify as R&D, and the research allowance only considers a project that is innovative and bridges a knowledge gap.Insufficient technical informationAn application prepared with superficial project descriptions which lack the required technical details will lead to rejection. Applications need to convey the technical complexity of the R&D activities. For a software project, involvement of the lead developer or software engineer is essential to ensure optimum project description, as they can explain the technical complexities and innovative elements of the project.How to handle inquiries and rejectionsAn application being questioned or rejected does not necessarily indicate the end of the road in seeking research allowance. There are options available for applicants:1. Responding to additional information requestThe BSFZ seeks additional information regarding the project if the submitted information does not provide complete clarity. This is not a rejection, but the request to submit further accurate information to continue verifying the project to issue the certificate. 2. Filing an appeal Applicants can file an appeal within a month after receiving a rejection if they find that the application was wrongfully rejected due to misunderstanding or mistakes in assessment. The appeal should provide clear information supporting the eligibility of the project and not merely on questioning the decision. Applicants should analyse the given reasons for the rejection, compare the application with the relevant guidelines and provide a well-structured appeal with proofs supporting the claim. 3. Submit a new applicationWhen the application is rejected due to a poor structure or wrong information, then it is best to submit a revised, well-prepared application. The new application should include:A clear description addressing technical complexities of the projectCorrections on previously identified weaknessesConclusionObtaining research allowance for software development projects in Germany requires focused preparation and a strong understanding of the eligibility criteria and related guidelines. Detailed documentation of technical innovation, active involvement of the software engineer or lead developer in drafting the application, and providing precise technical narratives can help the software project to be successful while seeking research allowance. In the cases of rejection, strategic approaches like understanding the causes of rejection, filing an appeal, or submitting a new application can lead to eventual success. With the right approach, Germany's Forschungszulage is a valuable opportunity for software development projects to scale up innovation.
Nov 03, 2025
Strong growth and impressive results: Börsengeflüster on Innoscripta SE
The financial platform Börsengeflüster highlights innoscripta SE’s exceptionally strong performance in its latest analysis. With revenue growth of more than 80 percent and an EBIT margin close to 58 percent, the company ranks among the most profitable in the Scale segment. The report emphasizes the importance of upcoming capital market conferences for innoscripta’s continued expansion.Read more: https://publisher.boersengefluester.de/de/innoscripta-ungewohnliche-renditen
Nov 03, 2025
innoscripta SE reports strong Q3 2025 – investors impressed
Wallstreet Online reports that innoscripta SE impressed in the third quarter of 2025 with revenue of €70.7 million and a profit increase of nearly 98%. The article highlights the high EBIT margin of 57.8% and the scalability of the “Clusterix” platform, noting strong investor interest following the quarterly results.Read more: https://www.wallstreet-online.de/nachricht/20105993-innoscripta-celebrates-q3-2025-triumph
Nov 03, 2025
96% profit increase after nine months – innoscripta SE delivers strong results
The article on stock3 analyses how innoscripta SE recorded a notable profit increase of approximately 96% for the first nine months. This performance underlines the company’s position in the Scale segment and highlights substantial operational progress. Read more: https://stock3.com/news/innoscripta-96-gewinnplus-nach-neun-monaten-16760612
Nov 03, 2025
Meritocracy in the company: How performance culture determines advancement and compensation
The article on ingenieur.de explores how innoscripta SE systematically implements a performance-based culture: Promotions and compensation are determined not by tenure or connections, but exclusively by measurable results and clearly defined target levels. Transparent career paths and regular feedback ensure fairness and acceptance.Read more: https://www.ingenieur.de/karriere/arbeitsleben/fuehrung/meritokratie-im-unternehmen-wie-leistungskultur-aufstieg-und-verguetung-bestimmt/
Oct 31, 2025
Smart software for research and funding – Focus on innoscripta SE
The article from GoingPublic highlights how innoscripta SE uses its cloud-based software platform to assist companies in applying for, documenting, and managing R&D subsidies. Since its IPO, the company is seen as a high-growth player in a rapidly evolving market.Read more: https://www.goingpublic.de/going-public/innoscripta-smarte-software-fuer-forschung-und-foerderung/
Oct 09, 2025
What is the BSFZ seal? Recognition for R&D in Germany
Innovation is a crucial factor contributing to economic growth and development, especially in a competitive and highly evolving global environment. In Germany, the BSFZ seal acts as a prestigious symbol for organisations that are actively pursuing innovative research and development (R&D). The BSFZ seal is issued by the Research Allowance Certification Office (Bescheinigungsstelle Forschungszulage) and represents innovation capabilities in addition to improving a company's credibility among stakeholders, investors, and customers. The BSFZ seal highlights that the company is a contributor to forward-thinking and futuristic ecosystems, enhancing Germany's position as an international innovation hub.Classification of the BSFZ sealFor a company engaging in research and development, the BSFZ seal is awarded in two different types, indicating the nature of a company's research and development initiatives.Red seal for in-house R&D projectsThe red seal certifies that a company has efficiently carried out its own R&D activities using its internal resources. Involvement of a third party at any stage of the particular R&D project is facultative. It demonstrates the company's ability to initiate and manage the entire R&D process.Orange seal for contract researchThe orange seal is given to a company when they execute a R&D project in collaboration with external partners. Research projects can be outsourced to external parties such as a research institution, university or private organisation. This seal reflects the company's commitment to nurturing innovation and facilitating collaborative R&D projects. Both of these versions of the BSFZ seal act as proof for qualified R&D projects under Germany’s Research Allowance Act (FZulG), which was introduced to financially support companies with eligible R&D projects across industries and sizes. The monetary support is provided for the qualified projects in terms of tax credits on the basis of their eligible R&D expenditure. Criteria for receiving the BSFZ sealTo receive the BSFZ seal, the R&D project must obtain a BSFZ certificate confirming that the project qualifies as research and development. The certificate is issued based on criteria defined in accordance with established international standards, specifically those outlined in the OECD’s Frascati Manual. These criteria include:Novelty: The R&D project must bridge a gap by generating new knowledge or by developing a new product, process or service that is beyond the existing ones.Creativity: The project should have an innovative problem-solving approach that is different from existing standard practices. Systematic approach: The research should be conducted as per a defined and systematic methodology.Uncertainty: The final results or outcome of the R&D project should not be known in advance and should include an element of technical risk. Reproducibility: The results of the R&D project should be documented in a way that allows verification and reproduction of the results, enabling further validation of the outcomes.Once an R&D project meets these standards and acquires the BSFZ certificate confirming its eligibility to claim the research allowance, the company gains access to the BSFZ seal via the application portal. Clear instructions regarding its usage and design guidelines are made available to the company to ensure the correct representation.
Sep 30, 2025
How does the BSFZ assess R&D projects for Forschungszulage certification?
Introduction to the BSFZ and its role regarding ForschungszulageThe Bescheinigungsstelle Forschungszulage (Research Allowance Certification Office) is the official authority designated to determine if a project is eligible to claim the research allowance. The BSFZ evaluates if the activities defined in the research allowance application fall under the category of research and development (R&D). The preliminary decision is then forwarded to the relevant tax office for assessment and settlement with the income tax liability.BSFZ functions under the technical and legal supervision of the Federal Ministry of Research, Technology and Space and is operated by a consortium of experienced project sponsors:VDI Technologiezentrum GmbHAiF Projekt GmbHDLR Project Management AgencyWith the objective of ensuring an optimum and professional review of the applications, an interdisciplinary team is established with staff from various scientific fields who hold extensive experience in validating R&D projects. The application process with the BSFZ is fully digital, which increases convenience. The application is submitted through a web portal that is custom-developed by the BSFZ. BSFZ offices are present in various cities such as Bonn, Berlin, Düsseldorf, and Dresden with the scientific experts from multiple fields evaluating the R&D project applications. The BSFZ review is a key step for applicants as it is the first step in seeking the research allowance and the approval is crucial. Without BSFZ approval the project cannot advance to the tax authority stage.Assessment basisWhile assessing the research project, the BSFZ reviews if it falls into any of the defined categories under the Research Allowance Act (FZulG) and adheres to the EU’s General Block Exemption Regulation (GBER) and the OECD’s Frascati Manual. Criteria for approval involve:Basic research: The experimental or theoretical research project that is focused on acquiring new knowledge without any direct commercial application.Industrial research: The planned research projects aim to gain new knowledge and skills in order to develop new products, processes, or services and also to make significant improvements to the existing ones. Examples of industrial research include prototype construction and validation of technological concepts.Experimental development: Experimental development involves research based on using existing scientific and technological knowledge to develop a new product or improve the existing ones. As per the Frascati Manual, a research project must include the following features:Novelty: The project must generate new know-how that is not available in the state of the art and the research work needs to be original without similarity to existing work.Uncertainty: The outcome of the R&D work should not be known to the public yet. It should be uncertain and not predictable. Additionally, there must be an element of risk involved.Systematic approach: The research work should be conducted according to a systematic plan and methodology.Creativity: The work should consist of an innovative approach and an element of non-obviousness.Reproducibility: The results of R&D work should be verifiable and reproducible with the scope of obtaining the same results. Evaluation processOnce a company submits its application for the certificate from the BSFZ in the process of seeking the research allowance, there are three potential results they can expect.1. ApprovalThe positive response and issuance of the certificate stating that the research project is eligible to claim the Forschungszulage. The BSFZ office validates the R&D nature of projects using the pre-defined criteria and indicates the approval for the company to proceed with the application to tax authorities to claim the research allowance.2. RejectionAn application can get rejected if the BSFZ office finds that the project lacks the necessary characteristics to be considered as R&D. In certain instances, the application of an excellent R&D project may get rejected if the application is not clear due to any of the following reasons:Vague project documentationMissing important information in the project descriptionInclusion of unqualified activities in the application Using vague terminology to describe the project elements.When an application gets rejected, the applicant company has two options as corrective measures:a. Appeal:It is allowed to submit an appeal within 4 weeks after receiving the rejection from the BSFZ. The appeal should be submitted if the company finds that its application is wrongfully rejected due to misunderstanding and incorrect assessment. The objective of the appeal should be to provide additional information and proof supporting its claim and not merely to question the previous assessment result.b. Reapplication:In case an application is rejected due to shortcomings in the application preparation, as a next step it is ideal to submit a revised and well-prepared application instead of submitting an appeal as the BSFZ is obliged to review the reapplication within three months. The revised application should include all the crucial information with clear technical details of the projects. It is important to submit the details supporting the claim and to ensure the project meets BSFZ guidelines and criteria mentioned in the Frascati Manual.3. Request for additional informationIt is common to receive a request from BSFZ to submit certain additional details about the project to continue the review process. This is not a rejection but it occurs when the submitted information does not suffice to make a final assessment. Note: BSFZ application process is done through the web portal and there are different character limits in the sections where the applicant needs to submit the project details. It is necessary to phrase the details clearly and concisely so that all required information can be provided for the review process. Best practices for applicantsTo obtain a positive response from the BSFZ and receive the certificate on the first attempt, the applicant should follow our best practices that include:1. Early documentation of R&D projectsThe documentation and recording of necessary information, technical and financial, helps in the submission of the well-prepared application and increases the chances of approval.2. Defining the innovationClear definition of newness and technical innovation of the project without the use of vague terminology is an important factor for the approval. It is required to mention details of the problem being solved, novelty of the R&D approach, and addressing uncertainties and risks during the project.3. Knowledge of deadlinesIt is possible to claim research allowance retroactively for up to four years. But, early application to the BSFZ and to the tax authorities ensures an early inflow of funds even in the event of stricter assessment guidelines.4. Seeking expert adviceFor companies, especially first-time applicants, the advice of external consultants who have expertise in Forschungszulage guidelines and the documentation process can be effective in submitting a successful application. The external advisors can help with documenting R&D projects and preparing well-structured applications in alignment with the statutory requirements.Considering applying for Forschungszulage? Connect with innoscripta to streamline your documentation with expert guidance and the intelligent software platform.
