Research Allowance for Mechanical Engineering & Engineering Firms
In mechanical engineering, eligible research ends with the test of the prototype. Eligible activities include prototype-based development, special-purpose machines involving genuine technical uncertainty, and design work at the start of a project – commissioning, series ramp-up and maintenance are not. We draw a clean line between research and routine.
All free & non-binding – no upfront risk.
Context
The review guidelines (Sec. 2.4.2, p. 16) describe mechanical engineering as highly specialised, with growing overlap into ICT (automation, AI, predictive maintenance). Prototypes are often used as early as the initial phases to investigate aspects of the product or of a novel installation.
Which R&D activities in Mechanical Engineering & Engineering Firms are eligible?
- Prototype-based development and investigation of a new product or a novel production installation in the early phases
- Development of special-purpose machines that require resolving a genuine scientific-technical uncertainty
- New development, adaptation or technical enhancement of products, lines or processes involving technical risk – including work referencing standards, provided it goes beyond merely complying with a standard
- Design and engineering work at the start of a project to specify new products or processes
- Building prototypes and pilot lines to validate technological fundamentals
Example: research allowance in Mechanical Engineering & Engineering Firms
For illustration only – not a real client case.
Assumption: Assume around €400,000 of eligible R&D staff costs per year for a qualifying Mechanical Engineering & Engineering Firms project.
Simplified example based on the eligible R&D staff costs (as of July 2026); excluding the overhead flat rate, contract research, owner work and the cap. Your actual funding depends on the individual case.
Typical non-eligible activities & reasons for rejection
This is exactly where many first applications fail. These points come from the BSFZ review guidelines:
- Activities after the test operation and final evaluation of a prototype
- Merely getting a known or purchased system or piece of equipment to run smoothly
- Installing and commissioning machines according to the manufacturer's instructions without modification for specific operating conditions
- Certification of existing machines or equipment
- Introducing/configuring off-the-shelf control software or hardware
- Routine work: maintenance, repair, standard testing; zero series, serialisation and series ramp-up
Research language instead of development language
The BSFZ assesses by scientific criteria. An example from Mechanical Engineering & Engineering Firms:
“The new machine ran after a few attempts.”
“Whether a novel drive and control concept achieves the required positioning accuracy under real load cycles – with an open outcome, measured against defined tolerance thresholds.”
FAQ: research allowance for Mechanical Engineering & Engineering Firms
Which R&D activities in mechanical engineering are eligible?
Eligible activities include prototype-based development of new products or installations, special-purpose machines with genuine technical uncertainty, technical enhancements involving risk, and design work at the start of a project – in each case up to the test of the prototype.
Is building a prototype eligible?
Yes, as long as technical uncertainty remains. However, the eligible R&D phase ends with the test and final evaluation of the prototype – everything after that (series ramp-up, commissioning) is no longer eligible.
Does building special-purpose machines automatically count as research?
No. The fact that a machine has never been built this way before is not sufficient in itself. What matters is a scientific-technical uncertainty that has to be resolved within the project.
Are commissioning and maintenance eligible?
No. Installation and commissioning according to the manufacturer's instructions, as well as maintenance, repair and standard testing, count as routine and are not eligible.