Eurostars - Eureka Network

A Spanish biotech startup developing novel cancer diagnostics partners with a Dutch medical device manufacturer and a Belgian research hospital. Together, they receive €1.2 million through Eurostars to bring their innovation to market within 3 years. This is the Eurostars model: SME-led international R&D collaboration with national funding support.

At a Glance

What is Eurostars?

Eurostars is Europe’s largest program supporting international R&D collaboration led by innovative small and medium enterprises (SMEs). Co-funded by the European Union (through Horizon Europe) and 37 participating countries, it provides coordinated funding for cross-border projects developing new products, processes, or services.

The Eurostars Model

1. You apply once to the central Eurostars secretariat
2. International evaluation ranks your project against all applications
3. If approved, each partner receives funding from their national funding body
4. You manage the project with your international consortium

Key Characteristics

• SME-led: At least one innovative SME must be project leader or co-leader
• Collaborative: Minimum 2 independent entities from 2 Eurostars countries
• Market-oriented: Results must reach market within 2 years after project end
• Bottom-up: Any technology area, any sector
• Decentralized funding: Each partner funded by their national agency

Funding Structure

How Funding Works

Unlike single-source grants, Eurostars funding comes from national agencies:

Funding Rates by Country

Funding rates and maximum amounts vary by country:

Check with your national funding body for current rates

Eligible Costs

Eligibility Requirements

Consortium Requirements

SME Definition

For Eurostars, an SME must be:

• Independent (not owned 25%+ by large enterprise)
• Fewer than 250 employees
• Annual turnover ≤€50 million OR balance sheet ≤€43 million
• R&D-performing (technical staff, R&D activities, innovation track record)

“Innovative SME” Criteria

The lead/co-lead SME must demonstrate innovation capacity through:

• R&D expenditure (10%+ of turnover)
• R&D staff (10%+ of employees)
• Patents or intellectual property
• Track record of innovation
• Affiliation with research organizations

Participating Countries (2024-2025)

EU Member States: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

Associated Countries: Iceland, Israel, Norway, Switzerland, Turkey, UK, South Africa, South Korea, Canada, Singapore (plus others)

What’s NOT Eligible

• Defense or military applications
• Projects where one country holds >75% of budget
• Purely national projects without international collaboration
• Basic research without market application
• Projects from non-participating countries

Application Process

Stage 1: Consortium Building

Before applying, you need:

• Lead SME (or co-lead arrangement)
• Partner(s) from another Eurostars country
• Complementary expertise and roles
• Agreed project scope and budget split

Finding Partners:

• EUREKA partner search platform
• National funding agency support
• Industry networks and clusters
• Enterprise Europe Network
• Previous project connections

Stage 2: Proposal Preparation

Technical Proposal (main evaluation document):

• Excellence: Innovation level, state of the art, technical objectives
• Impact: Market potential, exploitation plans, societal benefits
• Implementation: Work plan, milestones, consortium, risks

Administrative Forms:

• Partner information
• Budget breakdown
• Funding body confirmations

Stage 3: National Eligibility Checks

Before central evaluation:

• Each national funding body confirms partner eligibility
• Budget appropriateness checked against national rules
• Pre-application requirements verified (varies by country)

Stage 4: Central Evaluation

International expert evaluation based on:

Threshold: Minimum 4/6 per criterion; minimum 14/18 overall

Stage 5: Funding Confirmation

After positive evaluation:

• Projects ranked by score
• National funding bodies confirm available budget
• Final project list published
• Grant agreement negotiations begin

Timeline

Writing a Strong Proposal

Excellence Section

Evaluators look for:

Clear innovation

• What’s technically new about your approach?
• How does it advance beyond the state of the art?
• What are the R&D challenges to overcome?

Strong objectives

• Specific, measurable project objectives
• Clear technical targets
• Realistic but ambitious

Robust methodology

• Logical technical approach
• Appropriate methods for objectives
• Risk identification and mitigation

Impact Section

Demonstrate market focus:

Market analysis

• Target market size and growth
• Customer needs and pain points
• Competitive landscape
• Your competitive advantages

Exploitation plan

• How will results reach market?
• Who owns what IP?
• Commercialization timeline
• Revenue projections

Broader impact

• Jobs created
• Environmental benefits
• Societal contributions

Implementation Section

Show you can deliver:

Work plan

• Logical work package structure
• Clear milestones and deliverables
• Appropriate timing and dependencies

Consortium

• Why these partners?
• What does each contribute?
• Complementary not overlapping

Management

• Decision-making structure
• Communication plans
• Quality assurance
• Risk management

Insider Tips

Consortium Building

• Start early: Finding good partners takes 3-6 months
• Complementary is key: Partners should bring different skills, not duplicate
• Check national rules: Some countries have pre-registration requirements
• Balance matters: Projects dominated by one country score lower
• Consider RTOs: Research organizations can strengthen technical credibility

Proposal Writing

• Be specific about innovation: “Advanced AI” means nothing; specific algorithms matter
• Quantify market claims: “Large market” vs “€2.3B market growing 15% annually”
• Show commercial logic: Every activity should connect to market outcomes
• Detail exploitation plans: Vague “we’ll commercialize” statements fail
• Address risks proactively: Showing awareness is better than ignoring problems

National Considerations

• Talk to your funding body early: They can advise on eligibility, budget, and process
• Understand your country’s priorities: Some countries have sector preferences
• Know the co-funding reality: Your project may be approved but your country may lack funds
• Plan for national timelines: Grant agreement processes vary significantly

Common Success Factors

• Strong SME with commercial track record
• Clear path from project results to market product
• Balanced consortium with complementary expertise
• Well-structured work plan with realistic milestones
• Thorough understanding of target market

Common Mistakes to Avoid

Consortium Problems

• Last-minute partner additions: Rushed partnerships show in proposals
• Unbalanced work distribution: One partner doing 80% raises concerns
• Missing expertise: Technical gaps evident to evaluators
• Large company dominance: SME leadership must be genuine

Technical Issues

• Too ambitious scope: Overcommitting leads to unrealistic plans
• Unclear innovation: “Innovative” repeated without evidence
• Weak state of the art: Not demonstrating knowledge of existing solutions
• Research without application: Pure research doesn’t fit Eurostars

Commercial Weaknesses

• Vague market analysis: Generic statements rather than specific data
• No exploitation plan: Assuming commercialization happens automatically
• Ignoring competition: Pretending competitors don’t exist
• Unrealistic timelines: Market in 6 months after 3-year R&D project

Administrative Errors

• Missing national pre-checks: Requirements vary by country
• Budget inconsistencies: Totals not matching, unjustified costs
• Wrong SME classification: Not meeting the innovation criteria
• Late submission: No extensions granted

Frequently Asked Questions

Can large companies participate?

Yes, as partners (not leads). Large companies can bring manufacturing capability, market access, or complementary technology—but an innovative SME must lead.

What if my country lacks funding?

This is a risk. Projects are approved centrally, but funding comes nationally. If your national budget is exhausted, funding may be reduced or delayed. Contact your national funding body early.

Can I apply as a single company?

No. Minimum 2 independent entities from 2 different Eurostars countries.

What’s the difference between Eurostars and Horizon Europe?

Eurostars is SME-led with national funding; Horizon Europe is EU-funded with different structures. Eurostars is often more accessible for SMEs.

Can research organizations lead?

No. RTOs and universities can participate but not as lead or co-lead. Leadership must be an innovative SME.

How is IP handled?

Consortium agreements define IP arrangements. Generally, each partner owns results they generate, with access rights for project purposes.

Can I apply multiple times?

Yes. You can submit multiple proposals (different projects) and resubmit improved versions of rejected proposals.

Is Eurostars Right for Your Project?

Strong fit if:

• You’re an innovative SME with R&D capability
• Your project has clear commercial application within 5 years
• You have or can find international partners
• Your innovation is collaborative (needs multiple competencies)
• You’re from a Eurostars participating country

Not the right fit if:

• You’re a large company wanting to lead
• Your project is pure research without market application
• You only want to work nationally
• You need results in market immediately (3-year projects)
• Your work is defense-related

Eurostars represents one of the most accessible programs for innovative SMEs to access international R&D funding—with simpler processes than Horizon Europe and strong national support infrastructure to help you succeed.