Andorra Launches €2M Grants for Innovation Firms, Quadrupling Last Year's Budget

Andorra Business and the government have launched a €2 million grants programme to support high-value innovation firms, quadrupling last year's €500,000 allocation. The budget splits into two €1 million streams—flexible and interchangeable based on demand—one for R&D projects by established local companies and the other to attract foreign firms establishing operations in the country.

Economy Minister Conxita Marsol, who also chairs Andorra Business, and director Judith Hidalgo unveiled the lines on Thursday. They fit within the National Plan for Innovation and Economic Diversification, prioritising sectors such as health and wellness, biotechnology, sports, sustainable construction, audiovisual and digital entertainment, and digital technologies.

The programme expands on last year's pilot, which funded five local projects—three in health, one on drones, and one in sensors and mobility—with grants ranging from €60,000 to €300,000. Payments remain pending as those initiatives continue development. Two further submissions were excluded for late filing, and demand exhausted the budget.

Officials report strong early interest, with about 10 companies already signalling intent to apply, including for the new foreign-firms line. Marsol noted that while innovative businesses face global competition for incentives, Andorra's low taxes limit further cuts, necessitating direct grants. "Innovation is fundamental for the country's economic transformation," she said, adding that the economy must diversify with technology-driven activities alongside traditional ones.

Evaluation will assess project impact on the company and Andorra, technical and economic feasibility, quality job creation, talent retention, investment leverage—including indirect effects—and business collaboration. A committee, backed by Andorra Recerca i Innovació and external experts if required, will handle reviews.

Coverable costs include research staff, equipment, infrastructure, intangible assets like brands and intellectual property, project materials, feasibility studies, and direct R&D expenses. Grants pay out post-completion and verification.

Applications open late this month or early next, closing 11 September. Marsol did not rule out advancing planned October immigration quotas—potentially by 150—to ease entry for innovative firms, describing any such increase as "surgical." The effort draws from a broader €5 million government innovation budget this year to enhance competitiveness and attract talent.