BEL-SME: What Is the BEL-SME Inter-Regional Collaboration Program?

What Is BEL-SME?

BEL-SME is a Belgian inter-regional funding program designed to encourage research and development collaboration between small and medium-sized enterprises (SMEs) located in different regions of Belgium. The program is jointly managed by the three regional innovation agencies: Innoviris for Brussels, VLAIO for Flanders and SPW Research for Wallonia.

The originality of BEL-SME lies in its inter-regional approach: each regional agency funds partners located in its territory, but the project is evaluated and monitored in a coordinated manner. This allows SMEs that would not have the resources or skills to carry out an R&D project alone to combine forces with complementary partners in other Belgian regions.

For technology companies like KERN-IT's clients, BEL-SME is a unique opportunity to fund collaborative software development projects involving, for example, a Brussels-based client and a Flemish technical partner, or a Walloon SME and a Brussels research center.

Why BEL-SME Matters

Belgium is a small country with three regions featuring distinct economic and technological ecosystems. Too often, companies remain siloed within their region, limiting their collaboration and innovation possibilities. BEL-SME breaks these barriers by offering a structured and funded framework for inter-regional collaboration.

• Complementary skills: a Brussels-based SME specializing in AI can collaborate with a Flemish company expert in industrial IoT to create an integrated predictive maintenance solution.
• Access to new markets: inter-regional collaboration naturally opens commercial doors in the partner's region.
• Risk sharing: the costs and risks of the R&D project are distributed among partners, making ambitious projects more accessible.
• Increased funding: aid rates for collaborative projects are generally higher than for individual projects, rewarding the inter-regional coordination effort.

Conditions and Operation

The BEL-SME program is subject to precise rules governing inter-regional collaboration:

• Minimum two regions: the consortium must involve SMEs from at least two of the three Belgian regions (Brussels, Flanders, Wallonia).
• Reserved for SMEs: only small and medium-sized enterprises as defined by the European definition can participate. Large enterprises are excluded (unlike BEL-COO).
• Duration of 12 to 24 months: projects must fit within a 1 to 2-year timeframe.
• Collaborative R&D project: the project must include a genuine research and development dimension with demonstrated innovative contribution. Simple service provision between partners is not sufficient.
• Continuous submission: unlike some programs with periodic calls, BEL-SME accepts applications on a continuous basis throughout the year.
• Regional funding: each regional agency funds partners located in its territory according to its own rates. The aid rate therefore depends on the region and the size of the company.

Eligible Expenses

Eligible expenses under BEL-SME are similar to those of individual regional programs:

• Personnel costs: salaries and charges of researchers and technicians working on the project.
• Subcontracting: third-party services, including between consortium partners for specific tasks.
• Equipment: depreciation of equipment dedicated to the project.
• Operating costs: flat rate calculated based on personnel costs.
• Coordination costs: costs related to managing the inter-regional partnership (meetings, travel, collaboration tools).

Concrete Example

A Brussels-based financial services SME (15 employees) wants to develop an AI-automated regulatory compliance platform (RegTech). It collaborates with a Flemish SME of 20 employees specializing in natural language processing (NLP). Both companies engage KERN-IT for web platform development and AI module integration.

The BEL-SME project is structured over 18 months with a total budget of 320,000 euros: 180,000 euros for the Brussels partner (funded by Innoviris at 45%) and 140,000 euros for the Flemish partner (funded by VLAIO at 35%). The total subsidy obtained is 130,000 euros (81,000 euros from Innoviris + 49,000 euros from VLAIO).

KERN-IT acts as technical subcontractor for both partners, ensuring architectural consistency of the platform while allowing each SME to leverage its own expertise in the project. The result is a RegTech platform that combines the Brussels partner's domain expertise and the Flemish partner's NLP capabilities.

Application Process

1. Consortium formation: identify one or more partners in other Belgian regions with complementary skills and a shared interest in the project.
2. Agency contact: each partner contacts their regional agency (Innoviris, VLAIO or SPW) to validate eligibility and obtain advice on application preparation.
3. Joint drafting: partners jointly write the project proposal, clearly defining the task distribution, interactions and shared deliverables.
4. Coordinated submission: the dossier is submitted simultaneously to the relevant regional agencies. Coordination between agencies ensures a coherent evaluation.
5. Evaluation and decision: agencies evaluate the project jointly and render a coordinated decision within 2 to 4 months.
6. Execution and monitoring: the project starts with regular monitoring by each regional agency, including interim reports and a final report.

Conclusion

BEL-SME is a unique funding instrument in the Belgian subsidy landscape, as it explicitly encourages collaboration between regions in a country where innovation ecosystems are often siloed. For SMEs with skills complementary to those of a partner in another region, BEL-SME offers a structured and funded framework for conducting ambitious R&D projects. KERN-IT can serve as the technical connector in these inter-regional projects, ensuring the development of a coherent and high-performance platform while respecting each funding agency's requirements.