VLAIO: What Is VLAIO and How to Fund Innovation in Flanders?

What Is VLAIO?

VLAIO, an acronym for Vlaanderen Innoveren & Ondernemen (Flanders Innovation & Entrepreneurship), is the Flemish government agency responsible for supporting innovation and entrepreneurship in the Flemish Region. It is the central contact point for any Flemish company seeking financial support or guidance for its innovation, digitalization or growth projects.

VLAIO stands out for the diversity of its funding instruments, which cover the entire innovation journey of a company: from initial strategic consulting through to major industrial research projects, including experimental development and training. For technology companies, VLAIO is a strategic partner that can co-finance software development projects, artificial intelligence, digital platforms and more broadly any project with an innovation component.

VLAIO Funding Programs

VLAIO offers several types of subsidies adapted to different needs and maturity levels.

• KMO-portefeuille (SME Wallet): this is the flagship program for Flemish SMEs. It funds training and consulting services from accredited providers. The subsidy covers up to 30% of costs for training and consulting, with an annual ceiling of 7,500 euros. It is an ideal tool for funding a digital maturity audit, technical training or strategic support ahead of a digitalization project.
• Development projects: this program funds projects that transform existing knowledge into new products, processes or services. The aid rate ranges from 25% to 50% depending on company size and project type. Maximum duration is 2 years and the minimum budget is 25,000 euros.
• Research projects: intended for more fundamental industrial research projects, with higher aid rates (up to 60% for small businesses). These projects typically last 2 to 4 years and often involve collaboration with universities or research centers.
• VLAIO Sprint: a support program for fast-track projects, with a simplified application process and reduced evaluation timelines. Ideal for projects lasting 6 to 12 months.
• Innovation consulting: VLAIO provides a network of advisors who support companies free of charge in structuring their innovation projects and directing them toward the right funding programs.

Eligibility Criteria

Access conditions for VLAIO programs vary by subsidy type, but common criteria include:

• Operating base in Flanders: the company must have an active establishment in the Flemish Region. This is the fundamental geographic criterion.
• SME status: for the KMO-portefeuille and certain increased rates, the company must meet the European SME definition (fewer than 250 employees, turnover below 50 million euros).
• Innovative character: for development and research projects, the project must demonstrate a clear innovative contribution compared to existing market solutions.
• Financial viability: the company must prove it has sufficient equity to finance its share of the project (the non-subsidized portion).

Concrete Example

An industrial company with 45 employees based in Antwerp wants to develop a predictive maintenance platform for its production equipment. The project involves developing IoT sensors, a real-time data collection system and machine learning algorithms to predict breakdowns.

Working with KERN-IT, the company prepares a VLAIO development project application. The total budget of 280,000 euros over 24 months includes 160,000 euros in internal personnel (engineers, technicians), 80,000 euros in technical subcontracting (KERN-IT for web platform development and ML algorithms) and 40,000 euros in equipment and operating costs.

With an aid rate of 35% (medium-sized enterprise, development project), the company obtains a subsidy of 98,000 euros. In parallel, it uses the KMO-portefeuille to fund training for its IT team on cloud technologies and DevOps, for an additional 5,000 euros in subsidies.

KERN-IT handles the backend development in Python/Django, IoT sensor integration and cloud infrastructure deployment, while helping the client meet VLAIO dossier milestones.

Application Process

1. Preliminary consultation: contact a VLAIO advisor to validate the project's fit with available programs. VLAIO regularly organizes information sessions.
2. Dossier preparation: write the project proposal with a detailed description of the innovation, a work plan structured in work packages, a detailed budget and a market analysis.
3. Online submission: submit the dossier on the VLAIO online portal. For the KMO-portefeuille, the application is done directly online in a simplified manner.
4. Expert evaluation: development and research projects are evaluated by a panel of independent experts. The process typically takes 2 to 3 months.
5. Agreement and start: upon approval, an agreement is signed and the project can officially begin.
6. Monitoring and reporting: interim reports are required, and an on-site visit may be organized by VLAIO to verify progress.

Conclusion

VLAIO is an essential partner for any Flemish company looking to innovate and digitalize. The diversity of its programs, from the accessible KMO-portefeuille to ambitious research projects, allows finding funding adapted to each stage of the innovation journey. For custom software development projects, VLAIO subsidies can reduce net investment by 25% to 50%, making projects accessible that would otherwise have been beyond budget reach. KERN-IT supports Flemish companies in preparing their VLAIO applications and in the technical delivery of their digital innovation projects.