What amount of funding is available?
According to the draft call, non-repayable funding of between HUF 200 million and HUF 300 million may be available for individual projects, while consortium projects may receive between HUF 400 million and HUF 500 million. Projects may be implemented over a maximum period of 24 months, and development must be completed by 31 December 2028 at the latest.
An advance payment may also be requested, up to 50% of the awarded grant. Based on the draft, applications may be submitted between 14 August 2026 and 30 September 2026.
The planned total budget is HUF 5 billion, of which HUF 1 billion is earmarked for projects implemented in Budapest and HUF 4 billion for projects implemented outside Budapest.
What kinds of projects are eligible?
This scheme is not intended for general IT development projects. Only digital R&D projects aimed at the development and production of STEP-critical digital technologies are eligible, where the outcome may be a new software product or service for defence or space industry purposes. Eligible developments may relate to software publishing, information technology services, data processing, and telecommunications.
It is particularly important that at least 80% of the project’s R&D costs be directly allocated to software research and development activities involving STEP-relevant critical digital technologies. In addition, only custom software results are eligible where the physical equipment required for operation is already commercially available or accessible in a developer environment without the need for further substantial electronic or software integration.
Who can apply?
The call is primarily aimed at for-profit micro, small and medium-sized enterprises, as well as large companies, although certain research and knowledge-dissemination organisations are also eligible to participate. On the business side, applicants must have at least one completed full financial year, an average statistical headcount of at least 5 employees, and a project location that has been officially registered for at least one year. As a general rule, individual applicants must also have achieved at least HUF 75 million in net sales revenue in the last completed full financial year.
Consortium applications are also possible, with up to 3 members. However, micro-enterprises may only participate as consortium members, and at least 65% of the funding must be claimed by a for-profit company. It is also important that each applicant may submit only one application, whether as consortium leader or consortium member, and in the case of a consortium, all members must implement the project in the same regional category.
What should applicants pay particular attention to?
This scheme sets a particularly high professional entry threshold. The project must start from at least TRL 4, reach TRL 7 by the end of implementation, and then achieve TRL 9 within 24 months following physical completion.
Not only is the required technological progress stringent, but the administrative and market-related expectations are also demanding. At the time of submission, applicants must attach an expert opinion from the National Research, Development and Innovation Office (N KFI Office) certifying the project’s R&D qualification; without this document, the application cannot be submitted. In addition, applicants must undertake to obtain a defence industry activity licence, participate in project implementation mentoring, and prepare a market entry business plan. Beyond these, at least one further commitment must also be fulfilled: a revenue commitment, the acquisition of intellectual property protection, or ISO 56001:2024 certification.
Why is this call particularly interesting?
Because this is no longer about the typical “let’s build a new piece of software” type of development. The scheme is specifically looking for companies that can present a digital solution with genuine research and development content, market potential, and international relevance for defence, space industry, or national security needs. Success here requires more than just a good idea: it calls for a mature technological concept, sound R&D logic, regulatory compliance, and a clear go-to-market strategy.
For more information or consulting, please fill in our contact form.