Regional Economic Development

What is Regional Economic Development?

Regional economic development is an essential tool to support companies in overcoming economic challenges and seizing new opportunities. These incentives are provided by federal states, municipalities, or other regional institutions to specifically strengthen local economic structures. They primarily target small and medium-sized enterprises (SMEs), start-ups, and companies operating in structurally weak regions.

Why is regional economic development important? Regional economic development strengthens the local economy, promotes innovation, creates jobs, and improves the quality of life on site.

Objectives of Regional Economic Development

The main objectives of regional economic development include:

• Strengthening the local economy: Companies receive support to enhance their competitiveness.
• Job creation: New investments promote the establishment and expansion of businesses, thereby generating employment.
• Supporting structurally weak regions: Special programs encourage investments in economically disadvantaged areas.
• Promoting sustainability and innovation: Companies are encouraged to invest in sustainable technologies and innovative projects.

Benefits of Regional Economic Development

Utilizing regional funding programs offers numerous advantages for companies:

• Financial relief: Through grants and low-interest loans, companies can significantly reduce their financing costs.
• Support in site development: Regional incentives assist companies in finding and expanding suitable locations.
• Networking and consulting: Companies benefit from networks, training, and advisory services.
• Attractive tax incentives: Many regions offer tax benefits for investments in specific projects or locations.

Which Companies Benefit from Regional Economic Development?

The following companies can particularly benefit from regional incentives:

• Start-ups: Young companies receive financial start-up aid and coaching.
• Small and medium-sized enterprises (SMEs): SMEs benefit from low-interest loans and grants.
• Companies in structurally weak regions: Special funding programs help strengthen these areas economically.
• Innovative and sustainable companies: Projects focused on environmental technologies or research and development are preferentially supported.

Typical Instruments of Regional Economic Development

Regional economic development programs offer a variety of support instruments, including:

Grants

What are grants?
Grants are non-repayable financial aids that relieve companies in investments, research and development, or sustainable projects.

Examples:

• Grants for the digitalization of business processes.
• Investment grants for the purchase of machinery or real estate.

Low-Interest Loans

Why low-interest loans?
These loans feature low interest rates and flexible terms, making them an attractive financing option.

Examples:

• Loans for the modernization of production facilities.
• Financing loans for working capital.

Tax Incentives

What are tax incentives?
Companies receive tax benefits for certain investments, for example, in structurally weak regions or in sustainability-related areas.

Examples:

• Reduced trade tax for companies in designated development regions.
• Depreciation advantages for sustainable investments.

Consulting and Networks

What do consulting services include?
Regional economic development offers companies access to experts, networks, and mentoring programs.

Examples:

• Advice on funding applications.
• Access to local business networks.

Steps to Apply for Regional Funding

1. Research: Gather information about regional funding programs and their requirements.
2. Planning: Develop a detailed project or business plan.
3. Consultation: Consult experts or regional economic development agencies.
4. Application: Submit the required documents to the responsible authority.
5. Project Implementation: Use the approved funds efficiently and document the results.

Conclusion: Regional Economic Development as a Growth Driver

Regional economic development is an indispensable instrument to specifically support companies, create jobs, and drive economic progress. With a wide range of funding programs, low-interest loans, and grants, companies can increase their competitiveness and achieve sustainable growth. Take advantage of the opportunities offered by regional economic development to successfully lead your business into the future.