Diversification & Innovation



This Grant Scheme aims to continue incentivising SMEs to adapt, become more resilient and address market challenges whilst offering timely support to nurture the right environment towards the potential future business growth of the enterprise.

Target Groups

  • Micro Enterprises
  • Small Enterprises
  • Medium-sized Enterprises

The need to ensure that SMEs sustain a high level of resilience through their ability to adapt rapidly to market requirements, innovate and keep up a steady investment momentum is crucial to Malta’s macro-economic and competitive performance.

Diversification and innovation are key to the survival of enterprises, as such timely realisation and intervention can avoid dire consequences leading to eventual closure or bankruptcy and enables enterprise turnaround.

In this context, such interventions become even more important when considering businesses facing difficulty emanating through particular challenges in their operations, primarily arising from market saturation, and the need for innovation to nurture a sustainable and competitive economic activity.

Scale of Operations

Small Operations

Small Operations means that in cases where the EU funding covers up to €100,000, the operation will be considered as a Small Operation. In such cases, the draft budget methodology will be applied. The aid intensity for a Small Operation is set at 50% with a maximum grant value of €100,000.

Large Operations

Large Operations means that in cases where the EU funding covers more than €100,000, the operation will be considered as a Large Operation. The aid intensity for a Large Operation is set at 50% with a minimum grant value of more than €100,000.

Eligible Actions

Investment in Tangible and Intangible assets related to the implementation of focused strategies resulting in:

  • the diversification of the output of an existing establishment into products or services not previously produced by the establishment
  • the implementation of a fundamental change in the overall production process of an existing establishment
  • a new economic activity related to the diversification of the activity of the establishment, under the condition that the new activity performed is not the same or similar to the activity previously performed by the establishment
  • the adoption of solutions that lead to the development of a significantly improved product or service
  • the acquisition and integration into the business operation of solutions that are new or significantly more advanced than those currently in use by the Undertaking.

Eligible Costs

Small OperationsMaximum Grant is set at €100,000

  • Purchasing of equipment, machinery and/or plant.

In case of small Operations, the reimbursement process of the eligible expenditure may be certified as per below.

  • 90% of the support, once the Intermediate Body (IB) verifies that the investment is in place and operational; and
  • 10% of the support, once the IB verifies the agreed net increase in employment (FTEs).

Large OperationsMinimum Grant is set at over €100,000 and Maximum Grant is set at €200,000

  • Purchasing of equipment, machinery and/or plant.
  • Leasing/rental of privately owned operational premises.
  • Construction/upgrading costs.
  • Patents and licenses.
  • Wage costs related to the wage of a Change Manager employed specifically through the Operation to drive the necessary change within the enterprise through the diversification or a fundamental change initiative.

Operations should be concluded by 30 June 2023.

This Scheme is demand driven and managed through an open rolling call, which can be found here.

Documents related to Diversification & Innovation can be found below:

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