Business Model

The Fraunhofer Business Model

Fraunhofer Portugal’s business model derives from the well tested – and undisputedly successful – ‘Performance related funding model’ operated by Fraunhofer-Gesellschaft in Germany. This model defines that Fraunhofer Portugal’s income should move towards equilibrium between 3 different funding sources:

  1. Industry Contract Research – revenues from external research and development projects with private institutions;
  2. Government Contract Research & Project Funding – revenues from contract research and R&D projects financed by local, national government and the EU;
  3. Institutional Funding – public grants, used for the funding of basic research.

As a consequence, Fraunhofer Portugal is motivated to pursuit a dynamic equilibrium between application-oriented fundamental research, enabling to work ahead on solutions to problems that will not become acutely relevant to industry and society until five or ten years from now, and simultaneously developing innovative R&D projects, solving industry’s pressing problems.

In other words, the Fraunhofer Portugal research work is oriented toward concrete applications and results.