This projects aims at evaluating the R&D programme INNO-KOM Ost which has been established by the Federal Ministry of Economics and Technology in 2009 in order to support non-profit industrial research institutions in East Germany which offer R&D services to SMEs and conduct industrial R&D in specific sectoral and technological fields. The evaluation assesses the effectiveness, efficiency and transparency of the programme and develops recommendations for the evolution of the programme. Special attention is paid to a submodule of the programme which offers grants for investment in technical infrastructure needed to carry out R&D projects. The lead in this project is taken by the Halle Institute for Economic Research (IWH). ZEW contributes by analysing the East German innovation system and the role of non-profit industrial research institutions for supporting innovation in SMEs.