3.18 Are the costs dedicated to the development of prototypes eligible under the call for strategic projects? Published 2011/06/16

As a general rule, the JMA cannot give a prior opinion on the eligibility of a budget item. Eligible costs are listed in article 14.2 of Annex II “General Conditions”.
Some issues should be taken into consideration for the development of a prototype. As per section 6.2.10 of the Practical Guide to Contract Procedures for the EU external Actions (PRAG) "Grants may not have the purpose or effect of producing a profit for the beneficiary...".
Moreover, according to art. 7.2 of the General Conditions, as modified by art. 7.2.8 of the Special Conditions "[...] the Beneficiary grants the Contracting Authority the right to use freely (free of charge) and as both see fit all documents deriving from the Action other than those reports referred to in Article 2, whatever their form, provided it does not thereby breach existing industrial and intellectual property rights".