In addition to getting the grants, they also like to see that you are cooperating with a company or entity from another member state. I mean I get the approach is trying to build a cohesion between member states, but as you say, it adds to another layer of bureaucracy.
That said, I would really like to see EU build up more of its own home grown tech industry. Although for me being in the UK and now in a limbo with Brexit, I am not sure how that's all gonna affect us here.