The funding of research, development and innovation (RDI) activities is a key aspect for any innovative company. A wide range of financial aids is available to support R&D.
Principles of the financial aids:
- Subsidies to encourage companies to carry out R&D and innovation activities
- « Bottom-up » Principle : all thematic areas – a project that meets the admission criteria can benefit from co-financing
- The innovation fund budget is adapted to the needs of the projects (instead of distributing a budget to the best projects)
- Luxinnovation provides support services to help companies meeting the admission criteria
Please note that companies in difficulty are ineligible.
It concerns the following situations:
- For all companies (excluding SME < 3 years of existence): more than half of subscribed share capital (share premium included) has disappeared as a result of accumulated losses
- Large enterprises, if within the last 2 years:
- book debt to equity ratio > 7.5
- EBITDA interest coverage ratio < 1.0
If restructuring (following a rescue or restructuring aid), subject to collective insolvency proceedings or an outstanding recovery order of a State aid.
Main criteria to benefit from a financial aid
- Co-financing capacity: Equity / capital increase, Bank loans, Free cash flow
- Economic impact: Substance, Exploitation of assets resulting from the project activities
- Innovation: Competitive advantage on the market, New or improved product, process, service, New marketing method/ New organisational method
- Generic criteria: Incentive effect, Undertaking not in difficulty, SME analysis
- Scheme specific criteria: Technological challenges (R&D), Risk of failure (IOS), Scoping of R&D activities (feasibility)
RDI Aid – Decision process
Examples of eligible costs for project-driven aid schemes
Personnel costs directly related to the R&D&I project
- Gross salary (on a 12-month basis excluding premiums and benefits) directly related to the R&D&I project on the basis of 173 working hours per month
Utilisation costs (depreciation over the project’s duration)
- For instruments, equipment, machines, tooling, installations, land and buildings to the extent and for the duration used during the R&D&I project
Material costs et other consumables directly related to the R&D&I project
- Operating costs (materials, energy, transport, supplies and similar products)
Special costs directly related to the R&D&I project
- Technical know-how, user licenses for software & patents, consulting services used for the R&D&I activity, contribution paid to a research organisation, etc.
General costs (25% of personnel costs)
- Total of costs which can not be directly be allocated to the project (management costs, secretariat, travel costs, energy supply costs)
Typically non eligible costs for project-driven aid schemes
- The operational activities related to the “daily business”
- Fees and expenses for commercialisation of the R&D&I project results, e.g. marketing costs
- Managements costs (CEO, CAO, accounting, etc.), leave time and transport costs cannot be allocated to the project. They are taken into account as a lump sum.
- Bank interests related to the financing of the project
The national agency Luxinnovation can help you finalise your application and put all the chances on your side. Contact us!