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New research, development and innovation aid measures for companies launched

Luxembourg’s new law on research, development and innovation (RDI) aid measures has just entered into force. It aligns national aid measures with EU policy. The Ministry of the Economy has chosen to implement all opportunities offered by the European framework in order to encourage companies to increase their R&D expenditures and enhance their innovation efforts as well as to stimulate partnerships between private companies and public research centres.

The new law on RDI promotion includes the following measures that are already in use:

Facilitate SMEs’ access to RDI aid

The aid measures for SMEs include several previous measures aiming to support the RDI efforts of small and medium-sized companies and should facilitate their access to such support. Other changes include the fact that a single aid rate will be used for technical feasibility studies, and that the maximum amount of aid granted to young innovative enterprises will be €800,000. The maximum aid rate for process and organisational innovation by SMEs has been increased to 50%.

In order to complement existing RDI aids, a new aid measure for investments in research infrastructures will from now on make it possible to support the acquisition of research equipment to be shared between several players. The new law also includes the possibility to grant aid in the form of reimbursable advances, equity contributions to young innovative enterprises or subsidised loans to complement the grants that have so far been given.

655 projects financed in 8 years

Under the previous RDI aid law (the modified law of 5 June 2009 concerning RDI promotion) which was in use during the period from July 2009 to June 2017, the Ministry of the Economy financed 655 innovation and research projects with a total amount of €375 million. These aids allowed the companies concerned to invest over €1 billion in Luxembourg.

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