In order to support social innovation for a fair and sustainable transition, the Ministry of Labour, Employment and the Social and Solidarity Economy and the Ministry of the Economy are launching their first call for projects on social innovation.

There are many ways to tackle the pressing challenges of sustainable development, while contributing to the creation of quality jobs and a sustainable economy. The social and solidarity economy and more particularly social entrepreneurship, fuelled by social innovation, is one of them.

An innovation can be social both by its purpose and by its means. New ideas (products, services or processes) can emerge that both meet societal needs more efficiently and create new social relationships or new collaborations.

These issues can be centred around various themes such as:

• employment;
• housing;
• environmental protection; or
• social exclusion.

A broader definition characterises social innovation as any economic activity aimed at preserving and developing social ties, maintaining and strengthening territorial cohesion, developing cultural or creative activities as well as initial or continuing training activities.

Here are some examples:

• combating the waste of food, that would otherwise be thrown away, and making it available for charitable purposes;
• developing housing concepts that offer free sleeping places, e.g. in the homes of elderly people, in order to combat the housing shortage;
• forming an energy community to pool the purchase and operation of a renewable energy production plant.

Who is concerned

Any legal person (SA, SARL, SCOP with or without accreditation, SIS) that:

• is engaged in an economic activity as their main occupation; and
• is carrying out a new social innovation project on Luxembourg territory.

Prerequisites

Terms and conditions

Legal persons carrying out an economic activity on a principal basis must fulfil the terms and conditions applicable to all aid for research, development and innovation.

Eligible costs

All costs directly linked to social innovation projects are eligible:

• payroll expenses: researchers, technicians and other support staff if they are employed for the social innovation project;
• expenses for instruments and equipment, if and for as long as they are being used for the social innovation project.

If such instruments and equipment are not used for their full lifecycle within the framework of the project, only the depreciation costs corresponding to the duration of the project, calculated in accordance with the generally accepted accounting principles, shall be deemed admissible;

• the costs of subcontracting from external sources on an arm's length basis;
• additional overheads with a flat rate of 25 % of payroll expenses, including social charges.

Deadlines

The application must be submitted before the start of the work and no later than 15 June 2023.

How to proceed

Filing the application

The aid application for the social innovation project must be submitted using the required form (see 'Forms / Online services') by email to secretariat.sis@mt.etat.lu.

Luxinnovation can provide help to set up your projects. Request for support should be sent by email to: aides@luxinnovation.lu.

Supporting documents

The application for aid must include the following information and documents:

• the name and size of the company;
• a description of the project or programme, of the activity or investment, and of the related operations and its innovative nature, including its start and end dates;
• a description of the economic valuation methods for the results of the project or programme, for the activity or the investment and the related operations, and its economic potential;
• the location of the project or programme, activity or investment and related operations;
• a list of the costs for the project or programme, activity or investment and related operations;
• the type and amount of aid necessary for the project or programme, activity or investment and related operations;
• any relevant piece of information that will allow the competent ministers to assess the qualities or specificities of the project or programme, activity or investment and related operations plus its incentive effect;
• the 'Financial Summary' file which shows the project costs and the projected budget plan. The templates can be downloaded under the heading 'Forms / Online services';
• the ownership structure of the company down to the beneficial owners: specify direct or indirect links with other legal persons;
• accounting information: annual accounts, balance sheet and profit and loss account (for the last completed financial year);
• a quantitative estimate of the impact of social innovation measures, if possible (e.g. kg of food saved, number of trees planted, etc.).

Any business established less than 3 years ago is required to provide a business plan.

Processing the application

After the submission deadline, a first selection is made on the basis of the social innovation criteria. Following this, the business plan is analysed. Finally, the ranking of the best projects is made within the limits of the budget available.

Maximum amount of financial aid

The gross amount of aid granted for each social innovation project can amount to a maximum of EUR 200,000 per single enterprise (group) in accordance with EU Regulation 1407/2013.

The amount of aid is calculated on the basis of the eligible costs of the project, and may not exceed 50 % of the allowable costs.

Payment of the aid

The capital grant is paid after completion of the project.

However, one or more instalments may be paid as the investments are made.

The request for payment of the aid must be submitted by email to the following address: secretariat.sis@mt.etat.lu.

Forms / Online services

Who to contact