Businesses and private research institutes which carry out a technical feasibility study prior to a research and development (R&D) project or programme may benefit from financial aid in the form of a subsidy or repayable advance. The aid can cover a percentage of the eligible costs which may vary depending on the size of the business.
Who is concerned
The aid is aimed a businesses and private research institutes established in Luxembourg and which carry out a technical feasibility study prior to a research and development (R&D) project or programme, such as experimental development, fundamental research or industrial research.
The businesses and private research institutes have to meet the general conditions which apply to all types of aid for research, development and innovation.
All costs directly related to the R&D projects or programmes are eligible:
- payroll expenses: researchers, technicians and other support staff employed for the project or programme;
- expenses for instruments and equipment, if and for as long as they are being used for the project or programme. If such instruments and equipment are not used for their full life within the framework of the project or programme, only the depreciation costs corresponding to the duration of the project or programme, calculated in accordance with the generally accepted accounting principles, shall be deemed admissible.
- expenses for land and buildings, if and for as long as they are being used for the project or programme. As far as buildings are concerned, only the depreciation costs corresponding to the duration of the project or programme, calculated in accordance with the generally accepted accounting principles, are deemed admissible. As for land, only the costs of commercial transfer or actually incurred investment costs are eligible;
- expenses for contract research or research services, the purchase of knowledge and patents or licences from external sources under conditions of full competition as well a costs of consultancy and equivalent services used exclusively for the project or programme;
- additional overheads and other operating expenses (in particular, cost of materials, office supplies and similar products) incurred directly as a result of the project or programme.
How to proceed
Submitting the application
A standard application file regarding financial aid for feasibility studies has been made available to businesses by the Ministry of the Economy.
The full application file, dated and signed, together with its annexes must be sent before the commencement of the project:
- by email to email@example.com;
- by post to the Research and Innovation Directorate at the Ministry of the Economy.
The application for aid must namely include the following information and documents:
- the name and size of the company;
- a description of the project or programme, of the activity or the investment, of the related works 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 with the costs for the project or programme, activity or investment and related operations;
- the type of aid and the amount of aid necessary for the project or programme, activity or investment and related operations;
- each relevant element that will allow the competent ministers to evaluate the quality or specificity of the project or programme, activity or investment and related operations plus its incentive effect.
Maximum amount of financial aid
For each technical feasibility study, the gross amount of aid can not be less than EUR 1,000.
The amount of aid provided will be calculated on the basis of the eligible costs of the study and can not exceed 50 % of allowable costs.
The maximum amount of aid may be increased by 10 % for medium-sized businesses and by 20 % for small businesses.
Payment of financial aid
The capital subsidy and repayable advance are paid out after the completion of the project, programme or R&D activity concerned.
However, one or more advance payments may be made as and when the investments are realised.
Forms / Online services
Feasibility studies - Guidelines for an application for State aid
Aide pour études de faisabilité technique - Lignes directrices d'élaboration d'un dossier de demande d'intervention publique
Förderantrag für eine technische Durchführbarkeitsstudie
Who to contact
General Directorate - Research, Intellectual Property and New Technology (Research and Innovation Directorate)19-21, boulevard Royal
Phone : (+352) 247-84162