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.
Companies and private research organisations must satisfy the terms and conditions that apply to all types of aid for research, development and innovation.
All costs directly related to technical feasibility studies are eligible:
- payroll expenses: researchers, technicians and other support staff employed for the technical feasibility study;
- expenses for instruments and equipment, if and for as long as they are being used for the technical feasibility study. If such instruments and equipment are not used for their full lifecycle within the framework of the feasibility study, only the depreciation costs corresponding to the duration of the study, calculated in accordance with the generally accepted accounting principles, shall be deemed admissible;
- expenses for buildings, if and for as long as they are being used for the technical feasibility study. As far as buildings are concerned, only the depreciation costs corresponding to the duration of the feasibility study, 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 technical feasibility study;
- additional overheads and other operating expenses (in particular, cost of materials, office supplies and similar products) incurred directly as a result of the technical feasibility study.
How to proceed
Filing an application
A standard application template for financial aid for feasibility studies has been made available to businesses by the Ministry of the Economy.
The completed application and accompanying documents must be dated and signed by a person authorised to sign on behalf of the business and must be submitted before work starts on the project in electronic format or by post to the Research and innovation Directorate at the Ministry of the Economy.
In the event of a submission by post, the following must be indicated on the envelope:
Ministère de l'Economie
Demande d'aides d'Etat
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 investment, and 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 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.
Maximum amount of financial aid
For each technical feasibility study, the gross amount of aid cannot 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 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 the investments are made.