Small and medium-sized enterprises with innovative projects may be eligible for financial aid in the form of subsidies or repayable advances. The financial aid can cover a percentage of the eligible costs, which vary depending on the type of project, programme or activity.
Who is concerned
The financial aid is intended for private enterprises and research organisations established in Luxembourg.
Terms and conditions
Small and medium-sized enterprises have to meet the terms and conditions applicable to all types of aid for research, development and innovation.
Costs associated with the following are eligible:
- the acquisition, validation and defence of patents and other intangible assets (licences, know-how and other types of intellectual property);
- the posting of highly qualified personnel from a research or knowledge dissemination organisation or from a large enterprise undertaking research, development and innovation tasks as part of a newly created role within the beneficiary company, without replacing other members of staff;
- consultancy services provided by external consultants that are not permanent or recurrent in nature and do not form part of the company's normal business expenditure (regular tax or legal advisory services, advertising);
- advisory and innovation support services.
How to proceed
Filing an application
A standard application template for financial aid for SME innovation has been made available to companies 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 amounts of financial aid
The amount of aid will be calculated on the basis of the eligible costs of the project and may not exceed the following cap:
Medium-sized enterprise or medium-sized private research institute
Small enterprise or small private research organisation
- costs in relation with advisory services
- costs in relation with the acquisition, validation and defence of patents and other intangible assets
- costs in relation with the posting of highly qualified staff
Costs in relation with advisory and support services regarding innovation*
* Provided the total amount of financial aid granted for these innovation advisory and support services does not exceed EUR 0.2 million per company or private research organisation over a period of 3 years.
Innovation advisory services refer to advice, assistance and training in the following areas:
- knowledge transfer;
- the acquisition, protection and use of intangible assets;
- the use of standards and regulations that include them.
Innovation support services, with a view to developing more efficient projects, procedures or services, refer in particular to:
- market research;
- quality labelling;
- testing and certification.
Payment of aid
Capital grants and repayable advances are paid out after completion of the project or programme concerned.
However, one or more advance payments may be made as the investments, operations or activities for which the aid was granted are realised.
Forms / Online services
Innovation aid for SMEs - application form for State aid
Aide à l'innovation pour PME - Formulaire de demande d'aide
Innovationsbeihilfen für KMU – Formular für die Beantragung staatlicher Fördermittel