Businesses and private research institutes owning projects related to process innovation or organisational innovation may benefit from financial aid in the form of subsidies or repayable advances. The aid can cover a percentage of the eligible costs, depending on the size of the company and the type of project or initiative.
Who is concerned
Financial aid is available for companies and private research institutes based in Luxembourg in connection with the following activities:
- process innovation, i.e. the implementation of a new or significantly improved production or distribution method;
- organisational innovation, i.e. the implementation of a new organisational method for business practices, workplace organisation or the company's external relations;
Terms and conditions
Companies and private research organisations must satisfy the terms and conditions that apply to all types of aid for research, development and innovation.
Only costs directly related to the process innovation or organisational innovation project are eligible, in particular:
- payroll expenses;
- expenses for instruments, materials, buildings if and for as long as they are being used for the project or programme;
- expenses for contractual research or research services, purchase of knowledge and patents or licences from external sources under conditions of full competition;
- 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
Filing an application
A standard application template for financial aid for process innovation and organisational innovation 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
The amount of aid will be calculated on the basis of the eligible costs of the project up to the following caps:
|Large company or large private research institute||Medium-sized company or medium-sized private research institute||Small business or small private research institute|
|Process and organisational innovation in the service industry||15 % *||50 %||50 %|
*Large companies or large private research institutes can only benefit from the aid if they work together with one or more small or medium-sized businesses or private research institutes in the activities which are funded; the small or medium-sized businesses or private research institutes concerned must support at least 30 % of all allowable costs.
Payment of financial aid
The capital subsidy and repayable advance are paid out after the completion of the project, programme or activity concerned.
However, one or more advance payments may be made as the investments are made.
Forms / Online services
Process and organisational innovation - guidelines for an application for State aid
Modèle de demande d'aide à l'innovation de procédé et d'organisation dans les services
Prozess- und Organisationsinnovationen – Leitlinien für die Beantragung staatlicher Fördermittel