The financial aid is intended for businesses established in Luxembourg. It applies to the following activities:

• process innovation – that is, the implementation of a new or significantly improved production or distribution method that goes beyond the technical capabilities of the business in the given business sector in the European Economic Area (EEA);
• organisational innovation – that is, the implementation of a new organisational method for business practices, workplace organisation or the company's external relations that goes beyond the technical capabilities of the business in the given business sector in the EEA.

Terms and conditions

Beneficiaries of the financial aid must satisfy the terms and conditions that apply to all types of aid for research, development and innovation.

Eligible costs

Eligible costs are those that are directly related to the process and organisational innovation project, namely:

• payroll expenses: researchers, technicians and other support staff, if they are employed for the project;
• expenses for instruments and equipment, if and for as long as they are being used for the project. If such instruments and equipment are not used for their full lifecycle as part 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 eligible;
• expenses for contractual research, purchase of knowledge and patents or licences from external sources under conditions of full competition;
• additional overheads and other operating expenses – in particular, the cost of materials, office supplies and similar products – incurred directly as a result of the project.

The application must be submitted before the commencement of the work.

Submitting the application

You (or your representative) must submit the application for financial aid through the online assistant available on MyGuichet.lu.

This is a procedure that requires authentication using a LuxTrust product or an electronic identity card (eID).

Supporting documents

Applications for aid must include the following information and documents:

• the name and description of the business;
• the size of the business in accordance with Annex I of Regulation (EU) No. 651/2014;
• the business's organisational chart;
• the annual financial statements for the last 2 financial years of the applicant business and, where applicable, of the single economic entity it belongs to;
• a description of the project, including its start and end dates;
• a description of the project's economic potential;
• if necessary, a description of:
  • how the aid-funded asset is operated;
  • what makes the project innovative;
  • the technological challenges of the project;
  • the economic valuation of the outcome of the project;
• the location of the project;
• the list of the project's eligible costs;
• the form and the amount of aid required for the project;
• the project's business plan, which:
  • lists the costs and expected revenue; and
  • supports the scenarios presented;
• a financing plan, which demonstrates that the applicant business has the necessary equity capital that corresponds to the financial scale of the project;
• for applications for more than EUR 500,000, submitted by large businesses: a description of the likely counterfactual scenario if the aid is not granted. The counterfactual scenario may consist of an alternative project or the lack of an alternative project;
• for aid less than EUR 100,000: a declaration of honour about other de minimis aid received in accordance with Regulation (EU) 2023/2831 or Regulation (EU) 1407/2013;
• any relevant information that will allow the appropriate ministers to assess the qualities or specific features of the project or the incentive effect of the aid.

Maximum amount of financial aid

For each process and organisational innovation project, the gross amount of the financial aid may not be less than:

• EUR 1,000 for small and medium-sized enterprises; and
• EUR 100,000 for large businesses.

The amount of aid will be calculated on the basis of the eligible costs of the project up to the following caps:

* Large businesses may be eligible for this aid only if they collaborate with one or more SMEs in the aid-funded activity. These SMEs must bear at least 30% of the total eligible costs.

** The mark-up applies for innovations that target one of the following objectives:

• implementation of a business model based on the circular economy;
• reduction of the use of primary raw materials, other than energy, by at least 15%;
• replacement of at least 20% of primary raw materials with secondary raw materials.

Payment of the aid

The capital grant is paid after completion of the project.

However, one or more aid instalments may be requested after a portion of the costs for which the aid was granted is incurred.

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