Financial aid for research and development projects (R&D)

Financial aid in the form of a subsidy is available for companies and private sector research organisations that carry out research and development (R&D) projects and innovation initiatives. The aid can cover a percentage of the eligible costs, depending on company size and the type of project or initiative.

Applications for financial aid are to be submitted to the Department for Research and Innovation at the Ministry of the Economy. Luxinnovation can provide help to set up your projects.

Who is concerned

Financial aid is available for companies and private research institutes established in Luxembourg in connection with the following activities:

  • experimental development, i.e. acquiring, combining, shaping and using scientific, technological and commercial knowledge and skills with a view to developing new or improved products, processes or services;
  • fundamental research, i.e. experimental or theoretical work undertaken to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any direct practical application or commercial use in view;
  • industrial research, i.e. the planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for significantly improving existing products, processes or services.

Prerequisites

General conditions

The businesses and private research institutes have to meet the general conditions which apply to all types of aid for research, development and innovation.

Eligible costs

 

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 R&D projects and programmes 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:

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.
Each business which was established less than 3 years ago is required to provide a business plan.

Maximum amount of financial aid

For each R&D project or programme, the gross amount of aid can not be less than EUR 1,000.

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

 

Large companies or large private research organisations

Medium-sized company*** or medium-sized private research institute

Small business*** or small private research institute

Experimental development

25 %

35 %

45 %

Experimental development + supplement*

40 %

50 %

60 %

Industrial research

50 %

60 %

70 %

Industrial research + supplement*  

65 %

75 %

80 %**

Fundamental research

100%

100%

100%


* The supplement becomes payable if one of the following conditions is met:

  • the project is based on effective collaboration:
    • between 2 businesses where at least one is an SME, or the project is carried out in at least 2 Member States, or in one Member State and in another EEA member country (European Economic Area), and no single business is supporting more than 70 % of the allowable costs on its own; or
    • between one business and one or more research institutes and knowledge dissemination organisations where the latter support at least 10 % of the allowable costs and have the right to publish the results of their own reseach;
  • the results of the project or programme are disseminated through conferences, publications, open access repositories or free or freely accessible software.

** The maximum foreseen financial aid for industrial research, all premiums included.

*** Please see the procedure on General conditions for financial aid for research, development and innovation.

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

Research-development project/programme - Guidelines for an application for State aid

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Projet ou programme de Recherche

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Forschungs- und Entwicklungsprojekte - Leitlinien für die Beantragung staatlicher Fördermittel

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

Who to contact

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