The European Commission has adopted new rules reviewing the framework for granting state aid to research, development and innovation (R&D&I) activities.
The new framework, part of the Commission’s ongoing State Aid Modernisation initiative, consists of two complementary parts:
In essence, the new rules aim to:
The European Court of Justice is extremely strict when it comes to the provision of state aid a sit can impact on the internal market. The new framework represents a positive development as it extends possibilities to grant state aid without prior notification to the Commission, therefore it reduces administrative burden for companies and allows quicker deployment of aid for beneficiaries.
Moreover, under the old rules pilot projects and prototypes, innovation clusters and aid for process and organisational innovation could not be exempted from the notification procedure, but now can be exempted under the new rules.
The new rules also increase the permissible aid levels. This will reduce the 'financing gap' of R&D-investments (i.e. the part of the project that cannot get private funding).
More information on thresholds and aid levels can be found here.