COMMUNITY FRAMEWORK FOR
STATE AID FOR RESEARCH AND DEVELOPMENT AND
INNOVATION
(2006/C 323/01)
Page
1. Introduction . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1. Objectives of State aid for
Research and Development and Innovation . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
4
1.2. State aid policy and
R&D&I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 4
1.3. The balancing test and its
application to aid to Research and Development and Innovation . . . . . . . . .
. . . . . . 5
1.3.1. The State Aid
Action Plan: less and better targeted aid, balancing test for the assessment of
aid . . . . .
5
1.3.2. The objective
of common interest addressed by the framework . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 5
1.3.3. Appropriate
instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 6
1.3.4. Incentive
effect and necessity of aid . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3.5. Proportionality of the aid . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3.6. Negative
effects of the aid to R&D&I must be limited so that the overall balance
is positive . . . . . . . .
6
1.4. Implementing the balancing
test: legal presumptions and need for more specific assessment . . . . . . . .
. . . . . . .
7
1.5. Motivation for specific
measures covered by this framework . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 8
2. Scope of application and definitions . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 8
2.1. Scope of application of the
framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2. Definitions . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 9
3. State aid within the meaning of Article 87(1) of the EC
Treaty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 10
3.1. Research organisations and
innovation intermediaries as recipients of State aid in the meaning of Arti-
cle 87(1) of the EC
Treaty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 10
3.1.1. Public funding
of non-economic activities . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1.2. Public funding
of economic activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.2. Indirect State aid in the
meaning of Article 87(1) of the EC Treaty to undertakings through publicly
funded
research organisations . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.2.1. Research on
behalf of undertakings (Contract research or research services) . . . . . . . .
. . . . . . . . . . . . . . . . .
12
3.2.2. Collaboration
of undertakings and research organisations . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 12
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323/2 EN
Official Journal of the
European Union
30.12.2006
Page
4. Compatibility of aid under Article 87(3)(b) of the EC
Treaty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 12
5. Compatibility of aid under Article 87(3) (c) of the EC
Treaty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 13
5.1. Aid for R&D projects . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 13
5.1.1. Research
categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 13
5.1.2. Basic aid
intensities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 13
5.1.3. Bonuses . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 13
5.1.4. Eligible costs . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 14
5.1.5. Repayable advance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 15
5.1.6. Fiscal measures .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 15
5.1.7. Matching clause .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 15
5.2. Aid for technical feasibility
studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.3. Aid for industrial property
rights costs for SMEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.4. Aid for young innovative
enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.5. Aid for process and
organisational innovation in services . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
5.6. Aid for innovation advisory
services and for innovation support services . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
17
5.7. Aid for the loan of highly
qualified personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.8. Aid for innovation clusters .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 18
6. Incentive effect and necessity of aid . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 19
7. Compatibility of aid subject to a detailed assessment . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 19
7.1. Measures subject to a detailed
assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.2. Methodology of the detailed
assessment: R&D&I criteria for economic assessment of certain
individual cases 20
7.3. Positive effects of the aid .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 20
7.3.1. Existence of a
market failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
7.3.2. Appropriate
Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 21
7.3.3. Incentive effect and necessity of aid . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
21
7.3.4. Proportionality of
the aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 22
7.4. Analysis of the distortion of
competition and trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 22
7.4.1. Distorting dynamic
incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.4.2. Creating market
power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 23
7.4.3. Maintaining
inefficient market structures . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
7.5. Balancing and decision . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 23
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8. Cumulation . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
9. Special
rules for agriculture and Fisheries . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 24
10. Final provisions . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 24
10.1. Reporting and monitoring .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 24
10.1.1. Annual reports
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 24
10.1.2. Access to full
text of schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
10.1.3. Information
sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 25
10.2. Appropriate Measures . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 25
10.3. Entry into force, validity
and revision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
C
323/4 EN Official Journal
of the European Union 30.12.2006
1. INTRODUCTION Commission lays down rules
which it will apply in the
assessment of aid notified to it, thereby exercising its discretion
and increasing legal certainty and transparency of its decision-
1.1. Objectives of State aid for Research and making.
Development and Innovation
Promoting
Research and Development and Innovation (herein-
after:
R&D&I) is an important objective of common interest.
Article
163 of the EC Treaty stipulates that `The Community shall
have
the objective of strengthening the scientific and technolo- 1.2. State aid policy and R&D&I
gical
bases of Community industry and encouraging it to become
more
competitive at international level, while promoting all the
research
activities deemed necessary ...'. Articles 164 to 173 of In the context of the Lisbon
strategy the level of R&D&I is
the EC
Treaty determine the activities to be carried out in this considered not to be optimal
for the economy in the
respect
and the scope and implementation of the multi-annual Community, implying that an increase in the
level of R&D&I
framework
programme. would
lead to higher growth in the Community. The Commis-
sion considers that the existing rules for State aid to R&D have to
be modernised and enhanced to meet this challenge.
When
meeting in Barcelona in March 2002, the European
Council
adopted a clear goal for the future development of
research
spending. It agreed that overall spending on Research
and
Development (hereinafter: R&D) and innovation in the First, the Commission,
in this framework, expands the existing
Community
should be increased with the aim of approaching possibilities of aid to R&D to new
activities supporting
3 % of
gross domestic product by 2010. It further clarified that innovation. Innovation is
related to a process connecting
two-thirds
of this new investment should come from the private knowledge and technology with the exploitation of
market
sector.
To reach this objective, research investment should grow opportunities for new or
improved products, services and
at an
average rate of 8 % every year, shared between a 6 % business processes compared to those already
available on the
growth
rate for public expenditure (1) and a 9 % yearly growth common market, and
encompassing a certain degree of risk. For
rate
for private investment (2). the purpose of
State aid rules, the Commission considers
however that State aid for innovation should be authorised not
on the basis of an
abstract definition of innovation but only to
the extent that it relates to precise activities, which clearly address
The
objective is through State aid to enhance economic the market failures that are hampering
innovation and for which
efficiency
(3) and thereby, contribute to sustainable growth and the benefits of State aid are likely to outweigh
any possible harm
jobs.
Therefore, State aid for R&D&I shall be compatible if the aid to competition and trade
can be
expected to lead to additional R&D&I and if the distortion
of
competition is not considered to be contrary to the common
interest,
which the Commission equates for the purposes of this
framework
with economic efficiency. The aim of this framework Second, the Commission aims at supporting a
better adminis-
is to
ensure this objective and in particular, to make it easier for tration of State aid to
R&D&I. It intends to extend the scope of
Member
States to better target the aid to the relevant market the block-exemption for
R&D, which is currently limited to aid to
failures
(4).
small and medium-sized enterprises (hereafter: SMEs) (5). A
future general block exemption regulation (hereafter: BER) will
cover the less problematic aid measures in the area of R&D&I.
Article
87(1) of the EC Treaty lays down the principle that State This framework will continue to
apply for all measures notified
aid is
prohibited. In certain cases, however, such aid may be to the Commission whether
because the measure is not covered
compatible
with the common market on the basis of Article 87 by the
BER, because of an obligation in the BER to notify aid
(2) and
(3). Aid for R&D&I will primarily be justified on the basis individually, or because the
Member State decides to notify a
of
Article 87(3)(b) and 87(3)(c). In this framework the measure which could in principle have been
exempted under the
BER, as well as for the assessment of all non-notified aid.
(1) It
must be kept in mind that only a part of the public expenditure on
R&D will qualify as State aid.
(2) Cf.
`Investing in research: an action plan for Europe'; Communication Third, in order to better focus the
Commission's scrutiny, this
from the Commission to the Council, the
European Parliament, the
European Economic and Social Committee and
the Committee of
framework provides, for the assessment of measures falling
the Regions, COM(2003)226 final, p.
7. within its scope, not only rules on
the compatibility of certain
(3) In
economics, the term `efficiency' (or `economic efficiency') refers to aid measure (Chapter 5 below) but also,
due to the increased risk
the extent to which total welfare is
optimised in a particular market
of certain aid measures distorting competition and trade,
or in the economy at large. Additional
R&D&I increases economic
additional elements concerning the analysis of the incentive
efficiency by shifting market demand
towards new or improved
effect and necessity of aid (Chapter 6 below) and an additional
products, processes or services, which is
equivalent to a decrease in
methodology to be applied in case of detailed assessment
the quality adjusted price of these
goods.
(Chapter 7 below).
(4) A
`market failure' is said to exist when the market, if left to its own
devices, does not lead to an economically
efficient outcome. It is in
those circumstances that state
intervention, including state aid, has
(5) State Aid Action Plan. Less and better targeted State aid: a roadmap
the potential to improve the market
outcome in terms of prices,
for State aid reform 2005-2009. COM(2005) 107 final - SEC
output and use of resources.
(2005) 795; adopted on 7 June 2005.
30.12.2006 EN Official Journal of the European Union C 323/5
In this
context the Commission underlines that competitive In assessing whether an aid measure can be
deemed compatible
markets
should in principle, on their own, lead to the most with the common market, the Commission balances
the positive
efficient
outcome in terms of R&D&I. However, this may not impact of the aid measure
in reaching an objective of common
always
be the case in the field of R&D&I and government interest against its
potentially negative side effects by distortion
intervention
might then improve the outcome. Undertakings will of trade and competition. The State Aid Action
Plan, building on
invest
more in research only to the extent that they can draw existing practice, has
formalised this balancing exercise in what
concrete
commercial benefits from the results and are aware of has been
termed a `balancing test' (8). It operates in three steps to
the
possibilities to do so. There are many reasons for low levels decide upon the approval of a
State aid measure; the first two
of
R&D&I, which are partly due to structural barriers, and partly steps are addressing the positive
effects of State aid and the third
to the
presence of market failures. Structural barriers should is addressing the negative
effects and resulting balancing of the
preferably
be handled by structural measures (6), whereas State positive and negative effects:
aid may
play a role in counter-weighing inefficiencies due to
market
failures. Furthermore, empirical evidence indicates that
for
State aid to be efficient it must be accompanied by favourable (1) Is the aid measure aimed at a
well-defined objective of
framework
conditions, such as adequate intellectual property common interest (eg growth, employment,
cohesion,
right
systems, a competitive environment with research and environment)?
innovation-friendly
regulations and supportive financial markets.
(2) Is the aid well designed to deliver the objective of common
However,
State aid also distorts competition, and strong interest i.e. does the proposed aid
address the market failure
competition
is at the same time a crucial factor for the or other objective?
market-driven
stimulation of investment in R&D&I. Therefore,
State
aid measures must be carefully designed in order to limit
the
distortions. Otherwise, State aid can become counter- (i) Is State aid an
appropriate policy instrument?
productive
and reduce the overall level of R&D&I and economic
growth.
(ii) Is there an incentive effect, i.e. does the aid change the
behaviour of firms?
The
main concern related to R&D&I aid to undertakings is that
rival
undertakings' dynamic incentives to invest are distorted and (iii) Is the aid measure
proportional, i.e. could the same
possibly
reduced. When an undertaking receives aid, this change in behaviour be obtained
with less aid?
generally
strengthens its position on the market and reduces
the
return on investment for other undertakings. When the
reduction
is significant enough, it is possible that rivals will cut
back on
their R&D&I activity. In addition, when the aid results in (3) Are the distortions of
competition and effect on trade
a soft
budget constraint for the beneficiary, it may also reduce limited, so that the
overall balance is positive?
the
incentive to innovate at the level of the beneficiary.
Furthermore,
the aid can support inefficient undertakings or
enable
the beneficiary to enhance exclusionary practices or This balancing test is applicable to the design
of State aid rules as
market
power. well as for the assessment of
cases.
For a block exemption regulation, the State aid is compatible if
the conditions laid down
are fulfilled. The same applies in general
to most cases addressed in this framework. However, for the
1.3.
The balancing test and its application to aid to individual aid measures which
may have a high distortive
Research and Development and
Innovation
potential due to high aid amounts, the Commission will make an
overall
assessment of the positive and negative effects of the aid
based on the proportionality principle.
1.3.1.
The State Aid Action Plan: less and better targeted aid,
balancing test for the assessment of
aid
1.3.2. The objective of common interest addressed by the
framework
In the
State Aid Action Plan (7), the Commission announced that
`to
best contribute to the re-launched Lisbon Strategy for growth
and
jobs, the Commission will, when relevant, strengthen its This framework addresses the
objective of common interest of
economic
approach to State aid analysis. An economic approach promoting Research and Development and Innovation.
It aims at
is an
instrument to better focus and target certain State aid enhancing economic efficiency
by tackling well defined market
towards
the objectives of the re-launched Lisbon Strategy'. failures, which prevent the economy in the
Community from
reaching the optimal level of R&D&I.
(6)
Including: university education, research programmes and public
research facilities, IPR rules favouring
innovation, attractive frame- (8) Cf.
State Aid Action Plan (footnote 5), paragraph 11 and 20, as
work conditions for undertakings to do
R&D&I
elaborated in more detail already in the Communication on
(7)
State aid Action Plan (footnote), paragraph 21. Innovation, COM(2005) 436 final of
21 September 2005.
C
323/6 EN Official Journal
of the European Union 30.12.2006
To
establish rules ensuring that aid measures achieve this interact, and thus
deliver R&D&I may be impaired.
objective,
it is, first of all, necessary to identify the market failures Problems may arise for various
reasons, including difficul-
hampering
R&D&I. R&D&I takes place through a series of ties in
coordinating R&D and finding adequate partners.
activities,
which are upstream to a number of product markets,
and
which exploit available R&D&I capabilities to develop new
or
improved products (9) and processes in these product markets,
thus
fostering growth in the economy. However, given the 1.3.3. Appropriate instrument
available
R&D&I capabilities, market failures may prevent the
market
from reaching the optimal output and lead to an
inefficient
outcome for the following reasons: It is important to keep in mind that
there may be other, better
placed
instruments to increase the level of R&D&I in the
economy, for example regulation, increase in funding of
universities,
general tax measures in favour of R&D&I (10). The
appropriateness of a policy instrument in a given situation is
-
Positive externalities/knowledge spill-overs: R&D&I normally linked to the
main reasons behind the problem.
often generate benefits for society in
the form of knowledge Reducing
market barriers may be more appropriate than State
spill-overs. However, left to the
market, a number of aid
to deal with the difficulty of a new entrant to appropriate
projects may have an unattractive rate
of return from a
R&D&I results. Increased investment in universities may be more
private perspective, even though the
projects would be
appropriate to deal with a lack of qualified R&D&I personnel
beneficial for society because profit
seeking undertakings than
granting State aid to R&D&I projects. Member States should
neglect the external effects of their
actions when deciding
therefore choose State aid when it is an appropriate instrument
how much R&D&I they should
undertake. Consequently,
on the basis of the problem they are trying to address. This
projects in the common interest may not
be pursued unless means it
is necessary to clearly identify the market failure they
the government intervenes. intend to target with
the aid measure.
1.3.4. Incentive effect and necessity of aid
-
Public good/knowledge spill-overs: For the creation of
general knowledge, like fundamental
research, it is State
aid for R&D&I must lead to the recipient of aid changing its
impossible to prevent others from using
the knowledge behaviour so that it increases its
level of R&D&I activity and
(public good), whereas more specific
knowledge related to
R&D&I projects or activities take place which would not
production can be protected, for example
through patents otherwise
be carried out, or which would be carried out in a
allowing the inventor a higher return on
their invention. To more
restricted manner. The Commission considers that as a
find the appropriate policy to support
R&D&I, it is
result of aid, R&D&I activity should be increased in size,
scope,
important to distinguish between
creation of general
amount spent or speed. Incentive effect is identified by
knowledge and knowledge that can be protected. Under- counterfactual analysis,
comparing the levels of intended activity
takings tend to free ride on the general
knowledge created with aid
and without aid. Member States must clearly
by others, which makes undertakings
unwilling to create
demonstrate how they intend to ensure that the incentive effect
the knowledge themselves. In fact, the
market may not only is
present.
be inefficient but completely absent. If
more general
knowledge was produced, the whole
society could benefit
from the knowledge spill-overs
throughout the economy.
For this purpose, governments may have
to support the 1.3.5.
Proportionality of the aid
creation of knowledge by undertakings.
In the case of
fundamental research, they may have to
pay fully for Aid is
considered to be proportional only if the same result could
companies' efforts to conduct
fundamental research.
not be reached with a less distortive aid measure. In particular,
the amount and intensity of the aid must be limited to the
minimum needed for the aided R&D&I activity to take place.
-
Imperfect and asymmetric information: R&D&I are
characterised by a high degree of risk
and uncertainty. Due 1.3.6.
Negative effects of the aid to R&D&I must be limited so
to imperfect and/or asymmetric
information, private
that the overall balance is positive
investors may be reluctant to finance
valuable projects;
highly-qualified personnel may be
unaware of recruitment
possibilities in innovative
undertakings. As a result, the
The possible distortions of competition resulting from State aid
allocation of human resources and
financial resources may for
R&D&I can be categorised as:
not be adequate in these markets and
valuable projects for
the economy may not be carried out.
- disrupting the dynamic
incentives of undertakings and
crowding out;
-
Coordination and network failures. The ability of - supporting inefficient production;
undertakings to coordinate with each
other or at least
(10) See the Notice on the application of the State aid rules to
measures
(9)
This includes services. relating to
direct business taxation; OJ C 384, 10.12.1998, p. 3.
30.12.2006 EN Official Journal of the European
Union C 323/7
-
exclusionary practices and enhancing market power; This translates into different levels of
assessment described in
more detail below. For the first level, the Commission considers
that it is in principle sufficient that the measures concerned are
-
effects on the localisation of economic activities across in line with the conditions described in Chapter 5,
provided that
Member States; the
conditions in Chapter 6 to presume the incentive effect are
fulfilled.
For all other measures, the Commission considers that
additional scrutiny is necessary, because of higher risks for
-
effects on trade flows within the internal market. competition and trade, due to the activity,
aid amount, or type of
beneficiary. The additional scrutiny will generally consist in
further and more detailed factual analysis of the case in line with
The
negative effects are normally higher for higher aid amounts the provisions set out in Chapter 6
in respect of necessity and
and for
aid granted to activities which are close to commercia- incentive effect or in Chapter 7,
in respect of the assessment for
lisation
of the product or the service. Therefore aid intensities aid exceeding the threshold set in
section 7.1. of this framework.
should
generally be lower for activities linked to development As a result of this additional
scrutiny, the Commission may
and
innovation than for research related activities. Furthermore, approve the aid, declare it
incompatible with the common
in the
definition of eligible costs it is important to ensure that market or declare that it is
compatible with the common market
costs
that can be considered to cover routine company activities subject to conditions.
are not
eligible for aid. Also, characteristics of the beneficiary and
the
relevant markets have an influence on the level of distortion.
Such
aspects will be taken into account in more detail for the
cases
which will undergo a detailed assessment. Firstly, the Commission considers that
for certain aid measures,
fulfilling the provisions set out in Chapters 5 and 6 will generally
be sufficient for securing compatibility, as it is presumed that for
such a measure the result of the application of the balancing test
would be positive. Whether a measure falls into this category
1.4. Implementing the balancing test: legal depends upon the type of beneficiary, the activity aided
and the
presumptions and need for more specific
assessment amount of
aid granted. The Commission considers that the
following measures will be declared
compatible on the basis of
This
framework will be used for the assessment of aid for Chapters 5 and 6 if (i) they fulfil all the
conditions and
research
and development and innovation which is notified to parameters mentioned in Chapter 5 and (ii) the aid is
only
the
Commission. The Commission's compatibility assessment granted after the aid application has been made to
the national
will be
conducted on the basis of the balancing test presented in authorities:
Chapter
1. Accordingly, a measure will only be approved if,
considering
each of the elements in the balancing test, this leads
to an
overall positive evaluation. However, the Commission's - project aid and feasibility
studies where the aid beneficiary
assessment
may differ in the way this evaluation is conducted, as is an SME and where the aid
amount is below EUR
in each
case the risks for competition and trade associated with 7,5 million per SME for a
project (project aid plus aid for
certain
types of measures may differ. Without prejudice to feasibility study);
Articles
4 to 7 of Council Regulation (EC) No 659/1999 of
22
March 1999 laying down detailed rules for the application of
Article
93 of the EC Treaty (11), the Commission applies different
legal
presumptions according to the type of State aid measure - aid for industrial property
rights costs for SMEs;
notified.
All
notified aid will be assessed first under the provisions in - aid for young innovative
enterprises;
Chapter
5. In that chapter, the Commission has identified a series
of
measures for which it considers a priori that State aid targeting
these
measures will address a specific market failure hampering - aid for innovation advisory
services; aid for innovation
R&D&I.
The Commission has furthermore elaborated a series of support services;
conditions
and parameters, which aim at ensuring that State aid
targeting
these measures actually presents an incentive effect, is
proportionate
and has a limited negative impact on competition
and
trade. Chapter 5 thus contains parameters in respect of the - aid for the loan of highly qualified personnel.
aided
activity, aid intensities and conditions attached to
compatibility.
In principle, only measures which fulfil the criteria
specified
in Chapter 5 are eligible for compatibility under
Article
87(3)(c) of the EC Treaty on the basis of this framework. For the measures listed above,
Chapter 6 clarifies that the
incentive effect is presumed to be present if the condition
mentioned above in (ii) is fulfilled.
In
Chapter 6, the Commission presents more specifically how it
will
assess the necessity and incentive effect of the aid.
Second,
for notified aid below the thresholds set in section 7.1.
of this framework, the additional scrutiny consists in a
In
Chapter 7, the Commission presents more specifically in demonstration of the incentive
effect and necessity as set out
which
cases and how it will conduct a detailed assessment. in Chapter 6. Such measures will therefore be
declared
compatible on the basis of Chapter 5 and Chapter 6 only if (i)
(11) OJ
L 83, 27.3.1999, p. 1. they fulfil all the
conditions and parameters mentioned in
C
323/8 EN Official Journal of
the European Union 30.12.2006
Chapter
5 and (ii) the incentive effect and necessity have been the exploitation and use of existing scientific,
technological or
demonstrated
in accordance with Chapter 6. business knowledge. Furthermore,
innovation in service activities
tends to be
based on new processes and organisation rather than
technological development. To that extent, process and organisa-
Third,
for notified aid above the thresholds set in section 7.1. of tional innovation in services is not
properly covered by R&D
this
framework, the additional scrutiny consists in a detailed project aid and requires an
additional and specific aid measure to
assessment
according to Chapter 7. These measures will therefore address the market failures that hamper it.
be
declared compatible on the basis of Chapters 5, 6 and 7 only
if (i)
they fulfil all the conditions and parameters mentioned in
Chapter
5 and (ii) the balancing test pursuant to Chapter 7 results Aid for advisory services and
innovation support services, provided by
in an
overall positive evaluation. innovation intermediaries,
targets market failures linked with
insufficient information dissemination, externalities and lack of
coordination. State aid is an appropriate solution to change the
incentives for SMEs to buy such services and to increase the
1.5. Motivation for specific measures
covered by this supply
and demand of the services provided by innovation
framework
intermediaries.
Applying
these criteria to R&D&I, the Commission has identified Aid for the loan of highly
qualified personnel addresses the market
a
series of measures for which State aid may, under specific failure linked with imperfect
information in the labour market in
conditions,
be compatible with Article 87(3) (c) of the EC Treaty. the Community. Highly qualified
personnel in the Community
are more likely to be hired by large undertakings, because they
Aid for
projects covering fundamental and industrial research and tend to perceive large undertakings
as offering better working
experimental
development is mainly targeted at the market failure conditions, and more secure and more attractive careers.
By
related
to positive externalities (knowledge spillovers), including contrast, SMEs could benefit from
important knowledge transfer
public
goods. The Commission considers it useful to maintain and from increased innovation capabilities, if they
were able to
different
categories of R&D&I activities regardless of the fact that recruit highly qualified personnel to
conduct R&D&I activities.
the
activities may follow an interactive model of innovation Creating bridges between large
undertakings or universities and
rather
than a linear model. Different aid intensities reflect SMEs may also contribute to
addressing coordination market
different
sizes of market failures and how close the activity is to failures, and supporting clustering.
commercialisation.
Furthermore, compared to the previous State
aid
rules in this field, certain innovation activities have been
included
in experimental development. In addition, the bonus Aid for innovation clusters aims at tackling market
failures linked
system
has been simplified. Due to expected larger implications with coordination problems
hampering the development of
of
market failures and expected higher positive externalities, clusters, or limiting the
interaction and knowledge flows within
bonuses
appear justified for SMEs, collaboration by and clusters. State aid could contribute in two
ways to this problem:
collaboration
with SMEs, cross-border collaboration as well as first by supporting the investment in open and shared
public-private
partnerships (collaborations of undertakings with infrastructures for innovation clusters, and secondly by
support-
public
research organisations). ing cluster
animation, so that collaboration, networking and
learning is enhanced.
Aid for
technical feasibility studies related to R&D&I projects aims at
overcoming
the market failure related to imperfect and
asymmetric
information. These studies are considered to be
further
away from the market than the project itself, and 2.
SCOPE OF APPLICATION AND DEFINITIONS
therefore
relatively high aid intensities can be accepted.
2.1. Scope of application
of the framework
Aid for
industrial property rights costs for SMEs is targeted at the
market
failure related to positive externalities (knowledge This framework applies to State aid for research
and develop-
spillovers).
The aim is to increase the possibilities for SMEs to ment and innovation. It will be applied in accordance
with other
sufficiently
appropriate returns, thereby giving them greater Community policies on State aid, other provisions of
the Treaties
incentive
to undertake R&D&I. founding the European
Communities and legislation adopted
pursuant to those Treaties.
Aid for
young innovative enterprises has been introduced to deal
with
the market failures linked with imperfect and asymmetric According to general Treaty
principles, State aid cannot be
information,
which harm these undertakings in a particularly approved if the aid measure is discriminatory to an
extent not
acute
way, damaging their ability to receive appropriate funding justified by its State aid
character. With regard to R&D&I, it
for
innovative ventures. should in
particular be underlined that the Commission will not
approve an aid measure which excludes the possibility of
exploitation of R&D&I results in other Member States.
Aid for
process and organisational innovation in services targets the
market
failures linked to imperfect information and positive
externalities.
It is meant to tackle the problem that innovation in Public authorities may commission R&D from companies or
buy
services
activities may not fit in the R&D categories. Innovation the results of R&D from them. If
such R&D is not procured at
in
service activities often results from interactions with market price, this will
normally involve State aid within the
customers
and confrontation with the market, rather than from meaning of Article 87(1) of the EC Treaty. If, on the
other hand,
30.12.2006 EN Official Journal of the European
Union C 323/9
these
contracts are awarded according to market conditions, an Aid for research and
development and innovation for under-
indication
for which may be that a tender procedure in takings in difficulty within the meaning
of the Community
accordance
with the applicable directives on public procurement, Guidelines on State aid for rescue and restructuring
undertakings
in
particular Directive 2004/17/EC of the European Parliament in difficulty (20) is
excluded from the scope of this framework.
and of
the Council of 31 March 2004 coordinating the
procurement
procedures of entities operating in the water,
energy,
transport and postal services sectors (12) and Directive
2004/18/EC
of the European Parliament and of the Council of
31
March 2004 on the coordination of procedures for the award
of
public works contracts, public supply contracts and public
service
contracts (13) has been carried out, the Commission will
2.2. Definitions
normally
consider that no State aid within the meaning of
Article
87(1) of the EC Treaty is involved.
For the
purpose of this framework the following definitions
This
framework applies to aid to support research and apply:
development
and innovation in all sectors governed by the EC
Treaty.
It also applies to those sectors which are subject to
specific
Community rules on State aid, unless such rules provide
otherwise.
(14) (a)
`small and medium-sized enterprises', or `SMEs', `small
enterprises' and `medium-sized enterprises' means such
This
framework applies to State aid for R&D&I in the undertakings
within the meaning of Regulation (EC) No 70/
environmental
field (15), as there are many synergies to exploit 2001, or any regulation replacing that
regulation;
between
innovation for quality and performance and innovation
to
optimise energy use, waste and safety.
(b) `large enterprises' means undertakings not coming under
Following
the entry into force of Commission Regulation (EC) the
definition of small and medium-sized enterprises;
No
364/2004 of 25 February 2004 amending Regulation (EC)
No
70/2001 as regards the extension of its scope to include aid
for
research and development (16), aid for research and
development
to SMEs is exempt from the notification require-
ment
under the conditions stipulated in Commission Regulation (c) `aid intensity' means
the gross aid amount expressed as a
(EC) No
70/2001 of 12 January 2001 on the application of percentage of the project's eligible costs. All
figures used
Articles
87 and 88 of the EC Treaty to State aid to small and shall be taken before any deduction of tax
or other charge.
medium-sized
enterprises (17). Member States, however, remain Where aid is awarded in a form other than a
grant, the aid
free to
notify such aid. If they decide to do so, this framework amount shall be the grant
equivalent of the aid. Aid payable
will
continue to be used for the assessment of such notified aid. in several instalments
shall be discounted to its value at the
moment of granting. The interest rate to be used for
discounting purposes and for calculating the aid amount in
While
personnel costs are eligible in several of the measures a soft loan shall be the reference rate applicable at the time
covered
by this framework and a measure on aid for the loan of of grant. The aid
intensity is calculated per beneficiary;
highly
qualified personnel has been introduced, general employ-
ment
and training aid for researchers continue to fall under the
specific
State aid instruments for employment and training aid,
currently
Commission Regulation (EC) No 68/2001 of 12 January
2001 on
the application of Articles 87 and 88 of the EC Treaty (d) `research organisation'
means an entity, such as university
to
training aid (18) and Commission Regulation (EC) No 2204/ or research institute,
irrespective of its legal status
2002 of
12 December 2002 on the application of Articles 87 (organised under public or private law)
or way of financing,
and 88
of the EC Treaty to State aid for employment (19). whose primary goal is to conduct fundamental
research,
industrial research or experimental development and to
disseminate their results by way of teaching, publication or
(12) OJ
L 134, 30.4.2004, p. 1. technology
transfer; all profits are reinvested in these
(13) OJ
L 134, 30.4.2004, p. 114. activities, the dissemination of their results or
teaching;
(14)
For example, Article 3 of Regulation (EEC) No 1107/70 of the undertakings that can exert
influence upon such an entity,
Council of 4 June 1970 on the granting of
aids for transport by rail, in
the quality of, for example, shareholders or members,
road and inland waterway provides special
rules for the compatibility
shall enjoy no preferential access to the research capacities
of
State aid to R&D in the sector of transport by rail, road and inland of such an entity or to the research
results generated by it;
waterway.
(15)
See current Community guidelines on State aid for environmental
protection, OJ C 37, 3.2.2001, p. 3, point
7. In addition, in the
context of the revision of the
environmental guidelines, the
Commission will consider the opportunity
to integrate new (e)
`fundamental research' means experimental or theoretical
measures that can also cover eco-innovation. work
undertaken primarily to acquire new knowledge of
(16) OJ
L 63, 28.2.2004, p. 22. the underlying
foundations of phenomena and observable
(17) OJ
L 10, 13.1.2001, p. 33. Regulation as amended by Regulation (EC) facts, without any direct
practical application or use in
No 364/2004.
view;
(18) OJ
L 10, 13.1.2001, p. 20. Regulation as amended by Regulation (EC)
No 363/2004, (OJ L 63, 28.2.2004, p. 20).
(19) OJ
L 337, 13.12.2002, p. 3. (20) Currently OJ C
244, 1.10.2004, p. 2.
C
323/10 EN Official Journal of
the European Union 30.12.2006
(f)
`industrial research' means the planned research or critical (j) `organisational innovation' (22) means the implementa-
investigation aimed at the acquisition
of new knowledge tion
of a new organisational method in the undertaking's
and skills for developing new
products, processes or
business practices, workplace organisation or external
services or for bringing about a
significant improvement
relations. Changes in business practices, workplace organi-
in existing products, processes or
services. It comprises the sation or external relations that are based on
organisational
creation of components of complex
systems, which is
methods already in use in the undertaking, changes in
necessary for the industrial research,
notably for generic
management strategy, mergers and acquisitions, ceasing to
technology validation, to the
exclusion of prototypes as
use a process, simple capital replacement or extension,
covered by point(g);
changes resulting purely from changes in factor prices,
customisation, regular seasonal and other cyclical changes,
trading of new or significantly improved products are not
(g)
`experimental development' means the acquiring, com- considered innovations;
bining, shaping and using of existing scientific, technolo-
gical, business and other relevant
knowledge and skills for
the purpose of producing plans and
arrangements or (k)
`highly qualified personnel' means researchers, engineers,
designs for new, altered or improved
products, processes or
designers and marketing managers with tertiary education
services. These may also include, for
example, other
degree and at least 5 years of relevant professional
activities aiming at the conceptual
definition, planning
experience. Doctoral training may count as relevant
and documentation of new products,
processes and professional
experience;
services. The activities may comprise
producing drafts,
drawings, plans and other
documentation, provided that
they are not intended for commercial
use. (l) `secondment' means temporary employment of
personnel
by a beneficiary during a period of time, after which the
The development of commercially usable
prototypes and personnel has the right to return to its
previous employer;
pilot projects is also included where
the prototype is
necessarily the final commercial
product and where it is too
expensive to produce for it to be used
only for (m) `innovation clusters' means groupings of
independent
demonstration and validation purposes.
In case of a
undertakings - innovative start-ups, small, medium and
subsequent commercial use of demonstration
or pilot large
undertakings as well as research organisations -
projects, any revenue generated from
such use must be
operating in a particular sector and region and designed to
deducted from the eligible costs.
stimulate innovative activity by promoting intensive
interactions, sharing of facilities and exchange of knowledge
and expertise and by contributing effectively to technology
The experimental production and
testing of products,
transfer, networking and information dissemination among
processes and services are also
eligible, provided that these
the undertakings in the cluster. Preferably, the Member State
cannot be used or transformed to be
used in industrial should intend to create a proper balance
of SMEs and large
applications or commercially.
undertakings in the cluster, to achieve a certain critical
mass, notably through
specialisation in a certain area of
R&D&I and taking into account existing clusters in the
Experimental development does not
include the routine or
Member State and at Community-level.
periodic changes made to products,
production lines,
manufacturing processes, existing
services and other
operations in progress, even if such
changes may represent
improvements;
(h)
`repayable advance' means a loan for a project which is 3. STATE AID WITHIN THE MEANING OF ARTICLE 87(1)
paid in one or more instalments and
the conditions for the OF THE EC TREATY
reimbursement of which depend on the
outcome of the
R&D&I project,
Generally, any funding meeting the criteria of 87(1) of the EC
Treaty
will be considered to be State aid. For the sake of
providing further guidance, situations typically arising in the field
(i) `process innovation' (21) means the
implementation of a of
Research, Development and Innovation activities are con-
new or significantly improved
production or delivery
sidered below.
method (including significant changes
in techniques,
equipment and/or software). Minor
changes or improve-
ments, an increase in production or
service capabilities
through the addition of manufacturing
or logistical systems
which are very similar to those
already in use, ceasing to
3.1. Research organisations
and innovation
use a process, simple capital
replacement or extension,
intermediaries as recipients of State aid within the meaning
changes resulting purely from changes
in factor prices,
of Article 87(1) of the EC Treaty
customisation, regular seasonal and
other cyclical changes,
trading of new or significantly
improved products are not
considered innovations;
The question whether research organisations are recipients of
State aid must be answered in accordance with general State aid
principles.
(21)
Cf. definition in the OSLO manual, Guidelines for Collecting and
Interpreting Innovation Data, 3rd
Edition, Organisation for
Economic Co-operation and Development,
2005, page 49. (22) Cf.
definition in the OSLO manual, page 51.
30.12.2006 EN Official Journal of the European
Union C 323/11
In line
with Article 87(1) of the EC Treaty and the case-law of the non-economic character if these
activities are of an internal
Court,
public financing of R&D&I activities by research nature (25) and all
income from these activities is reinvested in
organisations
will qualify as State aid, if all conditions of the primary activities of the research
organisations (26).
Article
87(1) of the EC Treaty are fulfilled. In accordance with the
case-law,
this requires inter alia that the research organisation
qualifies
as an undertaking within the meaning of Article 87(1)
of the
EC Treaty. This does not depend upon its legal status
(organized
under public or private law) or economic nature (i.e.
profit
making or not). What is decisive for its qualification as an 3.1.2. Public funding of economic
activities
undertaking
is whether the research organisation carries out an
economic
activity, which is an activity consisting of offering
goods
and/or services on a given market (23). Accordingly, any If research organisations or
other not-for-profit innovation
public
funding of economic activities falls under Article 87(1) of intermediaries (for example,
technology centres, incubators,
the EC
Treaty, should all other conditions be fulfilled. chambers of commerce) perform economic
activities, such as
renting out infrastructures, supplying services to business
undertakings or performing contract research, this should be
done on normal market
conditions, and public funding of these
economic activities will generally entail State aid.
3.1.1.
Public funding of non-economic activities
However, if the research organisation or not-for-profit innova-
tion intermediary can prove that the totality of the State funding
If the
same entity carries out activities of both economic and that it received to provide
certain services has been passed on to
non-economic
nature, in order to avoid cross-subsidisation of the final recipient, and that there is no advantage
granted to the
the
economic activity, the public funding of the non-economic intermediary, the
intermediary organisation may not be recipient
activities
will not fall under Article 87(1) of the EC Treaty, if the of State aid.
two
kinds of activities and their costs and funding can be clearly
separated
(24). Evidence that the costs have been allocated
correctly
can consist of annual financial statements of the
universities
and research organisations. For aid to the final
recipients, normal State aid rules apply.
The
Commission nevertheless considers that the primary
activities
of research organisations are normally of a non-
economic
character, notably: 3.2. Indirect State aid within the meaning
of
Article 87(1) of the EC Treaty to undertakings through
publicly funded research organisations
-
education for more and better skilled human resources; This section is intended
to clarify under which conditions
undertakings obtain an advantage within the meaning of
Article 87(1) of the EC Treaty in cases of contract research by
a research organisation or collaboration with a research
- the
conduct of independent R&D for more knowledge and organisation. As far as the other elements of
Article 87(1) of
better understanding, including
collaborative R&D;
the EC Treaty are concerned, the normal rules apply. In
particular, it will have
to be assessed in accordance with the
relevant case-law whether the behaviour of the research
organisation
can be attributed to the State (27).
- the
dissemination of research results. (25) By internal nature, the
Commission means a situation where the
management of the knowledge of the research organisation(s) is
conducted either by a department or a subsidiary of the research
organisation or jointly with other research organisations. Contract-
ing the provision of
specific services to third parties by way of open
The
Commission furthermore considers that technology transfer tenders does not
jeopardise the internal nature of such activities.
activities
(licensing, spin-off creation or other forms of manage- (26) For all remaining kinds of
technology transfer receiving State
ment of
knowledge created by the research organisation) are of funding, the Commission
does not consider itself in a position, on
the basis of its current knowledge, to decide in a general manner
upon the State aid character
of the funding of such activities. It
(23)
Case 118/85 Commission v. Italy [1987] ECR 2599, paragraph 7, Case underlines the obligation of the
Member States under Article 88(3)
C-35/96 Commission v. Italy [1998] ECR
I-3851, CNSD, paragraph 36;
of the EC Treaty to assess the character of such measures in each case
Case C-309/99 Wouters [2002] ECR I-1577
paragraph 46.
and to notify them to the Commission, in case they consider them to
(24)
Economic activities comprise in particular research carried out under represent State aid.
contract with industry, the renting out of
research infrastructure and (27) Cf.
Case C-482/99 France v. Commission [2002] ECR I-4397, on the
consultancy work. issue
of imputability to the State.
C
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of the European Union
30.12.2006
3.2.1.
Research on behalf of undertakings (Contract research or undertakings. Any
contribution of the participating under-
research services) takings to the costs of
the research organisation shall be
deducted from such compensation.
This
point concerns the situation in which a project is carried out
by a
research organisation on behalf of an undertaking. The
research
organisation, acting as an agent, renders a service to the
undertaking
acting as principal in situations where (i) the agent If none of the previous conditions are fulfilled,
the Member State
receives
payment of an adequate remuneration for its service and may rely on an individual
assessment of the collaboration
(ii)
the principal specifies the terms and conditions of this project (30). There may
also be no State aid where the assessment
service.
Typically, the principal will own the results of the project of the contractual agreement
between the partners leads to the
and
carry the risk of failure. When a research organisation carries conclusion that any intellectual
property rights to the R&D&I
out
such a contract, there will normally be no State aid passed to results as well as access rights
to the results are allocated to the
the
undertaking through the research organisation, if one of the different partners of the
collaboration and adequately reflect
following
conditions is fulfilled: their respective
interests, work packages, and financial and other
contributions to the project. If conditions (1), (2) and (3) are not
fulfilled and the individual
assessment of the collaboration
(1) the
research organisation provides its service at market project does not lead to the conclusion that
there is no State aid,
price; or the Commission will consider
the full value of the contribution
of the research organisation to the project as aid to undertakings.
(2) if
there is no market price, the research organisation
provides its service at a price which
reflects its full costs
plus a reasonable margin.
3.2.2.
Collaboration of undertakings and research organisa-
tions 4. COMPATIBILITY OF AID UNDER ARTICLE
87(3)(B) OF
THE EC TREATY
In a
collaboration project, at least two partners participate in the
design
of the project, contribute to its implementation and share
the
risk and the output of the project. Aid for R&D&I to
promote the execution of an important project
of common European interest may be considered to be
compatible with the common market pursuant to Article 87(3)
In the
case of collaboration projects carried out jointly by (b) of the EC Treaty.
undertakings
and research organisations, the Commission
considers
that no indirect State aid is granted to the industrial
partner
through the research organisation due to the favourable
conditions
of the collaboration if one of the following conditions The Commission will conclude
that Article 87(3)(b) of the EC
is
fulfilled: Treaty applies if the
following cumulative conditions are fulfilled:
(1) the
participating undertakings bear the full cost of the
project.
(1) the aid proposal concerns a project which is clearly defined
in respect of the terms of its implementation including its
(2) the
results which do not give rise to intellectual property participants as well
as its objectives. The Commission may
rights may be widely disseminated and
any intellectual
also consider a group of projects as together constituting a
property rights to the R&D&I
results which result from the project.
activity of the research organisation
are fully allocated (28)
to the research organisation.
(2) the project must be
in the common European interest: the
(3) the
research organisation receives from the participating project must contribute in a concrete,
clear and identifiable
undertakings compensation equivalent to
the market price
manner to the Community interest. The advantage achieved
for the intellectual property rights
(29) which result from the
by the objective of the project must not be limited to one
activity of the research organisation
carried out in the
Member State or the Member States implementing it, but
project and which are transferred to the
participating
must extend to the Community as a whole. The project
must present a substantive leap forward for the Community
objectives, for
instance by being of great importance for the
(28)
`Full allocation' means that the research organization enjoys the full
economic benefit of those rights by
retaining full disposal of them,
European Research Area or being a lead project for
notably the right of ownership and the
right to license. These
European industry. The fact that the project is carried out
conditions may also be fulfilled if the
organisation decides to by undertakings in different
countries is not sufficient. The
conclude further contracts concerning
these rights including
positive effects of the aid could be shown for example by
licensing them to the collaboration
partner.
important spill-overs for society, through the contribution
(29)
`Compensation equivalent to the market price for the intellectual of the measure to the
improvement of the Community
property rights' refers to compensation
for the full economic benefit
situation regarding R&D&I in the international context,
of those rights. In line with general
State aid principles and given the
through creation of new markets or the development of
inherent difficulty to establish
objectively the market price for
intellectual property rights, the
Commission will consider this
condition fulfilled if the research
organisation as seller negotiates in (30) This provision does not intend to modify
the obligation of the
order to obtain the maximum benefit at the
moment when the
Member States to notify certain measures on the basis of Article 88
contract is concluded. (3) of the
EC Treaty.
30.12.2006 EN Official Journal of the European Union C
323/13
new technologies. The benefits of the
project should not be 5.1.1.
Research categories
confined to the industry directly
concerned but its results
should be of wider relevance and
application to the The
aided part of the research project must completely fall within
economy within the Community (up- or
downstream one or
more of the following research categories: fundamental
markets, alternative uses in other
sectors, etc.).
research, industrial research, experimental development.
When classifying different activities, the Commission will refer to
(3) the
aid is necessary to achieve the defined objective of its own
practice as well as the specific examples and explanations
common interest and presents an
incentive for the
provided in the Frascati Manual on the Measurement of Scientific
execution of the project, which must
also involve a high and
technological Activities, Proposed Standard Practice for
level of risk. This could be shown by
looking at the level of Surveys on
Research and Experimental Development (31).
profitability of the project, at the
amount of investment and
time path of cash flows and at
feasibility studies, risk
assessments and expert opinions. When a
project encompasses different tasks, each task must be
qualified
as falling under the categories of fundamental research,
industrial research or experimental development or as not falling
under any of those categories at all.
(4) the
project is of great importance with respect to its
character and its volume: it must be a
meaningful project
with regard to its objective and a project of substantial
size. This qualification need not
necessarily follow a chronological
approach, moving sequentially over time from fundamental
research to activities closer to the market. Accordingly, nothing
will prevent the Commission from qualifying a task which is
The
Commission will consider notified projects more favourably carried out at a late stage of a
project as industrial research, while
if they
include a significant own contribution of the beneficiary finding that an activity carried out
at an earlier stage of the
to the
project. It will equally consider more favourably notified project constitutes experimental
development or is not research
projects
involving undertakings or research entities from a at all.
significant
number of Member States.
5.1.2. Basic aid intensities
In
order to allow for the Commission to properly assess the case, The aid intensity, as calculated on
the basis of the eligible costs of
the
common European interest must be demonstrated in the project, shall not exceed:
practical
terms: for example, it must be demonstrated that the
project
enables significant progress to be made towards achieving
specific
Community objectives. (a) 100 % for
fundamental research;
(b) 50 % for industrial research;
(c) 25 % for experimental development.
5.
COMPATIBILITY OF AID UNDER ARTICLE 87(3)(C) OF
THE EC TREATY The aid intensity must be established for
each beneficiary of aid,
including in a collaboration project.
State
aid for research and development and innovation shall be
compatible
with the common market within the meaning of In the case of State aid for an R&D project
being carried out in
Article
87(3)(c) of the EC Treaty, if, on the basis of the balancing collaboration between research
organisations and undertakings,
test,
it leads to increased R&D&I-activities without adversely the combined aid deriving from
direct government support for a
affecting
trading conditions to an extent contrary to the specific research project and, where they
constitute aid (see
common
interest. The Commission will view favourably section), contributions from research
organisations to that
notifications
of aid measures which are supported by rigorous project may not exceed the applicable aid intensities
for each
evaluations
of similar past aid measures demonstrating the benefiting undertaking.
incentive
effect of the aid. The following measures are eligible for
compatibility
under Article 87(3)(c) of the EC Treaty. 5.1.3. Bonuses
The ceilings fixed for industrial research and experimental
development may be increased as
follows:
5.1. Aid for R&D projects (a) where the aid is to
be given to SMEs, the aid intensity may
be increased by 10 percentage
points for medium-sized
Aid for
R&D projects will be considered compatible with the enterprises and by 20
percentage points for small
common
market within the meaning of Article 87(3)(c) of the EC enterprises;
Treaty
provided that the conditions set out in this section are
fulfilled.
(31) Organisation for Economic Co-operation and Development, 2002.
C 323/14 EN Official
Journal of the European Union 30.12.2006
(b) up
to a maximum aid intensity of 80 %, a bonus of 15
percentage points may be added if
(32):
Small enter- Medium- Large Enter-
prise sized enter-
prise prise
(i)
the project involves effective collaboration between at
least two undertakings which are independent of each for large undertak-
other and the following
conditions are fulfilled:; ings: cross-border or
with
at least one SME
- no single undertaking must
bear more than or
70 % of the eligible
costs of the collaboration
- collaboration of an
project;
undertaking with a
research organisation
- the project must involve
collaboration with at or
least one SME or be
cross-border, that is to say,
- dissemination of
the research and
development activities are results
carried out in at
least two different Member
States.
Experimental development 45 % 35 %
25 %
Experimental development
60 % 50 % 40 %
(ii) the project involves effective
collaboration between an
subject to:
undertaking and a research
organisation, particularly
in the context of co-ordination
of national R&D
- collaboration
policies, and the following
conditions are fulfilled: between undertak-
ings;
for large
undertak-
- the research organisation
bears at least 10 % of ings, with cross-bor-
the eligible project
costs;
der or at least one
SME
- the research organisation has
the right to publish
or
the results of the research
projects insofar as they
- collaboration of an
stem from research
implemented by that undertaking with a
organisation. research organisation
(iii) only in case of industrial
research, if the results of the
project are widely disseminated
through technical and
scientific conferences or
published in scientific or
technical journals or in open access repositories
(databases where raw research
data can be accessed
5.1.4. Eligible costs
by anyone), or through free or
open source software.
The
aid intensity will be calculated on the basis of the costs of the
For the purposes of points (i) and (ii)
subcontracting is not
research project to the extent that they can be considered as
considered to be effective
collaboration. In case of eligible. All eligible costs must be
allocated to a specific category
collaboration between an undertaking and
a research of R&D.
organisation, the maximum aid
intensities and bonuses
specified in this Framework do not apply
to the research
organisation.
The following costs
shall be eligible:
Table illustrating the
aid intensities:
Small
enter- Medium- Large Enter- (a) personnel costs (researchers, technicians and other
support-
prise sized enter- ing staff to the
extent employed on the research project);
prise prise
Fundamental
research 100 % 100 % 100 %
Industrial
research 70 % 60 % 50 %
(b) costs of instruments and equipment to the extent and for
the
period used for the research project. If such instruments
Industrial
research 80 % 75 % 65 %
and equipment are not used for their full life for the
subject
to:
research project, only the depreciation costs corresponding
- collaboration to the life of the research
project, as calculated on the basis
between undertak-
of good accounting practice, are considered as eligible;
ings;
(32)
Projects funded under the Framework programme of the European (c) costs for building
and land, to the extent and for the
Community for research, technological
development and demon-
stration activities will automatically
qualify for a bonus for duration used for the research project.
With regard to
collaboration due to the minimum
conditions for participation in buildings, only the depreciation costs
corresponding to the
such projects.
life of the research project, as calculated on the basis of
30.12.2006 EN Official Journal of the European
Union C 323/15
good accounting practice are considered
as eligible. For In case
of a success exceeding the outcome defined as successful,
land, costs of commercial transfer or
actually incurred the
Member State concerned should be entitled to request
capital costs are eligible;
payments beyond repayment of the advance amount including
interest
according to the reference rate foreseen by the
Commission.
(d)
cost of contractual research, technical knowledge and
patents bought or licensed from outside
sources at market
prices, where the transaction has been
carried out at arm's
length and there is no element of
collusion involved, as well In
case the project fails, the advance does not have to be fully
as costs of consultancy and equivalent
services used repaid.
In case of partial success, the Commission will normally
exclusively for the research
activity;
require that the repayment secured is in proportion to the degree
of success achieved.
(e)
additional overheads incurred directly as a result of the
research project; The advance may
cover up to a maximum of 40 % of the eligible
costs for the experimental development phase of the project and
up to 60 %
for the industrial research phase, to which bonuses
(f)
other operating expenses, including costs of materials, can be added.
supplies and similar products incurred directly
as a result of
the research activity.
5.1.6. Fiscal measures
5.1.5.
Repayable advance
On the basis of evaluation
studies (34) provided by Member States
If a
Member State grants a repayable advance which qualifies as in the notification, the
Commission will consider that R&D&I
State
aid within the meaning of Article 87(1) of the EC Treaty, fiscal aid schemes have an
incentive effect by stimulating higher
the
following rules shall apply.
R&D&I-spending by undertakings.
Where a
Member State can demonstrate, on the basis of a valid
methodology
based on sufficient verifiable data, that it is possible The aid intensity of an
R&D&I fiscal State aid measure can be
to
calculate the gross grant equivalent of such aid granted in the calculated either on the basis of
individual R&D&I projects or, at
form of
a repayable advance and to accordingly design a scheme the level of an undertaking,
as the ratio between the overall tax
where
this gross grant equivalent fulfils the conditions on relief and the sum of all eligible R&D&I
costs incurred in a period
maximum
intensities in this section, it may notify this scheme not exceeding three
consecutive fiscal years. In the latter case, the
and the
associated methodology to the Commission. If the R&D&I fiscal State aid measure may
apply without distinction to
Commission
accepts the methodology and deems the scheme all eligible R&D&I activities; the
applicable aid intensity for
compatible,
the aid may be granted on the basis of the gross experimental development must then not be
exceeded (35).
grant
equivalent of the repayable advance, up to the aid
intensities
permissible under this section.
At
the time of notification, the Member State must provide an
estimate of the number of beneficiaries.
In all
other cases, the repayable advance is expressed as a
percentage
of the eligible costs; it may then exceed the rates
indicated
in this section. provided that the following rules are
fulfilled.
5.1.7. Matching
clause
In
order to allow the Commission to assess the measure, it must
provide
for detailed provisions on the repayment in case of In order to address actual or potential direct
or indirect
success
and clearly define what will be considered as a successful distortions of international
trade, higher intensities than
outcome
of the research activities. All these elements must be generally permissible under
this section may be authorized if
notified
to the Commission. The Commission will examine that - directly or indirectly - competitors located
outside the
the
definition of a successful outcome has been established on Community have received (in
the last three years) or are going to
the
basis of a reasonable and prudent hypothesis. receive, aid of an equivalent
intensity for similar projects,
programmes, research,
development or technology. However,
where distortions of international trade are likely to occur after
more than three years, given the
particular nature of the sector in
In case
of a successful outcome, the measure must provide that question, the reference period
may be extended accordingly.
the
advance is repaid with an interest rate at least equal to the
applicable
rate resulting from the application of the Commission
notice
on the method for setting the reference and discount (34) Even though this may not be possible ex
ante for a newly introduced
rates
(33).
fiscal State aid measure, Member States will be expected to provide
evaluation studies on the incentive effects of their own fiscal
measures.
(33) OJ
C 273, 9.9.1997, p. 3. also published under: (35) Conversely, where an R&D&I fiscal
State aid measure distinguishes
http://ec.europa.eu/comm/competition/state_aid/legislation/refer- between different R&D&I
categories, the relevant aid intensities must
ence.html. not be exceeded.
C
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the European Union 30.12.2006
If at
all possible, the Member State concerned will provide the 5.4. Aid for young innovative enterprises
Commission
with sufficient information to enable it to assess the
situation,
in particular regarding the need to take account of the
competitive
advantage enjoyed by a third-country competitor. If Aid to young innovative enterprises shall be compatible
with the
the
Commission does not have evidence concerning the granted common market within the meaning
of Article 87(3)(c) of the EC
or
proposed aid, it may also base its decision on circumstantial Treaty if the following conditions
are fulfilled (36):
evidence.
(a) the beneficiary is a small enterprise that has been of
existence
for less than 6 years at the time when the aid is
granted and
5.2. Aid for technical feasibility studies
(b) the beneficiary is an innovative enterprise, on the basis that:
Aid for
technical feasibility studies preparatory to industrial
research
or experimental development activities shall be
compatible
with the common market within the meaning of (i) the Member State can demonstrate, by means of an
Article
87(3)(c) of the EC Treaty provided that the aid intensity, evaluation carried
out by an external expert, notably
as
calculated on the basis of the study costs, does not exceed the on the basis of a
business plan, that the beneficiary
following
aid intensities:
will in the foreseeable future develop products,
services or processes which are technologically new
or substantially improved compared to the state of the
art in its industry in the
Community, and which carry
(a) for
SMEs, 75 % for studies preparatory to industrial research a risk of
technological or industrial failure, or
activities and 50 % for studies
preparatory to experimental
development activities,
(ii) the R&D expenses of the beneficiary represent at least
15 % of its total
operating expenses in at least one of
(b) for
large undertakings, 65 % for studies preparatory to the three years preceding the
granting of the aid or in
industrial research activities and 40
% for studies prepara-
the case of a start-up enterprise without any financial
tory to experimental development
activities. history, in the audit of
its current fiscal period, as
certified by an external auditor.
(c) the aid is not higher than EUR 1 million. This aid may not
exceed EUR 1,5 million in regions eligible for the
5.3. Aid for industrial property rights
costs for SMEs derogation
in Article 87(3)(a) of the EC Treaty, and
EUR 1,25 million in regions eligible for the derogation in
Aid to
SMEs for the costs associated with obtaining and Article 87(3)(c) of the EC Treaty.
validating
patents and other industrial property rights shall be
compatible
with the common market within the meaning of
Article
87(3)(c) of the EC Treaty up to the same level of aid as The beneficiary may receive the aid
only once during the period
would
have qualified as R&D aid in respect of the research in which it qualifies as a
young innovative enterprise This aid
activities
which first led to the industrial property rights may be cumulated with other aid under this framework,
with aid
concerned. for
research and development and innovation exempted by
Regulation
(EC) No 364/2004 or any successor regulation and
with aid approved by the Commission under the risk capital
guidelines.
Eligible
costs are:
The beneficiary may receive State aid other than R&D&I aid and
(a) all
costs preceding the grant of the right in the first legal risk capital aid only 3 years after
the granting of the young
jurisdiction, including costs relating
to the preparation, innovative
enterprise aid.
filing and prosecution of the
application as well as costs
incurred in renewing the application
before the right has
been granted;
5.5. Aid for process
and organisational innovation in
services
(b)
translation and other costs incurred in order to obtain the
granting or validation of the right in
other legal
jurisdictions;
Innovation in services may not always fall within the research
categories defined in section 5.1 but is typically less systematic
(c)
costs incurred in defending the validity of the right during (36) This is without prejudice to
the application of the Guidelines on
national regional aid for 2007 - 2013, OJ C 54, 4.3.2006, p. 13,
the official prosecution of the
application and possible
and notably the granting of aid for newly created small enterprises
opposition proceedings, even if such
costs occur after the up to a
total of EUR 2 million per small enterprise located in regions
right is granted.
eligible for the derogation in Article 87(3)(a) of the Treaty.
30.12.2006 EN
Official Journal of the European Union C 323/17
and
stems frequently from customer interaction, market demand, 5.6. Aid for innovation advisory services and for
adoption
of business and organisational models and practices innovation support services
from
more innovative sectors or from other similar sources.
Aid for innovation advisory
services and for innovation support
services shall be compatible with the common market within the
meaning
of Article 87 (3) (c) of the EC Treaty if each of the
Aid for
process and organisational innovation in services shall be following conditions are fulfilled:
compatible
with the common market within the meaning of
Article
87(3)(c) of the EC Treaty with a maximum aid intensity of
15 %
for large enterprises, 25 % for medium enterprises and (1) the beneficiary is an SME;
35 %
for small enterprises. Large enterprises are only eligible for
such
aid if they collaborate with SMEs in the aided activity,
whereby
the collaborating SMEs must incur at least 30 % of the (2) the aid does not exceed a
maximum of EUR 200 000 per
total
eligible costs. beneficiary
within any three year period (37);
(3) the service provider benefits from a national or European
Routine
or periodic changes made to products, production lines, certification. If the service provider does not benefit
from a
manufacturing
processes, existing services and other operations national or European certification, the aid may not
cover
in
progress, even if such changes may represent improvements, more than 75 % of the
eligible costs;
do not
qualify for State aid.
(4) the beneficiary must use the State aid to buy the services at
market
price (or if the service provider is a non-for-profit
The
following conditions must be fulfilled: entity, at a price which
reflects its full costs plus a
reasonable margin).
(a)
organisational innovation must always be related to the use The following costs shall be
eligible:
and exploitation of Information and
Communication
Technologies (ICT) to change the
organisation; - as
regards innovation advisory services the following costs:
management consulting; technological assistance; technol-
ogy transfer services; training; consultancy for acquisition,
(b) the
innovation must be formulated as a project with an protection and trade in Intellectual Property Rights and
for
identified and qualified project manager,
as well as
licensing agreements; consultancy on the use of standards
identified project costs;
- as
regards innovation support services the following costs:
office space; data banks; technical libraries; market research;
(c) the
result of the aided project must be the development of a use of laboratory; quality
labelling, testing and certification;
standard, of a business model,
methodology or concept,
which can be systematically reproduced,
possibly certified, If the
service provider is a not-for-profit entity, the aid may be
and possibly patented;
given in the form of a reduced price, as the difference between
the price
paid and the market price (or a price which reflects full
costs plus a reasonable margin). In such a case, the Member
States shall set up a system ensuring transparency about the full
(d) the
process or organisational innovation must be new or costs of the innovation advisory and innovation
support services
substantially improved compared to the
state of the art in provided,
as well as about the price paid by the beneficiary, so
its industry in the Community. The
novelty could be that
the aid received can be measured and monitored.
demonstrated by the Member States for
instance on the
basis of a precise description of the
innovation, comparing
it with state of the art process or
organisational techniques
used by other undertakings in the same
industry;
5.7. Aid for the loan of
highly qualified personnel
Aid for the loan of highly qualified personnel seconded from a
(e) the
process or organisational innovation project must entail research organisation or a large
enterprise to an SME shall be
a clear degree of risk. This risk could
be demonstrated by compatible
with the common market within the meaning of
the Member State for instance in terms
of: project costs in Article
87(3)(c) of the EC Treaty, provided the following
relation to company turnover, time
required to develop the
conditions are fulfilled:
new process, expected gains from the
process innovation by
comparison with the project costs,
probability of failure. The
seconded personnel must not be replacing other personnel,
but must be employed in a newly created function within the
beneficiary undertaking and must have been employed for at
Eligible
costs are the same as for aid to R&D projects (cf. section). least two years in the research
organisation or the large
In case
of organisational innovation, however, costs of instru-
ments
and equipment cover costs of ICT instruments and (37) Without prejudice to the possibility of
also receiving de minimis aid in
equipment
only.
respect of other eligible expenses.
C
323/18 EN Official Journal of
the European Union 30.12.2006
enterprise,
which is sending the personnel on secondment. The The statistical effect regions which fall under the
derogation
seconded
personnel must work on R&D&I activities within the under Article 87(3)(c) of the
EC Treaty from 1 January 2011 will
SME
receiving the aid. be eligible
for an aid intensity of 20 %.
Eligible
costs are all personnel costs for borrowing and
employing
highly qualified personnel, including the costs of In the case of aid being granted to an SME, the
maximum
using a
recruitment agency, as well as a mobility allowance for intensities shall be increased by
20 percentage points for aid
the
seconded personnel. The maximum aid intensity shall be granted to a small
enterprise and by 10 percentage points for aid
50 % of
the eligible costs, for a maximum of 3 years per granted to a medium-sized enterprise.
undertaking
and per person borrowed.
This
provision does not allow covering consultancy costs The eligible costs shall be the costs relating
to investment in land,
(payment
of the service rendered by the expert, without buildings, machinery and equipment.
employing
the expert in the undertaking) as such, which are
covered
under the rules for SME-aid (38).
Operating aid for cluster animation may be granted to the
legal entity operating the innovation cluster. Such aid must be
5.8. Aid for innovation clusters temporary and, as a
general rule, must be abolished over time, so
as to provide an incentive for prices to reflect costs reasonably
Investment
aid may be granted for the setting up, expansion rapidly.
and
animation of innovation clusters exclusively to the legal
entity
operating the innovation cluster. This entity shall be in
charge
of managing the participation and access to the cluster's
premises,
facilities and activities. Access to the cluster's premises, Such aid may be granted for a limited
duration of five years
facilities
and activities must not be restricted and the fees charged where the aid is degressive. Its
intensity may amount to 100 %
for
using the cluster's facilities and for participating in the the first year but must have
fallen in a linear fashion to zero by
cluster's
activities should reflect their costs. the end of the fifth year. In the case of
non-degressive aid, its
duration is limited to five years and its intensity must not exceed
50 % of the eligible costs. In duly justified cases, and on the basis
Such
aid may be granted for the following facilities: of convincing evidence provided by the
notifying Member State,
aid for
cluster animation may be granted for a longer period of
time, not exceeding 10 years.
-
facilities for training and research centre:
-
open-access research infrastructures: laboratory, testing The eligible costs shall be
the personnel and administrative costs
facility;
relating to the following activities:
- broadband
network infrastructures.
- marketing of the cluster to recruit new companies to take
The
maximum aid intensity is 15 %. part in the cluster,
In the
case of regions falling under Article 87(3)(a) of the EC
Treaty,
the Commission considers that the intensity must not - management of the cluster's open-access
facilities,
exceed:
- 30 %
for regions with less than 75 % of average EU-25 GDP - organisation of training programmes, workshops
and
per capita, for outermost regions with
higher GDP per
conferences to support knowledge sharing and networking
capita and until 1 January 2011
statistical effect regions (39),
between the members of the cluster.
- 40 %
for regions with less than 60 % of average EU-25 GDP
per capita, When
notifying investment aid or aid for cluster animation, the
Member State must provide an analysis of the technological
specialisation of the
innovation cluster, existing regional
- 50 %
for regions with less than 45 % of average EU-25 GDP potential, existing research capacity, presence of
clusters in the
per capita. Community with similar purposes and
potential market volumes
of the activities in the cluster.
In
recognition of their specific handicaps, the outermost regions
will be
eligible for a further bonus of 20 % if their GDP per capita
falls
below 75 % of the EU-25 average and 10 % in other cases. Cases where Member States fund
innovation infrastructure to be
operated on an open
access basis within not for profit research
(38)
Currently Regulation (EC) No 70/2001. organisations should be assessed
using the provisions set out in
(39) Cf.
Guidelines on national regional aid for 2007-2013, para. 18-20. section 3.1.
30.12.2006 EN Official Journal of the European
Union
C 323/19
6.
INCENTIVE EFFECT AND NECESSITY OF AID increase in speed: shorter time before
completion of the project as
compared to the same project being carried out without aid;
State
aid must have an incentive effect, i.e. result in the recipient
changing
its behaviour so that it increases its level of R&D&I
activity.
As a result of the aid, the R&D&I activity should be
increased
in size, scope, amount spent or speed. increase in total amount spent on
R&D&I: increase in total R&D&I
spending by the aid beneficiary; changes in the committed
budget
for the project (without corresponding decrease in the
The
Commission considers that the aid does not present an budget of other projects); increase in
R&D&I spending by the aid
incentive
for the beneficiary in all cases in which the R&D&I- beneficiary as a proportion
of total turnover.
activity
(40) has already commenced prior to the aid application
by the
beneficiary to the national authorities.
If a significant effect on at least one of these elements can be
If the
aided R&D&I-project has not started before the application, demonstrated, taking account of
the normal behaviour of an
the
Commission considers that the incentive effect is auto- undertaking in the
respective sector, the Commission will
matically
met for the following aid measures: normally conclude that the aid proposal has an incentive
effect.
-
project aid and feasibility studies where the aid beneficiary
is an SME and where the aid amount is
below EUR
7,5 million for a project per SME, If the Commission undertakes
a detailed assessment of an
individual measure, these indicators may not be considered
sufficient demonstration of
an incentive effect, and the
- aid
for industrial property rights costs for SMEs, Commission may need to be provided with
complementary
evidence.
- aid
for young innovative enterprises,
When assessing an aid scheme, the conditions relating to the
- aid
for innovation advisory services and innovation support incentive effect shall be
deemed to be satisfied if the Member
services,
State has committed itself to grant individual aid under the
approved aid scheme only after it has verified that an incentive
- aid
for the loan of highly qualified personnel. effect is present and to submit
annual reports on the
implementation of the approved aid scheme. In the annual
reports, the Member State must
demonstrate how it has assessed
For all
other measures (41), the Commission will require that an the incentive effect of the
aid before granting the aid through the
incentive
effect is demonstrated by the notifying Member States. use of the quantitative and
qualitative indicators given above.
In
order to verify that the planned aid will induce the aid
recipient
to change its behaviour so that it increases its level of
R&D&I
activity, the Member States shall provide an ex-ante
evaluation
of the increased R&D&I activity for all individual
measures
assessed by the Commission, on the basis of an
analysis
comparing a situation without aid and a situation with 7. COMPATIBILITY OF AID SUBJECT TO A
DETAILED
aid
being granted. The following criteria may be used, together
ASSESSMENT
with
other relevant quantitative and/or qualitative factors
submitted
by the Member State that made the notification: The Commission considers that an increase in
the level of
R&D&I activity in the Community is in the common interest of
increase
in project size: increase in the total project costs (without the Community as it can be expected
to significantly contribute
decreased
spending by the aid beneficiary by comparison with a to growth, prosperity and sustainable
development. In this
situation
without aid); increase in the number of people assigned context, the Commission
recognises that State aid has a positive
to
R&D&I activities; role to play when it is well targeted
and creates the right
incentive for undertakings to increase R&D&I. Nevertheless,
State aid
may also lead to significant distortions of competition
increase
in scope: increase in the number of the expected which must be taken into consideration.
deliverables
from the project; more ambitious project illustrated
by a
higher probability of a scientific or technological break-
through
or a higher risk of failure (notably linked to the higher
risk
involved in the research project, to the long-term nature of
the
project and uncertainty about its results);
7.1. Measures subject to a
detailed assessment
(40) If
the aid proposal is to grant aid for an R&D&I-project, this does not
exclude that the potential beneficiary has
already carried out
feasibility studies which are not covered
by the request for State aid.
(41)
I.e. project aid for large undertakings and for SMEs for aid exceeding For the following measures, due to the higher
risk of distortion
EUR 7,5 million; aid for process and
organisational innovation in
of competition, the Commission will carry out a more detailed
services and aid for innovation
clusters.
assessment.
C
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of the European Union 30.12.2006
For
measures covered by a BER for measures subject
to a detailed assessment. This guidance is
intended to make the Commission's decisions and their reason-
- for
all cases notified to the Commission following a duty to ing transparent and foreseeable in order to create
predictability
notify aid individually as prescribed
in the BER. and legal
certainty.
For
measures covered by this framework: Detailed assessment will be
conducted on the basis of the
following positive and negative elements which will apply in
Where
the aid amount exceeds : addition to the criteria set out in Chapter 5. In
some cases, the
applicability and the weight attached to these elements may
depend on the form or
objective of the aid. The level of the
- for
project aid (42) and feasibility studies: Commission's assessment will be
proportional to the risk of
distortion
of competition. This means that the scope of the
- if the project is predominantly
fundamental
analysis will depend on the nature of the case. State aid for
research (43), EUR 20 million per
undertaking, per activities
that are far away from the market is therefore less likely
project/feasibility study; to give
rise to very extensive scrutiny.
- if the project is predominantly
industrial research (44),
EUR 10 million per undertaking,
per project/feasibility Member
States are invited to provide all the elements that they
study; consider
useful for the assessment of the case. The Member
States are, in particular, invited to rely on evaluations of past
State aid schemes or measures, impact assessments made by the
- for all other projects, EUR 7,5
million per under-
granting authority, risk assessments, financial reports, internal
taking, per project/feasibility
study. business
plans that any company should realise for important
projects, expert opinions and other studies related to R&D&I.
- for
process or organisational innovation in services
activities, EUR 5 million per project
per undertaking;
- for
innovation clusters (per cluster), EUR 5 million. 7.3.
Positive effects of the aid
The
purpose of this detailed assessment is to ensure that high
amounts
of aid for R&D&I do not distort competition to an The fact that the aid
induces undertakings to pursue R&D&I in
extent
contrary to the common interest, but actually contribute the Community which they would
not otherwise have pursued
to the
common interest. This happens when the benefits of State constitutes the main positive
element to take into consideration
aid in
terms of additional R&D&I outweigh the harm for when assessing the
compatibility of the aid.
competition
and trade.
The
detailed assessment is a proportionate assessment, depend- In this context, the Commission
will notably pay attention to the
ing on
the distortion potential of the case. Accordingly, the fact following elements:
that a
detailed assessment will be carried out does not necessarily
imply
the need to open a formal investigation procedure,
although
this may be the case for certain measures. - the net increase of R&D&I
conducted by the undertaking,
Provided
Member States ensure full co-operation and provide
adequate
information in a timely manner, the Commission will - the contribution of the measure to the global
improvement
use its
best endeavours to conduct the investigation in a timely of the sector concerned as
regards the level of R&D&I,
manner.
- the contribution of the measure to the improvement of the
7.2. Methodology of the detailed
assessment: R&D&I Community situation regarding R&D&I
in the international
criteria
for economic assessment of certain individual cases context.
Below,
the Commission presents guidance as to the kind of
information
it may require and the methodology it would follow
7.3.1.
Existence of a market failure
(42)
For EUREKA projects, this ceiling is set at twice the amount.
(43) A
project is considered to consist `predominantly' of fundamental As indicated in Chapter 1, State aid
may be necessary to increase
research, if more than half of the
eligible project costs is incurred
R&D&I in the economy only to the extent that the market, on its
through activities which fall within the
category of fundamental own,
fails to deliver an optimal outcome. It is established that
research.
certain market failures hamper the overall level of R&D&I in the
(44) A
project is considered to consist `predominantly' of industrial
research, if more than half of the
eligible project costs is incurred
Community. However, not all undertakings and sectors in the
through activities which fall within the
categories of industrial economy are confronted to these market
failures to the same
research or fundamental research.
extent. Consequently, as regards measures subject to a detailed
30.12.2006 EN Official Journal of the European Union C
323/21
assessment,
the Member State should provide adequate informa- the planned aid will induce undertakings to pursue
R&D&I
tion
whether the aid refers to a general market failure regarding which they would not otherwise have
pursued.
R&D&I
in the Community, or to a specific market failure.
Chapter 6 provides a series of indicators that can be used by
Member States to demonstrate an incentive effect. However,
Depending
on the specific market failure addressed, the when a measure undergoes a detailed assessment,
the Commis-
Commission
will take into consideration the following elements: sion will require that the incentive effect of the aid is
substantiated more precisely, to avoid undue distortions of
competition.
-
Knowledge spillovers: the level of information dissemina-
tion foreseen; the specificity of the
knowledge created; the
availability of IPR protection. In its
analysis, the Commission will, in addition to the indicators
mentioned in Chapter 6, take into consideration the following
elements:
-
Imperfect and asymmetric information: level of risk and
complexity of research; need for external
finance; char- - Specification
of intended change: the intended change in
acteristics of the aid beneficiary to
receive external finance.
behaviour State aid aims at in the notified case has to be
well specified (new project
triggered, size, scope or speed of
a project enhanced).
-
Coordination failures: number of collaborating under-
takings; intensity of collaboration;
diverging interest
between collaborating partners; problems
in designing -
Counterfactual analysis: the change of behaviour has to
contracts; problems of third parties to
coordinate colla- be
identified by counterfactual analysis: what would be the
boration.
level of intended activity with and without aid? The
difference of the two scenarios is considered to be the
impact of the aid measure and describes the incentive effect.
For
State aid targeting R&D&I projects or activities located in
assisted
areas, the Commission will take into account: (i) - Level of profitability: if a project would not, in
itself, be
disadvantages
caused by the peripherality and other regional profitable to undertake for a private undertaking,
but would
specificities,
(ii) specific local economic data, social and/or generate important benefits for society, it is more
likely that
historic
reasons for a low level of R&D&I activity in comparison the aid has an incentive effect.
To evaluate the overall
with
the relevant average data and/or situation at national and/or profitability (or lack thereof) of
the project, evaluation
Community
level as appropriate; and (iii) any other relevant methodologies can be used which are standard practice in
indicator
showing an increased degree of market failure. the particular industry concerned (45).
- Amount of investment and time path of cash flows:
High start-up investment, low level of appropriable cash
7.3.2.
Appropriate Instrument flows and a significant fraction of cash flows arising in
the
very far future will be considered positive elements in
State
aid for R&D&I can be authorised under Article 87(3)(c) of assessing the incentive effect.
the EC
Treaty when it is necessary to achieve an objective of
common
interest, as an exception to the general prohibition of - Level of risk involved in the
research project: On the
State
aid. An important element in the balancing test is whether basis of e.g. feasibility
studies, risk assessments and expert
and to
what extent State aid for R&D&I can be considered an opinions, the assessment of
risk will in particular take into
appropriate
instrument to increase R&D&I activities, given that account the irreversibility of
the investment, the probability
other
less distortive instruments may achieve the same results. of commercial failure, the risk
that the project will be less
productive than expected, the risk that conducting the
project would undermine other activities and the risk that
In its
compatibility analysis, the Commission will take particular the project costs undermine the
undertaking's financial
account
of any impact assessment of the proposed measure viability. For State aid targeting R&D&I
projects or activities
which
the Member State has made. Measures for which the located in assisted areas, the Commission
will take into
Member
State has considered other policy options and for which account disadvantages caused by
the peripherality and
the
advantages of using a selective instrument such as State aid other regional specificities,
which negatively impact on the
are
established and submitted to the Commission, are considered level of risk in the research
project.
to
constitute an appropriate instrument.
(45) These may include methods to evaluate the Net Present Value of the
project (that is to say, the sum of the discounted expected cash flow
resulting from the investment minus the investment cost), the
internal rate of return (IRR) or the return of capital employed
7.3.3.
Incentive effect and necessity of aid (ROCE). Financial reports and internal business plans
containing
information on demand forecasts; cost forecasts; financial forecasts
(for example, NPV, IRR,
ROCE), documents that are submitted to an
Analysing
the incentive effect of the aid measure is the most investment committee and that elaborate on various
investment
important
condition in analysing State aid for R&D&I. scenarios or documents provided to the
financial markets could
Identifying
the incentive effect translates into assessing whether serve as evidence.
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30.12.2006
-
Continuous evaluation: measures for which (low scale) There are three distinct ways in which
R&D&I aid can distort
pilot projects are foreseen, or which
define well specified competition
in product markets:
milestones resulting in termination of
the project in case of
failure and where a publicly available
ex post monitoring is
foreseen will be considered more positively as regards
the (1) R&D&I aid can
distort the dynamic incentives of market
assessment of the incentive
effect.
players to invest (crowding out effect);
(2) R&D&I aid can create or maintain positions of market
power;
7.3.4.
Proportionality of the aid
Independently
of the criteria mentioned in Chapter 5, the (3) R&D&I aid can maintain an inefficient
market structure.
Member
State concerned should provide the additional following
information: State aid may also have a
negative effect on trade in the common
market. In particular where R&D&I aid leads to the crowding out
of
competitors, the aid measures may essentially result in a shift
- Open
selection process: Where there are multiple of trade flows and location of economic
activity.
(potential) candidates for undertaking
the R&D&I project
in a Member State, the proportionality
requirement is more
likely to be met if the project has
been allocated on the 7.4.1.
Distorting dynamic incentives
basis of transparent, objective and
non-discriminatory
criteria. The main
concern related to R&D&I aid to undertakings is that
competitors' dynamic incentives to invest are distorted. When an
undertaking receives aid, this generally increases the likelihood of
- Aid
to the minimum: Member States have to explain how successful R&D&I on the part of this
undertaking leading to an
the amount given has been calculated
to ensure that it is increased
presence on the product market(s) in the future. This
limited to the minimum necessary. increased
presence may lead competitors to reduce the scope of
their original investment plans (crowding out effect).
In its analysis,
the Commission will consider the following
7.4. Analysis of the distortion of
competition and trade
elements:
State
aid for R&D&I may impact on competition at two levels: (i) - Aid amount. Aid measures which
involve significant
competition
in the innovation process, i.e. competition in terms amounts of aid are more likely to lead to
significant
of
R&D&I which takes place upstream of product markets and crowding out effects. The
significance of the aid amount
(ii)
competition in the product markets where the results of the will be measured with reference
to total private R&D
R&D&I
activities are exploited. expenditure in the sector,
and the amount spent by the
main players.
In
assessing the negative effects of the aid measure, the - Closeness to the market/category of the aid. The more
Commission
will focus its analysis of the distortions of the aid measure is aimed at R&D&I
activity close to the
competition
on the foreseeable impact the R&D&I aid has on market, the more it is
liable to develop significant crowding
competition
between undertakings in the product markets out effects.
concerned.
The Commission will give more weight to risks for
competition
and trade that arise in a predictable future and with
particular
likelihood. - Open
selection process: Where the grant is given on the
basis of objective and
non-discriminatory criteria, the
Commission will take a more positive stance.
The
impact on competition in the innovation process will be
relevant
insofar as it has a foreseeable impact on the outcome of
future
product market competition. In certain cases the results of - Exit barriers: Competitors are more
likely to maintain (or
R&D&I,
for example, in the form of intellectual property rights, even to increase) their
investment plans when exit barriers
are
themselves traded in so-called technology markets, for to the innovation process
are high. This may be the case
instance
through patent licensing. In these cases, the Commis- when many of the competitors' past investments are
locked
sion
may also consider the effect of the aid on competition in the in to a particular R&D&I
trajectory.
technology
markets.
-
Incentives to compete for a future market: R&D&I aid
may lead to a situation where competitors to the aid
The
impact of R&D&I on product markets is largely dynamic and beneficiary renounce
competing for a future market,
the
analysis will therefore be of a forward-looking nature. because the advantage
provided by the aid (in terms of
Frequently,
the same innovative activity will be associated with the degree of technological advance or in terms of
timing)
multiple
future product markets. If so, the impact of State aid will reduces the possibility for them to
profitably enter this
be
looked upon on the set of markets concerned. future market..
30.12.2006 EN Official Journal of the European
Union
C 323/23
-
Product differentiation and intensity of competition: 7.4.3. Maintaining inefficient market structures
Where product innovation is rather about
developing
differentiated products (related, for
example, to distinct
R&D&I aid may, if not correctly targeted, support inefficient
brands, standards, technologies, consumer
groups) undertakings and
hence lead to market structures where many
competitors are less likely to be
affected. The same is true market
players operate significantly below efficient scale. In its
if there are many effective competitors
in the market. analysis, the
Commission will consider whether the aid is granted
in
markets featuring overcapacity, in declining industries or in
sensitive sectors. Concerns are less likely in situations where State
aid
for R&D&I aims at changing the growth dynamics of the
7.4.2.
Creating market power sector, notably by
introducing new technologies.
Aid in
support of R&D&I may have distortive effects in terms of
increasing
or maintaining the degree of market power in product
markets.
Market power is the power to influence market prices, 7.5. Balancing and decision
output,
the variety or quality of goods and services, or other
parameters
of competition on the market for a significant period
of
time, to the detriment of consumers. The Commission will In the light of these positive and
negative elements, the
assess the
market power before the aid is granted, and the change Commission balances the effects of the
measure and determines
in
market power, which can be expected as a result of the aid. whether the resulting distortions
adversely affect trading
conditions to an extent contrary to the common interest. The
analysis in each particular case will be based on an overall
The
Commission is concerned mainly about those R&D&I assessment of the
foreseeable positive and negative impacts of
measures
allowing the aid beneficiary to transfer or strengthen the State aid. For that purpose the Commission
will not use the
market
power held on existing product markets to future criteria set out in sections 7.3 and 7.4
mechanically but will make
product
markets. The Commission is therefore unlikely to an overall assessment based on the proportionality
principle.
identify
competition concerns related to market power in
markets
where each aid beneficiary has a market share below
25 %
and in markets having a market concentration with The Commission may raise no objections to the
notified aid
Herfindahl-Hirschman
Index (HHI) below 2 000. measure without entering into the formal
investigation proced-
ure or, following the formal investigation procedure laid down in
Article 6 of Regulation (EC) No 659/1999, decide to close the
procedure with a decision pursuant to
Article 7 of that
In its
analysis, the Commission will consider the following Regulation. If it takes a conditional decision within
the meaning
elements:
of Article 7(4) of
Regulation (EC) No 659/1999, it may in
particular consider attaching the following conditions, which
must
reduce the resulting distortions or effect on trade and be
-
Market power of aid beneficiary and market structure: proportionate:
Where the recipient is already dominant
on a product
market, the aid measure may reinforce
this dominance by
further weakening the competitive
constraint that competi- - lower
aid intensities than the maximum intensities allowed
tors can exert on the recipient
undertaking. Similarly, State
in Chapter 5, including claw-back mechanisms and
aid measures may have significant impact
in oligopolistic different
conditions for repaying reimbursable advances,
markets where only a few players are
active.
-
diffusion of results, collaboration and other behavioural
- Level
of entry barriers: In the field of R&D&I, significant commitments,
entry barriers may exist for new
entrants. These barriers
include legal entry barriers (in
particular intellectual
property rights), economies of scale and
scope, access - separation of
accounts in order to avoid cross-subsidization
barriers to networks and infrastructure,
and other strategic from one
market to another market, when the beneficiary is
barriers to entry or expansion. active
in multiple markets,
- Buyer
power: The market power of an undertaking may - no
discrimination against other potential beneficiaries
also be limited by the market position of
the buyers. The (reduce
selectivity).
presence of strong buyers can serve to
counter a finding of
a strong market position if it is likely
that the buyers will
seek to preserve sufficient competition
in the market.
8. CUMULATION
-
Selection process: Aid measures which allow under-
takings with a strong market position to
influence the As regards
cumulation, the aid ceilings fixed under this
selection process, for example, by having
the right to framework shall
apply regardless of whether the support for
recommend undertakings in the selection
process or the aided
project is financed entirely from State resources or is
influencing the research path in a way
which disfavours partly
financed by the Community, except in the specific and
alternatives path on unjustified grounds,
is liable to raise limited context
of the conditions established for Community
concern by the Commission.
funding under the RTD Framework Programmes, adopted
C
323/24 EN Official Journal
of the European Union 30.12.2006
respectively
in accordance with Title XVIII of the EC Treaty or No 1698/2005 under the same conditions and at the
same
Title
II of the Euratom Treaty. intensity as the
co-financing.
Where
the expenditure eligible for aid for R&D&I is eligible in Cases of R&D aid for products listed in Annex I to
the EC Treaty
whole
or in part for aid for other purposes, the common portion not fulfilling the conditions
in this chapter are to be examined
will be
subject to the most favourable ceiling under the under the normal rules of this framework.
applicable
rules. This limitation does not apply to aid granted
in
accordance with the Community guidelines on State aid to
promote
risk capital investments in SME (46).
10. FINAL PROVISIONS
Aid for
R&D&I shall not be cumulated with de minimis support in
respect
of the same eligible expenses in order to circumvent the 10.1. Reporting and monitoring
maximum
aid intensities laid down in this framework. 10.1.1. Annual reports
In line with the
requirements of Regulation (EC) No 659/1999
and Commission Regulation (EC) No 794/2004 of 21 April
2004
implementing Council Regulation (EC) No 659/1999
9.
SPECIAL RULES FOR AGRICULTURE AND FISHERIES laying down detailed rules for the
application of Article 93 of the
EC Treaty (48),
Member States must submit annual reports to the
As
regards R&D aid concerning products listed in Annex I to the Commission.
EC
Treaty, and by way of derogation from aid intensity
limitations
or supplements specified elsewhere in this frame-
work,
the Commission will continue to allow an aid intensity of Beyond the requirements
stipulated in those provisions, annual
up to
100 %, subject to fulfilment in each case of the four reports for R&D&I-aid measures shall
contain for each measure,
following
conditions: including
the granting of aid under an approved scheme, the
following
information:
- it is
of general interest to the particular sector or sub-sector - the name of the beneficiary,
concerned;
- the aid amount per
beneficiary,
-
information that research will be carried out, and with
which goal, is published on the
internet, prior to the
commencement of the research. An
approximate date of -
the aid intensity,
expected results and their place of
publication on the
internet, as well as a mention that
the result will be - the
sectors of activity where the aided projects are
available at no cost, must be included; undertaken.
- the
results of the research are made available on internet, In case of fiscal aid, the
Member State must only provide a list of
for a period of at least 5 years. This
information on the those
beneficiaries who have received an annual tax relief in
internet shall be published no later
than any which may be excess
of 200 000 EUR.
given to members of any particular
organisation;
In case of clusters, the report must also give a brief description of
- aid
shall be granted directly to the researching institution or the activity of the cluster and its effectiveness in
attracting
body and must not involve the direct
granting of non-
R&D&I activity. The Commission may request additional
research related aid to a company
producing, processing or
information regarding the aid granted, to check whether the
marketing agricultural products, nor
provide price support
conditions of the Commission's decision approving the aid
to producers of such products.
measure have been respected.
The annual reports will be published on the internet site of the
The
Commission will allow State aid for cooperation pursuant to Commission.
Article
29 of Council Regulation (EC) No 1698/2005 of
20
September 2005 on support for rural development by the
European
Agricultural Fund for Rural Development (EAFRD) (47) For all aid granted under an approved scheme to
large
if such
cooperation has been approved for Community co- undertakings, Member States must also
explain in the annual
financing
under that Article and/or the State aid is granted as report how the incentive effect has been respected
for aid given
additional
financing pursuant to Article 89 of Regulation (EC) to such undertakings, notably using the indicators
and criteria
mentioned in
Chapter 6 above.
(46) OJ
C 194, 18.8.2006, p. 2.
(47) OJ
L 277, 21.10.2005, p. 1. Regulation as amended by Regulation (48) OJ L 140, 30.4.2004, p. 1.
Regulation as amended by Regulation
(EC) No 1463/2006 (OJ L 277, 9.10.2006,
p. 1). (EC)
No 1627/2006 (OJ L 302, 1.11.2006, p. 10).
30.12.2006 EN Official Journal of the European Union C 323/25
10.1.2.
Access to full text of schemes - the new threshold for large
individual projects will apply as
The
Commission considers that further measures are necessary from the entry into force of
this framework;
to
improve the transparency of State aid in the Community. In
particular,
it appears necessary to ensure that the Member States, - the duty to provide more detailed
annual reports pursuant
economic
operators, interested parties and the Commission itself to point 10.1.1. and the duty to
submit information sheets
have
easy access to the full text of all applicable R&D&I aid pursuant to point 10.1.3. will
apply to existing aid schemes
schemes.
six months after the entry into force of this framework.
This
can easily be achieved through the establishment of linked
internet
sites. For this reason, when examining R&D&I aid The Member States are invited to
give their explicit unconditional
schemes,
the Commission will systematically require the Member agreement to these proposed appropriate measures within
two
State
concerned to publish the full text of all final aid schemes on months from the date of publication of
this framework. In the
the
internet and to communicate the internet address of the absence of any reply, the
Commission will assume that the
publication
to the Commission. The scheme must not be applied Member State in question does not agree with the
proposed
before
the information is published on the internet. measures.
10.1.3.
Information sheets
Besides,
whenever aid for R&D&I is granted on the basis of aid 10.3. Entry into force, validity and
revision
schemes
without falling under the duty for individual notifica-
tion,
and exceeds EUR 3 million, Member States must, within 20 This framework will enter into force
on 1 January 2007 or, if it
working
days starting from the granting of the aid by the has not been published in the Official Journal of
the European
competent
authority, provide the Commission with the informa- Union before that date, on the first day following its
publication
tion
requested in the standard form laid down in the Annex to therein and will replace the
Community Framework for State aid
this
framework. The Commission will make summary informa- for Research
and Development.
tion
available to the public through its website (http://ec.europa.
eu/comm/competition/index_en.html). This
framework will be applicable until 31 December 2013. After
consulting
the Member States, the Commission may amend it
Member
States must ensure that detailed records regarding the before that date on the basis of
important competition policy or
granting
of aid for all R&D&I measures are maintained. Such research policy considerations or
in order to take account of
records,
which must contain all information necessary to other Community policies or international commitments.
The
establish
that the eligible costs and maximum allowable aid Commission intends to carry out a review of the
framework 3
intensity
have been observed, must be maintained for 10 years years after its entry into force.
from
the date on which the aid was granted.
The
Commission will ask Member States to provide this The Commission will apply this framework to all
aid projects
information
in order to carry out an impact assessment of this notified in respect of which it is called upon to take a
decision
framework
three years after its entry into force (49). after the framework is published in the Official
Journal, even
where the projects were notified
prior to its publication. This
10.2. Appropriate Measures includes individual aid
granted under approved aid schemes and
notified to the
Commission following an obligation to notify
The
Commission herewith proposes to Member States, on the such aid individually.
basis
of Article 88(1) of the EC Treaty, the following appropriate
measures
concerning their respective existing research and
development
aid schemes: In line with the
Commission notice on the determination of the
applicable rules for the
assessment of unlawful State aid (50), the
In
order to comply with the provisions of this framework, Commission will apply in the
case of non-notified aid,
Member
States should amend, where necessary, such schemes in
order
to bring them into line with this framework within twelve - this framework if the aid was
granted after its entry into
months
after its entry into force, with the following exceptions: force,
-
Member States have twenty four months to introduce
amendments regarding the provisions
covered in point - the
framework in force when the aid was granted in all
3.1.1 of this framework;
other cases.
(49) In
that process, Member States may want to support the
Commission by providing their own ex post
assessment of schemes
and individual measures.
(50) OJ C 119, 22.5.2002, p. 22.
C
323/26 EN Official
Journal of the European Union
30.12.2006
ANNEX
Form for the provision of summary
information for aid under the extended reporting obligation (section 10.1)
(1) Aid in favour of (name of the
undertaking/undertakings receiving the aid, SME or not): . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
(2) Aid scheme reference
(Commission reference of the existing scheme or schemes under which the aid is
awarded): .
(3) Public entity/entities
providing the assistance (name and co-ordinates of the granting authority or
authorities): . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
(4) Member State where the aided
project or measure is carried out: . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Type of project or measure: .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .
(6) Short description of project
or measure: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
(7) Where applicable, eligible
costs (in EUR): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
(8) Discounted aid amount (gross)
in EUR: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) Aid intensity (% in gross
grant equivalent): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
(10) Conditions attached to the
payment of the proposed aid (if any): . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
(11) Planned start and end date of
the project or measure: . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12) Date of award of the aid: . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .