Research and development by small and medium-sized enterprises
(SMEs) is set to benefit from a relaxation of EU rules on state
aid. A proposed Regulation, announced yesterday, will let Member
States grant aid without first having to notify the Commission.
While state aid have not worked.
Research and development was identified by the Commission in a meeting in Lisbon as key to making the EU “the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion."
In a statement, the Commission described the Regulation as simplifying and facilitating Member States' research and development initiatives.
The proposal foresees that Member States may cover up to 100% of expenses for fundamental (basic, non market-oriented) research, 60% for industrial (market-oriented) research and 35% for pre-competitive development (market-oriented research, but focusing on the pre-commercial stage).
The new Regulation does not prejudge other types of research and development aid, but these aid measures will need to be notified and examined by the Commission on a case-by-case basis.
European Competition Commissioner Mario Monti said:
"The proposed Regulation will enable a speedier implementation of the research and development measures taken by the Member States in favour of SMEs.”
The Commission is launching a consultation process with Member States and hopes to adopt the Regulation by the end of the year.
