European Union: State Aid Measures For Research, Development And Innovation

Faster, simpler and more transparent: EU Commission adopts new framework to facilitate state aid measures for research, development and innovation

On 21 May 2014, the EU Commission has adopted new rules for state aid measures to support research, development and innovation activities. Besides the new R&D state aid Framework, the new General Block Exemption Regulation (GBER) was released widening the scope of measures that are exempted from prior notification to the Commission. Both set of rules will enter into force 1 July 2014. Being embedded in both the EU state aid modernization initiative and the Europe 2020 Strategy, the new rules seek to insure that state aid measures to support R&D activities can be granted easier, quicker and more effective. Equally, they aim to increase legal certainty and to provide guidance with regard to the application of state aid rules.

Since research and innovation can be said to be of major importance both for economic growth and competitiveness of the European economy, the EU aims to increase R&D spending to 3 percent of GDP in the years to come. State aid shall mobilize private investment in projects that would otherwise not be implemented. In order to attain this objective, EU state aid rules become more transparent and more flexible while providing a higher degree of legal certainty. In comparison to the previous R&D state aid rules, the major changes are as follows:

Avoid financing gaps

  • A core element of the new R&D Framework is to facilitate the granting of aid measures in order to overcome financing gaps. For large companies, the new regime covers up to 70 percent of the eligible costs for individually notified measures depending on the respective research stage. Equally, when conducting applied research, the R&D framework covers up to 90 percent of the eligible costs for small undertakings. In case of fundamental research, state aid measures for R&D projects can even cover up to 100 percent of eligible costs.
  • Under the new regime, even costs of prototyping and demonstration are considered eligible for aid. Yet, if rates are granted at the higher end of the scale, the existence of a genuine financing gap has to be demonstrated. In this respect, the Commission will conduct a thorough analysis to ensure the necessity and suitability for granting such higher rates in order to avoid undue distortions of competition in the common market.

More exemptions from prior notification

  • With the introduction of the new GBER regime, the Commission increased the notification thresholds and thus, extended the scope of exemptions from prior notifications of state aid. With regard to experimental development, the threshold to notify aid measures increased from EUR 7.5 million to EUR 15 million. Equally, the thresholds for fundamental research and industrial research increased to EUR 40 million and EUR 20 million, respectively, which is twice the amount of the former regime.
  • For the first time, Member States are now allowed to grant investment aid for research infrastructures amounting up to EUR 20 million per infrastructure without prior notification.
  • The scope of aid measures to support R&D activities has been widened under the new GBER: the new rules include pilot projects and prototypes, innovation clusters as well as state aid for process and organizational innovation.
  • For the first time, ad hoc aid granted to large companies (i.e. companies, which employ more than 250 persons or which have an annual turnover exceeding EUR 50 million) may be exempted from notification requirements.

New rules aim at simplification and more legal certainty

  • In practice, it is often difficult to distinguish between economic and non-economic activities with respect to public funding of research organizations or research infrastructures. By defining precisely the economic and non-economic nature of research activities, the new R&D Framework seeks to facilitate the criteria for differentiation. Generally speaking, only the public funding of economic activities will be considered as state aid.
  • For the first time, the new R&D framework includes rules with regard to research and development services that are subject to public procurement procedures. The EU Commission will generally consider that no state aid is awarded to the undertaking delivering the relevant services as long as an open tender for public procurement is carried out in accordance with the respective EU directives.
  • R&D projects which are co-financed directly or indirectly by the European Union (such as funding provided under Horizon 2020 program) will now be presumed to constitute necessary and appropriate state aid.

Transparency rules have to be observed

Furthermore, the Commission adopted new rules concerning transparency requirements. A Communication stipulates that Member States have to publish state aid measures granted to companies exceeding EUR 500.000 on a dedicated website. The information made to be available includes the name of the beneficiary, the amount granted, the objective of the state aid measures, the date of granting as well as the legal basis. The information has to be published within six months from the granting of the aid. Full and timely publication of this information is necessary condition for the validity of the aid measure. Member States have a two years period to establish an appropriate system to collect the information necessary and to set up the website.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.