It sets out the rules under which Member States can grant State aid to companies for R&D-related activities, while ensuring a level playing field.
The European Commission has issued a revised Communication on State aid rules for research and development and innovation (the “2022 RTD framework”), which sets out the rules under which Member States can grant State aid to businesses for activities related to R&D, while ensuring a level playing field. The 2022 R&D framework, which contributes to the EU’s strategic objectives on the green and digital transition, entered into force today.
Commission Executive Vice-President for Competition Policy Margrethe Vesteyjer said: “The revised State aid framework adopted today will make it easier for Member States to support research, development and innovation, including in concerns small and medium-sized enterprises, while ensuring that potential distortions of competition are kept to a minimum. The targeted changes introduced to our rules will support Europe’s green and digital transition by facilitating public-private investment in breakthrough innovation and research, as well as testing and experimentation infrastructure.”
The revised framework for EAC
Today’s approval of the R&D framework for 2022 follows an assessment of the existing rules launched in 2019 as part of the State Aid Fitness Check. The Commission also held extensive consultations with all stakeholders on the proposed revised text of the Communication. These included issues relating to contributions from Member States, business and research associations, interest groups and companies, NGOs and citizens.
The revised R&D framework includes a number of targeted adaptations i) to simplify and capture the experience gained from the implementation of the 2014 R&D framework, ii) to take into account regulatory, economic and technological developments and iii) to aligning relevant rules with current EU policy priorities, such as the European Green Deal and industrial and digital strategies. In particular, the targeted modifications:
Improving and updating the current definitions of research and development activities eligible for support under the R&D framework. In particular, the amendments clarify their applicability in relation to digital technologies and activities related to digitization (e.g. supercomputing, quantum technologies, blockchain technology, artificial intelligence, cyber security, big data and cloud computing or edge computing). This aims to provide legal certainty to Member States and stakeholders, while facilitating the R&D investments that will enable digital transformation in the EU.
Providing public support for testing and experimentation infrastructures needed to develop, test and upgrade technologies. This aims to further facilitate the rapid development and eventual implementation of innovative and breakthrough technologies, in particular by small and medium-sized enterprises, while facilitating the green and digital transition of the EU economy and contributing to the new European innovation agenda.
Simplification of certain rules to facilitate the practical implementation of the R&D framework and reduce the potential excessive administrative burden for businesses and public authorities. For example, the new rules introduce a simplified mechanism for determining the indirect costs of research and development projects eligible for support under the State aid rules.
At the same time, the 2022 R&D framework maintains safeguards that guarantee that aid is limited to what is necessary and does not lead to unjustified distortions of competition.
Record
The R&D framework aims to facilitate research, development and innovation activities which, due to market failures, would not occur without public support. It allows Member States, under certain conditions, to provide the necessary incentives to businesses and the research community to carry out these important activities and investments in this area. The RTD framework applies the principle of technology neutrality and therefore covers all technologies, industries and sectors to ensure that the rules do not pre-determine which research paths will lead to new solutions for innovative products , processes and services.
The provisions of the RDA framework are complemented by the general block exemption regulation, which lays down ex ante compatibility conditions under which Member States can implement State aid measures without prior notification to the Commission.
George Fellidis
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