The revision of the State aid rules for R&D&I Prague, 18 July 2013

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Presentation transcript:

The revision of the State aid rules for R&D&I Prague, 18 July 2013 Please edit the Master Layout to include information specific to the presentation. For slides for the DG/DeputyDG, delete [Unit]. Paolo Cesarini Head of Unit, DG Competition, State aid for R&D&I and risk capital

The revision of the rules for R&D&I R&D&I Framework: 1.1.2007-31.12.2013. General Block-exemption Regulation (GBER), Articles 30-37 (R&D&I): 29.8.2008-31.12.2013 Both R&D&I Framework and GBER are part of the State Aid Modernisation initiative with the following objectives: Foster growth in a strengthened, dynamic and competitive internal market, in line with the EU 2020 objectives Better prioritised enforcement Clearer rules and streamlined decision-making State of play of the revision process Issue paper published in December 2012 New draft GBER provisions on R&D&I aid: public consultation launched on 8 May 2013 Next step: public consultation on a draft R&D&I Framework

Basic facts and figures (1) Slides Font: Verdana Font sizes: Heading: 44 First level bullet points: 32 Second level bullet points: 28 Do not use third level bullet points Notes Do not have to be full sentences. Should expand on the points in the slides and provide background information. Font size: 14 If there is too much text to fit on a page (View… NotesPage), then put ALL notes for the presentation in a separate Word document, with notes for each slide starting on a new page. 3

Basic facts and figures (2) Slides Font: Verdana Font sizes: Heading: 44 First level bullet points: 32 Second level bullet points: 28 Do not use third level bullet points Notes Do not have to be full sentences. Should expand on the points in the slides and provide background information. Font size: 14 If there is too much text to fit on a page (View… NotesPage), then put ALL notes for the presentation in a separate Word document, with notes for each slide starting on a new page. 4

Basic facts and figures (3) Slides Font: Verdana Font sizes: Heading: 44 First level bullet points: 32 Second level bullet points: 28 Do not use third level bullet points Notes Do not have to be full sentences. Should expand on the points in the slides and provide background information. Font size: 14 If there is too much text to fit on a page (View… NotesPage), then put ALL notes for the presentation in a separate Word document, with notes for each slide starting on a new page. 5

Basic facts and figures (4) More than 470 aid schemes implemented under the GBER About 420 transparency cases More than 200 aid schemes and 50 individual aid measures approved under the R&D&I Framework Main sectors: aeronautics, microelectronics and ICT (individual aids). KETs-related projects: since 2006, the COM has approved about 40 large individual aids involving key enabling technologies (> 2 bn € in total), e.g. Nano 2012 (FR), Mapper Litography (NL), Wave energy technology (SE). 5 openings of the formal procedure, but no negative decision however, several cases required significant amendments or resulted in a withdrawal of the notification

Main issues raised in public consultation Notion of aid: guidance on funding of research organisations (definition of economic and non-economic activities, collaboration projects, technology transfer) Scope: demonstration projects and R&D infrastructures R&D projects: classification of activities into each research category not always clear-cut Innovation measures: too restrictive approach in terms of time limits, size of beneficiary, aid intensities, etc. International aspects allegedly not fully taken into account (matching clause, Article 107(3)(b))

Proposed changes to the GBER (1) Aid for R&D projects Claw back of aid for productive investment of demonstration projects limited to 5 years and possibly ex post. Laboratory-scale prototypes classified as industrial research (i.e. higher aid intensity). Extension of dissemination bonus (15%) to experimental development Simplified rules for feasibility studies  one single aid intensity (50%) Aid for construction or upgrade of research infrastructures  new aid category Transparent and non-discriminatory access Aid intensity: 25% plus regional bonuses Eligible costs: tangible and intangible investments

Proposed changes to the GBER (2) Streamlining and simplification of innovation aid : Merging four of the currently allowed innovation aid measures into one category with a single aid intensity (50%) Widening the scope to include aid for SMEs' process and organisational innovation Abolishing the limitation to ICT for process and organisation innovation aid to SMEs If possible, process innovation aid to large companies and aid to innovation clusters A wider safe-harbour: doubled notification thresholds No fundamental change for incentive effect requirements New rules on cumulation

Main changes in draft R&D&I Framework (1) Objective: cater for Horizon 2020 and provide guidance cases with highest distortion potential Scope: Notifiable R&D&I aid measures Widened to include research infrastructures More guidance on existence of aid in typical R&D&I situations (economic/non-economic activities, collaborations) Approach: based on common principles developed in context of SAM

Main changes in draft R&D&I Framework (2) Appropriateness and proportionality: Instrument targeted to specific market failure (e.g. repayable instruments for aid close to commercialisation) Aid limited to minimum necessary ensured by the net extra costs approach in combination with aid intensities  limit distortions and ensure value-added of public spending Maximum aid intensities acting as a cap on net extra costs Possibility for "matching aid" Avoidance of undue distortions: "Black list" (e.g. where not in line with principles of four freedoms)

key issues for the future Framework (1) Demonstrators and prototypes: Ensure sufficient and appropriate proportionality of aid for R&D, taking account of the high up-front investments needed and of the often significant risk involved. Certain (lab-scale) prototypes classified as industrial research, i.e. basic aid intensity increased (25%→50%). Remove the unlimited ex ante deduction of expected future revenues. Allow dissemination bonus (15%) for experimental development (currently limited to industrial research) Net extra cost approach, possibly coupled with higher intensities.

key issues for the future Framework Research infrastructure: introduce adequate compatibility conditions (e.g. proportionality requirements, transparent and non-discriminatory access) Aid for projects of common EU interest: Very limited use so far  increase operability through review of scope and compatibility criteria (e.g. 'funding gap' approach without limitation of aid intensities) Market replication (H2020): beyond R&D, but aid could possibly be provided under other guidelines (regional aid, environmental aid or risk finance)

Thank you for your attention