Research and innovation policy Luxembourg’s research and innovation policy aims to stimulate competitiveness and economic growth, further boost the performance of the public research sector and enhance the country’s participation in international research programmes and collaborations. The State budgets dedicated to R&D and innovation have constantly increased from €28 million in 2000 (0.13% of GDP) to €326.4 million in 2014 (0.69% of GDP). The government’s objective is to increase R&D-related expenses to between 2.3 and 2.6% of GDP by 2020. Research and innovation for economic growth R&D and innovation are considered as crucial for the growth and competitiveness of the Luxembourg economy. The government places particular importance on increasing collaboration between public and private sector research through better coordination and researcher mobility. The concentration of activities in in the City of Sciences, Research and Innovation in Belval favours public-private cooperation. The University of Luxembourg, the Luxembourg Institute of Science and Technology (LIST), the Luxembourg Institute of Health (LIH), the Luxembourg Institute of Socio-Economic Research (LISER), Luxinnovation and the National Research Fund (FNR) are located on the site. The government also encourages the establishment of centres of excellence based on public-private partnerships, notably through the Luxembourg Cluster Initiative. In order to create new economic activities, the government is promoting entrepreneurship by strengthening the country’s capacities to host and support young start-up companies. The Technoport® and House of Biohealth incubators are also located in the City of Sciences, Research and Innovation. At the end of 2014, the government launched the "Digital Lëtzebuerg" strategy which promotes Luxembourg as a "smart nation" that is modern, open, highly connected and prepared for a digital society. An international dimension for Luxembourg research In order to an international dimension to Luxembourg’s research sector, the government encourages scientific collaborations and researcher mobility. It also aims to strengthen the country’s participation in European research programmes and in international scientific and technology cooperation initiatives. Within the context of its cooperation with the European Space Agency (ESA), the government implements a national action plan for space technologies and sciences. The aim is to create applications, products and services with high added value based on satellite infrastructure. Private sector innovation and research for economic competitiveness The technology and innovation policy aims to encourage companies to undertake R&D and innovation activities. To this end, the government aims to promote entrepreneurship and define and implement support instruments and funding schemes. The enhanced support instruments made available through the amended law of 5 June 2009 on the promotion of research, development and innovation allows the State to support private initiatives. Particular attention is paid to small and medium-sized enterprises (SMEs). The government also encourages the development of intellectual property to drive economic growth. The Institut de la Propriété Intellectuelle Luxembourg (IPIL) (Intellectual Property Institute Luxembourg) was established in 2014. Public research, a successful key sector The government aims to develop and consolidate public research scientific and technological capacities, in collaboration with the private sector. In order to contribute to the development of scientific human resources, the government strives to create a favourable environment for employment growth in the fields of science and technology that will give interesting career opportunities to researchers and facilitate their geographic and inter-sector mobility. The University of Luxembourg has chosen to focus its research activities on a number of priority areas with high potential while promoting an interdisciplinary approach. The government intends to enhance the synergies between the University and the public research centres by promoting a dialogue on research areas and activities as well as the mobility of teachers and researchers.