Research and innovation policy Considering the importance of R&D and innovation for a competitive knowledge-based economy, the government has set as an objective to increase R&D-related expenses to the interval of 2,3% to 2,6% of the Gross Domestic Product (GDP), in accordance with the objectives laid out by the "Europe 2020" strategy. The State budgets dedicated to R&D and innovation, which are set aside for the public sector as well as for private sector support, have constantly increased from €28 millions in 2000 (corresponding to 0.13% of GDP) to €326,4 millions in 2014 (corresponding to 0.69% of GDP). The policy of the Luxembourg government relating to research, development and innovation has the following concrete objectives: Research and innovation for economic growth R&D and innovation are considered to be crucial for the growth and competitiveness of the Luxembourg economy. The government places particular importance on increasing collaboration between public research and research carried out in the private sector. The government thus aims to strengthen the synergies between research and innovation actors in Luxembourg by encouraging the coordination of research activities and by promoting researchers’ inter-sector mobility. These synergy efforts will be visible through the concentration of activities in the City of Sciences, Research and Innovation in Belval, where a technological campus which favours public-private cooperation is now established. The Luxembourg Institute of Science and Technology (LIST), the Luxembourg Institute of Socio-Economic Research (LISER) and the Luxembourg Centre for Systems Biomedicine of the University of Luxembourg are the first public research organisations which have already located their activities there. Moreover, the government encourages the establishment of centres of excellence based on public-private partnerships. This approach is based, among other things, on the experiences of the work on technology clusters, within the framework of 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, also located in the City of Sciences, Research and Innovation, offers accommodation to project promoters and young technology-based innovative enterprises. End 2014, the government launched the "Digital Lëtzebuerg" strategy which promotes a new face of Luxembourg as a "smart nation," modern, open, connected and highly adorned for a digital society. With its infrastructure and first-class expertise and a culture of trust and security reflected by an adequate legal framework, Luxembourg is well positioned in the field of information and communications technology (ICT). The Grand Duchy has experienced in recent years, a sudden significant growth with the development of innovative technology-based companies, whether in the area of electronic commerce, digital content, cloud computing, Big Data or even electronic payments. The first initiatives include: development of telecommunications infrastructure support for innovation and access to finance for start-ups innovation in services to the financial sector ("FinTech") digital competence ("e-skills") e-government promotion of Luxembourg assets abroad Giving an international dimension to research in Luxembourg With the objective of adding an international dimension to Luxembourg’s research, the government encourages scientific collaborations and researcher mobility. It also aims to strengthen the participation in European research programmes as well as scientific and international technology cooperation initiatives amongst Luxembourg actors. In the framework of its cooperation with the European Space Agency (ESA), the government is pursuing its national action plan concerning space technologies and sciences in an attempt to create recurring applications, products and services with high added value based on satellite infrastructures. Innovation and private research at the centre of economic competitiveness Concerning innovation and private research, the government aims to maintain and strengthen the competitiveness of Luxembourg companies by encouraging them to develop their technological know-how, create new economic activities and generate additional added value. The technology and innovation policy aims to encourage companies to undertake R&D and innovation activities. To this end, the government leads a proactive entrepreneurial policy which, among other things, aims to promote entrepreneurship and to define and implement support instruments and financing measures. The enhanced support instruments available through the implementation of 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 given to Small and Medium-Sized Enterprises (SMEs). "Fit for Innovation" a specific programme for supporting innovation within SMEs managed by Luxinnovation is now available. The government also encourages the development of intellectual property as economical factor and wealth creator. The Institut de la Propriété Intellectuelle Luxembourg (IPIL) was then launched in 2014. Public research, a successful key sector Concerning public research, the government heads a policy aiming to develop and consolidate scientific and technological capacities in collaboration with the private sector. The governmental action is based on a multi-annual programming strategy supported by agreements between the government and public research actors. It covers research with both business and social purposes. The activities implemented by the National Research Fund (FNR) and Luxinnovation, the National Agency for Innovation and Research, are part of this policy. In order to contribute to the development of scientific human resources, the government aims to create an environment conducive to the growth of employment in the fields of science and technology, allowing the promotion of career perspectives and geographical and inter-sector mobility for researchers. With its dual mission of teaching and research, the higher education sector contributes, just like public research, to strenghtening social cohesion and economic development in Luxembourg. The government aims to increase the number of university graduates. To this end opportunities for further training will be extended and life long learning will be encouraged. On the level of research, the University should focus on a number of priority areas with high potential while promoting an interdisciplinary approach. The government intends to enhance synergies between the University and the public research institutions by promoting a dialogue on research areas and activities as well as mobility of teachers and researchers. Moreover, in order to guarantee a sustainable development, the University’s autonomy will be reinforced.