Research and development (R&D) projects or programmes Beneficiaries All enterprises are eligible. Forms of aid Funding can be provided for enterprises entering into R&D projects or programmes according to the maxima funding rates as defined here below. R&D activities have to be classified either as experimental development or industrial research. A single project/programme may comprise different experimental development and/or industrial research activities. All costs directly related to the R&D project or programme are admissible: (a) personnel costs: researchers, technicians and other supporting staff to the extent that they are employed on the project; (b) costs of instruments and equipment to the extent and for the period that they are used for the project. Where such instruments and equipment are not used for their full life for the project, only the depreciation costs corresponding to the life of the project, as calculated on the basis of generally accepted accounting principles, are considered eligible; (c) costs of contractual research, knowledge and patents bought or licensed from outside sources at arm's length conditions, as well as costs of consultancy and equivalent services used exclusively for the project; (d) additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the project. The aid intensity may be increased by 15% if the project involves effective collaboration: with a research institute that bears at least 10 % of the eligible costs and have the right to publish their own research results; with a small and medium-sized enterprise or an independent company located in another European Union member state or in Iceland, Liechtenstein and Norway. Maximum aid intensity Large enterprise Medium-sized enterprise Small enterprise Experimental development 25% 35% 45% Experimental development + collaboration 40% 50% 60% Industrial research 50% 60% 70% Industrial research + collaboration 65% 75% 80% ‘Industrial research’ means the planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services. It comprises the creation of components parts of complex systems, and may include the construction of prototypes in a laboratory environment or in an environment with simulated interfaces to existing systems as well as of pilot lines, when necessary for the industrial research and notably for generic technology validation. ‘Experimental development’ means acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills with the aim of developing new or improved products, processes or services. This may also include, for example, activities aiming at the conceptual definition, planning and documentation of new products, processes or services. Experimental development may comprise prototyping, demonstrating, piloting, testing and validation of new or improved products, processes or services in environments representative of real life operating conditions where the primary objective is to make further technical improvements on products, processes or services that are not substantially set. This may include the development of a commercially usable prototype or pilot which is necessarily the final commercial product and which is too expensive to produce for it to be used only for demonstration and validation purposes. Experimental development does not include routine or periodic changes made to existing products, production lines, manufacturing processes, services and other operations in progress, even if those changes may represent improvements. Submitting an application Use the guidelines to submit your application. In addition, any company less than 3 years old must also include a business plan. Aid applications and their appendixes should be submitted both: in electronic format (pdf and docx or doc, rtf, odt) to the following e-mail address: firstname.lastname@example.org. The mail subject must include the name of the company and the name of the project and in paper format to the Ministry of the Economy, Directorate of Research and Innovation, L-2914 Luxembourg Luxinnovation will be pleased to help you prepare your application free of charge.