General principles Funding criteria Several funding criteria apply to the granting of research, development and innovation aids. General conditions are also applicable to verify the eligibility of interested companies. Innovation In this context, innovation means the implementation of a new or significantly improved product (good or service) or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations (Oslo Manual, 3rd edition). Applicants should aim at developing competitive advantages on their market and explain the innovation with respect to the state of the art. Economic impact The Luxembourg aid schemes are impact-driven. While it is in the very nature of RDI aids to cover part of the project risks, applicants have to explain the expected return on investment if the project is successful. The expectations include notably that Luxembourg entities shall aim at being profit centres and developing additional substance. Financial capacity Any RDI project is an investment requiring available cash flows. While RDI aid schemes can be used to leverage the financial capacity of a company, applicants need to demonstrate the availability of funds to launch their projects and ensure the liquidity over the project duration and the existence of means to exploit the project results and bring them to the market. Incentive effect No aid can be granted if the project can be carried out in the same way without aid. It is of utmost importance to apply for RDI aids before starting the project, meaning that the applicant should not take any prior commitment (i.e. signing a joint development agreement or taking any other irreversible step related to the project implementation). In the case of large enterprises, the incentive effect shall be documented, meaning that the company will have to explain how the aid will change the project scope. Scheme specific criteria The schemes of the Law of 17 May 2017 relating to the promotion of Research, Development and Innovation have different objectives. Specific criteria are detailed in the dedicated section for each aid scheme. Please note that the funding rates are maxima rates according to the law. The allocation of aids remains a competence of the Ministers of the Economy and of Finance. Aids are thus granted in a discretionary manner on a case by case basis. Available support Luxinnovation provides personalised assistance that takes into account the specificities of individual projects. The role of Luxinnovation is to provide guidance to applicants when preparing their RDI investments. Luxinnovation allocates a dedicated multi-disciplinary team to your project and develops tailor-made solutions, while maintaining the strictest confidentiality. As part of this support, Luxinnovation will also assist applicants in meeting the funding criteria.