EU unveils state aid innovation plans

Brussels is set to unveil draft plans to shake up state aid for small businesses on Wednesday in a bid to boost innovation and research.

As part of the European Commission's drive for dynamism and innovation, EU competition chief Neelie Kroes will launch plans tomorrow to ease subsidy rules for small business.

The proposals will widen the scope of current rules governing research and development aid to small and medium sized businesses in innovation based industries.

Boosting innovation is seen as key to help meeting the targets of the re-launch Lisbon Strategy to be a leading world class economy by 2010.

The proposals lay out ways to support innovation through state aid, including aid for new start-ups through tax exemptions and subsidies and flexibility for state aid to risk capital.

Aid will be granted to SMEs needing funds to boost research, and Brussels will approve funding that allows SMEs to recruit researchers boost exchanges between universities.

The proposals will be opened to consultation with member states before a final version of the plans are published.

 

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