While state aid have not worked.
Research and development was identified by the Commission in a meeting in Lisbon as key to making the EU “the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion."
In a statement, the Commission described the Regulation as simplifying and facilitating Member States' research and development initiatives.
The proposal foresees that Member States may cover up to 100% of expenses for fundamental (basic, non market-oriented) research, 60% for industrial (market-oriented) research and 35% for pre-competitive development (market-oriented research, but focusing on the pre-commercial stage).
The new Regulation does not prejudge other types of research and development aid, but these aid measures will need to be notified and examined by the Commission on a case-by-case basis.
European Competition Commissioner Mario Monti said:
"The proposed Regulation will enable a speedier implementation of the research and development measures taken by the Member States in favour of SMEs.”
The Commission is launching a consultation process with Member States and hopes to adopt the Regulation by the end of the year.