Commission communication amending the Community framework for State aid for research and development
Date: 1998-02-13
Institutions: European Commission
Subjects: State aid, aid to industry, competition policy, innovation, research and development, technological change

C  48/2

EN

Official  Journal  of  the  European  Communities

13.2.98

Commission  communication  amending  the  Community  framework  for  State  aid  for  research
and  development

(98/C  48/02)

(Text  with  EEA  relevance)

1.(cid:217)Article  130(1)  of  the  EC  Treaty  states  that  the
Community  and  the  Member  States  are  to  take  action
aimed  at  "fostering  better  exploitation  of  the  industrial
potential  of  policies  of  innovation,  research  and  tech(cid:220)
nological  development’.

2.(cid:217)It  follows  from  the  principle  laid  down  in  Article  3(g)
of  the  EC  Treaty  that  such  actions  taken  by  Member
States  have  to  be  compatible  with  the  common  market
and  the  rules  governing  State  aid,  which  are  based  on
Articles  92  and  93  of  the  EC  Treaty.

to 

the  achievement  of 

3.(cid:217)One  aim  of  competition  policy  is  to  improve  the  inter(cid:220)
national  competitiveness  of  Community  industry  and
thereby  contribute 
the
objectives  set  out  in  Article  130(1)  of  the  EC  Treaty.
The  competition  rules  must  therefore  be  applied
constructively  to  encourage  cooperation  which  helps
new  technology  to  be  developed  and  disseminated  in
the  Member  States,  while  observing  the  rules  on  intel(cid:220)
lectual  property  rights.  In  the  control  of  State  aid,
regard  must  be  paid  to  the  need  for  resources  to  be
made  available  to  those  sectors  which  will  contribute
to 
the  competitiveness  of  Community
industry.

improving 

4.(cid:217)The  Commission  has  expressed  its  favourable  view  on
State  aid  for  R(cid:216)&(cid:216)D  in  its  Community  framework  for
research  and  development(cid:216)(˛).  According  to  point  9  of
this  framework  the  Commission  may  at  any  time,  in
cooperation  with  the  Member  States,  decide  to  amend
it,  should  that  prove  necessary  for  reasons  connected
with  competition  policy  or  to  take  account  of  other
Community  policies  and  international  commitments.

5.(cid:217)The  Commission 

has 

recently 

reviewed 

this
framework  in  cooperation  with  the  Member  States  as
regards  certain  research  and  development  aids  in  the
agricultural  sector.  It  has  concluded  that  it  would  be
advisable  for  policy  in  this  area  not  to  be  subject  to
the  maximum  limit  of  75(cid:216)%  applicable  in  all  instances
(except  for  fundamental  research)  where  the  aid  fulfils
the  conditions  of  Article  92(1)  of  the  Treaty  but  to
allow  rates  of  up  to  100(cid:216)%  in  defined  circumstances,
consistent  with  EC  obligations  under  the  WTO.  It  is
recalled  that  the  Agreement  on  agriculture  provides
for  derogations  from  the  Agreement  on  subsidies
where  aid  involves  research  in  agriculture  of  a  general
nature.

6.(cid:217)In  order  to  achieve  this  policy  objective,  the  following

point  is  inserted  in  the  framework:

"5.14

As  regards  R(cid:216)&(cid:216)D  aid  concerning  products  listed  in
Annex  II  to  the  EC  Treaty,  and  by  way  of  derogation
from  aid  intensity  limitations  or  supplements  specified
elsewhere  in  this  framework,  the  Commission  will,  as
was  the  case  prior  to  1997,  allow  gross  aid  intensities
of  up  to  100(cid:216)%  even  in  cases  where  the  R(cid:216)&(cid:216)D  is
carried  out  by  firms,  subject  to  fulfilment  in  each  case
of  the  four  following  conditions:

-(cid:217)it  is  of  general  interest  to  the  particular  sector  (or
subsector)  concerned,  without  unduly  distorting
competition  in  other  sectors  (or  subsectors),

-(cid:217)information  is  pubished  in  appropriate  journals,
with  at  least  national  distribution  and  not  limited
to  members  of  any  particular  organisation,  to
ensure  that  any  operator  potentially  interested  in
the  work  can  readily  be  aware  that  it  is  or  has
been  carried  out,  and  that  the  results  are  or  will  be
made  available,  on  request,  to  any 
interested
party.  This  information  shall  be  published  no  later
than  any  which  may  be  given  to  members  of  any
particular  organisation,

-(cid:217)the  results  of  the  work  are  made  available  for
exploitation  by  all  interested  parties,  including  the
beneficiary  of  the  aid,  on  an  equal  basis  in  terms
both  of  cost  and  of  time,

-(cid:217)the  aid  fulfils  the  conditions  laid  down  in  Annex
II,  ""Domestic  support:  the  basis  for  exemption
from 
the
Agreement  on  agriculture  concluded  during  the
Uruguay  Round  of  multilateral 
trade  nego(cid:220)
tiations(cid:216)(ˇ).

commitments’’, 

reduction 

the 

to 

Cases  of  R(cid:216)&(cid:216)D  aid  for  Annex  II  products  not
fulfilling  the  above  conditions  are  to  be  examined
under  the  normal  rules  of  the  present  framework.

When  examining  aid  schemes  notified  by  Member
States,  the  Commission,  reserves  the  right  to  request
notification  of 
im(cid:220)
plementing  the  scheme’.

significant 

individual 

cases 

(˛)(cid:217)OJ  C  45,  17.2.1996,  p.  5.

(ˇ)(cid:217)OJ  L  336,  23.12.1994,  p.  31.