L 137/50
EN
Official Journal of the European Union
25.5.2023
3.2.3.
Proportionality of the aid
3.2.3.1.
G ene ra l c on d i ti on s
76.
For any R&D&I aid to be considered proportional, its amount must be limited to the minimum needed for carrying out the aided activity.
3.2.3.1.1.
Maximum aid intensities
77.
In order to ensure that the level of aid is proportionate to the market failures which it is intended to address hindering the implementation of the R&D&I activities to be triggered by the aid measure in question, the aid must be determined in relation to a predefined set of eligible costs and limited to a certain proportion of those eligible costs ('aid intensity').
The aid intensity must be established for each beneficiary of aid, including in a collaboration project.
78.
To ensure predictability and a level playing field, the Commission applies maximum aid intensities for R&D&I aid, which are established on the basis of three criteria: (i) the closeness of the aid to the market, as a proxy for its expected negative effects and the need for it, taking into account the potential higher revenues that can be expected from the aided activities; (ii) the size of the beneficiary as a proxy for the more acute difficulties generally faced by smaller undertakings to finance a risky project; and (iii) the acuteness of any market failure, such as the expected externalities in terms of dissemination of knowledge.
Therefore, aid intensities should generally be lower for activities linked to development and innovation than for research activities.
These considerations apply similarly to the aid intensity for aid for testing and experimentation infrastructures, which, by definition, would provide predominantly services to undertakings for R&D activities closer to the market.
79.
The eligible costs for each aid measure covered by this framework are set out in Annex I. When an R&D project encompasses different tasks, each eligible task must fall under the categories of fundamental research, industrial research or experimental development (57).
When classifying different activities according to the relevant category (58), the Commission will refer to its own practice as well as to the specific examples and explanations provided in the OECD Frascati Manual (59).
80.
The R&D&I eligible costs shall be supported by the most recently available documentary evidence which shall be clear and specific.
Additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the project, may alternatively be calculated on the basis of a simplified cost approach in the form of a flat-rate of up to 20 %, applied to total eligible direct R&D project costs defined in Annex I, point (a) to (d) and point (g) for health relevant/related R&D projects.
In this case, the R&D project costs used for the calculation of indirect costs shall be established on the basis of normal accounting practices and shall comprise only eligible R&D project costs listed in Annex I, points (a) to (d) and point (g) for health relevant/related R&D projects.
For projects co-funded under Horizon Europe programme Member States may use the Horizon Europe simplified cost methodology to calculate indirect R&D project costs.
81.
The maximum aid intensities generally applicable to all eligible R&D&I measures are set out in Annex II (60).
Unless otherwise specified in the Framework, all aid intensities applicable to R&D&I measures under the General Block Exemption Regulation will guide the Commission’s assessment of the categories of notifiable measures.
(57) This qualification does not necessarily need to follow a chronological approach, moving sequentially over time from fundamental research to activities closer to the market.
Accordingly, nothing will prevent the Commission from classifying a task, which is carried out at a later stage of a project as industrial research, while finding that an activity carried out at an earlier stage constitutes experimental development or is not research at all.
(58) For practical purposes and unless it is shown that a different scale should be used in individual cases, the different R&D categories can also be considered to correspond to Technology Readiness Levels 1 (fundamental research), 2-4 (industrial research) and 5-8 (experimental development) – see Communication from the Commission, ‘A European strategy for Key Enabling Technologies – A bridge to growth and jobs’, COM(2012) 341 final, 26.6.2012.
(59) OECD Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development, as amended or replaced.
(60) Without prejudice to specific provisions applying to aid for research and development in the agricultural and fisheries sectors, as laid down in a block exemption Regulation.