25.5.2023
EN
Official Journal of the European Union
L 137/59
(iv) Selection process: aid measures which allow undertakings with a strong market position to influence the selection process, for example by having the right to recommend undertakings in the selection process or influencing the research path in a way which disfavours alternative paths on unjustified grounds, are liable to raise concern by the Commission.
(c)
Maintaining inefficient market structures
127.
In its analysis of market structures, the Commission will consider whether the aid is awarded in markets featuring overcapacity or in declining industries.
However, in situations where the market is growing or where State aid for R&D&I is likely to change the overall growth dynamics or in particular the GHG emissions’ footprint of the sector (in accordance with the European Green Deal and European Digital Strategy Communications), notably as a result of introducing new technologies, for example to achieve decarbonisation or the digitalisation of the production, or both, without an increase in capacities, such aid is not likely to raise concerns.
3.2.5.3.2.
Location effects
128.
In particular where R&D&I aid is close to the market, it may result in some territories benefiting from more favourable conditions in respect of subsequent production, particularly because of comparatively lower production costs as a result of the aid or due to higher levels of R&D&I activities pursued through the aid.
That may lead undertakings to re-locate to those territories.
129.
Location effects may also be relevant to research infrastructures and testing and experimentation infrastructures.
If aid is mainly used to attract an infrastructure to a particular region at the expense of another, it will not contribute to promoting further R&D&I activities in the Union.
130.
In its analysis of notifiable individual aid, the Commission will accordingly take into account any evidence that the aid beneficiary has considered alternative locations.
131.
Likewise, aid that merely leads to a change in location of R&D&I activities within the internal market without changing the nature, size or scope of the project will not be considered compatible.
3.2.6.
Weighing up the positive and the negative effects of the aid
132.
The Commission assesses whether the identified negative effects on competition and trading conditions of the aid measure outweigh the positive effects of the planned aid.
3.2.6.1.
I de n ti f y i n g t he po si t i v e ef fec t s t o b e ta ken in to ac c ou n t
133.
There is a correlation between economic growth and R&D&I investment.
R&D&I activity increases productivity and boosts economic development.
Hence, R&D&I is an important factor for the Union undertakings to ensure economic development by means of developing new products, technologies, services or production processes or both.
134.
Investments in R&D&I are of high importance for the development of all sectors of the economy, since they are strongly linked to productivity.
135.
As a first step of the balancing test, the Commission will assess the positive effects of the aid on the aided economic activity, duly taking into account the R&D&I activity which is triggered by the aid measure in question, or the size, scope or speed of the R&D&I project which is to be enhanced by the aid measure.