The annoucement was the latest in a raft of financial measures aimed at supporting businesses during the health crisis and finding solutions
Luxembourg has earmarked €30m for R&D and investment projects that will develop products to combat the covid-19 health crisis.
The aid scheme was approved on Wednesday and focuses on industrial research and experimental development projects as well as investment projects.
According to a government press release, companies may also request a guarantee covering up to 30% of losses linked to the investment and an absolute amount of €500,000 per company.
Examples of R&D projects eligible for support include research and development on medical devices or hospital equipment such as fans, protective equipment or disinfectants, as well as process innovations for more efficient production of the necessary products.
Up to 80% of the costs of an industrial research and experimental development project can be covered, or up to 100% in the case of basic research. If the R&D project is carried out as part of a cross-border collaboration with another company or research organisation, the aid may be increased by 15% but may not exceed 100% of the costs.
Eligible investment projects may relate in particular to the production of products relevant to the fight against Covid-19, medical devices, hospital and medical equipment (protective clothing and equipment, ventilation equipment, diagnostic tools, disinfectant). Such an investment project may receive aid of up to 80% of the investment costs. The aid rate may be increased by 15% if the investment project is fully completed within two months.