State aid background

The concern that cross-border collaborations may infringe State Aid rules was raised in the first cycle report of the expert group. The nature and value of R&D assistance permitted is set out in the Community Framework for State Aid for Research and Development . In June 2005, the EC adopted a State Aid Action Plan outlining the guiding principles for a comprehensive reform of state aid rules and in September 2005 a consultation document on State Aid for Innovation was published. In their consultation document, the Commission noted that IPRs generated through R&D should be allocated between partners on a pro-rata basis and that where the purpose of the aid is to promote a common European interest it should not be considered as state aid.