More funds for biotech companies as new State Aid Rules recognize Young Innovative Company Status
The European Commission has just published new state aid rules - backed by a communication on tax incentives to stimulate R&D. The new rules recognize EuropaBio's Young Innovative Companies (YIC) status as an eligibility criterion for state aid. This will enable Member States - who so wish - to provide extra public funds like tax and other financial incentives to their young innovative biotechnology companies without running into trouble with EU competition rules. The YIC was introduced as a EuropaBio policy by France Biotech who successfully campaigned for it in France. In addition to the R&D tax incentives communication, the new EU rules enable governments to give extra incentives to companies that are less than 6 years old and spend 15% or more of their revenues on R&D. With effect from January 1st, 2007, the new EU rules, which are not sector specific, will benefit research, development and innovation across Europe.
The biotech industry expects that these measures will encourage more private and institutional investors to invest in biotech companies which need to raise substantial sums of money to meet the increasingly high costs of research and development.
"Our industry welcomes the Commission's new state aid rules which will hopefully contribute to create a more attractive environment for research intensive enterprises in Europe," says Philippe Archinard, Chairman of the Emerging Enterprise Council at EuropaBio - the EU association for bioindustries.
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