Recent Changes and Developments in State Aid for Research, Development and Innovation in the European Union

Competitiveness involves a variety of factors, however recently special attention has been paid to innovative solutions that have become crucial for the development of firms and economies. Due to the fact that there are many market failures identifi ed within research and development activities, many theorists, entrepreneurs and politicians accept granting R&D&I state aid to companies assuming that it should simultaneously contribute to the enhancement of innovation and, consequently, competitiveness of the EU economy. The paper is aimed at assessing the focus of state aid policy on research, development and innovation in the light of theory and practice (based on the recent experience). To this end we will analyse theoretical arguments for interventions supporting R&D activities, legal bases and criteria of admissibility for state aid for R&D&I, as well as, importance of R&D&I public aid in the EU Member States. The analysis of legal changes in conditions of admissibility of aid granted for research, development and innovation confirms that such aid belongs to the concept of improved economic competitiveness, also of the EU industry. However, like any government intervention, the aid should target only enterprises with real development potential and only when they are faced with market failures. As regards a position of state aid to R&D&I in public spending, remarkably, in the times of economic crisis more developed countries with higher GDP engaged more public budget resources into R&D&I activities.