Innovation Europe > News > Innovation EU Vol1-1 > Malta Enterprise

The small but highly ambitious Mediterranean island of Malta has become one of the most attractive investment locations in the region, and part of the reason why this will continue to be true is the support now available to assist businesses to innovate and to get involved in R&D.

Positioned strategically between Europe and North Africa, Malta is building a strong reputation as a hub for expansion-focused businesses. It is also an ideal location for technology transfer and for the setting up of pilot projects showcasing new technologies.

The Maltese have a historical reputation for innovation, creativity and the ability to adapt to new ideas. From the extraordinary 7,000-year-old Neolithic temples, the oldest known human structures in the world, decorated with sophisticated statuary and carvings, to Phoenician shrines and burial places, ancient Roman villas, bath houses and olive oil presses, Medieval chapels, Baroque palaces and Renaissance cathedrals, the island provides a living snapshot of an enduring and fascinating history. Malta’s just-over 400,000 inhabitants are among the most international of peoples having been influenced in turn by the Phoenicians, Romans, Arabs, Normans, Bourbons, the Knights of St John, the French and finally the British.

Malta offers investors the security and ease of operating from inside the EU’s borders whilst being within easy reach of the emerging markets of North Africa and the Middle East. A top-class legislative framework, stable political and economic environment, and a cost-effective, driven workforce make Malta a good breeding ground for new technologies and innovative businesses. The country’s efficient business climate, excellent infrastructure and superior lifestyle make Malta a unique place in which to do business and carry out research.

Recently the Maltese Government intensified its support to encourage enterprises from all sectors to carry out R&D activities. It is doing this through an incentive package, administered by Malta Enterprise, the government’s business support agency which also hosts Malta’s Enterprise Europe Network office and operates an incubation centre for innovative businesses. The package is aimed at incentivising industrial research and experimental development, ie R&D which is close to the market. The incentives provide for a number of new support measures which companies based in Malta can benefit from:

Five Non-Fiscal Incentives (Cash Grants):

• ERDF – Industrial Research and Experimental Development Scheme;
• EUREKA Projects Scheme;
• Preparatory Technical Feasibility Studies Scheme;
• Loan of Highly Qualified Personnel (Temporary Attachments) Scheme;
• Innovation Clusters and Collaborations Scheme.

Three Fiscal Incentives (Tax Credits):

• Industrial Research Tax Credits;
• Experimental Development Tax Credits;
• Industrial Property Rights for SMEs.

It must be noted that companies set up specifically to engage in R&D were already eligible for investment aid under Malta’s Investment Tax Credit scheme.

The first call under the ERDF (Industrial Research and Experimental Development Scheme) closes on 2 October 2009. This scheme is funded through EU European Regional Development Funds. It is one of seven such-funded schemes administered by Malta Enterprise and has a total allocated budget of e3.5 million.

Another of these schemes aims specifically at encouraging innovation. e4 million are available through the ERDF Innovation Actions Grant Scheme which is assisting SMEs to invest in product, process, service or organisational innovation. A first call under this scheme closed on 11 March 2009, and a total of 68 applications were received, 23 of which are being assisted with a total grant value of around e2 million. A second call for applications under the ERDF Innovations scheme closed in July 2009.

For more on Malta’s R&D package for enterprises go to
http://support.maltaenterprise.com