Innovation Europe > News > Innovation EU Vol1-1 > Luxembourg

Luxembourg performs particularly well in the “Innovation & entrepreneurship”, “Applications”, and “Intellectual property” categories. It also has high-level performance for the indicators of “Enterprises receiving public funding”, “Exports of high-technology products”, “Triad patents and Community trademarks”. The country is among the most efficient EU countries for transforming of innovation inputs into outputs.

Main innovation challenges

• To strengthen R&D activity in the public and private sectors.
• To reinforce synergies, complementarities and collaboration between the public and private R&D centres.
• To provide sufficient SME human resources.
• To favour the creation and development of new companies.
• To promote intellectual property.

Action

Last year was marked by important changes in innovation governance and a range of government measures implemented that will have an impact in the mid to long term. When all the foreseen measures are implemented, Luxembourg will have a complete and adequate innovation system and policy. However, further changes could include:

• To stimulate innovation in SMEs with “innovation vouchers”, already implemented in the Netherlands, that allow SMEs to buy knowledge from public or private research institutes.
• To set up indirect financing measures such as fiscal incentives or corporate tax credits for R&D expenses (implemented in France).

Finally, the Science, Technology and Innovation Policy has historically been orientated towards the manufacturing industry, rather than the service sector. Yet, the latter has increased the wealth of the country and international recognition. The service sector also accounts for more than 80% of GDP and 70% of total employment, so it might be worthwhile concentrating R&D policy towards this sector.