Luxembourg’s Government has invested substantial financial and organisational resources to power the transformation of specific sectors. State aid for research and development focused on innovation across businesses, including the services sector, is given in the form of direct grants or loans from the public-law banking institution (SNCI). Innovative start-ups are incubated, hosted and coached in publicly-owned facilities to ease their early development and access to State services and support.
While emphasised in the private sector, R&D is mostly in the hands of a few large players in traditional sectors such as steel and automotive components. The Government is broadening the focus to include information and communication technology, logistics, health technologies, energy and the environment. Towards that end, it supports “cluster” organisations to facilitate intra-sector cooperation. A major tool in the drive is the new City of Sciences industrial park located on a brownfield site and that will include three public research centres and parts of the University of Luxembourg.