The Official Journal of the European Union has published last 17th July the agreement of the European Commission in relation to compatibility of aids under Article 87(3) (c) of the EC Treaty given that the measure is in line with the Community Framework for State aid for Research and Development and Innovation.

The objective of the notified measure is to conduct social and commercial investment in young innovative enterprises in order to support and promote talent, innovation and creativity in the fields of science, technology and the arts. Investment beneficiaries (investees) must be able to be classified as a small innovative enterprise and less than six years old at the time of the investment allocation.

The duration of the scheme is from the date of the measure's approval by the European Commission until 31 December 2013. The aided activity will not commence prior to the aid application by the beneficiary. The total budget of the scheme is approx. € 67 million (GBP 50 million).

Beneficiaries for the grants

The measure targets small innovative enterprises that must be less than six year old at  the time of the investment allocation. This determination will be done by NESTA’s independent Investment Committee. Beneficiaries may originate from throughout the United Kingdom, including, but not limited to, regions designated eligible for assistance under Article 87(3)(c) and (a) of the EC Treaty. The beneficiary may receive the aid only once during the period in which it qualifies as a young innovative enterprise. The initial allocation will occur in a single transaction of up to € 1 million in non-assisted areas or up to € 1.25 million in Article 87(3)(c) regions or up to €1.5 million in Article 87(3)(a) regions per beneficiary.

What is NESTA

NESTA is the National Endowment for Science, Technology and the Arts a unique body with a mission to make the UK more innovative. We invest in early-stage companies, inform and shape policy, and deliver practical programmes that inspire others to solve the big challenges of the future.