R&D funding

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To fund research and development projects, companies can apply for various aid – regional, national or from the European Union.

Photo : Doctor meeting on funding © AdobeStock
Doctor meeting on funding © AdobeStock

The laboratories of the University of Bordeaux are bodies accredited by the Ministry of Research.
Partnerships between the public and private sector quickly raise the issue of sharing created value. As in any partnership, costs are shared, as are any potential profits from the results:

  • Costs associated with the research project are shared
  • Potential profits are shared, including through the principle of co-ownership of intellectual property resulting from the joint research work, which can take various forms such as patents, software, know-how and copyright.

To help socio-economic players innovate, there are several different funding measures, including:

Aid from the University of Bordeaux

Depending on the project and the TRL (Technology Readiness Level), the funding arrangements can be explored between the laboratories and departments of the University of Bordeaux and its partners. The University of Bordeaux keeps all its calls for projects intended for researchers on a dedicated website.

Aid from the Nouvelle-Aquitane Regional Council

Aid from the European Union

Aid from the French government

  • BPI France and the innovation axis diagnostics, which provides funding to project leaders, SMEs and mid-cap companies that want to identify potential innovation axes or perform a feasibility study for a specific project using the services of a service provider. 50% of the price for the services of an expert, council or technician up to €16,000 is covered. Costs linked to filing a first patent are eligible.
  • Pass PI, an INPI scheme, is a financial support measure offered by the INPI (National Institute of Industrial Property) to encourage startups and SMEs to take steps to protect their innovations and creations. The scheme offers a reduced price for a service provided by an expert in intellectual property (patent attorneys, lawyers, etc.).

FOCUS: Tax credit for research partnerships (CICO)

The 2022 Finance Law introduced a tax credit for research partnerships to encourage businesses to launch R&D projects as part of research partnerships with institutions specialising in research and knowledge transfer.
Its main goal is to create an incentive for businesses (especially SMEs and startups) to undertake R&D activities as part of research partnerships:

  • A scheme that is separate from the CIR (research tax credit);
  • Restricted to R&D expenses that companies incur and that are borne by research and knowledge dissemination bodies (ORDC) as part of a true research collaboration;
  • Compliance with the aid levels authorised by the General Block Exemption Regulation (GBER) relating to aid for R&D&I.

Eligible expenses are those invoiced by an ORDC:

  • Invoicing by the ORDC at cost price (full price - direct and indirect costs - no sales margin).
  • Deduction of the share of public aid received by the ORDC and by the company for the research work carried out together.
  • Expenses not declared in relation to the CIR.
  • Expenses capped at €6 million/year/company.

Tax credit rate:

  • The tax credit is equal to 50% of the eligible expenses accepted (up to €6 million of declared expenses) for SMEs. It is equal to 40% for mid-cap companies and large companies, up to €6 million of declared expenses.
  • The rate does not change depending on the various categories of R&D work (basic research, applied research, experimental development).
  • The rates cap the level of aid authorised for government aid for R&D&I, with no difference in rates depending on the different categories of R&D activities.

As an ORDC, the University of Bordeaux (incorporating its research components) is eligible to receive the CICO.

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FOCUS: Research tax credit (CIR)

Depending on whether your project is eligible, you can receive the research tax credit (CIR).

The CIR is a generic support measure for research and development (R&D) activities undertaken by companies, without restrictions to the company’s sector or size. Companies that spend money on basic research and experimental development can receive the CIR by deducting them from their tax, under certain conditions.
The research tax credit varies depending on the amount of the research expense:

  • If the research expense is less than €100 million, the rate is 30%.
  • If the research expense is more than €100 million, the rate is 5%.

The CIR is determined per civil year, regardless of the year-end date. Public subsidies received for research projects entitling to the CIR must be deducted from the basis for calculating the credit (also including the amount received from the ANRT for the CIFRE grant). Repayable subsidies are added to the base calculations for the year when they are repaid.

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