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PR(94)18: Surveillance Authority authorises R&D aid to ‘ir3 VIDEO INTERNATIONAL GMBH’ Vienna/Austria


The EFTA Surveillance Authority today authorised aid granted to a research and development project of "iR3 Video International GmbH” Vienna. Having found that the aid is in line with the EEA provisions on State aid, the Authority has decided to authorise it under Article 61(3)(c) of the EEA Agreement.

The aid is to be given in support of a project of iR3 Video International which involves R&D activities in the field of video technology. The company is a wholly owned subsidiary of Österreichische Philips Industries GmbH, Vienna. The overall cost of the project is estimated at ATS 2,563.6 million, of which. ATS 986.3 million is considered eligible for State aid. The maximum total amount of aid in support of the project is ATS 225 million.

The project of the company does not involve basic industrial research. For applied research in the field of digital video technology and product and process development of VHS/SVHS video technology, an aid intensity of 25 % is foreseen. For product and process development of V11S/SV11S video technology an aid intensity of 15% is foreseen. While more than half of the total cost of the project relates to research and development of existing VHS video technologies, no aid will be granted in support of product and process development in this area.

The EFTA Surveillance Authority recognizes, in general, the potential beneficial effects of R&D activity on economic development and takes a favourable view of aid to such activity, provided that it is not likely to adversely affect trading conditions to an extent contrary to the functioning of the EEA Agreement. In the present case the Authority deemed such conditions to be met, as the established practice allows a maximum aid intensity of 25 % for applied research and development, and therefore decided not to raise objections to the Austrian aid proposal.

For further information please contact Maria Blässar (State Aid and Monopolies Directorate) on tel. 22 66 853.

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