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Luxembourg’s government has invested substantial financial and organisational resources to power the growth of key sectors. Several initiatives make it easy for you to launch your company, especially with research and development in mind. 

Innovative start-ups are nurtured, hosted and coached in public and private incubators to ease their early development and access government services and support. 

State aids for research and development boost all types of innovation in every type of business, including the services sector. These come in the form of direct grants from the Ministry of the Economy.

Medium- and long-term financing for Luxembourg-based companies is available through the Luxembourg public-law banking institution, the SNCI. It may also take equity positions, either directly or through its subsidiary CD-PME.

Beside the state aids mentioned above, other support is available:

  • R&D grants for SMEs of up to 75% of expenditure
  • Technology transfer assistance in cooperation with the national research laboratories
  • Service and organisational innovation receives backing, while innovative SMEs enjoy tailor made support that helps them apply for government assistance programmes

This environment contributed to Luxembourg being ranked first in the IMD World Competitiveness Yearbook for: 

  • Business efficiency
  • Long-term profitability
  • Minimising environmental impact
  • Preservation of job satisfaction
  • Profitable and sustainable innovation

The Promotion of Research, Development and Innovation law is currently being revised to take advantage of the EU’s General Block Exemption of 17 June 2014. This will provide the best possible framework for supporting innovative companies as they develop. 

Read more about the key R&D players in Luxembourg

Luxinnovation, the National Agency for Innovation and Research, offers a wide range of integrated, personalised services free of charge to businesses of any size, including innovative start-ups and public research organisations. Luxinnovation is a facilitator for companies seeking national and European funding, or planning to launch an innovative project. Equally, Luxinnovation is the right partner for those looking to enhance their technological expertise or their innovation management capabilities. They help shape and implement innovation projects, notably by facilitating access to knowledge, technology, research infrastructure, markets, business partners, and new opportunities.

The Interdisciplinary Centre for Security, Reliability and Trust (SnT) at the University of Luxembourg contributes to Luxembourg being the European centre of excellence and innovation for secure, reliable and trustworthy ICT systems and services. Their interdisciplinary approach is key as it examines technical challenges in their business, human and regulatory context. In addition, the SnT’s Partnership Programme allows for further private and public sector collaboration. 

SnT also fosters interaction and collaboration with industrial and government partners, in Luxembourg and beyond.

The  Laboratory of Algorithmics, Cryptology and Security (LACS) research unit is part of the University’s Computer Science and Communication Research Unit. It focusses on cryptography, building secure public-key cryptosystems, systems and network security and information security management.

The Luxembourg Institute of Science and Technology’s (LIST) principal mission is to strengthen the Grand-Duchy’s economy and society using an open-minded, international way of thinking. It offers a range of services and activities:

  • Applied, experimental research
  • Doctoral research
  • Development of tools, methods, labels, certifications and standards
  • Technological assistance and consulting, and technology watch
  • Knowledge - skill transfer and the incubation of high-tech companies
  • Training and high-level qualification 

The centre's activities are mainly orientated towards five scientific and technological fields, including ICT.
R&D projects, doctoral research and scientific publications concentrate on:

  • Software architecture
  • Secured communication networks
  • Engineering of ICT-based services
  • Quality of ICT-based services
  • Management of ICT-based services
  • ICT-based management of human capital
  • Research, analysis and management of information
  • Free and open source software 

The Luxembourg ICT Cluster is a network that supports the various actors in the field of information and communication technology. It helps create and develop new sustainable business opportunities through collaborative R&D and Innovation projects. It also optimises the uptake of ICT as an enabling technology for all sectors, as well as the further development of the existing ICT sector by fostering collaborative RDI projects.

The Luxembourg ICT Cluster provides access to a dynamic network of companies as well as public research organisations. It offers a personalised portfolio of support services aligned with the specific innovation requirements of its members.

The Luxembourg government initiative 'Digital Lëtzebuerg', presented in October 2014, aims at strengthening and consolidating in the long term the country's position in the ICT field. The guiding principle behind the initiative is to diversify the economy and develop Luxembourg as a 'smart nation' — a modern, open, highly connected nation ready to cope with a digital society, to the benefit of the citizens and all of the socio-economic sectors.

The specific working groups cover:

  • the development of telecom infrastructures;
  • support for innovation and access to financing for start-ups;
  • innovation in services to the financial sector ('FinTech');
  • e-skills;
  • e-administration;
  • the promotion of the Grand Duchy's assets.


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Choose Luxembourg

Strategic gateway to Europe

Skilled multilingual workforce

A favourable financial climate

Intellectual property