General conditions

Last updated 9.03.2023

1. TARGET GROUP
2. SERVICES
   1. Participation in the Services
3.  STATE AID
   1. The most important conditions of the de minimis aid regulation
   2. The most important conditions of state aid granted on the basis of the general block exemption regulation
   3. Article 28 of the General Block Exemption Regulation

4. DATA USE AND DATA PROTECTION

1. TARGET GROUP

The services of the Artificial Intelligence and Robotics Centre AIRE (AIRE) are targeted at small to medium-sized industrial enterprises (SMEs) and small mid-caps (up to 499 employees, turnover up to €100 million). We can provide a limited service (up to 10% of clients) to large mid-caps (up to 2999 employees). In the case of a large local company belonging to a multinational group, the numbers are added up worldwide.

AIRE’s target group is the processing industry (EMTAK C) and manufacturing companies. If necessary, you can inquire about belonging to the target group at info@aire-edih.eu. As an exception, companies outside the target group are invited to participate in webinars and trainings (if there are free places in the trainings).

The target group does not include companies whose main activity is agriculture.

Criteria for a small to medium-sized business:

Criteria for one financial year

VOLUME OF TURNOVER	BALANCE SHEET	NUMBER OF EMPLOYEES
Up to 50 million	Up to 43 million	Up to 249

1. Machine and metal industry
2. Wood industry
3. Textile and clothing industry
4. Food industry
5. Other industry
6. Furniture industry
7. Paper and printing industry
8. Manufacture of other non-metallic products
9. Electronics, electrical equipment and
10. machinery manufacturing
11. Rubber and plastics industry
12. Transport industry
13. Waste treatment
14. Chemical industry
15. Own production companies
16. Companies starting production

SERVICES

Participation in the services provided by AIRE is generally considered to be de minimis aid for companies, which is a form of state aid. You can find more information about state aid in the next subsection.

Each company has a de minimis aid limit of EUR 200,000 to use within 2 years.

You can check the balance of the company’s de minimis aid based on the registry code on the website of the Ministry of Finance under this link.

If the entrepreneur has not received state aid previously, the respective entrepreneur is not yet reflected in the register.

Participation in the service is considered for small to medium-sized* companies VTA** or general group exemption**
Digital maturity assessment and initial company consulting	600 EUR
Artificial intelligence suitability analysis	1400 EUR
Robotics suitability assessment	1400 EUR
Trainings	480 EUR
Web-seminars	200 EUR
Finding support for funding – public measures	800 EUR
Finding support for funding – private measures	800 EUR

* The definitions given in Appendix 1 of the General Block Exemption Regulation are used as the basis for the definition of a small and medium-sized enterprise.

** European Commission Regulation (EU) No. 1407/2013 concerning the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid

*** European Commission Regulation (EU) No. 651/2014 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union, declaring certain types of aid compatible with the internal market

2.1 PARTICIPATION IN SERVICES

By registering for AIRE service(s) (digital maturity assessment, trainings, webinars, AI consulting, robotization consulting, financing consulting – public measures; financing consulting – raising private capital) via the aire-edih.eu website, the company confirms that:

• The company is aware that by participating in the service, the company receives minor aid within the meaning of Commission Regulation No. 1407/2013.
• The company has a VTA (minor assistance) limit of at least the cost of the service. The amount of 600 EUR is added to the AIRE digital maturity evaluation and consulting service, which is performed once a year.
• The company is aware that within the framework of the AIRE project, the company’s digital maturity level is assessed three times (one year apart).
• The company is an SME (small or medium-sized enterprise).
• If the company belongs to a group, the group-wide VTA does not exceed the limit of EUR 200,000.
• The company confirms that it is not in financial difficulties or in tax debt.
• By registering for the service, the company confirms the permission to use the VTA balance to participate in the service, which is non-refundable if the company stops participating in the service.
• The company is aware that the company’s digital maturity will be evaluated within the framework of the AIRE project over a period of three years.
• Due to the conditions for granting VTA, participation in the service is coordinated with the company manager.
  The company is aware that if, after receiving the support, it turns out that the data provided by the company to receive the support is not correct, the incurred costs will be covered by the company.

AIRE trainings and webinars

Companies outside the target group are also allowed to participate in webinars with a free VTA balance for participation. Participation in the webinar is charged to the company at EUR 200 per participant as VTA. By participating in the webinars, the company is not obliged to go through the AIRE digital maturity assessment and initial consultation service, if it is the first time the company is registering for the AIRE service.

Companies outside the target group, which have enough free VTA balance to participate, are also invited to participate in the trainings if there are free places. Companies outside the target group do not have to go through the digital maturity assessment and consulting service. Participation in the training is charged to the company at EUR 480 per participant as VTA.

1. STATE AID

AIRE services are provided to small and medium-sized (SME)* industrial companies. In order to use AIRE services, the company has the option to choose whether the aid (in the cost of the service provided to the company) is considered on the basis of the de minimis aid (VTA) regulation** or the general group exemption regulation***. When registering for the service, the customer manager supports the company in case of additional questions regarding state aid.

The following table will help you choose the applicable type of state aid (state aid rules applicable to AIRE services):

Service	Service State aid rule reference
Assessment of digital maturity and analysis of the company’s digital level, initial consultation	1)     VTA regulation – the service is minor assistance for both small and medium-sized enterprises (SMEs) and large enterprises. 2)     Article 28 of the General Block Exemption Regulation (innovation aid granted to SMEs).
AI and robotics suitability analysis
AI and robotics trainings
Support to find funding consulting
Other business consulting
AI and robotics demonstration projects	1)     VTA regulation – the service is minor assistance for both small and medium-sized enterprises (SMEs) and large enterprises. 2)     Article 28 of the General Block Exemption Regulation (innovation aid granted to SMEs). 3) Article 25 of the General Block Exemption Regulation (Aid for research and development projects)

* Definitions given in Appendix 1 of the General Block Exemption Regulation are used as the basis for the definition of a small and medium-sized enterprise.

** Regulation (EU) No. 1407/2013 of the European Commission concerning the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.

*** European Commission Regulation (EU) No. 651/2014 on the application of Articles 107 and 108 of the EU Treaty, which declares certain types of aid compatible with the internal market.

3.1 The Main Terms of the State Aid De Minimis Rules

1. The total amount of de minimis aid granted to one entrepreneur, together with de minimis aid previously received from other sources, may not exceed 200,000 euros in any period of three financial years (VTA regulation, Article 3, paragraph 2). When calculating the amount of de minimis aid, the company specified in Article 2, paragraph 2 of the VTA Regulation is considered as one company.
2. Minor aid is not granted in the cases provided for in Article 1(1) of the VTA Regulation.
3. When granting de minimis aid, the cumulation rules of de minimis aid set out in Article 5 of the VTA regulation are taken into account.

3.2 Main Conditions of State Aid Granted Under the General Group Exemption Regulation

1. The services provided by the AIRE Center fall under either Article 25 (aid for research and development projects) or Article 28 (innovation aid for SMEs) of the General Block Exemption Regulation.
2. The conditions set forth in Chapter I of the General Block Exemption Regulation (Articles 1 to 9) apply as general conditions to both Article 25 (aid to research and development projects) and Article 28 (innovation aid to SMEs). Including:
   1. On the basis of the General Block Exemption Regulation, state aid is not granted in the cases provided for in Article 1 paragraphs 2-5 of the General Block Exemption Regulation, including to an enterprise to which the order to repay the aid submitted on the basis of a previous decision of the European Commission declaring the aid illegal and incompatible with the internal market has not been fulfilled;
   2. On the basis of the General Block Exemption Regulation, state aid is not granted to an entrepreneur in difficulty within the meaning of Article 2, Clause 18 of the General Block Exemption Regulation;
   3. When granting state aid on the basis of the general block exemption regulation, the recipient of the aid may not start project-related activities or assume obligations to implement said activities before submitting an application to Tallinn University of Technology. The application shall include at least the information provided for in Article 6(2) of the General Block Exemption Regulation.
3. In addition to the above, the granting of aid must meet the conditions set out in the article governing the block exemption, i.e. either Article 25 (aid for research and development projects) or Article 28 (innovation aid for SMEs), depending on the type of aid chosen.
4. On the basis of Article 25 of the General Block Exemption Regulation, state aid may be granted as AIRE services for basic research, applied research, product development or feasibility studies. The concept of basic research is provided in Article 2, Clause 84 of the General Block Exemption Regulation, the concept of applied research in Article 2, Clause 85, the concept of product development in Article 2, Clause 86 and the definition of feasibility study in Article 2, Clause 87
   1. Basic research – experimental or theoretical work, which is carried out mainly to gain new knowledge about the fundamentals of the phenomena and facts under study without the goal of direct commercial application;
   2. Applied Research – Research or critical research designed to obtain new knowledge and skills that can be used in the development of new products, processes, or services, or to significantly improve existing products, processes, or services. This includes the creation of complex system components required for applied research (and in particular generic technology validation) and may include the construction of prototypes in a laboratory or environment simulating existing systems, as well as pilot production lines;
   3. Product development – acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills for the development of new or improved products, processes or services. This may also include activities aimed at conceptually defining, planning and documenting new products, processes or services. Product development may include prototyping, demonstrating, piloting, testing, and validating new or improved products, processes, or services in a real-life, operational environment, if the primary goal is to technically improve the unfinished product, process, or service. Product development also includes the development of prototypes and pilot projects for commercial purposes, if the prototype is necessarily a commercial final product and if it is too expensive to produce for demonstration and validation purposes only. Product development does not include routine or periodic changes to existing products, product lines, production processes, services and other operations, even if such changes represent improvements;
   4. Feasibility study – assessment and analysis of the project’s potential, the purpose of which is to support the decision-making process by objectively and rationally determining the project’s strengths and weaknesses, opportunities and threats, as well as identifying the resources necessary to implement the project and the project’s prospects for success.
5. In the case of aid granted for basic research, applied research or product development on the basis of Article 25 of the General Block Exemption Regulation, the costs specified in Article 25(3) are eligible. In the case of aid for feasibility studies, the costs of the feasibility study are eligible.
6. Article 25 stipulates the proportion of aid by category of different types of research and development activities (basic research, applied research, product development, feasibility studies), as well as the possibilities of increasing the proportion of aid, but in any case, the presence of self-financing by the entrepreneur is assumed.
7. In the case of state aid for basic research based on Article 25 of the General Block Exemption Regulation, the maximum share of the aid is 100 percent of the eligible costs.
8. In the case of state aid granted for applied research based on Article 25 of the General Block Exemption Regulation, the maximum share of the aid is:
   1. 70 percent of the eligible expenses in the case of a small business;
   2. 60 percent of the eligible costs for a medium-sized enterprise;
   3. 50 percent of the eligible costs for large enterprises
9. In the event that the applied research project involves effective cooperation under Article 2(90) of the General Block Exemption Regulation in accordance with Article 25(6)(b)(i) or the results of the project are widely disseminated, the maximum share of the aid is:
   1. 80 percent of the eligible costs in the case of a small business;
   2. 75 percent of the eligible costs for a medium-sized enterprise;
   3. 65 percent of the eligible costs in the case of a large enterprise.
10.  In the case of state aid granted for product development on the basis of Article 25 of the General Block Exemption Regulation, the maximum proportion of the aid is:
    1. 45 percent of the eligible costs in the case of a small business;
    2. 35 percent of the eligible costs for a medium-sized enterprise;
    3. 25 percent of the eligible costs in the case of a large enterprise.
11.  In the event that the product development project involves effective cooperation under Article 2(90) of the General Block Exemption Regulation in accordance with Article 25(6)(b)(i) or the results of the project are widely disseminated, the maximum share of the aid is:
    1. 60 percent of the eligible expenses in the case of a small business;
    2. 50 percent of the eligible costs for a medium-sized enterprise;
    3. 40 percent of the eligible costs in the case of a large enterprise.
12.  In the case of state aid granted for feasibility studies on the basis of Article 25 of the General Block Exemption Regulation, the maximum proportion of the aid is:
    1. 70 percent of the eligible expenses in the case of a small business;
    2. 60 percent of the eligible costs for a medium-sized enterprise;
    3. 50 percent of the eligible costs in the case of a large enterprise.
13.  In the event that self-financing is required, i.e. in the event that aid cannot be given with a 100% share, the self-financing must be at least the amount specified in Article 25 of the General Block Exemption Regulation (according to the type of research and development activity selected).

3.3 Article 28 of the General Group Exemption Regulation

1. In the case of innovation aid granted to SMEs on the basis of Article 28 of the General Block Exemption Regulation, the eligible costs provided for in Article 28(2) of the General Block Exemption Regulation are:
   1. the costs of acquiring, validating and defending patents and other intangible assets;
   2. expenses for highly qualified employees sent by research institutions or organizations that disseminate knowledge or by large enterprises, who engage in research and development or innovation in a new workplace created by the beneficiary and do not replace other employees;
   3. costs of innovation advisory services and support services.
2.  In the case of innovation aid granted to SMEs based on Article 28 of the General Block Exemption Regulation, the maximum share of aid is 50 percent of eligible costs.
   1. The share of aid granted within the framework of the use of innovation consulting services and innovation support services can be increased up to 100 percent of the eligible costs, if the total amount of aid does not exceed 200,000 euros per company in any three-year period.
   2. “innovation consulting services” (Article 2(94) of the General Block Exemption Regulation) — consultations, assistance and training in the following areas: knowledge transfer, acquisition, protection and use of intangible assets, use of standards and regulations covering them;
   3. “services supporting innovation” (Article 2(95) of the General Block Exemption Regulation) — provision of workspaces, data banks, libraries, market research, laboratories, quality marking, testing and certification in order to develop more efficient products, processes or services;
   4. “Knowledge transfer” (point 15(v) of the European Commission Communication (2014/C 198/01) “Framework for State aid for research, development and innovation”) – a process aimed at acquiring, accumulating and sharing expressible and tacit knowledge, including skills and competence , both in the course of economic and non-economic activities, for example through research cooperation, consulting, licensing, further development, publication and the mobility of researchers and other workers related to the mentioned fields of activity. In addition to scientific and technological knowledge, it includes other types of knowledge, such as knowledge about the use of standards and legislation containing standards and about actual working conditions and methods of organizational innovation, and knowledge management related to the identification, acquisition, protection and use of intangible assets.
3.  In the event that self-financing is required, i.e. in the event that aid cannot be given with a 100% share based on Article 28(4), self-financing must be at least 50% of the eligible costs.
4. DATA USE AND DATA PROTECTION

1. Company dataAIRE uses the public data of the legal entity for the purposes of coordination with the project conditions (SME status check and VTA balance check).

2. Protection of personal data.

   An accredited institution (Tallinn University of Technology, University of Tartu, Estonian University of Life Sciences) issues a continuing education certificate for participation in trainings and webinars. In order to issue a continuing education certificate, the participant’s personal identification code and address are requested during registration (the address can be replaced with the company address). AIRE guarantees the protection of participants’ personal data and can be found on the AIRE privacy policy page.