disrupting the dynamic incentives of undertakings and crowding out

RDI aid can distort the dynamic incentives of market players to invest (crowding out effect

In its analysis of the potential distortion of dynamic incentives, the Authority will consider the following elements

disrupting the dynamic incentives of undertakings and crowding out;

frequency of aid if an undertaking receives aid repeatedly, it is more likely that this will distort dynamic incentives

RDI aid may distort the dynamic incentives to invest of competitors of the aid beneficiary.

Such distortions may for instance result from aid that negatively affects dynamic incentives to innovate on the part of competitors.

The following elements will be considered by the Commission in its analysis of effects of the aid on competitors dynamic incentives to invest.

The following elements will be considered by the Commission in its analysis of effects of the aid on competitors dynamic incentives to invest.

competing innovation where foreign competitors develop competing technologies (innovation competition), the more likely the aid will distort dynamic incentives.

The main concern related to RDI aid to undertakings is that competitors dynamic incentives to invest are distorted.

The main concern related to RDI aid to undertakings is that rival undertakings dynamic incentives to invest are distorted and possibly reduced.

gradual decrease of aid if operating aid is reduced over time, the undertaking will have an incentive to improve efficiency and the distortion of dynamic incentives will therefore be reduced over time