National reform programme 2008-2010 Malta - European Commission

Measure 2.4
Enhancement of existing tax incentives for R&D investment
A Scheme was launched in 2005 by ME under the Deductions and Tax Credits (Research
and Development) Rules (LN.330/05) focussing mainly on SMEs. Take up has been low due
to the Business Promotion Act being the main source of tax credits for R&D. Following
changes in the EU R&D state aid regime together with the entry into force of the Malta
Enterprise Act, new subsidiary legislation incorporating all the principles of the new EU State
Aid regime has been drafted. ME is awaiting approval from DG Competition to issue this
subsidiary legislation and respective guidelines in 2008.
Meanwhile, ME joined the Eureka network and the initiative was launched in June 2006.
Currently 9 projects are being mentored for EUREKA submission. To date two projects have
been submitted. This incentive will be part of the above mentioned R&D subsidiary legislation.
Measure 2.5
Develop a Regional Innovation Strategy
This Strategy has been finalised with a number of recommendations in line with research
carried out throughout the project and best practices in other European Regions.
This Strategy aims to address gaps in Malta’s Innovation System and recommendations on
how these gaps should be fulfilled. The results developed from the pilot actions in this project
will also be implemented as part of this strategy.
The final reports were completed on 29 April 2008 and sent to the Commission for
review. ME is awaiting the final approval from the Commission.
Measure 2.6
Introduce a loan guarantee scheme to support innovative start-ups
The EIF Counter guarantee was available till December 2007. To this effect these schemes
have now come to a close. Five innovative start-ups have made use of this scheme.
Building on the experience gained, Malta Enterprise will be applying for a new loan counter
guarantee under the Competitiveness and Innovation Programme in 2008.
Measure 2.7
Publish an eWork Framework with guidelines on incentives and awareness raising
A set of guidelines has been drafted and was presented for approval by the Core ICT
Advisory Committee (CITAC). Following CITAC approval, the guidelines were integrated with
a policy document drafted by the MPO. Policy and Guidelines have been presented as one
document to the Cabinet of Ministers by the MPO and subsequently have been officially
disseminated for implementation in the Public Service and the wider Public Sector 6 .
Measure 2.8
Establish a National ICT Framework
A National ICT framework is being established in order to encourage further the dissemination
of ICT in Malta. This measure deals mainly with a framework that will facilitate the attracting
of multinational ICT companies to set up a base in Malta, and in parallel to ensure that an
adequate supply of resources, both infrastructural and human resource, is available for these
companies.
6 Teleworking Policy in Public Administration, Relations Directorate Management and Personnel Office, Employee,
Office of the Prime Minister, February 2008. This is available on the Government of Malta Intranet for reference
purposes for all Government Employees.
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