RESEARCH IN ITALY - Ice

covers up to 25% of the budget with a grant and 70% with a soft loan for a sum note exceeding Euro7,5 millions .Progetti di Ricerca di Interesse Nazionale (PRIN) – These projects are promoted by the MiUR(Minstry for University and the Research) and are aimed at supporting projects of relevant interest tothe country and being submitted by universities.Italian Industry Association, Confindustria, is strongly supporting a tax exemption measure for allcompanies investing in R&D. The lobbying conducted by Confindustria will hopefully lead to a suchan important fiscal measure in the near future.The table below lists some of the most relevant and recent initiatives introduced in support of innovationin the last year.New support initiatives introduced during the period July 2008 – July 2009IT 100IT 101IT 102IT 99IT 108Tax exemption on capital gainsfrom start-upsNational Fund for InnovationIncentives for the elimination orreduction of substances of veryhigh concernRisk capital fund for SMEsStrengthening patents andintellectual property“Brain-return” measureThis measure is oriented to reinforce the role of the private investors, especiallythe one of business angels. The measure establishes that capital gains areexempted from personal income taxes in compliance with the following: (i)shares are from young companies (no older than seven years), (ii) they havebeen owned by at least three years and (iii) the capital gains obtained are reinvestedin the next two years on young start ups that operate in the samesector as the first company.The National Fund for Innovation - €60 Million - has been created by theMinistry of Economic Development with the objective to promote innovativeprojects based on the exploitation of the industrial property. The Fund's maingoal is to support SMEs and to reinforce Italian patents. It will act as aninstrument to reduce investment risk for banks and financial intermediaries thatparticipate in the funding/financing of innovative projects based in thevalorisation and use of patents.The Ministry for Economic Development will finance experimental developmentprojects, regarding product or process innovation with the objective to reduce oreliminate the chemical products/substances that have been defined by the ECas "of very high concern" - CE 1907/2006 (REACH). Resources amount to €120Million .The Ministry for the Public Administration and Innovation has launched the fundfor risk capital for the SMEs located in the South of Italy. This is one of themeasures included in the e-government 2012 Plan and its objective is to favorthe influx of risk capital in southern Italy, as well as in Abruzzo and Moliseregions. The fund - €160 Million- will support the creation and development ofSMEs involved in investment programmes related with product and processinnovation through the use of digital technologies.The Italian Patents and Trademarks Office coordinates a project for the requalificationof national patents.The “anti-crisis decree” launched by the Italian government last November 2008foresees the introduction of fiscal incentives to attract Italian researchers livingabroad. This measure will try to counteract the brain-drain phenomenon, whichis posing a serious threat in the Italian R&D system. The measure consists of atax incentive - 10% tax applied to personal income - during the first five years offiscal residence in Italy as from 10 January 2009.Italian Trade Commission - New York200928