EU state aid rules apply whenever an innovation conceived in a European university or publicly funded research institution is taken up by industry. The aim of these rules, which are complex and difficult to navigate, is to ensure that public support does not distort competition and affect trade within the EU by favouring certain companies over their competitors.
When it comes to research, development and innovation (RDI), the EU distinguishes between non-economic activities and economic activities, with only the latter falling under state aid rules. The European Commission lays out its approach to the two types of activity in its [Framework for State Aid for RDI](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A52022XC1028%2803%29).
Non-economic activities include the primary activities of universities and research and…