Every day across the globe new innovations & developments take shape. Our role at Innovative Initiatives is to keep you informed about news that impacts Luxembourg’s information society. Check out some of the trends that we have our eyes on this month. For the full Monthly Trend Scanner, sign up here!
August 2025
1) Luxembourg grants €44.3m in tax credits for digital transformation to spur technology investment
Luxembourg's government awarded €44.3m in tax credits for digital transformation projects last year to 68 companies in sectors including financial services, logistics and business consulting – with the majority of approved projects focusing on artificial intelligence. The scheme, launched the previous year, offers an 18% tax credit on both investments and operating costs relating to digital transformation, with the option of a 10-year carry-forward…
Best source: Luxembourg Times
2) More than 70% of Luxembourg residents have used an AI tool: survey
More than 70% of Luxembourg residents have used an artificial intelligence tool, with almost one-third doing so on a regular basis, according to a survey of 600 people carried out last month by Quest Market Intelligence, a research firm based in the grand duchy. The study also finds that 20% of AI users do so several times a day, and that more than 80% say they use ChatGPT…
Best source: Paperjam (in French)
3) Luxembourg ranked highest for R&D spending per capita in EU last year: Eurostat
Luxembourg's expenditure on research and development last year was equivalent to €759.2 per capita, the highest level in the EU and nearly three times the average of €284.7 for the union as a whole, according to Eurostat. The grand duchy ranked ahead of Denmark at €587 per inhabitant and the Netherlands at €543. The level of spending on R&D in Luxembourg has increased by 75.2% over the past decade from €433.3 per capita in 2014…
Best source: Luxembourg Times
4) European Commission proposes major increase in Horizon Europe budget and creation of competitiveness fund
The European Commission has proposed nearly doubling the Horizon Europe research and innovation budget to €175bn for the 2028–34 period, while maintaining the programme's autonomy within a €409bn European Competitiveness Fund. The move ends months of speculation, which had intensified following the omission of Horizon Europe from the Competitiveness Compass strategy…
Best source: Science Business
5) Google prepares to adopt EU’s voluntary AI code as Commission sets guidelines for high-risk models
Google is preparing to sign up to the EU's voluntary code of practice for general-purpose artificial intelligence models, a framework intended to help developers comply with the AI Act. The European Commission has outlined new guidelines for AI models deemed to entail systemic risks, introducing stricter obligations to address potential threats as the AI Act comes into effect. The measures aim to respond to industry concern over their regulatory burdens and to clarify compliance requirements, with breaches punishable by fines of up to €35m or 7% of global turnover…
Best source: TechCrunch
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