The European Commission has approved an R&D stimulation programme known as "Produktion 2000" submitted by the German government. It aims at enhancing a production process for small and medium-sized enterprises, and will provide DM 450 million for the period 1995-1999. The principle of the programme is to grant aid with an intensity of 50% for basic industrial research, with bonuses of 10% for SMEs and 10% for the new Bundeslander (with a cumulated bonus of 15% maximum). The programme will apply to the following fields: - Basic methods for the development of products and production processes; - Recycling; - Logistics; - Scientific foundation of the integration of information technology in the production process; - Basics for the production in a changing world. Support will be given to industry and research institutes for cooperative R&D projects involving more than one company and projects involving companies and research institutes together. The programme will encourage the transfer of knowledge, in particular between SMEs. The Commission acknowledged that the various elements of the programme proposed (definition of costs, aid intensity, additionality) are in line with the European framework for aid to R&D.