The EU Court of Justice rules that the fact that an organisation may be profit-seeking has no bearing on whether it can be determined a "research organisation", additionally, it is not incumbent on such organisations to reinvest any profits (Baltijas Starptautiskā Akadēmija / Stockholm School of Economics in Riga)

A research organisation is not required to reinvest any revenue it may generate into its non-economic activities. The fact that the shareholders of a research entity are profit seeking has no decisive impact on its classification as a research organisation. Introduction As governments push universities to engage in more collaborative research with industry, the question increasingly arises where to draw the line between economic and non-economic activities. This is because the research carried out by universities in their capacity as “research organisations” can benefit from 100% public funding. On 13 October 2022, the Court of Justice tackled for the first time ever the meaning of the concept research organisation in its judgment in joined cases C-164/21, Baltijas Starptautiskā

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