Stimulating Research and Innovation Investments for Growth and Jobs: synergies between Horizon 2020 and future Cohesion

Policy (2014-20)

Dimitri CORPAKIS

Head of Unit RTD.B5

Spreading Excellence and Widening Participation

Directorate General for Research and Innovation

European Commission

dimitri.corpakis@ec.europa.eu

May, 2014

PolicyResearch andInnovation

Setting the scene

The knowledge economy is here – with a price

Globalisation has pushed the boundaries and has changed traditional ways for dealing with regional development

Global value chains have redrawn the map of conceiving and producing products and services

Countries / regions that are not able to adapt will see their economies being marginalised

Global positioning necessary

Need for a new growth proposition based on knowledge assets

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Innovation performance (2012)

R&D expenditure in the business sector as % of GDP (2011)

Europe’s innovation divide undermines competitiveness

Large parts of the EU out of ‘sync’

Modest and Moderate Innovators holding back the EU as a whole

Grand policy designs at risk without a sound and functioning base

Identification of priorities and strategies of crucial importance – yet still, among the major botlenecks

How European regions invest in R&D

Out of a total of 266 regions in the EU, only 35 had in 2009 an R&D intensity (R&D investment as a % of their GDP) above 3%

Taken together these 35 regions accounted for 45% of all R&D expenditure in the EU

10 of the most R&D intensive regions in 2009 were located in the Nordic member States, totalising 9,3% of total R&D expenditure in the EU (source EUROSTAT regional yearbook 2012)

• Innovation Union flagship initiative aims at creating the best conditions for Europe's researchers and entrepreneurs to innovate

• A broader approach to innovation: meshing research and technological development with

- Product innovation, service innovation, innovation in design etc., including process and organisational innovation

- Social innovation, public sector innovation, eco-innovation etc.

- Exploration of new business models > Both technological & non-technological > Both incremental & disruptive innovation

Improving framework conditions for innovation to flourish

34 commitments: Speeding up standardisation, Making better use of and 'modernising' public procurement procedures, Creating a real internal market for venture capital, Agreeing on a unified European patent, Completing the European Research Area (ERA)

Turning the European Union into an

Innovation Union

The promise of Horizon 2020

• A core part of Europe 2020, Innovation Union & European

Research Area:

Responding to the economic crisis to invest in future jobs and growth

> Addressing people’s concerns about their livelihoods, safety and

environment > Strengthening the EU’s global position in research,

innovation and technology

Novelties A single programme bringing together three separate

programmes/initiatives

Coupling research to innovation – from research to retail, all forms of

innovation

Focus on societal challenges facing EU society, e.g. health, clean

energy and transport

Continuation of investment in frontier research

Simplified access, for all companies, universities, institutes in all EU

countries and beyond.

PolicyResearch andInnovation

PolicyResearch andInnovation

PolicyResearch andInnovation

Northern Ireland in FP7

• 248 signed grant agreements with 273 participants and funding of €83,84

million

• Applicant success rate of 20,4 % (UK 22,7 %; EU 20,5 %)

• Main areas: Maria Skłodowska-Curie; ICT; Health; Food/ agri. & biotech.

• Top 5 participants: Queens University; University of Ulster; Short

Brothers (Bombardier); Bio-Kinetic Europe Ltd; PSNI.

• Top 5 collaborating regions in the UK: London, Sth East England,

Scotland, East England, Sth West England

• Top 5 links to other EU regions: Ile de France, Ireland, West Netherlands,

Bavaria, Centro (IT)

Horizon 2020 marks a departure in terms

of support to regional innovation

Focus is on institutions, companies and

people, not on regions

However:

Novelties such as new financial

engineering instruments, the new SME

instrument and the Fast Track to

innovation pilot may have a strong and

lasting effect at regional level

• ESIF will focus on Europe 2020 objectives for smart, sustainable and

inclusive growth / list of 11 thematic objectives for ESIF developed around

the Europe 2020 priorities

• New regulatory provisions for thematic concentration (R&I part of the minimum

60-80% concentration for ERDF funds in more developed regions - 50% in

less developed regions)

• Support to applied research and innovation for the purpose of regional socio-

economic development

• Capacity building for innovation and growth through the promotion of

innovation friendly business environments

• Smart Specialisation – strategic approach to economic

development through strategic support for R&I / Ex-ante

Conditionality for the use of the European Regional Development

Fund (ERDF) for any kind of R&D&I investments

About the new Cohesion policy (ESIF – European Structural and Investment Funds)

Research and Innovation investment priorities for the ERDF

Strengthening research, technological development and innovation:

Enhancing research and innovation infrastructure (R&I) and capacities to develop R&I excellence and promoting centres of competence, in particular those of European interest

Promoting business R&I investment, product and service development, technology transfer, social innovation and public service application, demand simulation, networking, clusters and open innovation through smart specialisation

Supporting technological and applied research, pilot lines, early product validation actions, advanced manufacturing capabilities and first production in Key Enabling Technologies and diffusion of general purpose technologies

The Synergies and Smart Specialisation Matrix

STRUCTURAL FUNDS THEMATIC OBJECTIVE NO 1 ON STRENGTHENING RESEARCH, TECHNOLOGICAL DEVELOPMENT AND INNOVATION

HORIZON 2020 TOP DOWN RESEARCH AND INNOVATION PRIORITIES INFLUENCING NATIONAL AND REGIONAL PRIORITIES

THEMATIC CONCENTRATION FOR MOST ADVANCED AND TRANSITION REGIONS FOR ALLOCATING 80% OF THE ERDF MONEY FOR 4 OBJECTIVES: R&I, ICT, SME COMPETITIVENESS AND LOW CARBON ECONOMY

THEMATIC CONCENTRATION FOR LESS ADVANCED REGIONS FOR ALLOCATING 50% OF THE ERDF MONEY FOR 4 OBJECTIVES: R&I, ICT, SME COMPETITIVENESS AND LOW CARBON ECONOMY

EXCELLENCE SMART SPECIALISATION EX-ANTE CONDITIONALITY

based on a SWOT analysis to concentrate resources on a limited set of research and innovation priorities in compliance with the NRP; measures to stimulate private RTD investment; a monitoring and review system; a framework outlining available budgetary resources for research and innovation; a multi-annual plan for budgeting and prioritisation of investments linked to EU research infrastructure priorities (European Strategy Forum on Research Infrastructures -ESFRI)

INDUSTRIAL LEADERSHIP

SOCIETAL CHALLENGES

PolicyResearch andInnovation

What is Smart Specialisation?

• A place-based, strategic approach to economic development through targeted support to Research and Innovation;

• Leads to a process of developing a vision, identifying competitive advantage, setting strategic priorities and making use of smart policies to maximise the knowledge-based development potential of any region (strong or weak, high-tech or low-tech);

• Concentrates resources on a small number of thematic priorities

• Stresses role for all regions in the knowledge economy, through identification of comparative advantages in specific R &I domains/clusters (not just winning sectors);

• Embraces the concept of open innovation

The ex-ante conditionality on Smart Specialisation

• To ensure effective implementation and more efficient use of the Structural Funds with respect to research and innovation and ICT investments, MS are called for drawing their Smart Specialisation Strategy:

• based on available resources and capabilities,

• identifying competitive advantage and technological specialisations highly consistent with their potential for innovation

• specifying public and private investmentsrequired, with regard to research, technological development and innovation

• In line with the National Reform Programme

Smart Specialisation: key messages

Setting innovation as priority for all regions (Europe 2020)

New academic insights and concepts in the fields of growth and competitiveness

Towards more efficient and effective regional development policies, avoiding overlap and imitation

Better use of scarce public resources, aiming for synergies between EU, national/regional and private funds (PPP)

Driving economic transformation, focusing on regional profiles and their connectivity to global value chains

RIS3 assessment

PolicyResearch andInnovation

Smart specialisation: Commission assistance

• RIS3 Platform http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/s3platform.cfm

• Established by the Joint Research Centre (IPTS) in Seville

• Facilitator in bringing together the relevant policy support activities in research, regional, enterprise, innovation, information society, education and sustainable policies.

• Information and communication on related funding opportunities under the relevant EU funding programmes.

• Direct feed-back and information to regions, Member States and its intermediate bodies.

• Provides methodological support, expert advice, training, information on good practice, etc.

• Mirror Group of International experts

• Outside the Platform: Commission has supported expert contracts for specific assistance to regions and Member States

PolicyResearch andInnovation

BELGIQUE• Région de Bruxelles-Capitale• Vlaanderen• WalloniaČESKÁ REPUBLIKA• Jihomoravský kraj• Hlavní město PrahaCROATIACYPRUSCZECH REPUBLIC • Moravskoslezský krajDENMARK• Region Midtjylland (Central Denmark)• NordjyllandDEUTSCHLAND• Berlin Brandenburg• Freistaat Sachsen• Weser-Ems• Sachsen-AnhaltELLADA• Attiki• Eastern Macedonia and Thrace• Western Greece• Crete • Epirus• Central MacedoniaESPAÑA• Andalucía • Aragón• Canarias • Cantabria• Castilla y León• Castilla-La Mancha• Catalunya• Comunidad Valenciana• Galicia • La Rioja• Madrid • Navarra• País Vasco• Principado de Asturias• Región de Murcia• Illes BalearesFINLAND• Kainuu• Päijät-Häme• Pohjanmaa (Ostrobothnia)• Satakunta• Oulu• Etelä-Pohjanmaa (South Ostrobothnia)• Lapland• Tampere region• Uusimaa (FI, the Helsinki region).• Varsinais-Suomi (Southwest Finland)• Lappeenranta – Imatra• Pohjois-Savo (Northern Savonia)

FRANCE• Alsace • Aquitaine• Bretagne • Centre• Champagne-Ardenne • Pays de la Loire• Corse • Guadalupe• Guyane • Languedoc-Rousillon• La Réunion • Limousin• Martinique • Bourgogne• Nord-Pas-de-Calais • Picardie• Rhône-Alpes • Franche-Comté• PACA • LorraineITALIA• Lombardia • Marche• Piemonte • Puglia• Sardinia • Sicilia• Emilia-Romagna • Toscana• Umbria • Veneto• Basilicata • Liguria• Abruzzo • Calabria• Autonome Provinz Bozen-Südtirol – Provincia Autonoma di Bolzano-Alto Adige • Campania • Lazio • Molise • Friuli – Venezia Giulia• Provincia autonoma di TrentoIRELAND – ÉIRELATVIA LITHUANIAMAGYARORSZÁG• North-Hungarian Region – Miskolc• Észak-Alföld• Dél-Alföld • Közép-Dunántúl (Central Transdanubia)• Közép-Magyarország (Central Hungary) • Dél-Dunántúl (South Transdanubia) • Nyugat Dunántúl (West Transdanubia) MALTANEDERLAND• Noord NederlandÖSTERREICH• Niederösterreich• OberösterreichPOLSKA• Dolny Śląsk (Lower Silesia)• Lubelskie• Lubuskie• Mazowieckie• Podkarpackie• Pomorskie• Świętokrzyskie• Wielkopolska• Województwo Podlaskie• Łódzkie• Warminsko-Mazurskie• Małopolskie• Kujawsko-Pomorskie PORTUGAL• Alentejo (Alto, Baixo, Central e Litoral)• Centro• Norte• Região Autónoma dos Açores• Lisboa e Vale do Tejo• Algarve• Região Autónoma da MadeiraROMÂNIA• Vest • Nord-Est• Nord-Vest (North-West) SLOVENIASLOVENSKÁ REPUBLIKA• Bratislavský krajSVERIGE• Skåne • Västerbotten• Västra Götaland • Dalarna • Örebro • Gävleborg (SE)UNITED KINGDOM• Buckinghamshire• Cornwall and the Isles of Scilly• Kent • England• Northamptonshire • Scotland• Northern Ireland • Wales• West Midland• Devon• Greater Manchester• Tees Valley and Durham

ObserversNORWAY • NordlandSERBIA • Vojvodina

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The need for Synergies with the ESIF

EU R&D Policy – future Horizon 2020 EU Cohesion Policy

Differences non-territorial approach, no pre-defined geo-graphical distribution of funding

place-based approach; defined financial envelope for different eligible categories of regions

Based mainly on individual R&D Projects (to a certain extent also co-funding activities of programmes are supported) tackling the whole cycle of innovation from pre-competitive, leading edge basic research to demonstration projects,

pilot activities, market replication as well as

innovative public procurement and the award of prizes for the achievement of pre-specified targets.

Based on multiannual Programmes aiming at increased competitiveness through close to the market competitive R&D and innovation efforts

In general awarded directly to final beneficiaries like firms, public and private R&D centers, universities or research funding organisations (for ERA-net activities, Joint Programming etc.).

Awarded through shared management to national and regional public intermediaries

Mostly competitive calls addressed to international groupings (exception ERC and MC that also address individuals) through peer-review based on excellence criteria

Mostly non-competitive attribution addressed to regional players based on strategic planning negotiation (however increasingly competitive processes at national or regional level)

Complementarities

Horizon 2020 will focus on tackling major societal challenges, maximising the competitiveness impact of research and innovation and raising and spreading levels of excellence in the research base

Cohesion policy will focus on galvanising smart specialisation that will act as a capacity building instrument, based on learning mechanisms and the creation of critical skills in regions and Member States. One of the expected results will be better ability to participate in Horizon 2020.

PolicyResearch andInnovation

The Synergies Path

Horizon 2020 will be implemented through transnational research and innovation actions, focusing on specific societal and technological challenges, irrespective of location

ESIF actions in support of research and innovation will be place-based, geared towards growth and jobs, in a context of smart specialisation. However, capacity building for scientific excellence will not be excluded, insofar that it is integrated in an overall RIS3 Strategy

We will achieve increased synergies between Horizon 2020 and the Structural Funds if we could identify after a few years of parallel operation, concrete results on the ground in the supported Member States and regions, such as: Increased investments in research infrastructures of

all kinds, including those of the ESFRI List Increased support to innovation, especially with

regard to high growth companies and to small innovative ones

Increased research and innovation activities in a few priority thematic areas that would have been freely selected by the MS and regions, in an overall context of innovation strategies for Smart Specialisation.

Specific actions should be carefully planned in the Operational Programmes

They will be monitored through performance indicators

How Synergies will be identified

Funding Synergies in practice

• Responsibility lies now with the Member States and regions’ planning authorities > need to create the appropriate “space” in the Operational Programmes for synergy actions with Horizon 2020

• The Commission prepares a concise Guide on Funding Synergies

Funding synergies: rules to watch for

• Specific articles foreseen in the Horizon 2020 Rules of Participation as well in the Common Provisions Regulation of ESIF

• However beware of not funding the same Cost Item twice (> Rule of Thumb: distinct work-packages for distinct funding> but increased impact on the ground by the planned combined action)

PolicyResearch andInnovation

Spreading Excellence and WideningParticipation under Horizon 2020

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• Disparities in R&I excellence and innovation performance: barrier tocompetitiveness, growth and jobs across Europe

• Some countries are experiencing low participation in the EU FrameworkProgrammes because of:

insufficient national R&D investments

lack of synergies between national research systems and the EUresearch landscape

systemic effects

reduced access to international networks

problems with information, communication and training

PolicyResearch andInnovation

New measures

New set of measures in Horizon 2020 under Spreading Excellence andWidening Participation:

- Teaming for Excellence (institution building)

- Twinning (institutional networking)

- ERA Chairs (bringing excellence to institutions)

- NCPs (information, communication, support)

- Policy Support Facility (support for R&I Policy design)

- COST ( stimulating cross border science networks)

Total Budget in H2020 ~ € 800 million

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PolicyResearch andInnovation

Widening Participation: Eligibility Criteria

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• Origin: Developed by DG RTD & JRC, part of the IU progress at country level2013 publication & included in the IU Competitiveness Report 2013.

• Definition: "A composite indicator developed to measure the researchexcellence in Europe, meaning the effects of the European and national policieson the modernisation of research institutions, the vitality of the researchenvironment and the quality of research outputs in both basic and appliedresearch."

• Threshold: MS below 70% of the EU average

• “low RDI performing” Member States for Widening actions: Latvia,Croatia, Lithuania, Malta, Slovakia, Romania, Luxembourg, Poland, Bulgaria,Estonia, Portugal, Slovenia, Cyprus, Czech Republic and Hungary

• “low RDI performing” Associated Countries: The same eligibility criteriaapply for Associated Countries to H2020

• MS above threshold may participate as the advanced partners in Teaming andTwinning actions.

Steps in planning for Member States /regions

Perform a serious analysis of national, regional and local characteristics

Position the Member State / Region in its particular international context and see what this implies for its future priorities (consider re-positioning)

Lay out a strategy for smart specialisation, in a bottom-up process involving all relevant stakeholders

Prioritise, evaluate, and choose

Consider possible governance adjustments if needed

Formulate a clear plan with limited and specific priorities, where an evaluation process has to be built-in, with relevant indicators

Learn more:http://ec.europa.eu/research/horizon2020/index_en.cfm

http://ec.europa.eu/regional_policy/what/future/index_en.cfm

Thanks a lot for

your attention