EC proposal for the next

MFF/smart specialisation

Santiago Donat

Desk Officer and Smart Growth Specialist

DG Regional and Urban Policy

Seminar - iCRAG: Geosciences research for

Europe

26 February 2019

#CohesionPolicy

#EUinmyRegion

Package of legislative proposals has been proposed by

the European Commission in May/June 2018

2

Timeline

Common Provisions Regulation *

governs 7 Funds

• European Regional Development Fund(€ 200 billion, incl.€8.4 bn "Interreg")

• Cohesion Fund (€ 41 bn, incl.€11bn under

CEF2)

• European Social Fund Plus (€101 bn)

• European Maritime and Fisheries Fund

(€6.1 bn)

• Asylum and Migration Fund (€ 11.3 bn)

• Internal Security Fund (€ 2.5 bn)

• Border Management and Visa

Instrument (€ 8 bn)

*) https://ec.europa.eu/commission/publications/regional-development-and-cohesion_en

Not included anymore: European Agricultural Fund for Rural Development (€ 78.8)

Total ERDF budget: €200 bn

New regionaleligibility

map2021-2027

Policy objectives

11 objectives are simplified and consolidated to 5:

1. A smarter Europe (innovative & smart economic transformation)

2. A greener, low-carbon Europe (including energy transition, the

circular economy, climate adaptation and risk management)

3. A more connected Europe (mobility and ICT connectivity)

4. A more social Europe (the European Pillar of Social Rights)

5. A Europe closer to citizens (sustainable development of urban,

rural and coastal areas and local initiatives)

ERDF THEMATIC CONCENTRATION

▪ Maintaining spending in the key areas for growth and jobs

▪ At national level based on GNI per head => flexibility

▪ 6% of budget to urban development, delivered through local

development partnerships

For countries

with:

minimum % PO1

("smarter Europe")

minimum % PO2 ("greener,

low carbon Europe")

GNI below 75% 35% 30%

GNI 75-100% 45% 30%

GNI above 100% 60% PO1 + PO2 min. 85%

Minimum for Policy Objective 1 & 2

European Semester country report, Cohesion policy investments in 2021-2027

Scope of support from the ERDF

The ERDF shall support (Art. 4 ERDF Regulation):

• investments in infrastructure;

• investments in access to services;

• productive investments in SMEs;

• equipment, software and intangible assets;

• information, communication, studies, networking, cooperation, exchange of experience and activities involving clusters;

• technical assistance.

In addition, the ERDF shall also support:

• productive investments in enterprises other than SMEs when they involvecooperation with SMEs in research and innovation capacities and the uptakeof advanced technologies under PO1 Smart Growth (a) (i)

• training, life-long learning and education activities under PO1 (a) (iv);

A smarter Europe by promoting innovative

and smart economic transformation

Market orientationof research

activities

Digitalisation -an innovation

enabler

Development of skills

Location mattersfor SMEs and

start-ups

A smarterEurope

Interregional cooperation in value chains

Key issues for smart specialisation post-2020

• How to better adapt smart specialisation to different regional needs?

• How to broaden innovation and reinforce innovation diffusion?

• How to strengthen links between regional innovation ecosystems and

national reforms?

• How to strengthen cooperation and internationalisation?

• How to improve links with other EU programmes such as Horizon

Europe and industrial competitiveness policies?

• How to make smart specialisation more responsive to industrial change

and technological disruption?

• How to strengthen monitoring and evaluation, lesson learning?

• How to strengthen and embed governance?

• How to promote inclusive growth?

Fulfilment criteria for the enabling condition

Smart specialisation strategy(ies) shall be supported by:

1. Up-to-date analysis of bottlenecks for innovation diffusion, including digitalisation

2. Existence of competent regional / national institution or body, responsible for the

management of the smart specialisation strategy

3. Monitoring and evaluation tools to measure performance towards the objectives of

the strategy

4. Effective functioning of entrepreneurial discovery process

5. Actions necessary to improve national or regional research and innovation

systems

6. Actions to manage industrial transition

7. Measures for international collaboration

Policy objective Specific objective Name of enabling condition

1. A smarter Europe

by promoting

innovative and smart

economic

transformation

ERDF:

All specific objectives under

this policy objectives

Good governance of national

or regional smart specialisation

strategy

Enabling condition for smart specialisation

Thematic S3 Platforms

3 platforms, 1 goal

• Joint EC-initiative (DG REGIO,

GROW, AGRI, ENER, JRC, …)

• Bottom-up approach

• > 100 regions involved

• > 25 partnerships under the 3

platforms

• Using S3 as a coordination principle

in strategic EU priority domains

• Alignment of regional S3

• Creation of interregional value

chains → investment projects

• Alignment of strategic investments

(public/ private)

Test new ways to:

• Commercialize and scale-up interregional innovation projects that can create or reshape European value chains

• Attract private investment for promising innovation projects

• Explore and strengthen synergies between different EU instruments (ESI funds, the Investment Plan, Horizon 2020, COSME)

Testing new approaches for interregional

innovation investments

S3P Industrial modernisation - 16 partnerships

S3P Agro-food - 5 partnerships

S3P Energy – 6 partnerships

MARINE RENEWABLE

ENERGYBIOENERGY

SMART

GRIDS

SOLAR

ENERGY

SUSTAINABLE

BUILDINGS

BIO-

ECONOMY

Support from S3Platform and

external experts

Learn Connect Demonstrate Commercialise Scale-up

Need to accelerate the work done within the

thematic platforms.

The focus will be on projects on higher TRLs (>5/6 TRL).

The results will feed into preprations for 2021-2027.

Moving from learning to commercialisation

and scale-up in interregional partnerships

Interregional innovation investments

WHAT

Interregional innovation investments through the commercialisation and scaling

up of interregional innovation projects having the potential to encourage the

development of European value chains ('component 5'). (ETC Art 3.5)

HOW MUCH

11.5 % of ETC Resources (i.e., a total of EUR 970m) for interregional innovation

investments (component 5). (ETC Art. 9.2)

HOW

It shall be implemented under direct or indirect management. (ETC Art 16.1)

FOR WHOM

At the initiative of the Commission, the ERDF may support interregional innovation

investments, as set out in point 5 of Article 3, bringing together researchers,

businesses, civil society and public administrations involved in smart

specialisation strategies established at national or regional levels. (ETC Art 61)

Programmes/Funds supporting innovation (1/2)• ERDF focus on regional relevance, economic transformation, diffusion of

existing knowledge & technology to places that need it, based on smart

specialisation strategies; new interregional innovation investment support

developing European value chains by helping partnerships cooperate in

investments in shared S3 priority areas (€226.3bn with minimum thematic

concentration of 35% to 60% on innovation, digitisation, SMEs)

• Horizon Europe focus on European research and innovation excellence, the

generation and exploitation of new knowledge and disruptive, market-creating

innovations (€100 bn)

• InvestEU focus on market-based instruments, for strategic investments (€38bn

(incl. €23 for R&I and SMEs) mobilising €650bn (incl. €415 for R&I, digitisation

and SMEs)

• Digital Europe focus on digital transformation via AI, cyber-security, high

performance computing, advanced digital skills, interoperability, deployment of

digital solutions in business and administrations, incl. networking of Digital

Innovation Hubs (€9.2 bn)

• Single Market Programme focus on improving the functioning of the internal

market, SMEs' access to markets, favourable business environment,

competitiveness of sectors, the modernisation of industry and the promotion of

entrepreneurship (€6 bn, of which €3bn for SMEs)

Programmes/Funds supporting innovation (2/2)• ESF+: inclusion, education and skills (notably basic digital skills) to adapt to the current

and future needs of the economy, health, labour mobility and social innovation (€100 bn)

• EAFRD: sharing of knowledge, uptake of innovation and digitalisation in agro-food sector

(€78.8bn)

• Erasmus+: learning mobility of individuals and cooperation, for education and training,

creativity and innovation at the level of organisations (€30bn)

• Reform Support Programme: institutional reform and efficient and service-oriented

functioning of public administration and e-government (€25 bn)

• Space Programme: support to space sector, space infrastructures and services

(Copernicus, Galileo, EGNOS) (€16 bn)

• Defence Fund: minimising fragmentation and boosting competitiveness and innovation

of the EU defence industry (€13bn, incl. €4.1 from Horizon Europe)

• LIFE programme: support demonstrating techniques and best practice in Circular

Economy, quality of life, climate mitigation and adaptation; and Clean Energy Transition

that can be replicated and up-scaled in larger programmes (€5.4bn)

• Creative Europe: competitiveness and innovation capacity the creative and audiovisual

industry, promote cultural diversity and heritage, support culture-based creativity in

education and innovation (€1.8 bn)

Synergies

▪ The “Seal of Excellence” allows projects successfully

evaluated under Horizon Europe to be funded by Cohesion

Policy without having to pass another selection process, if

they are consistent with the region’s or the programme’s smart

specialisation strategy.

▪ On a voluntary basis, and up to 5%, Member States can

transfer Cohesion Policy resources to another EU instrument

to fund a project; in this case, the rules of the other instrument

apply.

▪ The other way around, Member States can also choose to use

their Cohesion Policy money to finance a project selected

under another EU budget tool; in this case Cohesion Policy

rules apply.

▪ Member States can choose to transfer up to 5% of their

Cohesion Policy resources to the new InvestEU fund.

Thank you!

DEVELOPING SKILLS FOR SMART SPECIALISATION,

INDUSTRIAL TRANSITION AND ENTREPRENEURSHIP

ERDF:

• Innovation management in SMEs

• Specific skills for (training, re/upskilling) for smart

specialisation areas in concrete territories

• Integration of education and training institution in

innovation ecosystem

• Skills for higher education to increase commercial

viability

Other sources:

Horizontal skills for smart specialisation like:STEM, but also interpersonal skills: communication, emotional intelligence,

conflict resolution and mediation, team-working/grouping/participatory

methods, decision making and problem solving

Personal skills: creativity, cognitive, leadership, learning, presentation,digital

Interregional innovation investments‘Component 5’ → Implementation

Managed in direct management (i.e. by the Commission oran executive body) and possibly as well in indirectmanagement. This will:

• Facilitate the implementation of interregional investmentprojects which have high coordination costs,

• Ensure alignment with EU policies and priorities, andenhance complementarities with actions under HorizonEurope and the Single Market programme,

• Simplify compliance with state aid requirements.

The instrument could cover third countries in line with thearrangements foreseen under the Horizon Europe proposal.

Interregional innovation investments‘Component 5’ → Support

Strand 1 - Financial and advisory support for investments in interregional

innovation projects

• Supporting partnerships to develop, connect or make complementary use oftesting and demonstration facilities to accelerate market uptake and scale upof innovation solutions in shared smart specialisation priority areas.

• Managed through support to the development of a portfolio of projects byselected partnerships.

Strand 2 - Financial and advisory support to the development of value

chains in less developed regions

• Increasing the capacity of regional innovation eco-systems in less developedregions to participate in global value chains as well as the capacity toparticipate in partnerships with other regions.

• Strong cohesion dimension creating linkages between less developed regionswith those in lead regions.

• Focus both on foreign direct investment-driven value chains and otheremerging sectors.

+ learning activities, evaluation and capitalisation

Interregional innovation investments‘Component 5’ → Governance

• Launch work with broad consultation on priorities.• Establishment of a dedicated expert group.

• The group would be composed of a mix of representativesfrom Member States/regions, other EU institutions, relevantstakeholders and representatives of academia.

• The role of the expert group would be to support theCommission in defining a long-term work programme andrelated calls matching EU priorities with smart specialisationstrategies.

• Calls would be open to any partnership in an identifiedthematic area that brought together regional partnershipssharing smart specialisation priorities.