Dicember 2013 EC DG RTD.C.5 DC

How will European Regions contribute to an European Knowledge environment able to face global society changes

Carlos GOMEZRegional Dimension of InnovationDG Research and Innovation

European Commission

Consequences:

1. Thematic concentration to maximise the impact of investments

2. Conditionalities and strengthened partnership to ensure effective implementation

3. Common Strategic Framework: coherence across funds (ERDF, ESF, CF, EAFRD, EMFF); clarify synergies with Horizon 2020 etc.

4. Novelties – compared to current regulations

Future Cohesion Policy 2014-2020

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.

Smart Specialisation

ex-ante conditionality

Thematic Concentration

Keys to Synergies

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Thematic objectives

1. Research and innovation

2. Information and Communication Technologies

3. Competitiveness of Small and Medium-Sized Enterprises (SME)

4. Shift to a low-carbon economy

5. Climate change adaptation and risk management and prevention

6. Environmental protection and resource efficiency

7. Sustainable transport and disposal of congestion on major network infrastructure

8. Employment and support for labour mobility

9. Social inclusion and poverty reduction

10. Education, skills and lifelong learning

11. Increased institutional capacity and effectiveness of public administration

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

Billion EUR

Less developed regions 164.3

Transition regions 31.7

More developed regions 49.5

Cohesion Fund 66.4

European territorial cooperation 8.9

Of which

Cross border cooperation 6.6

Transnational cooperation 1.8

Interregional cooperation 0.5

Outermost regions and northern sparsely populated regions

1.4

Youth Employment initiative 3.0

TOTAL 325.1

"Down-stream"

Research & Development Innovation MarketCapacity Building

Horizon

2020ESIF

National/Regional

R&I systems

"Up-stream"

"Research

Excellence"

"Staircase to Excellence" Hopefully also excellence, but

"Innovation Excellence"

€ 70 billion

€80-100 billion

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 Synergies

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

Spreading excellence and widening

participation through Horizon 2020

• New Part III-a in Horizon 2020 (budget

circa EUR 800M)

• Main actions on Teaming (Centres of

Excellence), Twinning (institutional

networking), ERA Chairs (bringing

excellence to institutions); also Policy

Support Facility and a special action

from COST on Widening actions

Combining EU funding sources H2020 and ESIF – Legal basis:

The H2020 Rules for Participation (Article 31) and for the Common Provisions Regulation on theESIF (Article 55(8)) both deviate from the Financial Regulation (Article 129) as they allow for thefunding of the same action by two different instruments, subject to the absence of doublefunding.

What is combined funding?

Combined funding is the possibility to use different public funding sources, including EU fundingsources, within a programme, project or a group of projects. It seeks to exploit complementaritiesand synergies while at the same time needs to avoid overlaps and exclude double-financing.

Combining public funding sources for ambitious industrial projects

Potential cases of combining Horizon 2020 & ESIF

Two potential cases of combined funding for the same industrial project

1. Simultaneous / additional / parallel use of funds for the same industrial project: the simultaneous use of different public funding sources in the same industrial project

e.g. H2020 money and ESIF that are used together to fund different cost items within a single industrial project

2. Sequential funding for the same industrial project: the sequential use (in time) of different public funding sources in separate successive subprojects of the same industrial project

e.g. first ESIF for R&I infrastructure, then Horizon 2020 for innovation activities

1. "non-substitution principle"

The use of a Union funding instrument to substitute the non-Union contribution to anotherUnion instrument is not allowed: ESIF cannot be used to substitute the national or privatecontribution to H2020 projects.

Substitution of a non-Union contribution (eg. to a Horizon 2020 project) with Union funding(eg. ESIF) is not possible

2. "no double funding principle"

It will be possible to award a grant under Horizon 2020 for an industrial project which is also funded by an ESIF grant but the absence of double funding should be ensured.

The two Union grants (Horizon 2020 and ESIF) may not cover the same cost item.

Basic budgetary principles

Combining Horizon 2020 & ESIF for ambitious industrial project

Look at eligibility of activities: localisation (e.g. region), type of cost items (e.g. equipment) in combinationwith beneficiaries and timeline

Prepare financial master plan for industrial project: group activities in projects (=set of cost items forcertain beneficiaries), identify costs and funding options for each (ESIF, H2020, national funds,…), contact

Managing Authorities,…

Prepare H2020 proposal (project & consortium) =>self-standing multi-national

project

Define scope of industrial project (incl. beneficiaries), detailed activities, budget (private/public)

Prepare ESIF proposal (projects + beneficiaries) for each region/country involved taking into

account Smart Specialisation Strategies

Submit H2020 and ESIF proposals including master plan for industrial project)

Example: Industrial project with combined funding from Horizon2020 & ESIF

Industrial project description (master plan)

Work packages (ideally geographically attributable) and definition of cost items

Horizon2020 proposal and budget

Incl. public or private co-funding

… But no ESIF!

ESIF proposal and budgetIncl. public or private co-

funding+ specifying which Operational

Programme will co-fund and where

… But no Horizon 2020!

Combining Horizon 2020 & ESIF for ambitious industrial projects

ESIFMS/regionHorizon 2020

ESIF of MS/reg+

public/private co-funding

Horizon2020

+ public/private co-

funding

Industrialproject

Example: Industrial project with combined funding from Horizon2020 & ESIF

Example : Industrial project with combined funding

Horizon 2020 proposal to be delivered:

• Industrial project description (master plan including information on parts depending on other financial sources) (*)

• Horizon 2020 part => self-standing grant agreement

Combining Horizon 2020 & ESIF for ambitious industrial projects

(*) Modalities on sort of proof for existence of other funding sources being worked out

Evaluation

Horizon 2020Evaluators:look into this to appreciate the entire project

… and negotiate this part of the budget.

ESIF Managing Authority: …

look into this to appreciate the entire project

and looks into this part of the budget and checks the eligibility of the type of proposed costs, the location of the operation, etc.

Industrial project description (master plan)

Work packages (ideally geographically attributable) and definition of cost items

Horizon2020 proposal and budget

Incl. public or private co-funding

… But no ESIF!

ESIF proposal and budget

Incl. public or private co-funding

+ specifying which OP will co-fund and where… But

no H2!

Example : Industrial project with combined funding

Combining Horizon 2020 & ESIF for ambitious industrial projects

Learn more:

Thanks a lot for

your attention

www.ec.europa.eu/horizon2020

http://ec.europa.eu/regional_policy/index_fr.cfm