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Deliverable Title D2.14 Analytical Paper on “Better use and contribution from the CIP to S&T Policy”

Deliverable Lead: IPPT PAN

Related Work package: Workpackage 2

Author(s): Katarzyna Walczyk-Matuszyk, Zygmunt Krasiński, NCP Poland, IPPT PAN

Dissemination level: Public

Due submission date: Month 34 of project running (postponed due to the PMB decisions)

Actual submission: February 2011

Project Number 212226

Instrument: Coordination Action Start date of Project: 1/1/2008

Duration: 54 months

Abstract Within the IncoNet EECA project, it was foreseen to

prepare the Analytical Paper on Better use and contribution from the CIP to S&T Policy. Presented document provides following information:

- overview of the Competitiveness and Innovation Framework Programme (CIP) and its pillars: Entrepreneurship and Innovation Framework Programme (EIP), Information Communication Technology Support Programme (ICT PSP) and Intelligent Energy Europe (IEE);

- experiences of the CIP implementation: conclusions of the CIP implementation Report, case studies of Poland and Spain);

- Synergies of the CIP with others EC Programmes (state of play and future plans);

- CIP and EECA countries (case study Armenia); Conclusions of the Paper indicate potential fields of Better use and contribution from the CIP to S&T Policy, especially for the Eastern European and Central Asian countries. The Analytical Paper is based on the detailed analysis of official publications and papers, output of the WIRE conference (Week of Innovative Regions) during the Spanish Presidency to the EU, interviews with selected stakeholders: EC representatives, Polish CIP NCP,

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Spanish representative of the Enterprise Europe Network as well Armenian representative of the Enterprise Europe Network. The study on Better use and contribution from the CIP to S&T Policy for the EECA countries revealed that there are measures within the CIP supporting certain mechanism and enhancing the S&T potential of the countries. The interest among the EECA countries to join the Programme is significant and still growing. However, the procedures as well as priorities of the EC policies may prolong this process. The analytical paper will result in the recommendations on the uptake of the CIP actions within the perspective of the S&T policy for the EECA countries.

Project funded by the European Commission under

the 7th Framework Programme

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Analytical paper on “Better use and contribution from

the CIP to S&T Policy”

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Content: Introduction...................................................................................................................5 I. EU’s Competitiveness and Innovation Programme (CIP) ...................................5

CIP within EC funding and instruments - introduction .........................................5 Competitiveness and Innovation Framework Programme (CIP) at a glance.........6

1.1. Entrepreneurship and Innovation Programme (EIP) ...................................6 1.1.1 Access to finance for SMEs through "EU financial instruments" ................7 1.1.2 "Enterprise Europe Network": a network of business and innovation service centres: ...................................................................................................................7 1.1.3 Support for initiatives to foster entrepreneurship and innovation ................8 1.1.4 Eco-innovation – making sustainable development become a business reality .....................................................................................................................8 1.1.5 Support for policy-making............................................................................9 1.1.6 EIP – who can apply? ...................................................................................9 1.1.7 EIP – participation of EECA and other third countries ................................9 1.1.8 Examples of actions already funded under the EIP: ...................................10

1.2. Information Communication Technologies Policy Support Programme (ICT PSP)................................................................................................................10

1.2.1 i2010 Initiative ............................................................................................10 1.2.2 ICT-PSP actions..........................................................................................11 1.2.3 ICT - who can participate?..........................................................................11 1.2.4 ICT-PSP – participation of EECA countries ..............................................11 1.2.5 Examples of actions already funded by ICT PSP:......................................12

1.3 Intelligent Energy Europe (IEE) ....................................................................12 1.3.1 Energy Agencies: ........................................................................................13 1.3.2 IEE -who can participate?...........................................................................13 1.3.3 IEE – participation of EECA countries.......................................................13 1.3.4 Examples of actions already funded by IEE:..............................................14

II. Implementation of the CIP in selected EU countries.........................................14 2.1. CIP Implementation and Evaluation Report - conclusions ........................14 2.2. Experiences of selected countries with the CIP implementation................15

2.2.1 Case study: Poland......................................................................................15 2.2.2 Case study: Enterprise Europe Network in Spain.......................................19

III. CIP and Synergies with 7th Framework Programme and Structural Funds.20 3.1 Practical Guide to the EU funding opportunities for Research and Innovation...............................................................................................................20 3.2 Conclusions of the WIRE Conference during the Spanish Presidency to the EU............................................................................................................................21

IV. Participation of the EECA countries in the CIP...............................................22 4.1. Potential relevant fields of action between S&T Policy and the CIP for EECA countries......................................................................................................22 4.2. Procedures on participation of the EECA countries in the CIP – interview with the EC.............................................................................................................24 4.3. CIP initiatives partly introduced in the EECA countries ...........................26

4.3.1 Enterprise Europe Network in Armenia – case study.................................26 4.3.2 Local and regional Energy Agencies in Russia – case study......................30

V. Future perspective of the CIP..............................................................................30 5.1 The CIP in the context of the EU Innovation Policy – Strategy 2020, Innovation Union ...................................................................................................30 5.2 Conclusions of the conference on future perspective of the CIP.................31

Conclusions.................................................................................................................33

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Introduction

S&T Policy puts it main priorities on supporting the development and utilization of science and technology. This means support for research at various levels but as well as technology transfer for better use of the research results and further development of the economy. Whereas the research phase may be supported from the 7th Framework Programme funds, the technology transfer phase and the commercialization process may be performed due to the contribution from the Competitiveness and Innovation Framework Programme (CIP). The CIP constitutes an important part within the development of the S&T Policy. The aim of this Analytical Paper is to present the Competitiveness and Innovation Framework Programme (CIP) in the perspective of its use for the EECA countries, taking as well into account the context of the S&T Policy. In the Paper the Framework Programme, its particular parts, actions, measures as well as synergies with other EC financial sources, are presented. The Analytical Paper is based on the detailed analysis of official publications and papers, output of the WIRE conference (Week of Innovative Regions) during the Spanish Presidency to the EU, interviews with selected stakeholders: EC representatives, Polish CIP NCP, Spanish representative of the Enterprise Europe Network as well Armenian representative of the Enterprise Europe Network. The analytical paper will result in the recommendations on the uptake of the CIP actions within the perspective of the S&T policy for the EECA countries.

I. EU’s Competitiveness and Innovation Programme (CIP)

CIP within EC funding and instruments - introductio n The Innovation Union – with its emphasis on research, technological development and innovation– is at the heart of the Strategy “Europe 2020”, aiming to develop Europe's economy and guarantee quality of life for its population based on a smart, sustainable and inclusive growth. Smart growth puts its priorities on research and innovation by creating new products/services that generate growth and jobs and help address social challenges.

At EU level, there are three key funding instruments which support research and innovation:

Structural Funds and Cohesion Fund (SF) Competitiveness and Innovation Framework Programme (CIP)

7th Framework Programme for Research, Technological Development and Demonstration activities and the 7th Euratom Framework Programme for Nuclear Research and Training Activities (FP7)

The Competitiveness and Innovation Framework Programme creates a significant pillar in building the smart growth by bridging the gap between research and

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innovation. By supporting the market uptake of innovative solutions, the CIP contributes to the development of the S&T Policy.

Competitiveness and Innovation Framework Programme (CIP) at a glance

The Competitiveness and Innovation Framework Programme (CIP) was established by the Decision No 1639/2006/EC of the European Parliament and of the Council of 24 October 2006. The Programme consists of various actions and initiatives managed by different Directorates General. Implementation of certain activities has been delegated to the Executive Agency for Competitiveness and Innovation (EACI).

CIP's main objective is to foster competitiveness of European enterprises. With small and medium-sized enterprises (SMEs) as its main target, the programme supports innovation activities (including eco-innovation), provide better access to finance and deliver business support services in the regions. It encourages a better take-up and use of information and communications technologies (ICT) and help to develop the information society. It also promotes the increased use of renewable energies and energy efficiency. The CIP runs from 2007 till 2013 with an overall budget of 3.621 million Euros1.

The CIP is divided into three operational programmes:

1. Entrepreneurship and Innovation Programme (EIP)

2. Information Communication Technologies Policy Support Programme (ICT PSP)

3. Intelligent Energy Europe (IEE)

1.1. Entrepreneurship and Innovation Programme (EIP)

The EIP is one of the specific programmes under the Competitiveness and Innovation Framework Programme (CIP) with the biggest budget reaching 2166 million Euros. With this programme, the European Commission seeks to support innovation, eco-innovation and SMEs in the EU. EIP focuses in particular on the following objectives:

• Better access to finance for SMEs through venture capital investment and loan guarantee instruments

• Business and innovation support services delivered through a network of regional centres: the Enterprise Europe Network

• Promotion of entrepreneurship and innovation • Support for eco-innovation • Support for policy-making that encourages entrepreneurship and

innovation

1 http://ec.europa.eu/cip/index_en.htm

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The objectives will be reached by the following actions:

1.1.1 Access to finance for SMEs through "EU financial instruments"

These EU instruments target companies in different phases of their lifecycle: seed, start up, expansion and business transfer; and will support investments in technological development, innovation (including eco-innovation), technology transfer, and the cross border expansion of business activities. They are managed by the European Investment Fund (EIF) in cooperation with financial intermediaries.

The CIP financial funding is not directly available to SMEs but made available via the EIF to selected financial institutions which offer financial products to SMEs. Small business can contact selected national financial institutions to get access to investments or guaranteed lending.

The CIP provides various types of instruments depending on the SME’s stage of development and its particular financial needs:

High Growth and Innovative SME Facility: GIF1& GIF2

SME Guarantee Facility: SMEG

GIF1: early stage (seed and start-up) investments

GIF2: expansion stage

Loan guarantee

Microcredit

Equity and quasi-equity guarantee

Securitization 550 million Euros 506 million Euros

Financial instruments are under the responsibility of DG Enterprise and Industry and DG Economics and Finance (DG ECFIN) in cooperation with the European Investment Fund (EIF)

So far none of the EECA country is eligible for the financial instruments under the CIP.

A list of the CIP financial intermediaries by country can be found at: www.access2finance.eu

1.1.2 "Enterprise Europe Network": a network of business and innovation service centres:

In compliance with the rule “no wrong door” the Enterprise Europe Network is a network of regional consortia providing integrated business and innovation support services for SMEs. The total EC financial contribution for the Network is 320 million Euros (2007-2013). Consortia provide enterprises with a range of quality services to help make them more competitive and in particular by:

• Information, guideline and assistance on EU funding opportunities, including the 7th Framework Programme;

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• Information on EU legislation, standards and major policies at European level; • Technology audits, technology transfer, transnational technology cooperation

and brokerage services; • Business partner findings.

The Executive Agency for Competitiveness and Innovation (EACI) is responsible for managing the Network on a daily basis. The Network is under the responsibility of the DG Enterprise and Industry. Enterprise Europe Network is active in 44 countries, including already all EU27 countries, the European Economic Area (Iceland, Norway), Candidate Countries (Croatia, the Former Yugoslav Republic of Macedonia, and Turkey), Switzerland and other third countries, including China (part), Russia, Armenia and the USA. The complete list of countries covered by the Enterprise Europe Network can be found on the website: http://www.enterprise-europe-network.ec.europa.eu

1.1.3 Support for initiatives to foster entrepreneurship and innovation

To achieve this goal the EU adopts measures to improve policy cooperation between and with Member States, and the framework conditions for innovation. The most important initiatives and measures financed under the CIP are as follows:

Europe INNOVA: primarily an initiative financed under 6th Framework Programme, aspires to become a laboratory for development and testing of new tools and instruments on the innovative solution dedicated to SMEs.

PRO INNO Europe: a forum for innovation policy analysis, learning and development in Europe, exchange of best practices in the field of innovation policies in Europe.

IPR-Helpdesk: provides free of charge information and resources to help EU-funded projects mange Intellectual Property Rights and related issues. It offers on-line trainings modules, a helpline and a comprehensive collection of relevant documents.

For more information, visit the innovation site: http://ec.europa.eu/enterprise/policies/innovation/index_en.htm

1.1.4 Eco-innovation – making sustainable development become a business reality

Under this priority innovative products, processes and services aiming at reducing environmental impacts, preventing pollution or achieving a more efficient and responsible use of natural resources are supported. SMEs alone or in consortia can apply for commercialization of eco-innovative solutions.

First application and market replication projects support is given to the application and further market uptake of some of the best eco-innovative products and services

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in Europe helping to overcome those critical barriers that still create an obstacle for their commercial success.

The Executive Agency for Competitiveness and Innovation (EACI), acting in cooperation with DG Environment, is responsible for managing of the action.

Detailed information on the initiative is available on the official eco-innovation webpage: http://ec.europa.eu/ecoinnovation/

1.1.5 Support for policy-making

Under the EIP a number of conferences can be organized to assemble and publicize sectoral knowledge, inform policy-makers, and make policy suggestions to increase the coherence and cooperation between EU Member States.

The programme is also used to support policy-makers with information; the latest trends and developments in certain sectors – as well as European and global markets- are analyzed in studies and results are disseminated.

1.1.6 EIP – who can apply?

Participation in the programme is open to entities from:

• All EU countries • European Free Trade Association (EFTA) countries which are members

of the European Economic Area (EEA), in accordance with the conditions laid down in the EEA Agreement;

• accession countries and candidate countries benefiting from a pre-accession strategy, in accordance with the general principles and general terms and conditions for the participation of those countries in Community programmes established in the respective Framework Agreements and Association Council Decisions;

• countries of the Western Balkans in accordance with the provisions to be determined with those countries following the establishment of Framework Agreements concerning their participation in Community programmes,: Croatia, F.Y.R.O.M.;

• other third countries, when Agreements and procedures so allow.

1.1.7 EIP – participation of EECA and other third countries

On the basis of a memorandum of understanding a third country may join, if wished, only some selected actions. So far, the following third countries participate in the CIP eco-innovation first application and market replication projects: Turkey, Israel or Albania. None of the EECA country takes part in the eco-innovation initiative. In case of the Enterprise Europe Network third countries may develop the cooperation without obtaining any financial support. The initiative is present in Armenia and Russia.

According to the Art.21.5. of the CIP legal base third counties can be members of the Enterprise Europe Network. Additionally, in the call for proposals on

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the Network no deadline for application for countries which are still not covered was set, that is why these applications are still treated by the EC as valid.

1.1.8 Examples of actions already funded under the EIP:

Eco-innovation first application and market replication projects: Paper Mill Sludge to Mop Up Oil Spills:

The production of Hydrophobic Absorbent for Water Surface Cleaning (HAWSC) is the main goal of the project. This treated paper mill sludge could be taken up by 20% of the potential market in Europe, which would include ports, marinas, petrol stations, oil refineries and even restaurants and hotels.

The project will extend the production lines that already exist in Slovenia and Finland and by setting up two new production lines a year, capable of processing 80,000 tones each. The goal is to be able to handle 26% of all the paper mill sludge produced in Europe.

1.2. Information Communication Technologies Policy Support Programme (ICT PSP)

ICT PSP with a budget of about 730 million Euros is dedicated to actions aiming at wider uptake and best use of ICT by citizens, governments and businesses, in particular SMEs. ICT PSP is managed by the DG Information Society and Media service of the European Commission. ICT PSP mainly supports pilot projects aimed at testing in real settings innovative ICT based services in areas such as:

• ICT for Health • ICT for Aging and Inclusion • Digital Libraries • ICT for government and governance • ICT for energy efficiency, environment and mobility • Public Sector information • Internet evolution and security

1.2.1 i2010 Initiative

The ICT Policy Support Programme in the CIP is one of the main financial instruments of i2010. The EU adopted in 2005 a new strategic framework, i2010 – A European Information Society for growth and employment that promotes an open and competitive digital economy and emphasizes ICT as a driver of inclusion and quality of life. i2010 proposes three priorities for Europe’s information society and media policies:

1. the completion of a Single European Information Space which promotes an open and competitive internal market for information society and media;

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2. strengthening Innovation and Investment in ICT research to promote growth and more and better jobs;

3. achieving an Inclusive European Information Society that is consistent with sustainable development and that prioritizes better public services and quality of life.

1.2.2 ICT-PSP actions

The different objectives of the work programme require distinctive implementation measures. Three types of instruments have been identified:

• Pilot (Type A) - building on initiatives in Member States or associated countries

• Pilot (Type B) - stimulating the uptake of innovative ICT based services and products

• Thematic Networks - providing a forum for stakeholders for experience exchange and consensus building

These instruments are defined in detail in the Work Programmes. They provide complementary financing tools in order to reach the ICT PSP objectives.

Pilot A actions which attract EU support of up to €10M helps ensure the EU-wide interoperability of ICT-based solutions that are being launched or are already in operation in the Member States. They will help ensure cross border access to these services and avoid market fragmentation of innovative services and products.

Pilot B actions which attract EU support of up to €3M supports the implementation and uptake of novel ICT-based solutions. Thematic Networks which attract EU support of up to €0.5M supports experience sharing and consensus building on ICT policy implementation. Best Practice Networks – the new tool dedicated only to Digital Libraries theme was added in the 2009 Work Programme

1.2.3 ICT - who can participate? Participation in the programme is open to organizations from all EU member states and other countries having specific agreements for participation in ICT PSP such as: Norway, Iceland, Lichtenstein and Croatia.

Any proposal needs to be submitted by a consortium which should comprise the necessary stakeholders in the value-chain (e.g. service and content providers, technologies providers, users, legal authorities etc) to address one of the objectives of the annual work programme. It should also include a minimum number of organizations from different member or associated states.

1.2.4 ICT-PSP – participation of EECA countries

So far, any of the EECA countries is not taking part in the initiative and obtaining the financial support.

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1.2.5 Examples of actions already funded by ICT PSP: Pilot project building on national initiatives:

The pilot project “PEPPOL” on electronic procurement aims to develop interoperability between national systems. This is crucial for allowing businesses to bid for public sector contracts anywhere in the EU, for facilitating the electronic cross border exchange of orders, invoices, and mutual recognition of electronic information concerning businesses. Eight member or associated states are directly involved and co-invest in the pilot and others should join them. All member or associated states can have access to the outcomes of the project.

Pilot stimulating the uptake of innovative services:

The pilot project “NEXES” responds to the need to unfold pilot experiences for integrated and innovative ICT based healthcare services. It targets patients with chronic illnesses or citizens at risk and addresses four types of innovative ICT based services in wellbeing and physical training; care for fragile patients; home hospitalization and early discharge, and diagnostic and treatment support. NEXES fits with the European dynamic of adapting regional healthcare services to the challenges posed by demographic and lifestyle changes and the increased prevalence of chronic illnesses. The pilot plans to involve more than 5000 patients in three different countries.

Thematic Network for sharing experience and developing common approach: The “NESIS” network aims to promote the uptake of ICT solutions to address the fundamental problems faced by public authorities in providing information related to monitoring and reporting environmental impacts and threats. By supporting a shared vision to streamline current information and reporting systems and promote adoption of an interoperable information infrastructure, the network aims to support the creation of a Shared Environmental Information System (SEIS). More information on ICT PSP can be found on the website of the programme. http://ec.europa.eu/ict_psp

1.3 Intelligent Energy Europe (IEE)

With about € 730 million of funds available between 2007 and 2013, the IEE programme will help deliver on the ambitious climate change and energy targets that the EU has set for itself and at the same time boost the competitiveness of its economy while fighting climate change. Main actions (project types) foreseen in the Pillar correspond to objectives of the programme and are as follow:

• ALTNER: Fostering energy efficiency and the rational use of energy sources • SAVE: Promoting new and renewable energy sources and energy

diversification • STEER: Promoting energy efficiency and new energy sources in transport

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A large part of the IEE programme is managed by the Executive Agency for Competitiveness and Innovation (EACI) on behalf of the European Commission, and seeks to bridge the gap between EU policies and their impact on the ground.

The programme runs annual calls for proposals and funding covers up to 75% of the eligible project costs. From 2007, the programme has given financial support to more than 400 projects including 60 new local or regional Energy Agencies and involving over 3 000 organizations across Europe.

1.3.1 Energy Agencies:

Local and regional energy agencies provide advice to local energy policy and decision making. They are represented all over Europe. These agencies support the introduction of good energy management practices and the concept of sustainability. They provide information and guidance and offer a number of other services based on specific local needs. With varied conditions and solutions, this knowledge and expertise can lead to long term positive impact on sustainable development. The energy agencies are funded by public authorities. More than 60 new energy agencies have been set up with support of Intelligent Energy - Europe since 2004. They add to about 200 agencies set up under SAVE II, the predecessor of the IEE programme. Most of them have been co-financed by the Intelligent Energy - Europe Programme, as well as the SAVE I and SAVE II Programmes.

1.3.2 IEE -who can participate? Any private or public organization established in the European Union (plus Croatia, Norway, Liechtenstein and Iceland) can contribute to reaching the EU’s energy and climate change objectives by applying under an annual IEE call for proposals or call for tenders.

Under calls for proposals, normally running for two to three years, projects need to involve at least three partners from three different countries. It is expected that projects funded under this programme will act as catalysts – inspiring other organizations to follow suit – and will continue to have a positive impact once the funding cycle is over.

1.3.3 IEE – participation of EECA countries

So far, the agencies have been settled not only in EU countries but as well in third countries – including three EECA countries:

• Moldova: Alianta pentru Eficienta Energetica si Regenerabile Alliance for Energy Efficiency and Renewables

• Russia: NICE - Nizhny Novgorod Innovation Center for Energy Saving • Ukraine: ARENA-ECO - Agency for Rational Energy Use and Ecology

The organizations do not receive grants from the Commission for their activity, are self-financed, however cooperate with their counterparts in Europe taking part in the initiative.

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1.3.4 Examples of actions already funded by IEE: ALTENER: Boosting green electricity in 11 European regions (RES-E REGIONS): The project aimed to boost renewable electricity production in 11 European regions by defining regional RES-E targets and developing regional strategies. Although the European directive on renewable electricity deals with some of the main barriers to uptake, the project contributes to making the ambitious national and European targets achievable by encouraging complementary action on a regional and local level. RES-E Region’s objectives were to use a variety of methods to keep on raising awareness and to run information activities targeting different elements of the market. SAVE: EURO-TOPTEN PLUS Project has as main objective to promote the most energy efficient appliance thanks to: website in several countries presenting in a user-friendly way selections of best products available in shops; Cooperation with large public and private buyers, the media and other multipliers (such as environmental and consumer NGOs); a fruitful dialogue with the industry, reassured by identified demand and interest for energy saving products. The EURO-TOPTEN PLUS project allows the collaboration of 16 national topten websites and has them display a significant number of product categories (household appliances, lighting, cars, office equipment, etc) providing and publishing good quality data at national level permits to analyse the situation at European Level and make policy recommendations. It permits to survey life cycle costs in Europe and define innovation goals. STEER: EPOMM - Partners Learning Urban Sustainability (EPOMM PLUS): EPOMM-PLUS aims to achieve a quantum leap in the use of mobility management in Europe. It establishes EPOMM (the European Platform On Mobility Management) as the authority and the networking instrument for the promotion of mobility management in Europe, thus strengthening EU cooperation and dissemination in this field. EPOMM is an EU network of Ministries or appointed agencies responsible for mobility management. EPOMM-PLUS will help that mobility management will be integrated in national transport policies by transferring good practices and supporting local pioneers by developing national networks The current network of EPOMM member states (UK, NL, ES, FR, AT, SE) will be expanded to four other states with some mobility management activity (BE, IT, DE, FI) and 10 states with minimal experience. Most are New Member States where alternative mobility measures complement EU Structural Funds investment in infrastructure or services as an alternative to the unprecedented growth in private car ownership. EPOMM national focal points and network initiators, which are organisations with an overview over relevant actions in their countries, will link with EPOMM-PLUS activities.

II. Implementation of the CIP in selected EU countries

2.1. CIP Implementation and Evaluation Report - conclusions The CIP Implementation Report 2009 asses the state of implementation of the CIP Programme until the end of 2009 within three pillars as EIP, ICT-PSP and IEE. In 2009 all CIP instruments and actions were fully operational showing encouraging results. According to the report, the execution rate of the total budget allocated to the three different programmes was above 99.5 %. During the third year

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of implementation, some CIP measures extended the coverage of their actions and then the number of possible beneficiaries. Financial Instruments Financial instruments were one of the most successful action under the CIP. The budget allocated for financial instruments was spent in 100%. More than 58,800 SMEs benefited from their support by the end of 2009. Enterprise Europe Network The European Enterprise Network increased the services offered (new service on eco-innovation) and the number of SMEs reached. By the end of 2009, there were 572 member organizations of the Network across the EU and beyond. The partners of the Network contacted more than 2.2 million SMEs via newsletters every week. They have also involved more than 457,000 SMEs in local promotion and information events. The response from the market to the grants for the network was very positive. Pilot and market replication projects Actions such as pilot and market replication projects on ICT-based services and eco-innovation or the dissemination and information actions on sustainable energy had an increased number of applications and, in most cases, the number of projects funded during 2009 was higher than in previous years. Eco-innovation is one of the most successful call for proposals, where the total funding request increased by almost 40% compared with the 2008 call. Third countries and the CIP According to Article 4 of the Legal base, non-EU countries may participate in the CIP. In 2009 Turkey joined the ICT-PSP Programme and Serbia fully participated in the EIP and ICT-PSP Programme. By the end of 2009, the following non-EU-member countries were participating in the three specific CIP Programmes:

• Entrepreneurship and Innovation Programme (EIP): Norway, Iceland, Liechtenstein, Croatia, the Former Yugoslav Republic of Macedonia, Montenegro, Turkey and Serbia fully participate in the EIP; Israel and Albania participate in certain parts.

• Intelligent Energy Europe Programme (IEE): Norway, Iceland, Liechtenstein, and Croatia.

• ICT Policy Support Programme (ICT-PSP): Norway, Iceland, Liechtenstein, Croatia, Turkey and Serbia.

The report is to be found on the following web-page: http://ec.europa.eu/cip/files/docs/cip_2009_implementation_report_en.pdf

2.2. Experiences of selected countries with the CIP implementation

2.2.1 Case study: Poland

Poland joined the Competitiveness and Innovation Framework Programme on the basis of the Resolution of the Councils of Ministers No 313/700. Since the 1st June 2007 Poland become a full member of the Programme. The supervision over the CIP took the Ministry of Economy, whereas its implementation is in the hands

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of Polish Agency for Enterprise Development (PARP). According to the Resolution, the following tasks are co-financed from the national budget:

• Providing the financial contribution at the national level for Polish consortia awarded in action ENT/CIP/07/001 (Enterprise Europe Network): 46 800 000 PLN;

• Financing of dissemination and promotional activities provided by National Contact Points for the CIP: 9 000 000 PLN (CIP legal base does not foreseen any formal NCPs for the CIP, however due to the positive experience regarding NCP for the Framework Programmes for Research and Development Ministry decided to settle additional NCPs for the CIP)

• Providing financial contribution for Polish participation in other initiatives under the CIP: 600 000 PLN.

Enterprise Europe Network in Poland

The Enterprise Europe Network in Poland was divided into four following consortia covering the whole territory of Poland:

• Central Poland – Business Support Network. Coordinator: Polish Agency for Enterprise Development

• Business Support Network South Poland. Coordinator: Cracow University of Technology

• Business and Innovation Support for North-East Poland (BISNEP). Coordinator: University of Warsaw

• B2Europe West Poland. Coordinator: Wroclaw University of Technology

The financial contribution from the national budget is as follow:

EC co-finanicing 60% of eligible costs 18 000 000 Euro

PL co-financing 40% of eligible costs 12 000 000 Euro

Enterprise Europe Network in Poland

2008-2013

30 000 000 Euro*

(exchange rate PLN/EUR 3,9)

National Contact Points

To secure the successful implementation of the CIP Programme, its promotion and dissemination four National Contact Points financed from the national budget were established:

• Entrepreneurship and Innovation Program EIP: Financial Instruments: Polish Bank Association; Non-financial Instruments: Polish National Contact Point for Research Programmes of the UE (IPPT PAN/KPK);

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• Information Communication Technologies Policy Support Programme ICT: PSP Polish National Contact Point for Research Programmes of the UE (IPPT PAN/KPK);

• Intelligent Energy Europe IEE: Polish National Energy Conservation Agency (KAPE S.A.).

The National Contact Points are obliged to provide information on the selected sub-programmes under the CIP, promote the actions, advise the potential beneficiaries as well as disseminate information on the CIP.

Polish National Contact Point - Non-financial Instruments EIP (KPK) Institute of Fundamental Technological Research PAS (interview) I. Participation of the KPK in the CIP Programme Q1: Motivations of the KPK to join the Programme KPK has a long and various experience in promoting the 5th, 6th and 7th Framework Programmes as well as taking part in various European Projects. In order to use the experience and develop its own potential the decision on participation in the CIP Programme was taken. Q2: Do the representatives of KPK participate in the Programme Committee Meetings? No. During the EIP Programme Committee Meetings Poland is represented by the officials from the Ministry for Economy. The Ministry consults with the representatives of KPK the documents before each Meeting. A representative of KPK takes part in the NPCs meetings for first application and market replication projects under the eco-innovation initiative. Q3: What are the first experiences of the KPK acting in the CIP Programme? The initiative is moderately popular among participants. There are a few reasons, first of all the visibility of the Programme. It encompasses too many different actions, managed by different parts of the EC, with different requirements and wide range of potential beneficiaries. Additionally, proposed actions have rather a small budget, which confronted with the efforts necessary to apply for and participate in a CIP-funded project may act as a disadvantage. However, some actions are recognizable and getting more and more popular, these are: the Enterprise Europe Network, Europe INNOVA and Eco-innovation first application and market replication projects. The other reason for the lack of interest is the fact that Poland received quite significant budget under the structural funds. Lots of actions dedicated to SMEs - a traditional beneficiary of the EIP – under SF are easier to get for a single enterprise. This is mostly due to the following factors: significant amount of money dedicated to SMEs under several operational programmes at the regional and national level comparing to financial resources of the CIP, high success rate in calls for proposals, higher level of co-financing from the SF, well developed and diversified information network for SMEs, well developed consultancy services as well as lack of language barriers and lack of requirements regarding the international consortium.

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II. Services offered by KPK for the beneficiaries Q4: What sort of services do KPK offer the potential beneficiaries of the Programme? These are: - trainings, workshops, information days and conferences on the CIP EIP; - individual consultations; - publications, promotional material; - promotional stands during exhibitions and fairs; - Web-page dedicated to the Programme. Q5: Which services are the most popular among potential beneficiaries? These are workshops, conferences, and information days. Also publications are being highly rated by potential beneficiaries of the EIP. Q6: Does KPK intend to introduce new services? KPK will concentrate more on activities dedicated to single entities as e.g. workshops on project preparation and brokerage events between SMEs from different countries. III. Entrepreneurship and Innovation Framework Prog ramme in Poland Q7: Which mechanism are the most efficient among Polish beneficiaries? These are: Enterprise Europe Network – the Network provides a vide range of free services for companies, in particular SMEs as e.g. workshops, partner search, publications, consultations, information days. The offer of the Network is well suited to the Polish conditions; however there is still a weak recognition among potential beneficiaries regarding the visibility of the Network. Pilot and market replication projects on eco-innovation – implementation of the eco-innovative projects at the European level seems to be of a quite significant interest among Polish participants. However, the possibility of receiving support from the structural funds is an important factor constraining the interest regarding the CIP-Eco- innovation. Europe INNOVA – the initiative collecting the interest of many Polish representatives from various sectors as one of the most recognized initiative at the European level. Q8: Which of the mechanisms under the EIP are less popular in Poland? These are especially several calls for tenders, procedures and networks as e.g. studies, analysis, Network on sustainable tourism. IV. EIP and cooperation with the EECA countries: Q9: Does the Programme EIP offers the actions orientated on the cooperation with the EECA counties? So far not, however there have been calls offering the studies on the selected problems in third countries as e.g. a call on studies on the energy consumption in the key emerging economies. Q10: Are there any Polish potential beneficiaries willing to cooperate with the representatives of the EECA countries? Polish potential beneficiaries express their willingness to cooperate with entities from third countries including the EECA, especially with Russia and Ukraine.

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Q11: Should the CIP II include calls requiring the participation of third countries, especially those from the Eastern Europe and Central Asia? Definitely, as there is a significant demand on the side of Polish potential beneficiaries to cooperate with partners from EECA countries, such actions could help to boost the cooperation. The interests results from the past experiences and lack of language barriers.

2.2.2 Case study: Enterprise Europe Network in Spain Institution managing the Competitiveness and Innovation Framework Programme in Spain is the Directorate General of SMEs in the Ministry of Industry, Tourism and Trade (Spanish acronym, DG PYME - MITYC). The CIP Programme is popularized by the Enterprise Europe Network. There are 55 branches of the Enterprise Europe Network in 29 cities covering all 15 regions. The Network is mostly present in the following cities: Madrid (6 branches), Valencia (5), Seville (5), Barcelona (4) and Palma Mallorca (4). Most entities belonging to the Network are: chamber of commerce, high school departments, technology transfer centres as well as private companies.

Case Study Enterprise Europe Network in SPAIN – short questionnaire Type of the Entity: Chamber of Commerce (Member of the Enterprise Europe Network) Q1: Does the CIP Programme, in general, contribute to the development of innovation in Spain?

o To a marginal extent

Q2: Which are the most important services offered by the Network in Spain? Trainings, workshops, seminars

o Information, publications o Partner search o Other: Organization of events aiming to promote cooperation among SMEs

Q3: Within witch pillars of the CIP is the Network offering its services?

o Entrepreneurship and Innovation Framework Programme (EIP) o Intelligent Energy Europe (IEE)

Q4: Is the Network acting as a National Contact Point for the CIP similarly to the NCPs within the 7th Framework Programme?

o No Q5: Which are the services in the Science & Technology area offered by the Network?

o Knowledge transfer o Information on IPR and patents

Q6: Has your Entity ever cooperate with any third country (not an EU country)? o Yes, with: Turkey – Morocco – Latin America

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Q7: As an Entity operating within the Enterprise Europe Network, have you ever cooperated with any of the Eastern European and Central Asian Countries?

o No Q8: Would you be interested in such cooperation?

o Yes, in the following fields: depending on the sector

III. CIP and Synergies with 7th Framework Programme and Structural Funds

3.1 Practical Guide to the EU funding opportunities for Research and Innovation

To present the funding possibilities, possible synergies and complementarities of the three main financial sources: Structural Funds (Cohesion), 7th Framework Programme (Research) and the Competitiveness and Innovation Framework Programme (CIP) (Innovation) the European Commission developed a Practical Guide. This Practical Guide was conceived in order to help potential beneficiaries find their way through the three funding instruments and identify the most appropriate funding scheme for them. It provides a concise description of the three funding sources explains how they can in practice be combined and provides policy makers with advice on setting up mechanisms at the national and regional levels to foster co-ordinated access to them. 1 The three EU funding sources (FP7, CIP and Structural Funds), when operating individually, provide significant support for research, development and innovation. In order to use the maximal potential of the three sources and support long-term development strategies the authors of the Guide provide practical examples on the mixing schemes as:

• Complementary-financing means using different sources for different actions either simultaneously or in a consecutive manner provided that there are separate cost statements/bills.

Examples 1 complementary financing for related actions: A research organization in the domain of biotechnology has received funding from an Operational Programme under the Structural Funds. This has allowed the development of a new research idea in which research organizations in other countries have expressed interest. The area of activity is covered by a forthcoming call for proposals under the Cooperation Specific Programme of FP7. The research organization leads a consortium that successfully applies for funding under the call. The research and development results of the FP7 project lead to a business idea and trigger the creation of a company. This start-up company can benefit from the CIP through loan guarantees or grants for pilot and market replication projects. It can also benefit from the CIP by receiving business support services delivered by the Enterprise Europe Network.

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Examples 2 complementary financing for consecutive actions: An SME forms part of a consortium that has received funding through the Research for SMEs action under the FP7 Capacities Specific Programme. This has provided it with support to outsource certain research needs, and receive training for its own staff. As a result, it is now ready to undertake future research activities itself. It successfully applies for funding for capital expenditure to build its research capacity under the research and business priorities of a Structural Funds Operational Programme in its region or for assistance under the JEREMIE facility. The Practical Guide and more examples are to be found: http://cordis.europa.eu/eu-funding-guide/home_en.html

3.2 Conclusions of the WIRE Conference during the Spanish Presidency to the EU

The WIRE Conference (Week of Innovative Regions) organized by the Spanish Presidency took place on 15th-17th March in Granada/ Spain. It was dedicated to the examination of the efficient use of the resources devoted to R&D, especially the Structural Funds (SF) and their potential synergy with the Framework Programme of RTD (FP) and Innovation and Competitiveness Program (CIP). The most important points on the synergies where concluded within six following points:

1. FP-CIP-SF coordination should be improved, by the analysis of possibilities of a clear trajectory over the different funds. In this context, the improvement of the “Practical Guide on EU funding opportunities for research and innovation” is a task to be undertaken.

2. Regions: Regions should develop integrated and tailor-made strategies pursuing “smart specialization” by defining a few research and innovation priorities based on the European objectives and on their needs and potentials, identified in partnership with stakeholders, and concentrate earmarked EU resources on these identified priorities. It is also necessary the activate engagement of regional policy-makers and stakeholders in the Europe 2020 Strategy, within an overall coordinated European approach.

3. Research-driven clusters: Development of research-driven clusters has been identified as a tool for efficient interaction of funding and further analysis of potentialities should be fostered.

4. Simplification: Clearer structures and substantial simplification participation rules for all research and innovation funding, regardless of its origin, with the clear objective to strengthen therefore the overall research and innovation system, enable a more efficient use of funds and instruments, and ensure better participation by SMEs. While respecting specificities of each policy, design of harmonized rules governing the different instruments in order to ensure easier synergies and complementarities. Shared terminology among all EU innovation and business related instruments will help to avoid confusion among applicants.

5. Evaluation: Definition of objectives and indicators compatible with the Europe 2020 Strategy and the ERA, and further evaluation of progress. Development of common projects of assessment of results of the several community instruments and their impact in the attainment of results by regions

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at the light of the EU2020 priorities. Development of common projects of assessment of results of the several community instruments and their impact in the attainment of results by regions at the light of the EU2020 priorities.

6. Future: The debate on the next financial perspectives (beyond 2013) must be based on an analysis of good practice in the use of funds and the desired achievement of synergy between community, national, and regional instruments.

The most important conclusions on synergies including the involvement of the Third countries: Enlargement of the scope of the Practical Guide to:

• any other existing EU and intergovernmental instruments related to research and innovation, including in particular IPA funds, DCI, ENPI, EIB/EIF instruments, EUREKA, COST, Life-long Learning Programme, ISA, Marco Polo, EIT, …;

• education and employment policies instruments, including Lifelong Learning and European Social Fund;

• Making the Practical Guide web-site a single entry point for any instruments supporting research and innovation and link it up to the Participant Portal.

• Member States and Regions – as well as any interested Associated and Third Countries – to contribute to the efficiency and completeness of this tool by making available and sharing information on their instruments supporting research, innovation and business.

• Continuation and strengthening of the Regions for Economic Change initiative and the RegioStars Awards, as useful tools to promote dissemination of effective synergies in practice.

• Ensuring improved synergies of action, avoidance of duplications and lack of support in some areas of the research-innovation value chain between the different networks/actors ensuring dissemination of information on EU instruments supporting research and innovation (CIP Enterprise Europe Network, FP7 NCP, SF Managing Authorities)

More on the WIRE output: http://wire.fecyt.es/publico/Inicio/index.aspx?idioma=en

IV. Participation of the EECA countries in the CIP

4.1. Potential relevant fields of action between S&T Policy and the CIP for EECA countries

Based on the specificity of the CIP Program S&T relevant fields for EECA countries can be as follows:

• Support services for SMEs • Support for eco-innovation • Participation in the dialogue on the Innovation policy at the European level • Promoting energy efficiency and new solutions • Best use and uptake of Information and Communication Technologies

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Support services for SMEs: Type of intervention CIP action Intermeriaires Enhancement of the innovation level of SMEs. Information and support services for SMEs: funding possibilities, partners search, trainings, technology transfer schemes, IT tools;

Enterprise Europe Network

Consortia of selected entities (research institutions/ technology transfer centres, agencies, etc)

Support for eco-innovation Type of intervention CIP action Intermediaries Commercialization of eco-innovative solutions by SMEs

Eco-innovation first application and market replication projects

SMEs, consortia of SMEs and other entities

New financial support for eco-innovative initiatives

New Financial instruments: GIF, SMEG

Financial intermeriers (e.g. commercial banks, leasing funds)

Cooperation at the regional and national level

Networks Relevant stakeholders (public and private bodies)

Participation in the dialogue on the Innovation policy at the European level Type of intervention CIP action Intermediaries Exchange of know-how, best practices, elaboration of new services supporting innovative SMEs, studies, analysis, conferences

Europe INNOVA Relevant stakeholders (public and private bodies)

Exchange of practices, solutions, elaborating new solutions, recommendations, instruments for policy makers

PRO INNO Europe Public bodies

Studies, analysis, reports on selected industry sectors

Support policy actions Relevant stakeholders (public and private bodies)

Promoting energy efficiency and new solutions Type of intervention CIP action Intermediaries Introducing energy efficiency and rational use of energy sources

SAVE Relevant stakeholders (public and private bodies)

Promoting new and renewable energy sources and energy diversification

ALTENER Relevant stakeholders (public and private bodies)

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Promoting energy efficiency and new energy sources in transport

STEER Relevant stakeholders (public and private bodies)

Promoting energy efficiency, renewable energy sources, dissemination activities

Energy Agencies Relevant stakeholders (public and private bodies)

Best use and uptake of Information and Communication Technologies Type of intervention CIP action Intermediaries Exchange of know-how, best practices, elaboration of new services supporting innovative SMEs, studies, analysis, conferences

Thematic Networks Relevant stakeholders (public and private bodies)

Exchange of organisational, institutional, and legal issues and proposed solutions

Type A Pilots Public Administration

Exchange of best practices and knowledge regarding innovative ICT solutions in real-life implementation with a view to wider deployment

Type B Pilots Relevant stakeholders (public and private bodies

Wide spread of information on innovative ICT solutions and their implementations.

Studies, analysis, reports on selected industry sectors

Relevant stakeholders (public and private bodies

4.2. Procedures on participation of the EECA countries in the CIP – interview with the EC

The interview with the representative of the European Commission (DG Enterprise, Unit A1 General Coordination) was carried out on the 14th April 2010 in Brussels. Additionally, during the meeting on the 24th January 2011 the conclusions of the Analytical Paper were presented and discussed with the EC.

During the interview the following issues were raised:

Specifics of the CIP

The CIP, like the FP7, is a Framework Programme supporting excellence at the European level with the aim to create "common goods" rather than supporting cohesion. So the beneficiaries are more likely to be those SMEs which represent the highest level of excellence regardless the country of their origin. This distinguishes

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the Programme from the Structural Funds concentrating on the cohesion objectives and following to a significant extent the juste retour principle.

The CIP, unlike the 7th Framework Programme concentrating mostly on research and technological development activities, supports activities in the area of non-technological and technological innovation that has moved beyond the final demonstration phase and are ready for market replication. The CIP is as well a comprehensive and multi-subject Framework Programme with five Directorates General involved: DG Enterprise and Industry, DG Environment, DG Economic and Financial Affairs, DG Energy and DG Information Society and Media.

Participation of third countries in the CIP.

A third country before joining the Programme has to follow a certain procedure. The first step is a protocol (usually a protocol to an existing Association Agreement, or a specifically designed new “framework agreement”) between the country and the European Union (represented by the Council and the European Parliament). In general, this protocol spells out the general rights and obligations of participating in a Community Programme, without entering into the specifics of any particular programme. Next, a country should sign a memorandum of understanding with the European Commission, which regulates the specifics of participation to a particular programme, including the payment of the country of a certain financial contribution (the so-called entry ticket) to the budget of this programme. On this basis the country can join the Programme or (in the case of CIP) in duly justified cases a part: a pillar or an action of this programme. E.g. Albania and Israel participate only in selected actions. Additionally, due to the mandate of the European Investment Fund various non-European countries do not have the access to financial instruments provided under the CIP.

Furthermore, there is not one comprehensive agreement for the whole CIP, but for its three sub-programmes. These sub-programmes (pillars, operational programmes) are in fact the autonomous parts under the CIP umbrella with separate Programme Committees and under the management of five different DGs: DG Enterprise and Industry, DG Environment and DG ECFIN for the Entrepreneurship and Innovation programme (the largest share of the programme), DG INFSO for the programme dealing with ICT policy support and DG Energy for the pillar on intelligent energy. A country can negotiate its accession to each of the sub-programmes. The accession of a country results in its yearly financial contribution. In the case of many of these countries, their contribution is nonetheless partially “reimbursed” through the technical assistance programmes the Commission implements in these countries

If a country does not participate in a sub-programme, its representatives cannot take part in the Programme Committee meetings and Strategic Advisory Board meetings even as observes.

Third counties in the Enterprise Europe Network

On the basis of the article 21.5 of the legal base (organizations constituting an eligible consortium in) a third country can join the Enterprise Europe Network, however without obtaining any financial support. Due to the participation, the country has

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the access to information on new standards, regulations, policies as well as exchange of knowledge and good practices.

4.3. CIP initiatives partly introduced in the EECA countries

The Enterprise Europe Network is the largest network of contact points providing information and advice to EU companies on EU matters, in particular small and medium enterprises (SMEs).

Among EECA countries the Enterprise Europe Network’s Correspondence Centres have been established in Armenia and Russia. In Armenia this is the Small and Medium Entrepreneurship Development National Center of Armenia (www.smednc.am). There are several correspondence centres operating in Russia as follows: Russian Union of Innovative Technological Centre (www.unitc.ru), Russian Technology Transfer Network (www.rttn.ru) and Russian Agency for Small and Medium Enterprises Support (www.euroinfocenter.ru).

Based on the aforementioned, it can be considered as priority for other EECA countries also to be integrated into the Network and get access to wide geographic reach and of the wide range of integrated services it provides to SMEs and other business actors.

4.3.1 Enterprise Europe Network in Armenia – case study Armenia, one of the EECA countries, is not participating in the Competitiveness and Innovation Framework Programme. However, it takes part in the Enterprise Europe Network as a third country without obtaining any financial support. The interview with the SME Development National Center of Armenia – a correspondence center of the Enterprise Europe Network from the EECA country was held during the meeting in the SMEDNC on the 6th October 2010 in Yervan: I. SMEDNC in the Enterprise Europe Network Q1: Since when is the SMEDNC a correspondence center of the Enterprise Europe Network? SME Development National Center of Armenia became a correspondence member of the Enterprise Europe Network in 2008. The Enterprise Europe Network is an initiative of the European Commission’s Directorate General for Enterprise & Industry. It is a key instrument of the Competitiveness and Innovation Framework Programme (CIP), which focuses on supporting SMEs in their growth and innovation activities. The Executive Agency for Competitiveness & Innovation (EACI) is responsible for managing the Network on daily basis. Armenia has joined the network as a third country along with Egypt, Syria, USA, Switzerland, Russia, China, Chile, Bosnia and Herzegovina, Korea and Mexico (Article 21.5).

The SME DNC of Armenia participates in the Network as a single organization and taking into consideration that the SME DNC of Armenia is the only organization in Armenia which provides state support to SMEs with a nationwide coverage,

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diversity of implemented activities and established good working relations with other stakeholders the SME DNC of Armenia was able to act as a single organization. New work program for the period of 2011-2012 have been already submitted to EACI.

Q2: What was the motivation of the SMEDNC to join the Network? The SME DNC of Armenia implements wide range of activities to support business establishment, growth and development including: provision of business information; consulting; training; export promotion programs; innovation support programs; support to start ups; as well as financial support via provision of loan guarantees; seed capital and equity financing.

At the current stage of developing entrepreneurship in Armenia it is extremely important to support business internalization, to facilitate the access to external markets for local small and medium enterprises, which will create additional opportunities for SMEs, providing significant social-economic output.

Q3: Where there any requirements the SMEDNC had to fulfill before in order to join the Network? The SME DNC of Armenia had to show its financial sustainability and capacity to implement the Network activities.

Q4: How do you finance your activities? The activities of the Enterprise Europe Correspondence Center in Armenia mainly financed by resources of the SME DNC allocated from the state budget. EEN Activities is also supported financially through UNDP/SME DNC joint project “Support to SME Development in Armenia”.

Q5: Do you have access to any services offered by the Network as e.g. actions on network animation, to some others? Since its establishment (from 2008) the Enterprise Europe Network Correspondence Center in Armenia has been integrated in all EEN activities and used its all IT tools for promotion of business and technological cooperation profiles. We have access to First Class, Intranet of the Network, E-learning modules, Participation in Annual Conference and recently the participation in Working groups and Sector groups is also available for countries under article 21.5. Steering & Advisory Group (SAG) meeting is not open for Article 21.5 countries but they can have one representative from the group.

The representation of SME DNC of Armenia on behalf of Article 21.5 countries at Steering & Advisory Group (SAG) meeting was one of the best examples of the SME DNC’s active participation in Network activities (March 2009).

Q6: How do you cooperate with foreign organization being involved in the Enterprise Europe Network? To ensure the effectiveness of EEN activities in Armenia and increase number of clients we closely cooperate with international organizations to expand our activities. Particularly as it was mentioned implementation of EEN Activities is supported financially through UNDP/SME DNC joint project “Support to SME Development in Armenia”. The technical assistance is provided by OSCE and GTZ.

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Q7: Can you take part in any official meetings as e.g. Program Committee for the EIP as a member or as an observer? No

Q8: What are your first experiences in the Enterprise Europe Network? We gained our first experience through participation in New comer training organized by EACI in Brussels where we have got acquainted with all IT tools and information on working with intranet.

II. Services provided by the SME DNC for the SMEs Q9: What kind of services can you offer to SMEs in Armenia within the Enterprise Europe Network? The following services are offered to SMEs in the framework of EEN activities in Armenia:

• provision of information on EU legislation, on export/import procedures, • organization of business training courses and provision of specialized

consulting to upgrade the knowledge and skills of SMEs for doing business in European Market,

• support in preparation of partnership proposals of Armenian SMEs, • dissemination of information on new partnership opportunities, • organization of brokerage events and business missions, • support in searching business partners, support on establishment of business

relations and carrying out the negotiations, • other related services.

Since November, 2008 EEN Armenia has issued and disseminated its monthly electronic newsletter, which contains general information on EEN in Armenia, European news and Events, as well as Business Cooperation Offers. Q10: Do you organize special trainings and e.g. brokerage events? Aiming to facilitate the activities of the EEN Armenia and establish cooperation with other EEN members in 2008 the study visit was organized to Italian Partner – Agency for the promotion of European research (APRE). Main objective of the study visit was exchange of experience and discussion of general EEN services provided to SMEs and promotion of partnership proposals.

Intending to support Armenian SMEs to find and promote potential cooperation projects the EEN Armenia has participated in “b2fair” brokerage event held in Hannover, Germany 2009 jointly with Luxemburg Chamber of commerce and Enterprise Europe Network Germany. Due to participation in the event the Armenian companies made several direct contacts with potential partners for further cooperation. Currently we are organizing a business mission. Enterprise Europe Network Trabzon CCI Project Coordination Office requested for a meeting with Armenian companies interested in cooperation with Turkish company specialized in manufacturer and wholesaler of dried nuts (sunflower seed, hazelnut, salted peanut, yellow chickpeas, pistachios, peanuts in shell, pumpkin seed, mixed dry nuts, spicy corn, almond, walnut, white chickpeas, kaju, cocktail with raisin, processed peanuts). Probably the business mission will take place during October 2010.

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Regarding cooperation in research field recently we have received proposal from Italian Network partner. The project aims at identifying patients that are at high risk for CVD and complications in order to optimize therapeutic approaches. It will focus on the study of gene-phenotype mechanisms underlying complex diseases like CVD in different ethnicities (Western/Central Europe populations and Eastern Europe/Central Asia Populations). We have disseminated the partnership proposal and two relevant Medical-research centres expressed their interest in further cooperation. The contacts of interested parties have been provided to both sites. Q11: Are you going to extend you activities in the future? Yes. We are planning to expand our activities in the framework of EEN: particularly increasing the number of quality BCD profiles published in intranet, participate in sector groups, be more engaged in brokerage events and organize the sector specific business missions, also promote the technology transfer and research projects which are our week points. III. SME DNC as a good practice of the Enterprise Europe Network in EECA Q12: Do you cooperate with other similar organizations (delivering services for SMEs) in the EECA countries? As you know currently Armenia is the only country from the Caucasus region participating in the Network. Recently we have been contacted by Georgia (Dr. Givi Kochoradze, EC ICT NCP in Georgia, Executive Director of the International Center for Advancement of Research, Technology & Innovation) on how to become a Network member. We have provided comprehensive information by phone and e-mails on procedures and necessary documentation to be submitted for the call for proposals. Last year the Organization for SME Development under the Ministry of Economy of Moldova also was interested in the same issue and we have provided relevant information. Currently we closely cooperate with Russian agency for SME development on our daily Network issues and particularly during preparation of second work program. Q14: What are your expectations regarding the international dimension of the CIP, the Network, its future perspective in particular for EECA countries? If the Network is expanded to EECA countries I think it will create additional opportunities and new markets for European SMEs and at the same time enable access of these countries to European single market as well as cooperation within EECA countries will be promoted fostering the cooperation between SME supporting organizations. Q14: What pieces of advice would you give other organizations who want to become members of the Network? The network creates additional opportunities for local SMEs to expand their international business activities and create new trans-national partnerships, as well as Network serves as a bridge for information and technology transfer and for implementation of joint researches. At the same time fosters cooperation between the organizations with similar goals and objectives to share knowledge and experience and find solutions to common issues.

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4.3.2 Local and regional Energy Agencies in Russia – case study Local and regional agencies settled in the EECA countries:

• Moldova: Alianta pentru Eficienta Energetica si Regenerabile Alliance for Energy Efficiency and Renewables

• Russia: NICE - Nizhny Novgorod Innovation Center for Energy Saving • Ukraine: ARENA-ECO - Agency for Rational Energy Use and Ecology

Case study The Nizhny Novgorod Innovation Center for Energy Saving (NICE)

The agency is the governmental scientific institution with the authority to develop and carry out energy saving programs, provide technological and legal support for regional programs and projects aimed at more rational use of energy resources. Activities include:

Energy Policy, Research and Development Policy

• Legislation and financial mechanisms for the introduction of energy-efficient and energy saving technologies and equipment;

• Energy saving programs in industries and the budgetary sphere; • Feasibility studies of investments and business plans for energy saving

projects, aimed at the reduction of power energy and gas, heat and water consumption;

• Evaluation of energy-saving potential of adopting new technologies and energy efficient equipment;

• Monitoring of energy efficient projects; • Methodological guidelines on energy saving; • Analysis of energy supply reliability.

Services:

• Estimation of energy production and transportation costs for consumers; • Energy audits at companies and institutions (energy and water supply

systems); • Analysis of energy supply reliability

V. Future perspective of the CIP

5.1 The CIP in the context of the EU Innovation Policy – Strategy 2020, Innovation Union

The Strategy “Europe 2020” presents the EU's growth strategy for the coming decade. According to the document the EU shall become a smart, sustainable and inclusive leading economy. The key to achieve indicated goals of the Strategy is the Innovation Union – one of the 7th flagship initiatives. Innovation as described in the Innovation Union plan means change that speeds up and improves the way of conceiving, developing, producing and accessing new products and services. The output of the new approach means more jobs, improve people's lives and build greener and better societies. One of the measures indicated in the Strategy that supports

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the implementation of the Innovation Union is the Competitiveness and Innovation Framework Programme (CIP).

The CIP, together with structural funds and 7th Framework Programme, should contribute to the further strengthening and developing of the role of EU instruments to support innovation, mainly through facilitating the access to finance for SMEs, bringing new incentive mechanism to selected markets and reducing administrative burdens.

5.2 Conclusions of the conference on future perspective of the CIP

The Conference on the future of the Competitiveness and Innovation Framework Programme (CIP) „Ready to grow? Shaping future EU support for business” took place in Brussels, on 25th January 2010. As a part of public consultation process, the aim of the conference was to collect opinions of the future shape and perspective of the instruments supporting SMEs and Innovation. On the side of the panelists following issues on the CIP current activities and fields of improvement were raised: Mr. Heinz Zourek, Director General of Enterprise and Industry DG, underlined that in the future perspective European economy needs growth and competitiveness to go through the crises as well as gaining advantages over emerging economies. This process is in line with the Strategy “Europe 2020” and its flagship initiatives, such as Innovation Union, Industrial Policy for the Globalization Era or Digital Agenda. The CIP as an EU instrument with its main achievements as Enterprise Europe Network, eco-innovation pilot and market replication projects , financial instruments, ICT-PSP and IEE has a significant role in that process. However, some improvements can be made, e.g. with regard to increasing the role of financial instruments, supporting services for SMEs going outside the European market and protecting the IPR rights. Additionally, in order to develop synergies between European programmes the Executive Agency for Competitiveness and Innovation (EACI) should manage the part of the Framework Programme “Research for the benefits of SMEs”. Dr. Paul Rübig, Member of the Committee on Industry, Research and Energy in the European Parliament, pointed out several aspects as improvement of the financial infrastructure for SMEs including reduction of administrative burdens, constant development of new products and services, supporting research and market analysis as well as construction of friendly taxation system. To improve the effectiveness of EU budget following solutions should be taken into account: fines for unfair competition performed by big industry and for the pollution of the environment to be earmarked to support competitiveness and sustainability, programmes activating women. Dr. Anastasia Constantinou, Praxi/ Help-Forward Network, stressed the role of the Enterprise Europe Network as an essential tool for supporting SMEs The Network should be further develop in the direction of new services as e.g. supporting SMEs. going abroad, bringing new companies to Europe, simplifying procedures and burdens on main clients – small and medium seized enterprises. However, as long as third

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countries are not associated with the Programme, their companies cannot be considered as main partners for European SMEs. Dr. Mark Rahn, UMIP Premier Fund, added that Europe needs increasing of commercial projects and support for high-tech companies. Public sector should be more included in the scheme of supporting the SMEs Mr. Mark Schublin, Director of Mandate Management, European Investment Fund, highlighted the role of CIP financial instruments and its positive impact on the European SMEs. Especially, the guarantee schemes appeared to be successful. Additionally, complementarity between national public and private as well as European funds should be protected in order to avoid competition among the structural funds and framework programmes. To other fields of relevant importance belong: eco-innovation, energy efficiency, flexibility of investments guidelines, technology transfer as well as IPR protection. During the debate on the podium, the panelists agreed on the following issues as potential significant elements of the future Competitiveness and Innovation Framework Programme:

- support services for companies going outside the European market - reduction of administrative burdens on SMEs; - better IPR protection and fostering the implementation of the European Patent; - attracting foreign investments to Europe; - working on open innovation and supporting the technology transfer.

The audience rose following issues of the most importance:

- The financial resources of the CIP are too limited. In order to increase the impact of the Programme on the European market, the future budget should be increased.

- The mutual support of European programmes should be developed, e.g. if an excellent project falls under the CIP, the support from structural funds should be possible.

- The future Programme should include more actions dedicated directly for SMEs; actions involving participation of consultants should be limited.

- Brokerage events for companies taking part in the eco-innovation initiative are of an essential importance.

- Financial instruments shall be more flexible and participation rules should be simplified.

- The current ICT-PSP Programme is well structured, addresses the main problems and issues on the European market and should be maintained as an integral part of the CIP.

- The eco-innovation scheme should be maintained and the budget should be increased.

- European SMEs should have the opportunity to cooperate with entities from third countries.

The conference was concluded by Antonjo Tajani, Vice President of the European Commission, Commissioner for Industry and Entrepreneurship, by underling the role of the CIP and its compliance with the priorities of the Strategy “Europe 2020”. The Commissioner pointed out the areas to be improved in the future Programme:

- better access to finance for SMEs

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- activities of the Enterprise Europe Network should be improved in the fields of providing innovative solutions and information on public tenders;

- improvement services to protect IPR; - acceleration of market recovery and developing innovation.

The Commissioner mentioned selected activities already implemented and contributing to support of the SMEs and the European market, such as SME Financial Forum, involving stock exchanges into facilitation of access to finance as well as Directive on late payments.

Conclusions

The study on the Competitiveness and Innovation Framework Programme in the context of the S&T Policy for the EECA countries revealed that there are measures within the CIP supporting certain mechanism and enhancing the S&T potential of the countries. The interest among the EECA countries to join the Programme is significant and still growing. Some countries, such as Ukraine, Kazakhstan and Moldova, express their willingness to sign the memorandum of understanding being the first step to the full membership in the Programme. However, the procedures may prolong this process. The current state of play of the Programme shows that to the most important measures belong the Enterprise Europe Network under the EIP and Energy Agencies within the sub-programme IEE. The Enterprise Europe Network supports the technology transfer schemes and commercialization of research results. It creates the significant link for the S&T police to the phase concentrating mostly on the research and the market phase. The Network helps bridging the gap between science and economy. The presented case study of the Enterprise Europe Network in Armenia shows that the demand for the cooperation on the European and third country side is remarkable and will develop in the future. That is why the initiative should be supported and developed in the future. Financial support seems to be crucial in further development of the Network. Especially financing the participation of the third countries representatives in events and sessions dedicated to the Network is of the outmost importance, as their own resources may not be sufficient to enable the participation in the dialog within the Enterprise Europe Network. The Energy Agencies seek to promote the energy efficiency as well as uptake of renewable energy sources. The initiative is being promoted in the third countries. As the presented case studies revealed, it boosts the cooperation of the third countries with the members of the EU and support the protection of environment. The initiative should be further supported and developed; certain financial funds should be dedicated to Agencies being opened in the EECA countries. Additionally, there are still other mechanisms that could be of a mutual importance for the cooperation between EU and EECA for the sake of the further development of S&T policies, these are studies and analysis.

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First application and market replication projects aim at commercialization and market uptake of eco-innovative technologies, services and products. The scheme helps in practical use of research results. Yet, the EECA countries are not allowed to take part in the initiative. The involvement of these countries could boost the scientific and commercial dialog between EU and EECA. The studies and analysis on the EECA countries could provide necessary expertise for further cooperation between EU and EECA as well as enable recognizing the areas of future cooperation.

Versioning and Contribution History

Version Date Modification reason Modified by

1 4.02.2011 - IPPT PAN