EU Cohesion Policy:

What's in for LivingLabs?

Katja REPPEL Head of Sector for innovation

DG Regional policy, Unit for thematic coordination and innovation European Commission

Structure

•  What does Cohesion Policy do for innovation, in particular ICT?

•  What changes as of 2014?

•  Synergies with Horizon 2020?

€347 billion in 2007-13 invested for less well-off regions or citizens in infrastructure, business, environment and training of worker

Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective.

Regional competitiveness and employment objective.

Basics on current Cohesion Policy

Cohesion Policy

Basics on current Cohesion Policy COHESION POLICY • Regional Policy (DG REGIO: Regional Policy)

- ERDF: European Regional Development Fund (→ activities) - CF: Cohesion Fund (→ “basic” infrastructures, not for R&I)

• Social Policy (DG EMPL: Employment and Social Affairs) - ESF: European Social Fund (→ people / workers)

OTHER POLICIES RELATED TO COHESION • Common Agricultural Policy (DG AGRI: Agriculture and Rural Development)

- EAFRD: European Agricultural Fund for Rural Development • Common Fisheries Policy (DG MARE: Maritime Affairs and Fisheries)

- EMFF: European Maritime and Fisheries Fund

Cohesion

Policy

• Shared management • Managing Authorities:

• SWOT & impact assessments • manage implementation of Operational

Programmes • payments, audits

• Commission: • negotiates Operational Programmes • monitors implementation, financial control • approval of major projects

See list of Operational Programmes and Managing Authorities:

http://ec.europa.eu/regional_policy/atlas2007/index_en.htm

Basics on current Cohesion Policy

Cohesion Policy

Contributes to unlocking growth potential by promoting research and innovation in all regions

2007-2013 - € 86 billion for research and innovation, over 25% of total cohesion policy budget: -  Focus on R&I capacity-building but also on infrastructure in

less developed regions (over €50 billion) -  Entrepreneurship: over €8.3 billion -  ICT capacities, research and take-up: over €13 billion -  Human capital for innovation: over €14.5 billion For less developed regions, ERDF is the most important source

of funding for research and innovation

October 2011 – latest figures show that about € 50 % billion of € 86 billion has been committed to projects in Research and Innovation

Basics on current Cohesion Policy

For 2007-2013 the funds allocated to ICTs in 2007-13: •  over EUR 15 billion or 4.4% of the total cohesion policy budget. •  clear shift in the investment priorities from infrastructure to

support for content development, both in the public sector (eHealth, eGovernment, etc.) and for SMEs (eLearning, eBusiness, etc.)

Basics on current Cohesion Policy

Cohesion Policy

Examples for ICT related Cohesion Policy investments

High Speed Broadband roll out in Auvergne 2006-9 (10 M€ ERDF) q  One of the most sparsely populated regions in France, launched the first telecommunications public/private partnership in the country. q  EU funding: EUR 10 million ERDF grant to extend high-speed broadband coverage to all households. q  Goal: extend high-speed broadband coverage to 100% of households. Mission Accomplished: Some 99.6% of lines in Auvergne are now eligible for high-speed broadband through DSL technology, while the other 0.4% have a satellite option.

Computer Literacy Basics for a Lithuanian e-Citizen, 2006-8 (EUR 2,694,534) q  Provides computer literacy training, in line with the objectives established by the national Knowledge Society Council, establish Public Internet Access Points q Key target groups: people living in remote areas with little access to digital services, in particular in rural regions, the elderly and those with disabilities. q  Private and public partnership with local municipalities made to reach directly persons living in district centres and rural areas. q  Over 50,400 adults have completed the LIA courses - helping to boost the overall competitiveness of Lithuania’s economy by upgrading skills.

RegioStars award winners 2010: http://ec.europa.eu/regional_policy/innovation/regiostars_en.htm

B3 Regions: Regions for Better Broadband connection: spreading good practices of the expert partners relating to broadband implementation in disadvantaged areas and share experience with Managing Authorities and ICT agencies willing to implement successful broadband strategies with Structural Fund support.

PIKE: Promoting Innovation and the Knowledge Economy: to improve regional and local Innovation & Knowledge Economy policies through the exchange and transfer of examples of e-Government and Wireless Broadband good practice, and through the integration of these into the development policies of participating regions.

IMMODI: Making the most of good practice in e-Government and e-health, which contribute to the development of mountain and rural areas. Selected examples are presented at technical and regional workshops, detailed in a published guide and discussed with Managing Authorities in order to transfer them into the regional development programmes of participating regions

Examples for ICT related Cohesion Policy investments

INTERREG networks for policy learning in the field of ICT: http://i4c.eu/approved_projects.html

See guide: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/broadband2011_en.pdf

East of England pre-commercial procurement for health care innovations q  May 2009: first pre-commercial procurement of an innovative process, material, device, product or service to help meet current health priorities in the region; q ERDF funded initiative: Up to £100,000 was awarded for winning tenders in a first phase with the potential of further financial assistance to develop and evaluate projects in a second phase. q The aim is to provide procurement opportunities for innovative health care businesses and bring the benefits of new innovations and technologies to patients.

RAPIDE ERDF Fast Track Network of 12 regions from across the EU Exploring how the public sector can influence innovation. Lead by the Regional Development Agency of South West England (UK), between 2008-2010 selection and adaptation of:

1. Innovation Voucher Schemes 2. Pre-Commercial Procurement projects (PCP) 3. Business Angel Networks 4. Assessment tool for start-ups in incubators 5. Pitching tool (media-based) to bring innovators to investors

See for CP examples: http://ec.europa.eu/regional_policy/sources/docgener/presenta/projectbook/dg_regio_project_book_en.pdf Good practices database: http://ec.europa.eu/regional_policy/projects/practices/index_en.cfm COM on smart growth: http://ec.europa.eu/regional_policy/information/pdf/brochures/rfec/2011_smart_growth_en.pdf

Examples for demand side related Cohesion Policy investments for innovation

What changes as of 2014?

ü Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth ("the power of the purse")

ü Focus on results, not spending ü Maximise the impact of EU funding ("do more

with less") ü Strengthen partnership ü Simplification

Future of Cohesion Policy 2014-2020

Cohesion Policy

Future of Cohesion Policy 2014-2020 ü Thematic concentration to maximise the impact of investment: focus ERDF on R&I + SME competitiveness + low carbon economy

ü Conditionalities to ensure effective implementation, e.g. research and innovation strategies for smart specialisation (RIS3)

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

Cohesion Policy

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Cohesion Policy

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

│ 15

How will funding be allocated?

68,7%

11,6%

15,8%

0

10

20

30

40

50

60

70

80

90

100

119.2

72.4

307.1

0

50

100

150

200

250

300

350

400

450

500

Budget allocation (in %)

Population covered (in millions)

Less developed regions/MS Transition regions More developed regions

Cohesion Fund¹ 68.7

Less developed regions 162.6

Transition regions 38.9

More developed regions 53.1

European Territorial Cooperation

11.7

Outermost regions and sparsely populated areas

0.9

Total 336.0

¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility

Cohesion Policy

Future Cohesion Policy (eligibility simulation)

3 categories of regions

Regional GDP figures: 2006-07-08 GNI figures: 2007-08-09 © EuroGeographics Association for the administrative boundaries

< 75% of EU average GDP/capita*

*index EU27=100

75-90% > 90%

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Canarias

Guyane

Réunion

Guadeloupe/ Martinique

Madeira

Açores

Malta

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Less developed regions

Transition regions

More developed regions

Cohesion Policy

Less developed regions Developed regions and transition regions

60% 20%

6%

44%

Concentration of ERDF investment resources to maximise the impact

Flexibility (different regions present different needs) Special arrangements for the previously convergence regions

Research and Innovation

Energy efficiency and renewable energy SMEs competitiveness

Cohesion Policy

Thematic Objective & Investment Priority 1: Strengthening RTD and innovation

Ex ante conditionality: Research and innovation strategy for smart specialisation

Key actions: ►Staircase to excellence: R&I Infrastructures,

equipment, centres of competence … ►Innovation in enterprises: tech-transfer, take-up &

pilots on KETs, demand stimulation … ►Exploit new ideas: clusters, advisory services, new

business models, university-business links, …

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Thematic Objective & Investment Priority 2: Enhancing access to + use and quality of ICT

Ex ante conditionality: Chapter for digital growth in RIS3 Next Generation Access Plan

Key actions: ►Broadband roll-out: Next Generation Access ►eGovernment ►Developing ICT products and services ►Large-scale uptake of ICT-based innovations

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Thematic Objective & Investment Priority 3: Enhancing the competitiveness of SMEs

Ex ante conditionality: Small Business Act implementation Late Payment Directive

Key actions: ►Entrepreneurship, financial instruments, incubation … ►New business models: exploit new ideas, value chains … ►Business advisory services: SME needs oriented … ►Web-tools to facilitate regulatory procedures for SMEs

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= Use innovation as driver for structural change + competitiveness,

= fact-based: all assets + capabilities + bottlenecks in a region, incl. external perspective & cooperation potential

= no top-down decision but dynamic process uniting key stakeholders around shared vision

= all forms of innovation, not only technology-driven

= ecosystem approach: creating environment for change, efficiency of institutions

= differentiation: focus on competitive advantages, potential for excellence, emerging opportunities, profile region in global value chains

= concentration of resources on priorities, problems and core needs, promoting critical mass/critical potential

= diversification and place-based economic transformation: rejuvenate traditional sectors through higher-value activities, cross-sectoral links, new market niches, KETs, new forms of innovation

Smart Specialisation ?

= economic transformation agendas

1) Focus policy support and investments on key national/regional priorities, challenges and needs for knowledge-based development (= tough choices)

2) Build on each country's/region’s strengths, competitive advantages and potential for excellence (= critical mass, differentiation)

3) Support all forms of innovation

4) Get stakeholders fully involved and encourage experimentation and private sector investment

5) Evidence-based and include sound monitoring and evaluation systems

R&I Strategies for Smart Specialisation

Cohesion Policy

Fact-sheet: http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/smart_specialisation_en.pdf

RIS3 guide: http://s3platform.jrc.ec.europa.eu/s3pguide

q  RIS3 guide q  Incubators q  Universities & regional development q  Broadband Soon available: ► Clusters ► Social Innovation ► Green growth ► Entrepreneurial spirit ► Creativity ► Service innovation ► Public procurement for innovation ….

Hands-on support: •  S3Platform (in IPTS-JRC): peer-reviews, analytical

support etc. (http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/s3platform.cfm)

•  OECD, World Bank support •  Expert advice

Guidance material

Cohesion Policy

Guide on Connecting universities to regional growth

The Commission has published a practical guide in this area for: → providing an analysis of how universities can impact upon regions

and how they can be mobilised for regional, economic, social and cultural development, → illustrating, by examples from around the EU, some of the potential

delivery mechanisms that can be used to maximize the contribution of universities to regional growth (e.g. consulting, S&Tparks, spin-offs, involvement in clusters & networks, LivingLabs ….), → outlining the key success factors in building university /regional

partnerships, particularly the drivers and barriers on both sides and how these barriers may be overcome, → Suggesting pratical tools & processes to overcome barriers and

implement partnership & leadership to interconnect the actors in regional innovation systems.

See: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/connecting_universities2011_en.pdf

Synergies with Horizon 2020?

Horizon 2020: from idea to market ; € 80 bn

ü R&I to tackle societal challenges: health, environment, EIT etc.

ü  Leadership in enabling and industrial technologies: Access to risk finance, Innovation in SMEs

ü  Excellent research base: Fundamental research, mobility, research infrastructures

COSME: SME competitiveness ; €2.5 bn ü  Financial instruments ü Business & innovation support services (Enterprise Europe

Network) ü SME internationalisation, entrepreneurship culture, ü  Framework conditions, clusters etc.

Future EU programmes for R&I and SME

Common political framework

→ Strengthening knowledge & innovation as drivers of growth & competitiveness → Tackling major societal challenges in the EU 2020 framework → Bridging the gap between science and the market, through successive stages

Horizon 2020 (H-2020)

→ Objectives: focus on excellence in R&I, S&T-driven R&D; also industrial competitiveness (incl. SMEs) and societal challenges (climate, energy, food…)

→ Project selection: at EU level by competitive calls for proposals and through independent / merit based peer review

→ Territorial impact: no pre-defined geographical distribution of funding, but more beneficiaries in the more developed regions

Cohesion policy funds (CP)

→ Objectives: focus on applied R&I for the purpose of regional socio-economic development, on innovative SMEs and how to build capacities for innovation & growth through an innovation friendly business environment

→ Project selection: based on programmes designed / implemented in shared management between EU, national & regional authorities; projects selected at national / regional level on the basis of social and territorial impact criteria

→ Territorial impact: pre-defined geographical distribution of funding with larger allocations to less developed regions.

Combining policies with complementary objectives

Policy elements facilitating synergies H-2020/CP (1)

Same strategic goals: EU 2020 strategy Same programming period: easier synchronisation and planning Ex-ante-conditionality (new) → Existence, at national and/or regional level, of research and

innovation strategies for smart specialisation (RIS3) for approving Partnership Contracts and Operational Programmes submitted by the Member States.

→ RIS3 in line with the National Reform Programme and with features of well-performing national or regional research and innovation systems

→ Peer review to assess RIS3 prepared by the national / regional authorities: REGIO & RTD work together, with the assistance of the RIS3-Platform

Same project supported by different funds [Art.55(8), CP Gen.Reg.] → possible for different expenditures items Support outside of the programme area [Art.60(2), CP Gen.Reg.] → possible up to 10% (at priority leve)l: useful for enabling combined

support from CP & H-2020 to several partners in different countries.

Policy elements facilitating synergies H-2020/CP (2)

Simplified costs options under H-2020 & CP (new) → Similar eligibility rules proposed for simplifying the financial

management: lump sums, flat rates & unit costs possible under both policies for funding direct/indirect costs without providing documents proving real expenses.

→ Reduction of the administrative burden for the beneficiary managing the same project with a support coming from different funds or managing several projects supported separately by different funds.

Enhanced territorial cooperation CP budget share → 3.1% of total ERDF of which almost 6% for inter-regional cooperation → that allows to build trans-national linkages between regional

innovation actors, building on FP7 RoK (Regions of Knowledge) and RegPot (Research Potential) measures or CIP cluster cooperation or networking of procurers or innovation agencies, but allowing to include less advanced regions in a targeted manner.

Limits: o  Multi-country approach vs. place-based o  Competition for funds vs. geographical pre-allocation o  Annual work programmes vs. 7-year-OP o  Centralised management vs. implementation by MS/reg. o  Research excellence vs. socio-economic development

Opportunities: ü  Regulatory alignments (cost eligibility) ü  Horizon: innovation divide actions (ERA Chairs, networks,

research infrastructures, …) ü  COSME: EEN, cluster & SME internationalisation ü  CP: RIS3; combined funding; investments across borders;

CSF key actions (capacity-building, innovation in enterprises)

Mutual information exchange & nat/reg. coordination bodies?

Synergies: limits and opportunities

Get involved with the planners of

future Operational Programmes NOW!

Conclusion