1. European Structural and Investment Funds: the 2014-2020 programming period negotiations
Tereza Krausová
Competence Centre 'Smart and Sustainable Growth'
DG Regional and Urban Policy
Cohesion Policy

2. Key points of reform
Targeting resources at key growth sectors - alignment with Europe 2020, thematic concentration (research and innovation, ICT, SME competitiveness and shift to the low carbon economy)
Results orientation - sound intervention logic fixing clear objectives towards which progress can be measured, performance framework
Ensuring right framework conditions for effective and successful investments through ex ante conditionalities
Link to wider economic environment and reform processes (taking account of CSR and NRPs, macro- economic conditionality)
ERDF thematic concentration
- At least 80% (more developed regions), 60 % (transition regions) or 50% (less developed regions) to at least two of TOs 1-4
Cohesion Policy

3. Regulatory timeline Partnership Agreement Country specific programmes
ETC programmes
General regulation adopted
Partnership Agreement submitted (MS)
All OPs submitted (MS)
Partnership Agreement approval
OP approval
ETC OPs (MS)
ETC OP approval
Observations by EC
Max 3 months
Max 9 months
Max 4 months
Max 3 months
Max 1 month
Observations by EC
Objective: to be faster than the deadlines.
Important to reach agreement in informal dialogues to complete the formal procedure as rapidly as possible.
A faster procedure considered for progammes dedicated to YEI and the SME initiative
Cohesion Policy

4. What does the RIS3 ex-ante conditionality apply to?
Investment priorities under TO:
Research and innovation
ICT use (ICT based innovation & "digital growth")
ICT access and quality
(broadband)
3. Competitiveness of SMEs
Ex ante conditionalities:
Possibly applicable also to EAFRD investments in R&I
Smart specialisation strategies
Digital growth strategy can be independent, but for sake of coherence it is recommended to integrate it in RIS3
Message:
Since there seems to be some confusion on what ex ante conditionality applies to what, here a brief reminder:
- RIS3 applies to both IP1 and the IP2 part that refers to ICT use and quality, i.e. ICT-based innovation and its take-up (although this can be separate from the general RIS3)
Broadband investments depend on a different ex ante conditionality: "Next Generation Access / Network plans", i.e. a mapping of the needs for high-speed broadband
SME competitiveness depends largely on innovation, i.e. many MS and regions plan to fund innovation related operations under IP under thematic objective 3. This is perfectly OK for the Commission. However, in this case the ex ante conditionality related to the Small Business Act would needs to be fulfilled. (the implementation of the late payment directive has been deleted in the trilogues from the ex ante conditionalities)
… some of you may wonder whether the RIS3 should contain these SME innovation measures under IP3, if RIS3 is not a conditionality for IP3. The answer is a clear YES! - A RIS3 should contain all horizontal and specific measures that make sense to attain the set vision for the region's innovation. No matter where the budget comes from (own budgets, ERDF, ESF, EAFRD, IP1 or IP2 or IP3 ….) Or even IP4 if the take-up of innovative energy solutions form part of the smart specialisation strategy.
Comment: All 3 smart growth elements are inter-linked:
► No socially & environmentally sustainable competitiveness without innovation
► Hardly any innovation & new business models without ICT
► SMEs are 99% of firms and offer 2/3 private sector jobs: they need to innovate!
Next Generation Access / Network Plan
Small Business Act
Late payment Directive
Recommended:
Include in the RIS3 envisaged support to SME innovation
Cohesion Policy

5. Up to €100 billion for innovation investments bolstering over 140 smart specialisation strategies
Billion EUR
Less developed regions
164.3
Transition regions
31.7
More developed regions
49.5
Cohesion Fund
66.3
European territorial cooperation
8.9
Of which
Cross border cooperation
6.6
Transnational cooperation
1.8
Interregional cooperation
0.5
Outermost regions and northern sparsely populated regions
1.4
Youth Employment initiative
3.0
TOTAL
325.1
New Youth employment initiative
EUR 6 billion
Available to all regions in EU-28 with levels of youth unemployment > 25 % (2012 data)
EUR 3 bn from targeted investments from the ESF
+ EUR 3 bn of match funding from a dedicated YEI budget line
Maximum EU co-financing rate
80-85 % in less developed and outermost regions;
60-80 % in new category of transition region;
50 % in more developed regions. Enhanced financial engineering provisions
Cohesion Policy

6. Commission's assessment of significant prejudice
Key stages
During the procedure for adoption of the PA / OPs
Self-assessment by Member State on applicability and fulfilment in PA / OPs
Commission assessment of adequacy and consistency of the information provided by MS
Commission assessment of significant prejudice in case of non-fulfilment and possible suspension of interim payments
Resolution of disagreements between COM & MS
After adoption of OPs: Assessing the completion of actions
Commission's assessment of significant prejudice
In case where NOT ALL RELEVANT CRITERIA are fulfilled at the time of submission of PA / OPs:
COM will examine whether it could give rise to a significant prejudice to the effectiveness and the efficiency of the achievement of the specific objective of the investment priority concerned
In case of HIGH RISK (i.e. when the quality of spending would be significantly affected) COM may decide to suspend payments at the adoption of a programme (expenditure and bodies most at risk)
After adoption of the PA/Ops
Reporting by MS on actions to fulfil ex-ante conditionalities
Deadline for fulfilment is 31 Dec and for reporting: AIR or progress report in 2017
Suspension of interim payments as a result of failure to complete actions as set out in the programme
Lifting of suspension of interim payments
Cohesion Policy

7. FAQ on RIS3 (1)
What are the key elements for accepting a strategy as "RIS3"?
Strategic policy framework
SWOT or similar analysis
R & I priorities
Concentration of resources on limited set of priorities
Measures to stimulate private investment
Monitoring mechanism
Outline of available R&I budgetary resources
+ indicative multi-annual budget plan if R&I infrastructure and capacity building foreseen
1) can be several documents, politically endorsed, not just consultants' study
2) Strengths, weaknesses, opportunities and threats are comprehensive, based on recent data, surveys, stakeholder consultations etc. and are seen relative to other countries / global markets
3) Specialisation fields fit to trigger knowledge-driven economic transformation in a territory and are differentiating it from others / diversify existing assets (instead of generic sectors or technologies). In line with national reform programme, if relevant. Not only research, but also innovation!
4) Not trying to please everyone. If relevant: elimination process.
5) merely political target setting or copying from other regions proved to be unfit! Better: conceived in consultation with enterprises + tested in socio-economic context of the region / MS.
6) keep ball rolling from entrepreneurial discovery process of strategy design to check progress towards objectives; be prepared for adjustments if necessary given the fast technological and market developments
7) just enough detail to allow seeing where OP investments fit in / are needed 8) important to foresee ESFRI implementation and meeting of other EU priorities and needs
Cohesion Policy

8. FAQ on RIS3 (2)
What if my RIS3 is not ready by the time the OP has to be submitted?
How about the December 2016 deadline that was mentioned for the ex-ante conditionality fulfilment?
Will the Commission interfere with chosen specialisation fields / priorities?
What if we got it wrong in terms of priorities or policy mix?
What role for cluster organisations and science / technology parks in a RIS3?
Should the fields / themes for specialisation be aligned with the R&I fields in Horizon 2020 or the KETs? Do all KETs have to be considered in a RIS3?
Cohesion Policy

9. FAQ on RIS3 (3)
Does an ESFRI project in the OP "absolve" from going through the RIS3 entrepreneurial discovery process etc.?
What if the state aid framework stops me from investing in KETs pilot lines and other support measures?
How do the RIS3 conditionality and the OPs relate to each other?
… can a RIS3 include measures that are not funded from ESIF?
… and measures that are not under IP 1 or 2bc?
… can a RIS3 contain horizontal measures?
Cohesion Policy

10. Which fields of specialisation emerge in the RIS3 analysis?
Energy
Life science
ICT
Environment
Agro-food
Tourism
New materials
… overlaps?
… opportunities for cooperation and synergies?
… natural alignment with Horizon2020 and societal challenges!
→ New format of S3Platform workshops: around specialisation fields / priorities
→ Guidance on synergies CSF-Horizon2020
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11. State of play as regards RIS3 compliance
Mixed picture:
SWOT or similar analysis: inward looking, no demand side, purely tech focused
Limited number of priorities: coffee for all; too generic
Measures to stimulate private R&I investments: retro-fitting; not tailored to enterprises
Monitoring system (and indicators): mostly absent or not realistic or no causality …
Budgeting plans: mostly inexistent, if yes, unclear funding gaps for ESIF
Message:
… unfortunately what we draw out of the expert reports on the strategies in 8 MS and 38 regions plus the 24 peer-reviews and countless bilateral contacts is that there is a good number of MS and regions that still needs urgent and substantial support and political encouragement to develop acceptable RIS3s
The main short-comings are:
 Analysis: too much in-ward looking (international and cross-border potentials overlooked) ; Stakeholder involvement / entrepreneurial discovery process / inter-ministerial cooperation weak or still in progress
 Identified priorities: the RIS3 specialisation fields are mostly too generic, not based on competitive advantage check compared to other regions/MS,
… and there are mostly way too many priorities. In other words: they are designed to make once more everybody happy … with the risk that once more nobody will attain critical mass and excel
 “Retro-fitting” is also popular: the starting point for defining the policy-mix is based on the existing innovation support system and not the result of developing a vision and set objectives and the identifying which support tools are the best to attain the objectives. And worse even: the existing support structures (clusters, technology parks, technology transfer offices, etc.) were not evaluated. So once more the risk is that inefficient and unsuitable support measures are maintained just because they exist.
 a framework outlining available budgetary resources for research and innovation – including the planning for research infrastructure investments – is mostly not existing
 An adequate monitoring system missing …
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12. Synergies between ESIF, other innovation-related EU Funds
Horizon2020 and
other innovation-related EU Funds
Cohesion Policy

13. Novelties for synergies btw. H2020 and ESIF
Legal basis
CPR – Reg. 1303/2013:
65(11) – possibility of cumulating grants from different EU funding instruments in one operation;
Horizon2020 rules for participation– Reg. 1290/2013
possibility of cumulative funding, provided that the grants do not cover the same cost items.
Concept of synergies
Bringing together in one project (possible only for Horizon2020)
Successive projects
Parallel projects
ESIF financing successful Horizon2020 projects but not financed
15(1)b(i) – PA to contain arrangements to ensure coordination between funds
67(5)b and 68(1)c - allow for an alignment of cost models to Horizon2020 and other programmes rules
70(2) - possibility up to 15% of the ESIF allocation to be used for operations located outside the programme are.
96(6)a – OPs to set up the mechanisms ensuring coordination ESIF/other EU instruments
Cohesion Policy

14. Opportunities for R&I synergies with centrally managed EU funding programmes
All ESI Funds (ERDF, ESF, Cohesion Fund + ETC = € 325 billion, EAFRD = €85 billion, EMFF= €5.5 billion)
Horizon2020 for mostly transnational research and innovation projects, incl. non-EU: €79.4 billion
COSME for SME competitiveness, financial instruments, business support services, etc.: € 2 bn
Erasmus+ for students, teachers, pupils mobility + training: €14.5 bn
Creative Europe for culture and creative industries: €1.4 billion
Digital service part of CEF for EU wide e-government platforms to roll-out e-ID, eProcurement, electronic health care records: €0.85 billion
Also of interest with regard to take-up of eco-innovation, uptake of climate-related R&I results, but not covered in guide:
LIFE programme for environment and climate, incl. financial instruments: € 3,4 billion
Programme for Employment and Social Innovation ("EaSI"): € 0.92 billion
See annex I to CPR: Common Strategic Framework (CSF)
Cohesion Policy

15. €100 billion for innovation in wide sense
Overall concept for complementarity: Emphasis of programmes
Horizon 2020
ESIF
€100 billion for innovation in wide sense
€ billion
ANNEX I to Common Provisions Regulation: COMMON STRATEGIC FRAMEWORK
4. COORDINATION AND SYNERGIES BETWEEN ESI FUNDS AND OTHER UNION POLICIES AND INSTRUMENTS
4.3 Horizon 2020 and other centrally managed Union programmes in the areas of research and innovation
2. Member States shall develop national and/or regional 'smart specialisation' strategies in line with the National Reform Programme, where appropriate. Such strategies may take the form of or be included in a national or a regional research and innovation strategic policy framework for 'smart specialisation'. Smart specialisation strategies shall be developed through involving national or regional managing authorities and stakeholders such as universities and other higher education institutions, industry and social partners in anentrepreneurial discovery process. The authorities directly concerned by Horizon 2020 shall be closely associated with that process. Smart specialisation strategies shall include:
(a) "Upstream actions" to prepare regional R&I players to participate in Horizon 2020 ("stairways to excellence") to be developed, where necessary, through capacity- building. Communication and cooperation between Horizon 2020 national contact points and managing authorities of the ESI Funds shall be strengthened.
(b) "Downstream actions" to provide the means to exploit and diffuse R&I results, stemming from Horizon 2020 and preceding programmes, into the market with particular emphasis on creating an innovation-friendly environment for business and industry, including SMEs and in line with the priorities identified for the territories in the relevant smart specialisation strategy.
3. Member States shall encourage the use of the provisions in this Regulation that allow the ESI Funds to be combined with resources under Horizon 2020 in the relevant programmes used to implement parts of the strategies referred to in point 2. Joint support shall be provided to national and regional authorities for the design and implementation of such strategies, to identify opportunities for joint financing of R&I infrastructures of European interest, the promotion of international collaboration, methodological support through peer reviews, exchange of good practice, and training throughout regions.
4. Member States and, where appropriate under Article 4(4), regions, shall consider additional measures aimed at unlocking their potential for excellence in R&I, in a manner that is complementary to and creates synergies with Horizon 2020, in particular through joint funding. Those measures shall consist of:
(a) linking excellent research institutions and less developed regions as well as low- performing Research, Development and Innovation (RDI) Member States and regions to create new or upgrade existing centres of excellence in less developed regions as well as in low-performing RDI Member States and regions;
(b) building links in less developed regions as well as in low-performing RDI Member States and regions between innovative clusters of recognised excellence;
(c) establishing "ERA Chairs" to attract outstanding academics, in particular to less developed regions and low- performing RDI Member States and regions;
(d) supporting access to international networks for researchers and innovators who lack sufficient involvement in the European Research Area (ERA) or are from less developed regions or low-performing RDI Member States and regions;
(e) contributing as appropriate to the European Innovation Partnerships;
(f) preparing national institutions and/or clusters of excellence for participation in the Knowledge and Innovation Communities (KICs) of the European Institute of Innovation and Technology (EIT); and
(g) hosting high-quality international researcher mobility programmes with co-funding from the "Marie Sklodowska-Curie Actions".
Member States shall endeavour to use where appropriate, and in accordance with Article 70, the flexibility to support operations outside the programme area, with a level of investment sufficient to attain a critical mass, in order to implement the measures referred to in the first subparagraph as effectively as possible.
7.2 Cross-border, transnational and interregional cooperation under the ERDF
Member States and regions shall seek to make use of cooperation to achieve critical mass, inter alia, in the field of ICT and research and innovation, and also to promote the development of joint smart specialisation approaches and partnerships among educational institutions. Interregional cooperation shall, where appropriate, include fostering cooperation between innovative research-intensive clusters and exchanges between research institutions taking into consideration the experience of "Regions of Knowledge" and "Research Potential in Convergence and Outermost Regions" under the Seventh Framework Programme for Research.
2. Member States and regions shall, in the areas concerned, seek to draw on cross-border and transnational cooperation to:
(a) …
(b) exploit the economies of scale that can be achieved, in particular with regard to investment related to the shared use of common public services;
(c) promote coherent planning and development of cross-border network infrastructure, ..;
(d) achieve critical mass, particularly in the field of research and innovation and ICT, education and in relation to measures improving the competitiveness of SMEs;
(e) strengthen cross-border labour market services to foster the mobility of workers across borders;
(f) improve cross-border governance.
"Stairway to Excellence"
Hopefully also excellence, but "Innovation Excellence"
"Research
Excellence"
National/RegionalR&I systems
Capacity Building
Research & Development
Innovation
Market
"Up-stream"
"Down-stream"
Cohesion Policy

16. ESIF side Strategy development comes first: Programme development:
Include Horizon2020 actors (Researchers, members of the programme committee, EIPs, ETPs, EIT-KICs, PPPs (JTIs), MarieCurie centres, research institutions with success in FP7, EUREKA, National ESFRI Roadmaps) and international contacts in the entrepreneurial discovery process to design RIS3 and get involved in structured cooperation / delegated implementation of H See: RIS3 guide, annex III
Programme development:
Open OPs for transnational activities, foresee H2020 compatible / complementary support forms that could help attaining the economic transformation objectives of your RIS3. Team up with other MS/regions around RIS3 fields instead of waiting for H2020 calls.
OP implementation
Design OP management system and project selection methods to be able to synchronise award decisions with H2020 calls & evaluations.
Foresee support to applicants for finding international partners, etc.
Cohesion Policy

17. Public administration
RIS3
How to use entrepreneurial discovery process towards more synergies
Detect potential boundary-spanners between different stakeholder / interest groups, new innovative entrepreneurs, hidden champions, or persons with a potential for this and with an international outlook.
Horizon2020 related actors should be involved in the creative strategy development process.
See new annex III of RIS3 Guide:
Business
manufacturing and services, primary sectors, financial sector, creative industries, social sector, large firms, SMEs,
young entrepreneurs, students with business ideas, cluster and business organisations,
Research
public and private research bodies, universities,
science and technology parks, NCPs,
Technology transfer offices, Horizon2020 committee members, regional ESFRI roadmaps
etc.
Entrepreneurial in:
Composition and
Spirit: (risk-taking, demand and supply side, view beyond boundaries, creativity …)
Different departments,
if relevant at different government levels, agencies e.g. for regional development,
business advice,
public procurement offices, incubators, etc.
Public administration
NGOs and citizens’ initiatives related to societal challenges for which innovative solutions would be helpful, consumers associations,
Talents! etc.
Civil society / Users
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18. Guidance material http://s3platform.jrc.ec.europa.eu/s3pguide
Incubators
Universities & regional development
Broadband
Service innovation
Creative industries
Green growth
Entrepreneurial mind-set
Social innovation
►SME innovation
Soon available:
► Clusters ► Public procurement for innovation
► Horizon2020 & ESIF funds
► Technology Parks ► ICT vouchers
Cohesion Policy

19. Thank you for your attention
Contact:
Cohesion Policy