1. How to use European Structural Funds for Dual-Use Technologies?
Helsinki
25 March 2014

2. Aims of the presentation
Developing your understanding of the specificities of ESIF, the way they work and the potential opportunities they offer to you as Dual-Use technology stakeholders (public entities, enterprises, public and private research centres, universities…)
Allowing you to acquire a standard knowledge and the necessary support to develop potential eligible projects
Presenting you a methodology and guidelines to submit a project

3. Content Agenda picture 1 2 3 Plenary session:
From macro policy to practical implementation 1
EU2020 strategy big picture 2
ESIF: The main instruments for Cohesion policy 3
How to apply a project?

4. picture 1
EU2020 strategy big picture

5. Europe 2020 big picture Key drivers and priorities
Europe 2020 is a strategy launched by the EC in July 2010, which has set the following objectives:
Enable member economies to emerge stronger from crisis
Transform the EU economy as a "smart, sustainable and inclusive“
Ensure a society with high employment levels, good productivity, social cohesion EU
2020
3 priorities
Smart Growth
Sustainable Growth
Inclusive Growth
5 Objectives
Employment
Education
Innovation
Poverty/ Social Exclusion
Climate change
7 flagship initiatives
Digital agenda for Europe
An industrial policy for the globalisation
Innovation Union
An agenda for new skills and jobs
Youth on the move
Resource efficient Europe
European platform against poverty

6. at the core of the Europe 2020 Strategy
Innovation Union
at the core of the Europe 2020 Strategy
The EU has set ambitious objectives to be reached by 2020 in five main areas:
Employment - 75 % of the population aged should be employed
Innovation - 3% of the EU's GDP should be invested in Research & Development
Climate change - The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right)
Education - The share of early school leavers should be under 10% and at least 40% of years old should have completed a tertiary or equivalent education
Poverty - Reduction of poverty by aiming to lift at least 20 million people out of the risk of poverty or exclusion
The “Innovation Union" aims to improve conditions and access to finance for R&I, to ensure that innovative ideas can be turned into products and services that create growth and jobs.

7. picture 2
ESIF:
The main instruments for cohesion policy

8. Structural Funds and Cohesion Policy in 2014-2020: A brief overview
EUR 352 B
ESIF are the financial instruments through which EU Cohesion Policy is implemented
It aims to strengthen competitiveness and innovation
Cohesion Policy contributes to raising the EU’s long-term research and innovation performance based on smart specialisation
The implementation and allocation of funds to projects is handled by by Managing Authorities in Member States at local/regional/national levels
Structural funds are based on the principle of co-financing between the EU and Member States/ project holders*
* Co-financing levels vary depending on regional GDP compared to the EU average GDP, status of the project holder, Operational Programme specific rules
The three main funds under which research and innovation activities can be supported are:
European Regional Development Fund (ERDF) and European Social Fund (ESF): EUR 273 B
Cohesion Fund: EUR 63 B
European territorial cooperation: EUR 10,2 B . 3%
18% 1%
78%

9. 2 Key drivers for the 2014-2020 programming period
Focus on Thematic Objectives (TO)
Be based on R&I Strategies for Smart Specialisations (RIS3)
Research & innovation
Information & Communication Technologies
Competitiveness of Small and Medium-sized Enterprises (SMEs)
Shift towards a low-carbon economy
Climate change adaptation & risk prevention and management
Environmental protection & resource efficiency
Sustainable transport & removing bottlenecks in key network infrastructures
Employment & supporting labour mobility
Social inclusion & combating poverty
Education, skills & lifelong learning
Institutional capacity building & efficient public administrations
The RIS3 requires national/regional authorities to identify the unique characteristics and assets of each country and region, so as to focus on policy support and investments received through Structural Funds. Stakeholder participation and ownership is essential to the development of these strategies.
Experience shows that thematic concentration allows for an increase in effectiveness of public interventions by reaching a critical mass with a real impact on the socio-economic situation of a country and its regions. Prioritisation is of particular importance in times of fiscal consolidation.

10. Cluster mapping linked with defence/security dual-use technologies
Dual-use technologies and key enabling technologies
European Commission’s definition:
Goods and technologies are considered to be dual-use when they can be used for both civil and military purposes.
Cluster mapping linked with defence/security dual-use technologies
Defence expenditure is not eligible for Structural Funds.
However:
Security has become a top priority for the European Union
Dual-use technologies that are transversal to both defence and security can be eligible
Key enabling technologies can be applied to several sectors
Source: Europe Innova project,
Nuclear, biological & chemical sectors
Encryption
Computers
Materials processing equipment
Telecommunications
Electronics
Aerospace & propulsion equipment
Marine equipment
Navigation & avionics
Sensors & lasers

11. Smart specialisation in Helsinki INKA-hubs and partners
Concept of Inka:
Public-private collaboration: Pools the best competencies locally (companies, research organisations, universities, users)
Encourages to interregional and international collaboration
Competitive, agile, fast, risk-taking, experimental
Actions will closely link to EU Structural funds and Horizon programmes
Turku
OULU
JOENSUU
Kuopio
Bioeconomy
Future
Health
Seinäjoki
Tampere
Jyväskylä
Helsinki Region
JYVÄSKYLÄ
Sustainable
Energy
Solutions
Cybersecurity
Pori
Oulu
TAMPERE
Lappeenranta
Smart City and
Renewing
Industries
Turku
Lahti
Helsinki
Region

12. Operational programmes (Ops) in Finland
Operational programmes at national/ level
Finnish structural funds programme for sustainable growth and job
Operational programme of Aland
Cooperation programmes
Cross-border cooperation:
Nord (North)
Botnia-Atlantica
Central Baltic
Transnational cooperation programmes:
Northern Periphery and Arctic
Baltic Sea Region
Interregional cooperation programmes:
INTERREG EUROPE
INTERACT
URBACT
ESPON
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Aland
The new ESIF in Finland will be structured through one major OP + one specific OP for Alands. Actions and projects will, in most cases, be selected in the regions based on their own regional plans and decision-making.

13. Priorities for funding in Finland (main OP)
The Finnish ERDF main OP priorities
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14. Budget allocation per thematic objectives
1 January 2014
Presentation title

15. Cooperation programmes brief description (1/2)
Type of information
Description
Interact
It specifically seeks to build capacity for research and monitoring in the European Arctic and beyond, and is offering access to numerous research stations through the Transnational Access program.
Interreg europe
It will finance two actions:
Cooperation projects: partnerships of public organisations coming from different countries in Europe work together for 3 to 5 years to exchange their experiences on a particular policy issue.
Policy Learning Platforms: a space for continuous learning where any organisation dealing with regional development policies in Europe can find solutions to improve the way they manage and implement their public policies in the four topics above.
Botnia Atlantica
It is composed by 2 Programme :
Development of communication, the natural and cultural environment, and people-to-people contacts, in an effort to increase regional cohesion;
Cross-border cooperation designed to strengthen innovation and technology, and improve the skills and competitiveness of industry and the community.
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Check the inserted slides to ensure that the most appropriate master slide has been used on each slide
To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design
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16. Cooperation programmes brief description (2/2)
Type of information
Links
Central baltic
It aims to contribute to the EU Strategy for the Baltic Sea Region supporting objectives “save the sea”, “connect the region” and “increase prosperity”.
Nord
It aims at strengthening the competitiveness and cohesion in the region. The program strategy aims to develop methods and structures that facilitate cooperation between regions.
Urbact
It aims at providing an exchange and learning tool for policy decision-makers, practitioners and other bodies involved in developing urban policies
Espon
It supports territorial cohesion by:
Providing comparable information, evidence, analyses and scenarios on territorial dynamics
Revealing territorial capital and potentials for development of regions and larger territories
Northern Periphery and Arctic
It aims to help peripheral and remote communities on the northern margins of Europe to develop their economic, social and environmental potential by creating innovative products and services.
Baltic sea
It aims at serving as a source for common identification across the region. It constitutes a joint 15 environmental and economic asset and brings about 16 transnational challenges.
Cooperation programmes brief description (2/2)
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17. ERDF specific thematic objectives for SMEs
The ERDF supports the development and structural adjustment of regional economies, including the conversion of declining industrial regions. Funds can either be allocated as grants or financial instruments. The ERDF contributes to all of the 9 thematic objectives. In the context of SME policies the following thematic objectives are of particular interest:
Objective n°1: Strengthening research, technological development and innovation
Objective n°2: Enhancing access to and use and quality of Information and Communication Technologies (ICTs)
Objective n°3: Enhancing the competitiveness of SMEs

18. picture 3
How to apply a project?

19. 3.1
Eligibility characteristics of projects

20. Project eligibility: an overview
Key characteristics
Relevant objectives, clear added-value and appropriate location of the project, proposed by the right beneficiaries, featuring a realistic and collaborative approach and foreseeing tangible results and impacts
Setting up appropriate project management and monitoring structures (e.g. in terms of identifying realistic indicators, planning for evaluations and managing risks)
Added value components
PROJECT ELIGIBILITY
Best and worst practices identified from past experiences
Lessons learned
Meeting the rules and conditions for co-financing
Lessons learned
Co-financing

21. What are the key characteristics that projects must have to be eligible?
Project * holder
Project expenditure
Why
Overall objective(s) in compliance with EU policies (from EU scale to OP scale)
An innovation and an added-value for the EU through concrete actions answering specific objectives (project logic)
What
Where
Geographical location (some areas are more appropriate for certain activities than others – cf. smart specialization – and also have ad-hoc funding rules with regards to the activities and beneficiaries that can receive funding)
Who
Eligible beneficiaries (clearly mentioned in each funding measure)
*In the new programming period, large enterprises are now excluded except for R&D projects
For whom
Expected target groups (direct and indirect)
How
Realistic means to achieve specific objectives
A collaborative approach (public-private)
Time (There are limits on the period during which expenditure can take place)
For which results
Tangible results contributing to the main policy objectives, based on indicators
Medium term impact (sustainability)

22. Added-value components for project eligibility
Quantifying and qualifying the targets
Indicating realistic means for expected results
Choosing the right indicators (implementation and results) and limiting their number
Planning for an external evaluation of activities and results
Planning and risk management:
Setting up adequate project management and quality assurance processes
Respecting European policies (competition; procurement; environment; equal opportunities; employment; reduction of inequalities; etc)
Avoiding delays
Keeping within the budget
Meeting reporting requirements
Carrying out information and publicity activities

23. Lessons learned from best/worst practices
Do not submit your application before obtaining an agreement in principle or a confirmation of the interests of administrators/actors (OP Managing Authorities)
Describe the project by focusing on EU priorities and using the appropriate vocabulary
Try to raise support for the project in the territory before submission (communication and dissemination)
Try to involve different stakeholders in the project area
Involve companies (SMEs and RTD performers) and disseminate EU added values
Describe the potential impact on the economic development of the area
Try to integrate your project within the strategy of your organization, sharing it with and showcasing it for the relevant actors
Check that human resources are sufficient
Anticipate delays in payments and non-payments by budgeting for sufficient working capital
Think about the sustainability of your project

24. Co-financing
Structural funds work on the principle of co-financing: the costs of a project are shared between the EU and Member States/project holders/external funding
The total planned “own” resources and the contribution from the Funds have to be clear
The co-financing is usually based on a maximum rate and a maximum amount
Co-financing takes place in the form of non reimbursable grants, usually paid on expenditure occurred and linked to means and not to results
In order to be eligible, expenditure must be incurred between
Co-financed transactions must not be completed before the starting date for eligibility
Rules are established at national level
Cost categories excluded from co-financing
Debt interest and recoverable VAT
In the case of land costs, these cannot exceed 10% of the total eligible expenditure of the operation concerned
Decommissioning of nuclear power stations
Lost opportunity costs

25. 3.2
Applying for co-financing

26. Methodology: 3 phases for an optimal approach to applying for co-financing
1: Draft the Project Factsheet
2: Identify the funding measure & assess the project eligibility
3: Draft, test and submit the Application Form
Who?
What?
Why?
Where?
How?
Outcome expected?
Track the appropriate funding measure
Analyze the eligibility   
Control the compliance
Fill-in the Application Form
Fill-in the 10 sections
Check the compliance
Submit the Application Form

27. Methodology: Phase 1 1 2 3 Draft the project factsheet
Provide data and information required to track the appropriate funding measure and check the compliance with the eligibility criteria and selection priorities
For Whom
Direct and indirect targets in terms of population eligible (beneficiary groups)? Direct targets are the first beneficiaries of the action and directly affected by the project activities.
Who
Description of the project holder
How
What
Activities and means to be undertaken to achieve your qualitative and quantitative objectives? Description of the project management to deliver the project to limit the risks related to three criteria: timing, budget and technical specifications.
The main scope of the project, the budget, proposed co-financing arrangements
Why
Context, rationale and the project value proposal. Provide the state of the art. Describe the overall and the specific objectives of the project. Precise how the project will support:
● the EU 2020 strategy
● the regional smart specialization (S3 
● the OP, specific priorities and objectives.
Results
Concrete measurable outcomes. Criteria to be used to measure the success? Demonstrate the project added value with quantitative and qualitative indicators
Compliance
Where
Check the specific eligibility indicators and selection priorities. Verify the status and the size of eligible project orders, eligible charges, co-funding rate and beneficiaries.
Location of the project? Why has this location?

28. Methodology: Phase 2 1. 2.
Identify the funding measure and assess the project eligibility 3
Track the appropriate funding measureqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqq
Check the compliance of the project with the regional smart specialization
1. Identify potential locations to develop the project:
2. Analyse the S3 platform website to identify the best region according to project specificities and regional smart specialization
3. Select the final location to develop the project and get the co-funding.
The project must have a legal entity in the region to be selected
Identify:
● the most appropriate Region
●the appropriate Operational Programme
● the right priority and funding measures in the Ops
Check
● the specific eligibility rules
● Priority indicators 1
Analyse the eligibility
● Check the timing of the application process
● Check the alignment of the project characteristics with the measures eligibility rules and priorities
● Control with Managing Authority the project compliance with the Funding measure eligibility rules and selection priorities 2
Use the InfoRegio web portal to find information
Use the European Commission’s central web portals to research funding opportunities. You will find information on OPs, categories of regions, legislation, for the kind of initiative you would like to set up to support SMEs or entrepreneurship in your region.
Control the compliance
● Check State Aids rules

29. Methodology: Phase 2
S3 Platform, JRC website provides all information and details to analyse the most appropriate regions 1 1 2 3
The website provides presentation of regional smart specialisation strategies and in most cases background material that provides context to the cases and direct link to the Region’s website.

30. Methodology: Phase 2
Inforegio: The first source to track ERDF fundings (1/2) 2 1 2 3
Select your country and access to the different types of programmes ( national level, cross-border co- operation and transnational cooperation)

31. Methodology: Phase 2
Inforegio: The first source to track ERDF fundings (2/2) 2 1 2 3
Access Operational programme summary for identifying main priorities
Access to Managing Authorities contact to get full operational programme with more details
*This example is elaborated on the data from the last programming period as the information is not yet published on the website for the current period.

32. Methodology: Phase 3 1. 3 2.
Draft, test and submit the application form
Fill-in the application form*
Check the compliance
Fill-in the 10 sections
● Meet the Managing Authority to check whether the project matches with eligibility criteria and selection priorities
● Adapt the project
● Check the compliance of the project with all EU requirements
Identification of the Project Holder
 ● Project details
 ● Project Applicant
 ● Delivery partner
 ● Strategic Fit
 ● Rationale
 ● Estimated deliverables (Outputs/ results/ Impacts), Costs and Funding
 ● Project management capacity and risk
 ● Compliance
 ● Applicant declaration and certification
* For an example, check out the Outline Application Form Guidance ERDF-GN available on internet
Submit the application form in due time
Project application procedure differs from countries
Project application procedures differ substantially from one region to another. To fill-in the sections of the Application Form, check which guides and users’ manuals have been established in your region / country.
In order to provide potential project holders with real-life examples. The applications are published in the original language together with an English translation and are available under the following link: policies/applicationexamples
Answer any request for clarifications