1. Higher Education and stakeholders A partner’s perspective by Jean-Jacques Mertens Head of EIB R&D Task Force

2. EUA, Marseille, 3 April 20042 EIB: a short overview The EU long term financing Institution 46 years old Owned by EU member states Capital: € 150 bn  €164 bn New loans signed 2003: € 42.3 bn

3. EUA, Marseille, 3 April 20043 EIF Financing of Venture Capital Funds (total end-2003: 200 funds, €2.5 bn) Guarantees for SME loans to intermediary institutions (2003: € 2 bn) Feasibility studies for setting up university-industry operations (starting). To be mentioned: Vives.

4. EUA, Marseille, 3 April 20044 Lending Policy Objectives in EU Economic and social cohesion Regional development, Accession and candidate countries, Health and education, TENS Sustainability Environmental protection, water management, renewable energy European competitiveness RDI, Knowledge, ICT, Edu & Training SMEs

5. EUA, Marseille, 3 April 20045 EIB Added Value (3 pillars) Consistency with EU objectives (KBE, growth, enlargement); Fulfilling EU mandates: Cotonou IF, FEMIP, Accession, TENs, Quality and soundness of projects (economic, technical, financial, …) Particular benefits from EIB funding (AAA, duration, grace period…)

6. EUA, Marseille, 3 April 20046 2003 lending statistics Total signatures: € 42.3 bn of which: EU: 80%; NMC: 9.6%; RoW: 10.4% Reg Dev: 67% of direct EU loans Global Loans: 29%; Infra+Ene: 58%; Ind: 10%; Env: 40%

7. EUA, Marseille, 3 April 20047 Knowledge Map/Net ICTEDUCATION RESEARCH AND INNOVATION NEW PRODUCTS & BETTER PRODUCTION INCREASE IN TOTAL FACTOR PRODUCTIVITY Enablers Action Results

8. EUA, Marseille, 3 April 20048 i2i outcomes EIB’s Lisbon initiative, 3-year period; 12-15 bn € from May 2000 to April 2003 For projects in Education, Entrepreneurship and SMEs, R&D, ICT, Diffusion of innovation Geographically, essentially EU15, partially widened to ACC countries Total signatures : 16 bn€ Good geographical and objectives spread (Edu 28%, R&D 32%, ICT 35%)

9. EUA, Marseille, 3 April 20049 i2010i Truly Innovative: Innovation leading theme of EIB finance for the decade €20 bn by 2006, €50 bn by 2010 Pan-european: EU15+NMC+CC+WB “Knowledge Net”: Integrated approach: education and ICT as enablers -> research -> innovation -> productivity gains and market competitiveness-> total factor productivity 2003: € 6.2 bn: Edu 44%, RDI 34%, ICT 23%

10. EUA, Marseille, 3 April 200410 Growth Initiative (GI) TENs: € 50 bn by 2010 RDI: € 40 bn from 2003-2010 crucial for Europe growth! QSP: Quick Start Programme But at same time continuation of the ongoing EIB RDI lending programme

11. EUA, Marseille, 3 April 200411 RDI project types Industrial RD&I (pilot plants, labs, research activities) Health (Cancer Centre Madrid; Protons Berlin, Heavy Ion Therapy) Large Infrastructures (LHC of CERN, IMEC) Science parks, incubators (EMBL, Turku) Specific global loans for innovative SME’s Projects from Techn Platforms/FP6 (H2, Nanotechs, new mobile techs)

12. EUA, Marseille, 3 April 200412 RDI proponents Research organisations Industry (direct) Universities Specialized intermediaries Nat’l/Reg’l RDI support systems Networks Partners (Commission/Eureka/…)

13. EUA, Marseille, 3 April 200413 RDI funding instruments by EIB Group Direct and indirect loans (for private or public) Global loans (for small projects and SMEs) Grouped loans / framework loans (among other for midsize companies) EIF investment in VC funds EIF guarantees for SMEs

14. EUA, Marseille, 3 April 200414 RDI partners To develop RDI funding by EIB Group, the EIB relies on partnerships with: The Commission (DG RTD, ENTR) and related services (JRC, IPTS) The National & Regional RDI support systems Eureka, multilateral agencies Organisations regrouping research institutes, universities, and/or industries

15. EUA, Marseille, 3 April 200415 RDI appraisal issues RDI Project selection criteria and procedures RDI project definition Investment cost (facilities + activities) Environmental (and social) aspects Profitability Structure issues (legal entity & borrowing) LT vision, management of operations Organise monitoring Adequate security Coop with COM and other like ESF, etc…

16. EUA, Marseille, 3 April 200416 RD&I: « cost » definition: capital investments: buildings, equipment, ICT, (pre-) production units (pilot/prototypes) Intangibles (researchers salaries, engineering, testing, IPR/patents/registration, training, start-up costs) operational costs: materials, personnel costs Project or programme Financing: up to 50% of investment cost LOANS, not grants! Must be repaid.

17. EUA, Marseille, 3 April 200417 HEI types of projects Traditional University Infrastructure Research Laboratories and Costly Equipment Information and Communication Systems Academic R&D Programmes and Projects R&D Management and Support Systems University-Business R&D Spin-off Activities

18. EUA, Marseille, 3 April 200418 Traditional Univ Infrastructure Technical University Vienna: New Buildings for the Faculty of Mechanical Engineering Masaryk University in Brno: Complete University Campus, including Access Roads, Car Parkings, Canteens, Hostels, Conference Facilities, etc. University of Turin, Polytechnic of Milan: Two New Campuses and a new University Hospital in Milan University of Heidelberg: New Extensions and a Business-Science Park

19. EUA, Marseille, 3 April 200419 Further examples University of Vienna: Complete Renovation and Refurbishment of the 600-Year Old University Library plus new build of Library Extension University of Turin: Rehabilitation of Palazzo Badini and Palazzo Degli Stemmi, i.e. to accommodate the University Administration University of Cambridge: Refurbishment of the Aula Magna and several Halls of Residence

20. EUA, Marseille, 3 April 200420 HEI Research facilities Framework Lending to the Higher Education Funding Council for England, Scotland and Wales: Eligibility for Funding R&D Laboratories and Expensive Equipment Statens Serum Institut, Copenhagen: Rehabilitation of the Research Laboratories Finnish Higher Education Projects: Rehabilitation of Research Facilities and R&D Infrastructure

21. EUA, Marseille, 3 April 200421 HE ICT systems Open University ICT Networks Distance Education Programmes E-Learning Centres Management Systems Broadband Infrastructure

22. EUA, Marseille, 3 April 200422 Other examples Academic R&D Programmes: HEFCE: Competitive Project Finance; R&D Projects in Line with the 6 th Framework; Operational R&D Expenditures (salary cost!) Support Systems: Student Lending Frameworks with Banco Intesa (students at Milan and Turin Polytechnics) R&D Spin-off Activities Science Parks (University of Turku)

23. EUA, Marseille, 3 April 200423 Thank you! www.eib.org www.eif.org