1. Research and Innovation Research and Innovation Research and Innovation Research and Innovation 1 Stimulating Research and Innovation through Horizon 2020 and New Cohesion Policy Pia LAURILA Policy officer Regional Dimension of Innovation DG Research and Innovation European Commission Pia.Laurila@ec.europa.eu Pia LAURILA Policy officer Regional Dimension of Innovation DG Research and Innovation European Commission Pia.Laurila@ec.europa.eu

2. Our objective: exiting the crisis and heading for a sustainable recovery Europe faces: Lack of growth, bleak economic climate; Increasing imbalances across the continent; Declining public confidence and high social costs of adjustment; Increased competition from other parts of the world; Debate on the EU and its future Europe needs: Sound public finances > Public deficits need to shrink Structural reforms >Restoring competitiveness of MS (e.g. flexible labour markets) > Reaping synergies from the world's largest Single Market Smart investment > Stepping-up efforts to promote, at national and European levels, pro-growth public spending in consolidation processes Pro-growth EU budget, e.g. Horizon 2020 to support objectives of Europe 2020 Strategy Europe faces: Lack of growth, bleak economic climate; Increasing imbalances across the continent; Declining public confidence and high social costs of adjustment; Increased competition from other parts of the world; Debate on the EU and its future Europe needs: Sound public finances > Public deficits need to shrink Structural reforms >Restoring competitiveness of MS (e.g. flexible labour markets) > Reaping synergies from the world's largest Single Market Smart investment > Stepping-up efforts to promote, at national and European levels, pro-growth public spending in consolidation processes Pro-growth EU budget, e.g. Horizon 2020 to support objectives of Europe 2020 Strategy

3. Investing in R&D and Innovation helps exiting the crisis faster

4. July 2013EC DG RTD.C.5 DC4 R&D intensity, by NUTS 2 regions, 2009 (R&D expenditure as a % share of GDP) Source: EUROSTAT Regional Yearbook 2012

5. The Innovation divide in Europe  Out of a total of 266 regions in the EU, only 35 had in 2009 an R&D intensity (R&D investment as a % of their GDP) above 3%  Taken together these 35 regions accounted for 45% of all R&D expenditure in the EU  10 of the most R&D intensive regions in 2009 were located in the Nordic member States, totalising 9,3% of total R&D expenditure in the EU (source EUROSTAT regional yearbook 2012)  Out of a total of 266 regions in the EU, only 35 had in 2009 an R&D intensity (R&D investment as a % of their GDP) above 3%  Taken together these 35 regions accounted for 45% of all R&D expenditure in the EU  10 of the most R&D intensive regions in 2009 were located in the Nordic member States, totalising 9,3% of total R&D expenditure in the EU (source EUROSTAT regional yearbook 2012) 5

6. 6 Innovation performance R&D expenditure in the business sector as % of GDP

7. 7 Regional Innovation Scoreboard 2012

8. Policy Research and Innovation Research and Innovation Innovation Output Indicator A single innovation indicator proposed to complement the Europe 2020 Strategy headline indicator on R&D intensity. It measures the extent to which ideas generated within innovative sectors are able to reach the market. Finland ranks 6 th in the EU and appears among the "very good performers", just short of being a "top performer" such as Sweden and Germany. Further information: http://ec.europa.eu/research/press/2 013/pdf/staff_working_document_ind icator_of_innovation_output.pdf http://ec.europa.eu/research/press/2 013/pdf/staff_working_document_ind icator_of_innovation_output.pdf

9. Innovation Union flagship initiative aims at creating the best conditions for Europe's researchers and entrepreneurs to innovate A broader approach to innovation: meshing research and technological development with -Product innovation, service innovation, innovation in design etc., including process and organisational innovation -Social innovation, public sector innovation, eco-innovation etc. -Exploration of new business models > Both technological & non-technological > Both incremental & disruptive innovation  Improving framework conditions for innovation to flourish  34 commitments: Speeding up standardisation, Making better use of and 'modernising' public procurement procedures, Creating a real internal market for venture capital, Agreeing on a unified European patent, Completing the European Research Area (ERA) Innovation Union flagship initiative aims at creating the best conditions for Europe's researchers and entrepreneurs to innovate A broader approach to innovation: meshing research and technological development with -Product innovation, service innovation, innovation in design etc., including process and organisational innovation -Social innovation, public sector innovation, eco-innovation etc. -Exploration of new business models > Both technological & non-technological > Both incremental & disruptive innovation  Improving framework conditions for innovation to flourish  34 commitments: Speeding up standardisation, Making better use of and 'modernising' public procurement procedures, Creating a real internal market for venture capital, Agreeing on a unified European patent, Completing the European Research Area (ERA) Turning the European Union into an Innovation Union

10. Research and Innovation Research and Innovation Responding to three main aspects *Globalisation of knowledge production & innovation capacities *Impact of the crisis on public and private finance *Major challenges to address with reduced means Building on strengths Involving all actors Involving all actors Broad concept of innovation Broad concept of innovation Focus on societal challenges Focus on societal challenges Tackling weaknesses Framework conditions Framework conditions Under-investment Under-investment Fragmentation Fragmentation Innovation Union 10

11. Research and Innovation Research and Innovation 1. Training researchers 5. European Research infrastructures 8. Forum on Forward Looking Activities 2. University ranking system 3. Developing new curricula 7. Involvement of SMEs in R&I 6. Programmes focusing on EU2020 4. ERA Framework 27. Research programmes on public sector & social innovation 19. European Design Board 12. Cross- border matching of innovative firms 9. EIT to expand its activities 10. New financial instruments for private finance 11. Free Venture Capital funds 34. New indicator for fast-growing companies and overall monitoring 31. Scientific cooperation with third countries 32. International agreements on research infrastructures 33. MS to carry out self assessments 14. EU Patent 17. Pre- commercial and public procurements 18. Eco- innovation action plan 13. Review of State aid R&D&I 24. Smart Specialisation 29. European Innovation Partnerships 30. Policies for researchers to reside in Europe 20. Open access 28. Partners consultation on knowledge economy 25. Focus on Innovation in the next Structural Funds 26. European Social innovation pilot 21. Knowledge transfer 16. Modernise standard-setting 22. European market for patents and licensing 23. Safeguard of IPRs 15. Screening of key regulatory frameworks Innovation Union - Commitments 11

12. Research and Innovation Research and Innovation Changing the innovation landscape - 9 proposals tabled  Horizon 2020  Structural Funds  EIT Strategic Innovation Agenda  ERA communication  Standards  Unitary patent  Public procurement  Venture capital passport  Eco-innovation Action Plan Experimenting with new ideas - 6 pilot initiatives launched Knowledge Alliances University ranking Regulatory screening Support mechanisms for innovation procurement European Social Innovation pilot European Public Sector Innovation Scoreboard Working in Partnership - 5 new platforms and fora European Forum on Forward Looking Activities European Creative Industries Alliance European Design Leadership Board Smart Specialisation Platform European Innovation Partnerships Main achievements – so far 12

13. Research and Innovation Research and Innovation Research and Innovation Research and Innovation Research and Innovation in 13

14. Horizon 2020 Initial Commission proposal for a 80 billion euro research and innovation funding programme (2014-2020); now 79 billion euro A core part of Europe 2020, Innovation Union & European Research Area:  Responding to the economic crisis to invest in future jobs and growth > Addressing people’s concerns about their livelihoods, safety and environment > Strengthening the EU’s global position in research, innovation and technology Novelties  A single programme bringing together three separate programmes/initiatives  Coupling research to innovation – from research to retail, all forms of innovation  Focus on societal challenges facing EU society, e.g. health, clean energy and transport  Continuation of investment in frontier research  Simplified access, for all companies, universities, institutes in all EU countries and beyond Initial Commission proposal for a 80 billion euro research and innovation funding programme (2014-2020); now 79 billion euro A core part of Europe 2020, Innovation Union & European Research Area:  Responding to the economic crisis to invest in future jobs and growth > Addressing people’s concerns about their livelihoods, safety and environment > Strengthening the EU’s global position in research, innovation and technology Novelties  A single programme bringing together three separate programmes/initiatives  Coupling research to innovation – from research to retail, all forms of innovation  Focus on societal challenges facing EU society, e.g. health, clean energy and transport  Continuation of investment in frontier research  Simplified access, for all companies, universities, institutes in all EU countries and beyond

15. Research and Innovation Research and Innovation Three priorities: 1.Excellent science 2.Industrial leadership 3.Societal challenges

16. Policy Research and Innovation Research and Innovation II Industrial leadership −Leadership in enabling and industrial technologies (LEITs) −Access to risk finance −Innovation in SMEs I Excellent Science  European Research Council  Future and Emerging Technologies  Marie Curie actions on skills, training and career development  Research infrastructures Shared objectives and principles Common rules, toolkit of funding schemes Supporting the objectives: European Institute for Innovation and Technology Joint Research Centre Europe 2020 priorities European Research Area Simplified access International cooperation Dissemination & knowledge transfer III Societal Challenges  Health, demographic change and wellbeing  Food security, sustainable agriculture, marine research and the bioeconomy  Secure, clean and efficient energy  Smart, green and integrated transport  Climate action, resource efficiency and raw materials  Inclusive, innovative reflective societies  Secure societies 17.0 Bio €* 29.7 Bio €* 24.4 Bio €* * 2014-2020, actual budget (tentative) Horizon 2020 Structure IIIa Spreading Excellence & Widening Participation IIIb Science with and for Society

17. 17 What Europe will do for closing the Innovation Divide ? Work through Horizon 2020 Mobilise Cohesion policy to build a Stairway to Excellence Deploy significant synergies between Horizon 2020 and Cohesion policy Work through Horizon 2020 Mobilise Cohesion policy to build a Stairway to Excellence Deploy significant synergies between Horizon 2020 and Cohesion policy

18. Spreading Excellence and Widening Participation through Horizon 2020 New Part III-a in Horizon 2020 (budget circa EUR 800M) Main actions on Teaming (Centres of Excellence), Twinning (institutional networking), ERA Chairs (bringing excellence to institutions); also Policy Support Facility and a special action from COST on Widening actions New Part III-a in Horizon 2020 (budget circa EUR 800M) Main actions on Teaming (Centres of Excellence), Twinning (institutional networking), ERA Chairs (bringing excellence to institutions); also Policy Support Facility and a special action from COST on Widening actions

19. Teaming (centres of excellence) Teaming of excellent research institutions and low performing MS/Regions (in terms of Research and Innovation) aiming at the creation of new (or significant upgrade of existing) centres of excellence in low performing RDI Member States and regions, strongly linked with local /national Smart Specialisation Strategies Teaming will focus on the preparatory phase for setting up or upgrading and modernising such an institution facilitated by a teaming process with a leading counterpart in Europe, including supporting the development of a business plan A commitment of the recipient region or Member State (e.g. support via Cohesion Policy Funds) is expected; subject to the quality of the business plan, the Commission may provide further seed financial support for the first steps of implementation of the centre Teaming of excellent research institutions and low performing MS/Regions (in terms of Research and Innovation) aiming at the creation of new (or significant upgrade of existing) centres of excellence in low performing RDI Member States and regions, strongly linked with local /national Smart Specialisation Strategies Teaming will focus on the preparatory phase for setting up or upgrading and modernising such an institution facilitated by a teaming process with a leading counterpart in Europe, including supporting the development of a business plan A commitment of the recipient region or Member State (e.g. support via Cohesion Policy Funds) is expected; subject to the quality of the business plan, the Commission may provide further seed financial support for the first steps of implementation of the centre

20. Twinning (institutional networking) Twinning of research institutions: Twinning aims at significantly strengthening a defined field of research in an emerging institution through links with at least two internationally-leading institutions in a defined field A comprehensive set of measures underpinning this linkage would be supported, e.g. staff exchanges, expert visits, short- term on-site or virtual trainings, workshops; conference attendance; organisation of joint summer school type activities; dissemination and outreach activities Twinning of research institutions: Twinning aims at significantly strengthening a defined field of research in an emerging institution through links with at least two internationally-leading institutions in a defined field A comprehensive set of measures underpinning this linkage would be supported, e.g. staff exchanges, expert visits, short- term on-site or virtual trainings, workshops; conference attendance; organisation of joint summer school type activities; dissemination and outreach activities

21. ERA Chairs (for excellence and innovation) Establishing 'ERA Chairs' to attract outstanding academics to institutions with a clear potential for research excellence, in order to help these institutions fully unlock this potential and hereby create a level playing field for research and innovation in the European Research Area This will include institutional support for creating a competitive research environment and the framework conditions necessary for attracting, retaining and developing top research talent within these institutions. Specific links will have to be developed with local smart specialisation strategies. Information on the ERA Chairs Pilot Call under FP7 (closed on 30/05/2013) : http://ec.europa.eu/research/era/era-chairs_en.html  Publication of vacancy and recruitment process of ERA Chair holders by the Institutions: starting in early 2014 Establishing 'ERA Chairs' to attract outstanding academics to institutions with a clear potential for research excellence, in order to help these institutions fully unlock this potential and hereby create a level playing field for research and innovation in the European Research Area This will include institutional support for creating a competitive research environment and the framework conditions necessary for attracting, retaining and developing top research talent within these institutions. Specific links will have to be developed with local smart specialisation strategies. Information on the ERA Chairs Pilot Call under FP7 (closed on 30/05/2013) : http://ec.europa.eu/research/era/era-chairs_en.html  Publication of vacancy and recruitment process of ERA Chair holders by the Institutions: starting in early 2014

22. Mobilising Cohesion policy (ESIF) for increasing support on research and innovation for all European regions For the next programming period (2014-20), EU Member States will have to organise their regional development plans using only eleven (11) Thematic Objectives, of which the first and by far the most important, is support on research and innovation This has to happen in a context of Smart Specialisation, an economic development doctrine for the regions / countries involved that pushes for the identification of opportunities in the local economy Smart Specialisation is a place-based strategy for economic development that draws on knowledge assets. It relies on the so-called "entrepreneurial process of discovery" that would identify the best options for the region, in a bottom-up, collaborative process. It has now been identified in the future regulations, as an ex- ante conditionality for receiving Structural Funds support for research and innovation investments Together with a new rule on Thematic Concentration, Smart Specialisation will push countries and regions to think more on research and innovation support, for all kinds of regions

23. The Synergies and Smart Specialisation Matrix

24. The challenge of developing synergies

25.  We will achieve increased synergies between Horizon 2020 and the Structural Funds if we could identify after a few years of parallel operation, concrete results on the ground in the supported Member States and regions, such as:  Increased investments in research infrastructures of all kinds, including those of the ESFRI List  Increased support to innovation, especially with regard to high growth companies and to small innovative ones  Increased research and innovation activities in a few priority thematic areas that would have been freely selected by the MS and regions, in an overall context of innovation strategies for Smart Specialisation.  Specific actions should be carefully planned in the Operational Programmes  They will be monitored through performance indicators How synergies will be identified ?

27. Funding synergies are also possible Specific articles foreseen in the Horizon 2020 Rules of Participation as well in the Common Provisions Regulation of ESIF However beware of not funding the same Cost Item twice (=> Rule of Thumb: distinct work-packages for distinct funding=> but increased impact on the ground by the planned combined action) Specific articles foreseen in the Horizon 2020 Rules of Participation as well in the Common Provisions Regulation of ESIF However beware of not funding the same Cost Item twice (=> Rule of Thumb: distinct work-packages for distinct funding=> but increased impact on the ground by the planned combined action)

28. Synergies in practice Responsibility lies now with the Member States and regions’ planning authorities => need to create the appropriate “space” in the Operational Programmes for synergy actions with Horizon 2020 The Commission prepares a concise Guide on Synergies Responsibility lies now with the Member States and regions’ planning authorities => need to create the appropriate “space” in the Operational Programmes for synergy actions with Horizon 2020 The Commission prepares a concise Guide on Synergies

29. Research and Innovation Research and Innovation Flying in synergy with Cohesion policy!

30. Learn more: Thank you for your attention! Horizon 2020: http://prezi.com/dycpimkrkgml/?utm_campaign=share&utm _medium=copy&rc=ex0share http://prezi.com/dycpimkrkgml/?utm_campaign=share&utm _medium=copy&rc=ex0share http://ec.europa.eu/research/horizon2020/index_en.cfm Innovation Union: http://ec.europa.eu/research/innovation-union/index_en.cfm New Cohesion policy (2014-20) http://ec.europa.eu/regional_policy/what/future/index_en.cfm The Regional Dimension of Innovation: http://ec.europa.eu/research/regions/index_en.cfm http://ec.europa.eu/research/regions/index_en.cfm