SYNERGIES BETWEEN EUROPEAN STRUCTURAL AND INVESTMENT FUNDS (ESIF) AND HORIZON 2020 (H2020) ON INNOVATION PROCUREMENT Dr. Vassillis Tsanidis Policy Officer/Seconded National Expert European Commission DG CNECT Innovation Unit

Horizon 2020 Funding Instruments in support of Innovation Procurement

 Preparation Activities  Execution of the joint procurement  Validation/comparison of the performance of the competing PCP solutions against jointly defined criteria in real-life operational conditions  Dissemination/exploitation of results  Preparation activities  Execution of the Joint Procurement  Early adoption of the Innovative Solution  Conformity Tests if needed  Dissemination/exploitation of results PCP co-fund actionsPPI co-fund actions 70% flat co-funding rate20% flat co-funding rate

Participation requirement Public procurers are contracting authorities or contracting entities as defined by the EU public procurement directives Minimum 3 independent participants from 3 different Member States or Associated Countries, of which minimum 2 public procurers (buyers group) from 2 different Member States or Associated Countries

 Buyers group  Procurers that provide the financial commitments to undertake the PCP procurement  Sole participants can be also eligible if the minimum conditions are met by the legal entities forming the sole participant (e.g. European Research Infrastructure Consortia, European Groupings of Territorial Cooperation)  Lead procurer  Public procurer appointed by buyers group to lead and coordinate the PCP.Can be one of the procurers of the buyers group or another contracting authority not part of the buyers group Buyers group & Lead procurer

PCP/PPI co-fund actions - Participants Beneficiaries that undertake together the PCP/PPI co-fund action tasks The Lead Procurer The Buyers Group

 In the proposal, the consortium shall have already identified one concrete procurement need as proposed focus for the PCP that is identified as a common challenge in the innovation plans of the buyers group and requires R&D!  One joint call for tender published EU wide  One joint evaluation of offers  One lead procurer awarding all contracts in the name and on behalf of all procurers in buyers group  Each winning tenderer gets: 1 framework agreement to participate in the PCP + one specific contract per PCP phase (solution design, prototyping, testing)  One joint total budget (grouping financial commitments of all procurers in buyers group) from which all R&D providers are paid  But, actual payments can be carried out centralised or distributed  Either all R&D providers paid by the lead procurer Or  each R&D provider paid pro rata by each procurer in the buyers group according to the share of each procurer's contribution to the common pot ONE JOINT PCP ONE JOINT PCP

 In the proposal, the consortium shall have already identified one concrete procurement need that is identified as a common challenge in the innovation plans of the buyers group and does not require R&D!  One joint call for tender published EU wide (unless PPI procures limited set of prototypes / test products developed during PCP, then negotiated procedure without publication foreseen in public procurement directives possible)  One joint evaluation of offers  But contract award can be centralised or distributed  Either one lead procurer awarding all contracts to all suppliers on behalf of all procurers in the buyers group Or  one lead procurer only awarding a framework contract with lots (lots per procurer) to each supplier, and each individual procurer awarding (a) specific contract(s) for his lot(s) to the supplier(s) delivering the solution(s) he buys This means same core functionality and performance characteristics for solutions procured by all procurers, but possible additional local functionality for each procurer  Also payments can be centralised or distributed ONE JOINT PPI ONE JOINT PPI

: Horizon 2020: € million*  9 areas expect to cofund PCPs  1 in e-Health, 6 in ICT, 1 in security, 1 in research infrastructure  6 areas expect to cofund PPIs  1 in e-Health, 3 in ICT, 1 in Transport, 1 in research infrastructure  11 areas expect to support networks of procurers preparing future PCPs/PPIs  1 in bioeconomy, 4 in Energy, 2 in Climate, 2 in ICT, 1 in security, 1 in research infrastructure + Galileo/GNSS activities + possible Geant research infrastructure procurements * Depends on actual take-up/proposals received For comparison (funding in previous years) 2013: € 94 million : € 42,9 million : € 4,5 million How much for PCP and PPI in

ICT LEIT Work Program ICT-24(d): Robotics for healthcare sector (€ 5M, 2015) ICT-8(a): Boosting public service productivity via cloud computing (€ 9M, 2015) ICT-36: Call open to any area of public interest needing ICT based solutions (€ 4M, 2015) Health Societal Challenge Work Program PHC 27: Selfmanagement of health and disease and patient enpowerment supported by ICT (€ 15M, 2015) Security Societal Challenge Work Program DRS 18: Interoperable next generation of broadband radio communication system for public safety and security (no predefined max budget for PCP cofund proposals, 2015) Research Infrastructrure Work Program INFRASUPP2(b): Scientific instrumentation for research infrastruct. (part of € 14M, 2015) EINFRA8: Geant – novel telecom and Internet technologies (part of € 25M, 2015) 2015 Calls for PCP cofund actions

ICT LEIT Work Program ICT-8(b): Boosting public service productivity/services via cloud computing (€ 13M, 2015) ICT-20(d): ICT technologies for better human learning (€ 10M, 2015) ICT-27(b): Photonics – software defined optical networking technologies and services for National Research and Education Networks (€ 5M, 2015) Health Societal Challenge Work Program PHC 29: eHealth services (€ 10M, 2015) Transport Societal Challenge Work Program MG 8.3: Transport Infrastructure (€ 13M, 2015) Research Infrastructrure Work Program INFRASUPP2(c): Scientific instrumentation for research infrastructure (part of € 14M, 2015) 2015 Calls for PPI cofund actions

ICT LEIT Work Program ICT-26(c): European cities focusing on wide deployment/PPI of SLL lighting solutions (part of call for 3 CSAs for max total of € 5M, 2015) Other calls for CSAs in other areas of ICT that can address PCP/PPI, for example: ICT-30(b): CSAs to develop ecosystem for Internet of things that could address also PCP (part of call for 3 CSAs for max total of € 5M, 2015) ICT-7(c): CSAs to support adoption of cloud computing (€ 2M, 2015) Energy Societal challenge Work Program EE : Enhancing the capacity of public authorities to plan, finance and implement sustainable energy plans & policies e.g. in buildings, mobility (part of big call, € 1,5/2M per project) EE : Targeting min 25% higher-than available energy performance levels b) Preparing and supporting procurements by large buyers groups (no max total budget, part of big call, € 1,5/2M per project) Research Infrastructrure Work Program INFRASUPP (a): Exploring future use of joint PCP and PPI in research infra (part of € 14M call, 2015) 2015 Calls for Coordination and Support Actions

Support of Innovation Procurement in the ESIF context

Why Innovation Procurement at Regional Level ? ……it is a win-win situation for Regions/ Public Authorities  Acquire value for money solutions that realise concrete quality and efficiency improvements to public services in the region  Improve the local innovation ecosystem as stronger local public sector demand for innovative solutions attracts additional financial investments into the region and combats relocation of innovative companies to other parts of the world  Enhance the technical know-how of the Region Innovators Can get first client for new product (lead customer) Shorten time to the market (because of earlier customer feedback) Wider commercialization opprtunities (because they obtain the IPRs)

Cohesion Policy may support measures in the framework of the Operational Programs to:  Foster innovation through public procurement TO 1 (IP1B) Strengthening research, technological development and innovation Target group: public sector  Foster better meeting of public needs TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health TO 4 (all IPs) supporting the shift toward a low –carbon economy in all sectors TO 5 (all IPs) promoting climate change adaption, risk prevention and management TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures Target group: town planners, transport, environment, health etc. ministries – ERDF, Cohesion Fund and ESF)  Foster more innovative public procurement procedures and administrative capacities TO 11 (IP11) Enhancing institutional capacity and an efficient public administration TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e- health Target group: procurement officers

Cohesion Policy may also support:  Major projects / Joint Action Plans in cooperation with other Regions and key players in the Cohesion Policy  Coordination, Networking and Preparation activities for the implementation of a PCP and/or PPI through European Territorial Cooperation Programs

COORDINATION AND SUPPORT ACTIVITIES IN THE FRAMEWORK OF THE ETC PROGRAMS Specific calls on the Coordination and Support Activities for future Innovation Procurements Encouragement of implementation of Coordination and Support Activities for future Innovation Procurements in the framework of relevant Project Proposals Encouragement of the establishment of EGTCs that may implement in the future joint Innovation Procurements EUROPEAN TERRITORIAL COOPERATION PROGRAMS

PCP/PPI IN THE FRAMEWORK OF THE OPs /ROPs (REGIONAL)OPERATIONAL PROGRAMME PCP/PPI UNDER A SPECIFIC THEMATIC OBJECTIVE. BUDGET ALLOCATION FOR SPECIFIC CALLS FOR PROPOSALS BY THE MAs ON PCP/PPI Example of the Italian Regions - In the previous programming period specific calls on PCP were launched with reference to related priority axis of each respective Regional Operational Program - HORIZONTAL PRESENCE - AFFECT ALL THEMATIC OBJECTIVES/INVESTMENT PRIORITIES. NO SPECIFIC CALLS FOR PROPOSALS BY THE MAs ON PCP/PPI. PCPs/PPIs are implemented as projects in the framework of relevant calls for project proposals launched by the MA of each respective OP

Possible Synergies between the ESIF and H2020 on Innovation Procurement

SYNERGIES BETWEEN H2020 AND ESIF ON PCP/PPI WHY? BECAUSE:  The value of support for research, development and innovation could be further enhanced by combining funding resources (increase of effects at regional level)  Procurers could choose for higher ESIF co-funding rates instead of H2020 co-funding rates' whilst participating to H2020 funded PCP/PPIs.  Better communication between "regional development community" and "Horizon-Science community"  A regional development scheme through the participation in a H2020 project acquires a European perspective

 Include innovation procurement in the RIS3 SWOT and policy mix.  Build PCP/PPI references into OPs in every relevant thematic objective.  Ensure support of public demand driven innovation in the framework of the European Territorial Cooperation.  Involve MA from the beginning to ensure availability of ESIF & synchronisation. CONDITIONS FOR SUCCESS

GENERAL RULE IT IS NOT ALLOWED !!!!!! -To use ESIF and H2020 funding accumulatively to finance the same cost/expenditure item -To finance the own contribution of the participant from H2020 or ESIF

EUROPEAN TERRITORIAL COOPERATION PROGRAMS ESIF COORDINATION AND SUPPORT ACTIVITIES (CSAs) H2020 PART OF THE PCP/PPI IMPLEMENTION (CO-FUND ACTION CALLS) H2020 OR SYNERGIES WITH THE ESIF OR OR COORDINATION AND SUPPORT ACTIVITIES

Possible scenario on the execution of a PCP  In the framework of PCP Cofund action calls, some participants of the consortium of the buyers group may receive co-funding from the ESIF and others from H2020.  This case is applicable only if there is a clear distinction between budgets offered per OP and between expenditures co-funded by the ESIF (per OP) vs expenditures co-funded by H2020. Example - each R&D provider is paid pro rata by each procurer in the buyers group according to the share of each procurer's contribution to the jointly committed budget.  To achieve innovation goals in their territory by using ESI Funds procurers from less developed Regions could receive higher co-funding rates to participate in a PCP/PPI implemented in the framework of H2020 by/with procurers from more advanced Regions. Condition for success : synchronization between the ESIF calls and the H2020 cofund action calls

Execution of a PCP – Combination of Funds between the ESIF and H2020 EXECUTION OF A JOINT PCP PROCURER A (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution) PROCURER C (Transitional Region) CO-FUNDS HIS CONTRIBUTION TO THE COMMON POT THROUGH THE ESIF CO-FUNDING RATE up to 60% (for his contribution PROCURER B (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution) EXECUTION OF A JOINT PCP PROCURER A (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution) PROCURER C (Transitional Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 60% (for his contribution) PROCURER B CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE H2020 CO-FUNDING RATE 70% (for his contribution) PROCURER D CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE H2020 CO-FUNDING RATE 70% (for his contribution)

Execution of a PPI – Combination of Funds between the ESIF and H2020 EXECUTION OF A JOINT PPI PROCURER A (Less developed Region) Purchases the innovative solution with the support of the ESIF CO-FUNDING RATE up to 85% (for his contribution) PROCURER B (Transitional Region) Purchases the innovative solution with the support of the ESIF CO-FUNDING RATE up to 60%(for his contribution) PROCURER C Purchases the innovative solution with the support of the H2020 FLAT CO-FUNDING RATE 20%(for his contribution) PROCURER D Purchases the innovative solution with the support of the H2020 FLAT CO-FUNDING RATE 20%(for his contribution)

SEQUENTIAL FUNDING Separate successive and legally/financially not linked projects with alternating H2020 or ESIF support – - First PCP and then PPI – This is an easier way to combine funds with less risk of (involuntarily) creating double co-funding scenarios. Sequential funding can go in both directions: First ESIF and then H2020 or vice versa.

First PCP (ESIF) to develop and test the innovative solution and then PPI (H2020) for the deployment of the innovative solutions developed and tested through PCP and vice versa (H2020 for PCP and ESIF for PPI) Example: A group of Public Procurers from different cities are looking for a new sustainable public water supply system. It requires R&D. At first they implement a PCP (Phases 1,2,3) with the support of H2020 and different solutions are developed and tested. Thereafter they implement a PPI with the support of ESIF/ERDF to co- fund the preparation of the call for tender and the purchase of these new solutions (each MA for the territory covered by its OP).

For more info on Innovation Procurement please visit the following site: procurement If you would like to keep up to date on the latest Member States initiatives on Innovation Procurement and new upcoming EU funding opportunities, please subscribe to the PCP/PPI newsletter :

Thank you very much for your attention Dr. Vassillis Tsanidis Policy Officer/Seconded National Expert European Commission DG CNECT Innovation Unit