Financing RTD and Innovation in the enlarged European Union - CONFERENCE FINANCING GROWTH AND COHESION IN THE ENLARGED EU Mr Louis BELLEMIN Head of Unit RTD-M3, European Commission, Directorate General for Research Competition aspects and Structural policies Directorate M - Investing in Research and Links with other Community policies Workshop 1: Financing research, technological development and innovation in the EU - developing and financing institution-building in the Member States, Brussels, November 24, 2005

24/11/052CEC-DG RTD 3% Objective What is at stake? EU-US R&D Gap 130 bn every year & growing –Public funding gap 25 bn –Business funding gap 105 bn Estimated gains if EU reaches 3% in 2010 –Until 2010 : +0.25% GDP every year +0.25% GDP every year +2 million jobs over million jobs over –After 2010 : +0.5% GDP every year +0.5% GDP every year +400,000 net jobs every year +400,000 net jobs every year 0%5%10%15% Product quality Productivity Jobs Growth Long term gains : by 2010 and by 2030 Gains from reaching 3% R&D by 2010 compared to statu quo

24/11/053CEC-DG RTD Knowledge and Innovation for Growth Knowledge through investment in R&D, a key driver for economic growth and employmentKnowledge through investment in R&D, a key driver for economic growth and employment European R&D :European R&D : –contributes to the creation of new markets or production processes; –leads to incremental improvements in conventional industries and technologies –increases the capacity of countries and regions to absorb new technologies –an essential part of the innovation process

24/11/054CEC-DG RTD

24/11/055CEC-DG RTD About the RTD Framework Programme The Framework Programme has been traditionally a policy planning tool for research and technological development at EU level (an instrument to promote transnational co-operation among RTD players by supporting collaborative RTD).The Framework Programme has been traditionally a policy planning tool for research and technological development at EU level (an instrument to promote transnational co-operation among RTD players by supporting collaborative RTD). Financial Instrument to build the European Research AreaFinancial Instrument to build the European Research Area Not specifically pointing to Regions - without however excluding them as suchNot specifically pointing to Regions - without however excluding them as such

24/11/056CEC-DG RTD Specific Programmes Specific Programmes Cooperation – Collaborative research People – Human Potential JRC (nuclear) Ideas – Frontier Research Capacities – Research Capacity JRC (non-nuclear) Euratom + FP

24/11/057CEC-DG RTD Financial Instruments in support of the Lisbon agenda RSFF – supported by FP7 Loans for large European RTD actions RSFF – supported by FP7 Loans for large European RTD actions SME Guarantee Facility, GIF 1 and GIF 2 – supported by CIP Guarantees and equity capital for high growth and innovative SMEs SME Guarantee Facility, GIF 1 and GIF 2 – supported by CIP Guarantees and equity capital for high growth and innovative SMEs JASPERS and JEREMIE– supported by RSDF Venture capital and micro credit for SMEs at regional level JASPERS and JEREMIE– supported by RSDF Venture capital and micro credit for SMEs at regional level EIB / EIF

CIPCIP Lisbon strategy /funding RTD and Innovation: key instruments / key challenges FP SF MEMBER STATES / REGIONS Key challenges for Research and Innovation: - Innovation Poles / Clusters - Investment Strategies - Human Resources -SMEs involvement -Access to finance -Services to businesses - Public / Private Partnerships -From R&D to technology market take-up

24/11/059CEC-DG RTD The Regional Dimension: FP7 vs CIP FP7 Direct support: Support to cooperation between Regional R&D driven clusters (Regions of Knowledge) Support for exchange of best practice among regional policy makers (OMC- NET) Unlocking Research Potential in Convergence Regions Co-funding of national / regional programmes in Human Resources for R&D Research in Social and Economic Sciences focused on Cohesion aspects Indirect support: Research Infrastructure SME R&D including Article 169 initiative on High-Tech SMEs Support to large scale Joint Technology Initiatives FP7 Direct support: Support to cooperation between Regional R&D driven clusters (Regions of Knowledge) Support for exchange of best practice among regional policy makers (OMC- NET) Unlocking Research Potential in Convergence Regions Co-funding of national / regional programmes in Human Resources for R&D Research in Social and Economic Sciences focused on Cohesion aspects Indirect support: Research Infrastructure SME R&D including Article 169 initiative on High-Tech SMEs Support to large scale Joint Technology Initiatives CIP Instruments: Community financial instruments for SMEs; networks bringing together a variety of stakeholders; innovation take-up projects; support to joint actions of Member States or regions; twinning between authorities at national and regional level Actions: Access to finance (risk capital) support to business services networks (tech.transfer) coordination of innovation programmes (INNO-NET) support and coordination for innovation policies transnational cooperation of innovation clusters CIP Instruments: Community financial instruments for SMEs; networks bringing together a variety of stakeholders; innovation take-up projects; support to joint actions of Member States or regions; twinning between authorities at national and regional level Actions: Access to finance (risk capital) support to business services networks (tech.transfer) coordination of innovation programmes (INNO-NET) support and coordination for innovation policies transnational cooperation of innovation clusters

24/11/0510CEC-DG RTD FP7 and CIP vs Structural Funds Mutually reinforcing - ComplementaryMutually reinforcing - Complementary Different tools and approaches - same Objectives: success of the Lisbon StrategyDifferent tools and approaches - same Objectives: success of the Lisbon Strategy FP7CIP Structural Funds

24/11/0511CEC-DG RTD How the Structural Funds can stimulate R&D investment in European regions R&D infrastructure and equipment (conventional approach- still valid)R&D infrastructure and equipment (conventional approach- still valid) favouring the establishment of medium and long term R&D and innovation investment strategiesfavouring the establishment of medium and long term R&D and innovation investment strategies help create the appropriate framework conditions for stimulating R&D and innovation especially in connecting academia and industryhelp create the appropriate framework conditions for stimulating R&D and innovation especially in connecting academia and industry stimulate the emergence of clusters of technological competence / excellence involving especially SMEsstimulate the emergence of clusters of technological competence / excellence involving especially SMEs

24/11/0512CEC-DG RTD Different planning and implementation cycles FP projects will emerge while STRF Programmes will result from planningFP projects will emerge while STRF Programmes will result from planning However planning may be adjusted to overall strategic research priorities of the Union, at national or regional level / medium or long termHowever planning may be adjusted to overall strategic research priorities of the Union, at national or regional level / medium or long term Such planning may maximise chances for emerging projects / create the best possible conditions for research and creativitySuch planning may maximise chances for emerging projects / create the best possible conditions for research and creativity A major contribution to the ERA process / a huge responsibility for the national / regional planning authoritiesA major contribution to the ERA process / a huge responsibility for the national / regional planning authorities

24/11/0513CEC-DG RTD How to ensure complementarity between FP7 and the New Structural Funds Need for fine tuning of national and regional Research investment priorities at short, medium and long term in the future SF Strategic Reference Frameworks / Operational ProgrammesNeed for fine tuning of national and regional Research investment priorities at short, medium and long term in the future SF Strategic Reference Frameworks / Operational Programmes Guiding principles : the 7th Framework Programme ( ) proposals, the developing ERA process, the 3% Action Plan, and of course the Strategic Guidelines for CohesionGuiding principles : the 7th Framework Programme ( ) proposals, the developing ERA process, the 3% Action Plan, and of course the Strategic Guidelines for Cohesion main responsibility lies with the national /regional authoritiesmain responsibility lies with the national /regional authorities

24/11/0514CEC-DG RTD Net links Investing in European Research Website Investing in European Research Website Information on research programmes and projects:Information on research programmes and projects: 7th Framework Programme: Framework Programme: (Regional Dimension of the ERA) (Regional Dimension of the ERA) (The IRE Network, Innovating regions in Europe) (The IRE Network, Innovating regions in Europe) RTD info magazine:RTD info magazine: Information requests:Information requests: