1. Research and Innovation Research and Innovation Innovation Union and Horizon 2020 Charlotte Andersdotter DG Research and Innovation Innovation Policy Unit

2. Research and Innovation Research and Innovation Innovation Union: the policy context

3. Research and Innovation Research and Innovation EU and the rest of the world Note: For these graph a restricted set of 12 indicators is used. EU27 Innovation performance compared to main competitors (over a five-year period)

4. Research and Innovation Research and Innovation EMPLOYMENT 75% of the population aged 20-64 should be employed R & INNOVATION 3% of the EU's GDP should be invested in R&D A reduction of CO2 emissions by 20% CLIMATE / ENERGY A share of renewable energies up to 20% An increase in energy efficiency by 20% EDUCATION The share of early school leavers should be under 10% At least 40% of the younger generation should have a degree or diploma POVERTY 20 million fewer people should be at risk of poverty Europe 2020 - 5 headline target

5. Research and Innovation Research and Innovation The 7 “Flagship Initiatives” Smart GrowthSustainable GrowthInclusive Growth Innovation « Innovation Union » Climate, energy and mobility « Resource efficient Europe » Employment and skills « An agenda for new skills and jobs » Education « Youth on the move » Competitiveness « An industrial policy for the globalisation era » Fighting poverty « European platform against poverty » Digital society « A digital agenda for Europe »

6. Research and Innovation Research and Innovation 6 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 (HORIZON 2020) 4. ERA Framework 27. Research programmes on public sector and 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 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 at a glance STRENGHTENING THE KNOWLEDGE BASE BRINGING IDEAS TO MARKET ENSURING TERRITORIAL AND SOCIAL COHESION PARTNERSHIPS INTERNATIONAL DIMENSION MONITORING INNOVATION

7. Research and Innovation Research and Innovation 7

8. Research and Innovation Research and Innovation The first steps in building the Innovation Union

9. Research and Innovation Research and Innovation What do EU innovation leaders share? They: …perform very well in Business R&D expenditures; …perform well in other indicators related to firm activities; …have higher scores in Public-private co-publications per million populations (=good linkages between science and enterprises); …excel in the commercialisation of their technological knowledge (i.e. indicator License and patent revenues from abroad). …have a balanced national research and innovation system (small variance in performance across all innovation dimensions)

10. Research and Innovation Research and Innovation Fiscal consolidation must preserve sources of future growth: - Education; - R&D; - Innovation; - Smart research infrastructure; - Global market. =>through growth-friendly Stability and Convergence Programmes; Improving “Smart” fiscal consolidation

11. Research and Innovation Research and Innovation A European Research Area in 2014; A better performing IPR system; Faster setting of European standards; Use public procurement budget to boost innovation; Remove remaining obstacles to the cross-border operation of venture capital. Improving “Smart” conditions

12. Research and Innovation Research and Innovation State of the Innovation Union 2011 In 2011 Good progress in 30 out of the 34 Innovation Union commitments: 6 legislative proposals; Horizon 2020 proposal enacting many IU commitments; public consultation for completing European Research Area by 2014 In 2012 the Commission will deliver the ERA Framework and innovation headline indicator. …and more…

13. Research and Innovation Research and Innovation Creating better market conditions  A public consultation on a new European Regime for Venture capital funds in June; legislative proposal at the end 2011  2 implementing proposals for a unitary Patent protection on 13 April  A “standardisation package” adopted on 1st June  Proposals to exploit public procurement budgets by the end of 2011 (Green Paper launched on the 27th January; pilot call launched in June)  Most Knowledge Transfer actions will be in Work Programme 2012 - So far, facilitating Knowledge Transfer in Framework Programmes & developing set model consortium contract agreements

14. Research and Innovation Research and Innovation Council endorsement in February; A pilot European Innovation partnership on Active and Healthy Ageing (AHA) has been launched: European Innovation Partnerships Pooling resources Target by 2020: 2 extra healthy life years

15. Research and Innovation Research and Innovation Effective stakeholders mobilisation around grand challenges; Clear need for action, including funding, from Member States (national, regional, local), private sources and the EU; The pilot has taken due account of existing initiatives and has added value; Governance has achieved a well balanced representation; Its Strategic Implementation Plan has presented a common vision and a set of priority actions; Features of the Pilot EIP

16. Research and Innovation Research and Innovation For the pilot EIP Early-’12: Commission proposal for EU support to SIP June ’12: Council and Parliament support to SIP New EIP proposals under preparation Raw materials Agricultural productivity and sustainability Smart Cities Water-efficient Europe Smart mobility … What’s next for EIPs?

17. Research and Innovation Research and Innovation  From FP7 to Horizon 2020  The structure of Horizon 2020  What is new and what is remained the same  Focus on the Rules for Participation Content

18. Research and Innovation Research and Innovation Lessons from current EU R&I funding  Cross-border pooling of resources  More competition in research  Focus on Excellence  Wide range of training possibilities  Raise of the international attractiveness of EU R&I  Fragmentation  Need for further simplification  Better strategy for innovation  Need to focus resources to address grand challenges  Broaden participation  Clearer agendas

19. Research and Innovation Research and Innovation 2007 - 2013. R&D 7FP Innovation CIP 2014 - 2020 R&D&I HORIZON 2020 Innovation Union Towards Horizon 2020 The European Institute for Innovation and Technology

20. Research and Innovation Research and Innovation Procurement Standards Investment readiness Services SMEs Social Innovation Design Knowledge Transfer What’s going on until December 2013? RSFF

21. Research and Innovation Research and Innovation

22. Research and Innovation Research and Innovation Horizon 2020 structure EU REGULATION (2014-2020) IExcellent science24598 IIIndustrial leadership17938 IIISocietal challenges31748 European Institute of Innovation and Technology (EIT)1360 + 1440 Non-nuclear direct actions of the Joint Research Centre1962 TOTAL EU REGULATION77606 EURATOM REGULATION (2014-2018) I. Indirect actions1009 II. Direct actions of the Joint Research Centre656 TOTAL EURATOM REGULATION1665 TOTALE HORIZON 202079271* *729 million€ in MFF proposals for EURATOM 2019-2020 NB features in 2011 constant prices

23. Research and Innovation Research and Innovation 1. Excellent Science To raise the level of excellence in Europe's science base, make Europe an attractive location for researchers and secure Europe's long-term competitiveness:  European Research Council supporting the most talented and creative individuals and their teams to carry out frontier research;  "Future and Emerging Technologies“: collaborative research to open up new and promising fields of research and innovation;  "Marie Curie“ actions, providing researchers with excellent training and career development opportunities;  Research Infrastructures accessible to all researchers in Europe and beyond.

24. Research and Innovation Research and Innovation 2. Industrial leadership To make Europe a more attractive location to invest in R&I, by promoting activities where businesses set the agenda:  Leadership in enabling and industrial technologies – especially Key enabling technologies (Micro- and nano- electronics; photonics; nanotechnologies; Biotechnology etc);  Access to finance for innovative enterprises, financial instruments in partnership with the European Investment Bank;  Innovation in SME

25. Research and Innovation Research and Innovation 3. Societal challenges Actions from research to market with a new focus on innovation- related activities (in the framework of Europe 2020):  Health, demographic change and wellbeing;  Food security, sustainable agriculture, marine and maritime research, and the bio-economy;  Secure, clean and efficient energy;  Smart, green and integrated transport;  Climate action, resource efficiency and raw materials  Inclusive, innovative and secure societies;

26. Research and Innovation Research and Innovation IExcellent science24598 1.The European Research Council 13268 2.Future and Emerging Technologies 3100 3.Marie Curie actions on skills, training and career development 5752 4.European research infrastructures (including eInfrastructures) 2478 IIIndustrial leadership17938 1.Leadership in enabling and industrial technologies 13781 of which 436 for EIT 2.Access to risk finance 3538 3.Innovation in SMEs 619 IIISocietal challenges31748 1.Health, demographic change and wellbeing; 8033 of which 254 for EIT 2.Food security, sustainable agriculture, …; 4152 of which 131for EIT 3.Secure, clean and efficient energy 5782 of which 183 for EIT 4.Smart, green and integrated transport 6802 of which 215 for EIT 5.Climate action, resource efficiency and raw materials 3160 of which 100 for EIT 6.Inclusive, innovative and secure societies 3819 of which 121 for EIT The proposed budget breakdown

27. Research and Innovation Research and Innovation What innovation in Horizon 2020? Horizon 2020 will support every kind of Innovation: - from R&D activities; - from other activities, including innovative combinations of existing technologies, development of new business models etc. - for non-commercial and/or non-technological applications, i.e. 'social innovation'.

28. Research and Innovation Research and Innovation Horizon 2020 approach to innovation 1. Increased support to innovative processes (testing, piloting, demonstration); 2. Support to innovation “market demand”: standard; public procurement, inducement prizes bottom-up activities (more flexible call for proposals) 3. A new SME instrument (on “Leadership in enabling and industrial technologies” e “Societal challenges”; 4. Broader use of financial instruments with leverage effect (Debt & Equity instruments)

29. Research and Innovation Research and Innovation Main aim: simplification SIMPLIFICATION to… - reduce the participants administrative costs; - accelerate all processes of proposal and grant management; - decrease the financial error rate. How? 1.Structure: one Programme, better defined objectives. 2.Rules: One set of rules for the whole Programme.

30. Research and Innovation Research and Innovation  Simpler cost eligibility and partnering rules;  Cost based reimbursement but broader acceptance of the participants' accounting systems;  Simpler time-recording requirements (i.e. abolition of time- recording obligations for staff full time on an EU project);  Only two reimbursement rates: 100% for research actions, 70% for demonstration, piloting, market replication, programme co-fund actions = No differentiation depending on legal status!;  One method to calculate indirect cost (single flat rate); The new Rules for Participation

31. Research and Innovation Research and Innovation - Extension of the guarantee fund to all Horizon 2020 actions to reduce: ex-ante financial capacity checks number of certificates on financial statements - Ex-post audits limited on a risk-based audit and fraud detection (a maximum of 7% of participants would be subject to audit). - Revised procedures for proposal and project implementation; TARGET to reduce the average time to grant by 100 days (to 250) RfP: audit and checks

32. Research and Innovation Research and Innovation Next steps Ongoing: Parliament and Council negotiations on the basis of the Commission proposal Ongoing: Parliament and Council negotiations on EU budget 2014-202 (incl overall budget for Horizon 2020) N.B. July 2012: Final calls under FP7 to bridge gap towards Horizon 2020 Mid 2013: Adoption of legislative acts by Parliament and Council on Horizon 2020 1 Jan 2014:Horizon 2020 starts, launch of first calls

33. Research and Innovation Research and Innovation Thanks for your attention! charlotte.andersdotter@ec.europa.eu +32 2 2987798