Dimitri CORPAKIS

1. Closing the innovation divide in Europe:Interactions between Horizon 2020 and future Cohesion policy (2014-20) Dimitri CORPAKIS Head of Unit, RTD-C5 Regional Dimension of Innovation, Research and Innovation Directorate Directorate General for Research and Innovation, European Commission Brussels, 20/03/13

2. Innovation performance R&D expenditure in the business sector as % of GDP EC DG RTD.C.5 DC

3. Patent intensity in the EU, NUTS 2 regions, 2007 Source: IU Competitiveness Report 2011, Atlas EC DG RTD.C.5 DC

4. Web-based links between the top research institutions at country level , 2010 Source: IU Competitiveness Report 2011, Atlas EC DG RTD.C.5 DC

5. Source: IU Competitiveness Report 2011, Atlas EC DG RTD.C.5 DC

6. R&D investment: fuel for the economy EC DG RTD.C.5 DC 6

7. Innovation Union Creating a Single Innovation Market by setting the right conditions for investment in R&I: 34 commitments, including: Unitary patent – cutting cost of patents by up to 80%; Standards – modernising and cutting time-to-standard by half; Public procurement - buying innovation by public sector made easier; Policies for researchers to reside in Europe; Regulatory framework screening; A European passport for venture capital funds; EU committed to support R&I investment: Horizon 2020 & Structural Funds proposals; Squeezing the gap between ideas and market and frontloading growth: 2012 and 2013 FP 7 Work Programmes. Positive outlook: Top R&D investing EU businesses expect their investments in R&D to grow by an average of 4% annually over the period 2012 to 2014 EC DG RTD.C.5 DC 7

8. What Europe will do for closing the innovation divide ? • Mobilise Cohesion policy to build a Stairway to Excellence • Work through Horizon 2020 • Deploy significant synergies between Horizon 2020 and Cohesion policy EC DG RTD.C.5 DC

9. Horizon 2020 and Cohesion Policy: differences and complementary objectives EC DG RTD.C.5 DC

10. Why we need to build a Stairway to Excellence using the Structural Funds ? • There are significant regional disparities across Europe in research and innovation performance which need to be addressed. • The Budget Review in 2010 has asked for a clear division of labour between Research and Innovation and Cohesion policies, thus removing any capacity building activity from Horizon 2020. • Action needs to be taken to bolster research and innovation capacities in the Member States who lag behind and thus reduce the Research and Innovation Divide in Europe EC DG RTD.C.5 DC

11. What do we mean by Synergies • A Greek word meaning that a complex result is accomplished through mutual positive interactions between a number of distinct but interrelated processes • Thus the Research and Innovation Framework Programme will have increased interactions with Cohesion policy, although each policy will keep its distinct features • The result should normally be reinforced competitiveness for Europe EC DG RTD.C.5 DC

12. How Synergies will be identified • 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. • All this will be systematically planned and monitored through performance indicators EC DG RTD.C.5 DC

13. Keys to Synergies Smart Specialisation ex-ante conditionality Thematic Concentration EC DG RTD.C.5 DC 13

14. The Synergies and Smart Specialisation Matrix

15. EC DG RTD.C.5 DC

16. Horizon 2020 will favour “smaller” players since it introduces: A completely new approach towards supporting research and innovation in SMEs (based on the concept of the well-known US SBIR scheme) A new approach to access to risk financeespecially for high-growth innovative SMEs A major simplificationeffort in terms of administration and financial management EC DG RTD.C.5 DC

17. How Horizon 2020 will interface with Cohesion policy through a host of measures on “Closing the Innovation Divide” in Europe EC DG RTD.C.5 DC

18. Establishing a Policy Support Facility • Policy Support Facility (PSF) : This will aim to improve the design, implementation and evaluation of national/regional research and innovation policies. It will offer expert advice to public authorities at national or regional level on a voluntary basis, covering the needs to access the relevant body of knowledge, to benefit from the insight of international experts, to use state of the art methodologies and tools, to receive tailor-made advice. EC DG RTD.C.5 DC

19. 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. ERA Chairs EC DG RTD.C.5 DC

20. Teaming for excellence and innovation Teaming of excellent research institutions and low performing RDI regions: Teaming aims at the creation of new (or significant upgrade of existing) centres of excellence in low performing RDI Member States and regions. It 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. Building links with innovative clusters and recognising excellence in low performing RDI Member States and regions, including through peer reviews and awarding labels of excellence to those institutions that meet international standards, will be considered. EC DG RTD.C.5 DC

21. Twinning for excellence and innovation • 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). EC DG RTD.C.5 DC

22. Stimulating cross-border science networks • COST, a bottom-up, open networking mechanism, encourages international exchanges and co-operation of researchers within Europe and beyond. Joint activities such as conferences, short-term scientific exchanges and publications are supported. • Within Horizon 2020, COST should further bring together "pockets of excellence" and play a mobilising role not only for the less participating countries but also for the enlargement countries and the European neighbourhood policy countries. • COST could make a significant contribution to the development of a 'staircase to excellence' for research organisations across Europe. EC DG RTD.C.5 DC

23. Measures to improve information, communication and support • Improving information networks on European research and innovation would greatly facilitate further participation in the Framework Programme. • Improving information on the Framework Programme needs, will aim to significantly improve and monitor NCP performance in qualitative and quantitative terms, including training efforts and enhanced access to electronic information. EC DG RTD.C.5 DC

24. What future for “Regions of Knowledge” and “Research Potential” types of action ? Provisions are made to integrate the objectives of these actions under European Territorial Cooperation actions (former INTERREG) (recital 7 in draft ETC Regulation) Support to Cluster Cooperation and to Twinning research institutions also present in the mainstream ERDF EC DG RTD.C.5 DC

25. Synergies on the ground: coordinating the implementing Rules between H2020 and the SF • Facilitating linkages and concerted efforts • • Harmonisation of cost eligibility rules between Horizon 2020 and CP (Lump sums, flat rates and unit costs possible under both for funding direct and indirect costs without providing documents proving real expenses, harmonisation of VAT rules) • • Possibility to combine Horizon 2020 funding AND ADDITIONAL FUNDING FROM THE STRUCTURAL FUNDS in the same project but for different expenditure items, (Art. 55(8) of proposed Gen.Reg.) EC DG RTD.C.5 DC

26. Synergies on the ground: coordinating the implementing Rules between H2020 and the SF (II) • Possibility for a region to invest in other EU regions from a mainstream Operational Programme, i.e. up to 10% of an OP budget (for EAFRD 3%) if the measure is for the benefit of the OP territory / important for cross-border research infrastructures (incl. ESFRI Roadmap ) or cluster or value chain networking investments (Art. 60(2)) • Enhanced territorial cooperation CP budget share (3.1% of total ERDF of which almost 6% for inter-regional cooperation) allows to build trans-national linkages between regional innovation actors, building on legacy FP7 Regions of Knowledge and Research Potential measures or CIP cluster cooperation or networking of procurers or innovation agencies, and allowing to include less advanced regions in a targeted manner. EC DG RTD.C.5 DC

27. Implications for future Horizon 2020 stakeholders • Appropriate Policy Measures for Research and Innovation will be inserted timely in the Structural Funds Partnership Agreements and Operational Programmes of the Member States • These will be monitored closely by DG RTD We can thus expect: • An improved national and regional environment in terms of developing research infrastructure • A more vibrant innovation environment where increased opportunities for commercial exploitation will emerge from the combined action of the two programmes; new financial instruments will allow riskier investments • Increased opportunities for extending research projects, with additional support from the ERDF and the ESF, if properly integrated in the context of a national /regional, Smart Specialisation Strategy. • Alternatively, a research project can start easier within the ERDF and later try its chances in Horizon 2020 • For all this however, remember, rules are different: for the SF, stakeholders will ALWAYS DEAL WITH THE NATIONAL AND REGIONAL AUTHORITIES, NEVER WITH THE COMMISSION and this means need for better anticipation and planning EC DG RTD.C.5 DC

28. What Horizon 2020 expects from Cohesion policy • Develop stairways to excellence through capacity building and support to a vibrant innovation-enabling environment • Upgrade the ways Cohesion policy supports Research and Innovation (increased use of international peer reviews, monitoring performance through indicators) • Improvement of information flows towards local players • Improved local take-up of global Horizon 2020 initiatives and their enhancement by the Structural Funds (impact of transnational R&D projects on local communities – feedback and interactions of SF R&I funded local and national schemes) • Improved interactions between developing Innovation Union initiatives (34 commitments of the IU Communication) at local and regional level. EC DG RTD.C.5 DC

29. What additional measures could be supported in the context of Horizon 2020? • It would be important for achieving the Europe 2020 strategy to be much better aware about location aspects of excellence and innovation and of the geographic specificities of the Member States • Thematic studies launched in the context of the thematic areas could focus on possible uptake of sectoral initiatives at the level of the MS: this type of information is extremely helpful for our DG REGIO colleagues when exchanging and negotiating Operational Programmes in the MS • Mapping of excellence and innovation could be very productive, even for measuring our own past success and future deployment of new initiatives EC DG RTD.C.5 DC

30. The main responsibility lies now with the Member States and Regions Thanks for your attention