EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
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EC proposal for the next MFF/smart specialisation Santiago Donat Desk Officer and Smart Growth Specialist DG Regional and Urban Policy Seminar - iCRAG: Geosciences research for Europe 26 February 2019 #CohesionPolicy #EUinmyRegion
Common Provisions Regulation * governs 7 Funds • European Regional Development Fund (€ 200 billion, incl.€8.4 bn "Interreg") • Cohesion Fund (€ 41 bn, incl.€11bn under CEF2) • European Social Fund Plus (€101 bn) • European Maritime and Fisheries Fund (€6.1 bn) • Asylum and Migration Fund (€ 11.3 bn) • Internal Security Fund (€ 2.5 bn) • Border Management and Visa Instrument (€ 8 bn) Not included anymore: European Agricultural Fund for Rural Development (€ 78.8) *) https://ec.europa.eu/commission/publications/regional-development-and-cohesion_en
Policy objectives 11 objectives are simplified and consolidated to 5: 1. A smarter Europe (innovative & smart economic transformation) 2. A greener, low-carbon Europe (including energy transition, the circular economy, climate adaptation and risk management) 3. A more connected Europe (mobility and ICT connectivity) 4. A more social Europe (the European Pillar of Social Rights) 5. A Europe closer to citizens (sustainable development of urban, rural and coastal areas and local initiatives)
ERDF THEMATIC CONCENTRATION ▪ Maintaining spending in the key areas for growth and jobs ▪ At national level based on GNI per head => flexibility For countries minimum % PO1 minimum % PO2 ("greener, with: ("smarter Europe") low carbon Europe") GNI below 75% 35% 30% GNI 75-100% 45% 30% GNI above 100% 60% PO1 + PO2 min. 85% ▪ 6% of budget to urban development, delivered through local development partnerships
European Semester country report, Cohesion policy investments in 2021-2027 Minimum for Policy Objective 1 & 2
Scope of support from the ERDF The ERDF shall support (Art. 4 ERDF Regulation): • investments in infrastructure; • investments in access to services; • productive investments in SMEs; • equipment, software and intangible assets; • information, communication, studies, networking, cooperation, exchange of experience and activities involving clusters; • technical assistance. In addition, the ERDF shall also support: • productive investments in enterprises other than SMEs when they involve cooperation with SMEs in research and innovation capacities and the uptake of advanced technologies under PO1 Smart Growth (a) (i) • training, life-long learning and education activities under PO1 (a) (iv);
A smarter Europe by promoting innovative and smart economic transformation Market orientation Digitalisation - of research an innovation activities enabler A smarter Europe Location matters Development of for SMEs and skills start-ups Interregional cooperation in value chains
Key issues for smart specialisation post-2020 • How to better adapt smart specialisation to different regional needs? • How to broaden innovation and reinforce innovation diffusion? • How to strengthen links between regional innovation ecosystems and national reforms? • How to strengthen cooperation and internationalisation? • How to improve links with other EU programmes such as Horizon Europe and industrial competitiveness policies? • How to make smart specialisation more responsive to industrial change and technological disruption? • How to strengthen monitoring and evaluation, lesson learning? • How to strengthen and embed governance? • How to promote inclusive growth?
Enabling condition for smart specialisation Policy objective Specific objective Name of enabling condition 1. A smarter Europe ERDF: Good governance of national by promoting All specific objectives under or regional smart specialisation innovative and smart this policy objectives strategy economic transformation Fulfilment criteria for the enabling condition Smart specialisation strategy(ies) shall be supported by: 1. Up-to-date analysis of bottlenecks for innovation diffusion, including digitalisation 2. Existence of competent regional / national institution or body, responsible for the management of the smart specialisation strategy 3. Monitoring and evaluation tools to measure performance towards the objectives of the strategy 4. Effective functioning of entrepreneurial discovery process 5. Actions necessary to improve national or regional research and innovation systems 6. Actions to manage industrial transition 7. Measures for international collaboration
Thematic S3 Platforms 3 platforms, 1 goal • Joint EC-initiative (DG REGIO, GROW, AGRI, ENER, JRC, …) • Bottom-up approach • > 100 regions involved • > 25 partnerships under the 3 platforms • Using S3 as a coordination principle in strategic EU priority domains • Alignment of regional S3 • Creation of interregional value chains → investment projects • Alignment of strategic investments (public/ private)
Testing new approaches for interregional innovation investments Test new ways to: • Commercialize and scale-up interregional innovation projects that can create or reshape European value chains • Attract private investment for promising innovation projects • Explore and strengthen synergies between different EU instruments (ESI funds, the Investment Plan, Horizon 2020, COSME)
S3P Industrial modernisation - 16 partnerships
S3P Agro-food - 5 partnerships
S3P Energy – 6 partnerships BIO- BIOENERGY MARINE RENEWABLE ECONOMY ENERGY SMART SOLAR SUSTAINABLE GRIDS ENERGY BUILDINGS
Moving from learning to commercialisation and scale-up in interregional partnerships Need to accelerate the work done within the thematic platforms. The focus will be on projects on higher TRLs (>5/6 TRL). Support from S3Platform and The results will feed into preprations for 2021-2027. external experts Learn Connect Demonstrate Commercialise Scale-up
Interregional innovation investments WHAT Interregional innovation investments through the commercialisation and scaling up of interregional innovation projects having the potential to encourage the development of European value chains ('component 5'). (ETC Art 3.5) HOW MUCH 11.5 % of ETC Resources (i.e., a total of EUR 970m) for interregional innovation investments (component 5). (ETC Art. 9.2) HOW It shall be implemented under direct or indirect management. (ETC Art 16.1) FOR WHOM At the initiative of the Commission, the ERDF may support interregional innovation investments, as set out in point 5 of Article 3, bringing together researchers, businesses, civil society and public administrations involved in smart specialisation strategies established at national or regional levels. (ETC Art 61)
Programmes/Funds supporting innovation (1/2) • ERDF focus on regional relevance, economic transformation, diffusion of existing knowledge & technology to places that need it, based on smart specialisation strategies; new interregional innovation investment support developing European value chains by helping partnerships cooperate in investments in shared S3 priority areas (€226.3bn with minimum thematic concentration of 35% to 60% on innovation, digitisation, SMEs) • Horizon Europe focus on European research and innovation excellence, the generation and exploitation of new knowledge and disruptive, market-creating innovations (€100 bn) • InvestEU focus on market-based instruments, for strategic investments (€38bn (incl. €23 for R&I and SMEs) mobilising €650bn (incl. €415 for R&I, digitisation and SMEs) • Digital Europe focus on digital transformation via AI, cyber-security, high performance computing, advanced digital skills, interoperability, deployment of digital solutions in business and administrations, incl. networking of Digital Innovation Hubs (€9.2 bn) • Single Market Programme focus on improving the functioning of the internal market, SMEs' access to markets, favourable business environment, competitiveness of sectors, the modernisation of industry and the promotion of entrepreneurship (€6 bn, of which €3bn for SMEs)
Programmes/Funds supporting innovation (2/2) • ESF+: inclusion, education and skills (notably basic digital skills) to adapt to the current and future needs of the economy, health, labour mobility and social innovation (€100 bn) • EAFRD: sharing of knowledge, uptake of innovation and digitalisation in agro-food sector (€78.8bn) • Erasmus+: learning mobility of individuals and cooperation, for education and training, creativity and innovation at the level of organisations (€30bn) • Reform Support Programme: institutional reform and efficient and service-oriented functioning of public administration and e-government (€25 bn) • Space Programme: support to space sector, space infrastructures and services (Copernicus, Galileo, EGNOS) (€16 bn) • Defence Fund: minimising fragmentation and boosting competitiveness and innovation of the EU defence industry (€13bn, incl. €4.1 from Horizon Europe) • LIFE programme: support demonstrating techniques and best practice in Circular Economy, quality of life, climate mitigation and adaptation; and Clean Energy Transition that can be replicated and up-scaled in larger programmes (€5.4bn) • Creative Europe: competitiveness and innovation capacity the creative and audiovisual industry, promote cultural diversity and heritage, support culture-based creativity in education and innovation (€1.8 bn)
Synergies ▪ The “Seal of Excellence” allows projects successfully evaluated under Horizon Europe to be funded by Cohesion Policy without having to pass another selection process, if they are consistent with the region’s or the programme’s smart specialisation strategy. ▪ On a voluntary basis, and up to 5%, Member States can transfer Cohesion Policy resources to another EU instrument to fund a project; in this case, the rules of the other instrument apply. ▪ The other way around, Member States can also choose to use their Cohesion Policy money to finance a project selected under another EU budget tool; in this case Cohesion Policy rules apply. ▪ Member States can choose to transfer up to 5% of their Cohesion Policy resources to the new InvestEU fund.
Thank you!
DEVELOPING SKILLS FOR SMART SPECIALISATION, INDUSTRIAL TRANSITION AND ENTREPRENEURSHIP ERDF: • Innovation management in SMEs • Specific skills for (training, re/upskilling) for smart specialisation areas in concrete territories • Integration of education and training institution in innovation ecosystem • Skills for higher education to increase commercial viability Other sources: Horizontal skills for smart specialisation like: STEM, but also interpersonal skills: communication, emotional intelligence, conflict resolution and mediation, team-working/grouping/participatory methods, decision making and problem solving Personal skills: creativity, cognitive, leadership, learning, presentation,digital
Interregional innovation investments ‘Component 5’ → Implementation Managed in direct management (i.e. by the Commission or an executive body) and possibly as well in indirect management. This will: • Facilitate the implementation of interregional investment projects which have high coordination costs, • Ensure alignment with EU policies and priorities, and enhance complementarities with actions under Horizon Europe and the Single Market programme, • Simplify compliance with state aid requirements. The instrument could cover third countries in line with the arrangements foreseen under the Horizon Europe proposal.
Interregional innovation investments ‘Component 5’ → Support Strand 1 - Financial and advisory support for investments in interregional innovation projects • Supporting partnerships to develop, connect or make complementary use of testing and demonstration facilities to accelerate market uptake and scale up of innovation solutions in shared smart specialisation priority areas. • Managed through support to the development of a portfolio of projects by selected partnerships. Strand 2 - Financial and advisory support to the development of value chains in less developed regions • Increasing the capacity of regional innovation eco-systems in less developed regions to participate in global value chains as well as the capacity to participate in partnerships with other regions. • Strong cohesion dimension creating linkages between less developed regions with those in lead regions. • Focus both on foreign direct investment-driven value chains and other emerging sectors. + learning activities, evaluation and capitalisation
Interregional innovation investments ‘Component 5’ → Governance • Launch work with broad consultation on priorities. • Establishment of a dedicated expert group. • The group would be composed of a mix of representatives from Member States/regions, other EU institutions, relevant stakeholders and representatives of academia. • The role of the expert group would be to support the Commission in defining a long-term work programme and related calls matching EU priorities with smart specialisation strategies. • Calls would be open to any partnership in an identified thematic area that brought together regional partnerships sharing smart specialisation priorities.
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