1. Stimulating Research and Innovation Investments for Growth and
Jobs: synergies between Horizon 2020 and future Cohesion
Policy (2014-20)
Dimitri CORPAKIS
Head of Unit RTD.B5
Spreading Excellence and Widening Participation
Directorate General for Research and Innovation
European Commission
dimitri.corpakis@ec.europa.eu
May, 2014

2. PolicyResearch and
Innovation
Setting the scene
 The knowledge economy is here – with a price
 Globalisation has pushed the boundaries and has changed
traditional ways for dealing with regional development
 Global value chains have redrawn the map of conceiving
and producing products and services
 Countries / regions that are not able to adapt will see their
economies being marginalised
 Global positioning necessary
 Need for a new growth proposition based on knowledge
assets

3. 3
Innovation
performance
(2012)
R&D expenditure in
the business sector
as % of GDP
(2011)

5. Europe’s innovation divide
undermines competitiveness
 Large parts of the EU out of ‘sync’
 Modest and Moderate Innovators holding back
the EU as a whole
 Grand policy designs at risk without a sound and
functioning base
 Identification of priorities and strategies of crucial
importance – yet still, among the major
botlenecks

6. How European regions invest in R&D
Out of a total of 266 regions in the EU, only
35 had in 2009 an R&D intensity (R&D
investment as a % of their GDP) above 3%
Taken together these 35 regions accounted
for 45% of all R&D expenditure in the EU
10 of the most R&D intensive regions in 2009
were located in the Nordic member States,
totalising 9,3% of total R&D expenditure in the
EU (source EUROSTAT regional yearbook 2012)

7. • Innovation Union flagship initiative aims at creating the best conditions for Europe's
researchers and entrepreneurs to innovate
• A broader approach to innovation: meshing research and technological development with
- Product innovation, service innovation, innovation in design etc.,
including process and organisational innovation
- Social innovation, public sector innovation, eco-innovation etc.
- Exploration of new business models > Both technological & non-technological > Both
incremental & disruptive innovation
 Improving framework conditions for innovation to flourish
 34 commitments: Speeding up standardisation, Making better use of and 'modernising' public
procurement procedures, Creating a real internal market for venture capital, Agreeing on a
unified European patent, Completing the European Research Area (ERA)
Turning the European Union into an
Innovation Union

8. The promise of Horizon 2020
• A core part of Europe 2020, Innovation Union & European
Research Area:
 Responding to the economic crisis to invest in future jobs and growth
> Addressing people’s concerns about their livelihoods, safety and
environment > Strengthening the EU’s global position in research,
innovation and technology
Novelties
 A single programme bringing together three separate
programmes/initiatives
 Coupling research to innovation – from research to retail, all forms of
innovation
 Focus on societal challenges facing EU society, e.g. health, clean
energy and transport
 Continuation of investment in frontier research
 Simplified access, for all companies, universities, institutes in all EU
countries and beyond.

9. PolicyResearch and
Innovation

10. PolicyResearch and
Innovation

11. PolicyResearch and
Innovation
Northern Ireland in FP7
• 248 signed grant agreements with 273 participants and funding of €83,84
million
• Applicant success rate of 20,4 % (UK 22,7 %; EU 20,5 %)
• Main areas: Maria Skłodowska-Curie; ICT; Health; Food/ agri. & biotech.
• Top 5 participants: Queens University; University of Ulster; Short
Brothers (Bombardier); Bio-Kinetic Europe Ltd; PSNI.
• Top 5 collaborating regions in the UK: London, Sth East England,
Scotland, East England, Sth West England
• Top 5 links to other EU regions: Ile de France, Ireland, West Netherlands,
Bavaria, Centro (IT)

12. Horizon 2020 marks a departure in terms
of support to regional innovation
 Focus is on institutions, companies and
people, not on regions
However:
 Novelties such as new financial
engineering instruments, the new SME
instrument and the Fast Track to
innovation pilot may have a strong and
lasting effect at regional level

13. • ESIF will focus on Europe 2020 objectives for smart, sustainable and
inclusive growth / list of 11 thematic objectives for ESIF developed around
the Europe 2020 priorities
• New regulatory provisions for thematic concentration (R&I part of the minimum
60-80% concentration for ERDF funds in more developed regions - 50% in
less developed regions)
• Support to applied research and innovation for the purpose of regional socio-
economic development
• Capacity building for innovation and growth through the promotion of
innovation friendly business environments
• Smart Specialisation – strategic approach to economic
development through strategic support for R&I / Ex-ante
Conditionality for the use of the European Regional Development
Fund (ERDF) for any kind of R&D&I investments
About the new Cohesion policy
(ESIF – European Structural and Investment Funds)

14. Research and Innovation investment priorities
for the ERDF
Strengthening research, technological
development and innovation:
 Enhancing research and innovation infrastructure (R&I) and
capacities to develop R&I excellence and promoting centres
of competence, in particular those of European interest
 Promoting business R&I investment, product and service
development, technology transfer, social innovation and
public service application, demand simulation, networking,
clusters and open innovation through smart specialisation
 Supporting technological and applied research, pilot lines,
early product validation actions, advanced manufacturing
capabilities and first production in Key Enabling Technologies
and diffusion of general purpose technologies

15. The Synergies and Smart Specialisation Matrix
STRUCTURAL FUNDS THEMATIC OBJECTIVE NO 1 ON STRENGTHENING
RESEARCH, TECHNOLOGICAL DEVELOPMENT AND INNOVATION
HORIZON 2020 TOP
DOWN RESEARCH AND
INNOVATION
PRIORITIES
INFLUENCING NATIONAL
AND REGIONAL
PRIORITIES
THEMATIC CONCENTRATION FOR MOST
ADVANCED AND TRANSITION REGIONS
FOR ALLOCATING 80% OF THE ERDF
MONEY FOR 4 OBJECTIVES: R&I, ICT,
SME COMPETITIVENESS AND LOW
CARBON ECONOMY
THEMATIC CONCENTRATION FOR LESS
ADVANCED REGIONS FOR ALLOCATING
50% OF THE ERDF MONEY FOR 4
OBJECTIVES: R&I, ICT, SME
COMPETITIVENESS AND LOW CARBON
ECONOMY
EXCELLENCE SMART SPECIALISATION EX-ANTE CONDITIONALITY
based on a SWOT analysis to concentrate resources on a limited set of
research and innovation priorities in compliance with the NRP;
measures to stimulate private RTD investment; a monitoring and
review system; a framework outlining available budgetary resources
for research and innovation; a multi-annual plan for budgeting and
prioritisation of investments linked to EU research infrastructure
priorities (European Strategy Forum on Research Infrastructures -
ESFRI)
INDUSTRIAL
LEADERSHIP
SOCIETAL
CHALLENGES

16. PolicyResearch and
Innovation
What is Smart Specialisation?
• A place-based, strategic approach to economic
development through targeted support to Research and
Innovation;
• Leads to a process of developing a vision, identifying
competitive advantage, setting strategic priorities and
making use of smart policies to maximise the knowledge-
based development potential of any region (strong or
weak, high-tech or low-tech);
• Concentrates resources on a small number of thematic
priorities
• Stresses role for all regions in the knowledge economy,
through identification of comparative advantages in
specific R &I domains/clusters (not just winning sectors);
• Embraces the concept of open innovation

17. The ex-ante conditionality on
Smart Specialisation
• To ensure effective implementation and more
efficient use of the Structural Funds with respect
to research and innovation and ICT investments,
MS are called for drawing their Smart
Specialisation Strategy:
• based on available resources and capabilities,
• identifying competitive advantage and
technological specialisations highly consistent
with their potential for innovation
• specifying public and private investments
required, with regard to research, technological
development and innovation
• In line with the National Reform Programme

18. Smart Specialisation: key messages
 Setting innovation as priority for all regions (Europe
2020)
 New academic insights and concepts in the fields of
growth and competitiveness
 Towards more efficient and effective regional
development policies, avoiding overlap and imitation
 Better use of scarce public resources, aiming for
synergies between EU, national/regional and private
funds (PPP)
 Driving economic transformation, focusing on
regional profiles and their connectivity to global
value chains

19. RIS3 assessment

20. PolicyResearch and
Innovation
Smart specialisation: Commission assistance
• RIS3 Platform http://ipts.jrc.ec.europa.eu/activities/research-and-
innovation/s3platform.cfm
• Established by the Joint Research Centre (IPTS) in Seville
• Facilitator in bringing together the relevant policy support activities in
research, regional, enterprise, innovation, information society,
education and sustainable policies.
• Information and communication on related funding opportunities
under the relevant EU funding programmes.
• Direct feed-back and information to regions, Member States and its
intermediate bodies.
• Provides methodological support, expert advice, training, information
on good practice, etc.
• Mirror Group of International experts
• Outside the Platform: Commission has supported expert contracts for
specific assistance to regions and Member States

21. PolicyResearch and
Innovation
BELGIQUE
• Région de Bruxelles-Capitale
• Vlaanderen
• Wallonia
ČESKÁ REPUBLIKA
• Jihomoravský kraj
• Hlavní město Praha
CROATIA
CYPRUS
CZECH REPUBLIC
• Moravskoslezský kraj
DENMARK
• Region Midtjylland (Central Denmark)
• Nordjylland
DEUTSCHLAND
• Berlin Brandenburg
• Freistaat Sachsen
• Weser-Ems
• Sachsen-Anhalt
ELLADA
• Attiki
• Eastern Macedonia and Thrace
• Western Greece
• Crete • Epirus
• Central Macedonia
ESPAÑA
• Andalucía • Aragón
• Canarias • Cantabria
• Castilla y León
• Castilla-La Mancha
• Catalunya
• Comunidad Valenciana
• Galicia • La Rioja
• Madrid • Navarra
• País Vasco
• Principado de Asturias
• Región de Murcia
• Illes Baleares
FINLAND
• Kainuu
• Päijät-Häme
• Pohjanmaa (Ostrobothnia)
• Satakunta
• Oulu
• Etelä-Pohjanmaa (South Ostrobothnia)
• Lapland
• Tampere region
• Uusimaa (FI, the Helsinki region).
• Varsinais-Suomi (Southwest Finland)
• Lappeenranta – Imatra
• Pohjois-Savo (Northern Savonia)
FRANCE
• Alsace • Aquitaine
• Bretagne • Centre
• Champagne-Ardenne • Pays de la Loire
• Corse • Guadalupe
• Guyane • Languedoc-Rousillon
• La Réunion • Limousin
• Martinique • Bourgogne
• Nord-Pas-de-Calais • Picardie
• Rhône-Alpes • Franche-Comté
• PACA • Lorraine
ITALIA
• Lombardia • Marche
• Piemonte • Puglia
• Sardinia • Sicilia
• Emilia-Romagna • Toscana
• Umbria • Veneto
• Basilicata • Liguria
• Abruzzo • Calabria
• Autonome Provinz Bozen-Südtirol – Provincia Autonoma di
Bolzano-Alto Adige
• Campania • Lazio
• Molise • Friuli – Venezia Giulia
• Provincia autonoma di Trento
IRELAND – ÉIRE
LATVIA
LITHUANIA
MAGYARORSZÁG
• North-Hungarian Region – Miskolc
• Észak-Alföld
• Dél-Alföld
• Közép-Dunántúl (Central Transdanubia)
• Közép-Magyarország (Central Hungary)
• Dél-Dunántúl (South Transdanubia)
• Nyugat Dunántúl (West Transdanubia)
MALTA
NEDERLAND
• Noord Nederland
ÖSTERREICH
• Niederösterreich
• Oberösterreich
POLSKA
• Dolny Śląsk (Lower Silesia)
• Lubelskie
• Lubuskie
• Mazowieckie
• Podkarpackie
• Pomorskie
• Świętokrzyskie
• Wielkopolska
• Województwo Podlaskie
• Łódzkie
• Warminsko-Mazurskie
• Małopolskie
• Kujawsko-Pomorskie
PORTUGAL
• Alentejo (Alto, Baixo, Central e Litoral)
• Centro
• Norte
• Região Autónoma dos Açores
• Lisboa e Vale do Tejo
• Algarve
• Região Autónoma da Madeira
ROMÂNIA
• Vest • Nord-Est
• Nord-Vest (North-West)
SLOVENIA
SLOVENSKÁ REPUBLIKA
• Bratislavský kraj
SVERIGE
• Skåne • Västerbotten
• Västra Götaland • Dalarna
• Örebro • Gävleborg (SE)
UNITED KINGDOM
• Buckinghamshire
• Cornwall and the Isles of Scilly
• Kent • England
• Northamptonshire • Scotland
• Northern Ireland • Wales
• West Midland
• Devon
• Greater Manchester
• Tees Valley and Durham
Observers
NORWAY • Nordland
SERBIA • Vojvodina
Registerhere:
http://s3platform.jrc.ec.europa.eu/registration

22. The need for Synergies with the ESIF
EU R&D Policy – future Horizon 2020 EU Cohesion Policy
Differences
non-territorial approach, no pre-defined geo-
graphical distribution of funding
place-based approach; defined financial
envelope for different eligible categories of regions
Based mainly on individual R&D Projects (to a
certain extent also co-funding activities of
programmes are supported) tackling the whole
cycle of innovation from pre-competitive, leading
edge basic research to demonstration projects,
pilot activities, market replication as well as
innovative public procurement and the award of
prizes for the achievement of pre-specified targets.
Based on multiannual Programmes aiming at
increased competitiveness through close to the
market competitive R&D and innovation efforts
In general awarded directly to final
beneficiaries like firms, public and private R&D
centers, universities or research funding
organisations (for ERA-net activities, Joint
Programming etc.).
Awarded through shared management to national
and regional public intermediaries
Mostly competitive calls addressed to
international groupings (exception ERC and MC
that also address individuals) through peer-review
based on excellence criteria
Mostly non-competitive attribution addressed to
regional players based on strategic planning
negotiation (however increasingly competitive
processes at national or regional level)
Complementarities
Horizon 2020 will focus on tackling major societal
challenges, maximising the competitiveness
impact of research and innovation and raising and
spreading levels of excellence in the research
base
Cohesion policy will focus on galvanising smart
specialisation that will act as a capacity building
instrument, based on learning mechanisms and
the creation of critical skills in regions and Member
States. One of the expected results will be better
ability to participate in Horizon 2020.

23. PolicyResearch and
Innovation
The Synergies Path
 Horizon 2020 will be implemented through
transnational research and innovation actions,
focusing on specific societal and technological
challenges, irrespective of location
 ESIF actions in support of research and
innovation will be place-based, geared towards
growth and jobs, in a context of smart
specialisation. However, capacity building for
scientific excellence will not be excluded, insofar
that it is integrated in an overall RIS3 Strategy

24.  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.
 Specific actions should be carefully
planned in the Operational
Programmes
 They will be monitored through
performance indicators
How Synergies will be identified

25. Funding Synergies in practice
• Responsibility lies now with the
Member States and regions’
planning authorities > need to
create the appropriate “space”
in the Operational Programmes
for synergy actions with
Horizon 2020
• The Commission prepares a
concise Guide on Funding
Synergies

26. Funding synergies: rules to watch
for
• Specific articles foreseen in the
Horizon 2020 Rules of Participation
as well in the Common Provisions
Regulation of ESIF
• However beware of not funding the
same Cost Item twice (> Rule of
Thumb: distinct work-packages for
distinct funding> but increased
impact on the ground by the
planned combined action)

27. PolicyResearch and
Innovation
Spreading Excellence and Widening
Participation under Horizon 2020
27
• Disparities in R&I excellence and innovation performance: barrier to
competitiveness, growth and jobs across Europe
• Some countries are experiencing low participation in the EU Framework
Programmes because of:
 insufficient national R&D investments
 lack of synergies between national research systems and the EU
research landscape
 systemic effects
 reduced access to international networks
 problems with information, communication and training

28. PolicyResearch and
Innovation
New measures
New set of measures in Horizon 2020 under Spreading Excellence and
Widening Participation:
- Teaming for Excellence (institution building)
- Twinning (institutional networking)
- ERA Chairs (bringing excellence to institutions)
- NCPs (information, communication, support)
- Policy Support Facility (support for R&I Policy design)
- COST ( stimulating cross border science networks)
Total Budget in H2020 ~ € 800 million
28

29. PolicyResearch and
Innovation
Widening Participation: Eligibility Criteria
29
• Origin: Developed by DG RTD & JRC, part of the IU progress at country level
2013 publication & included in the IU Competitiveness Report 2013.
• Definition: "A composite indicator developed to measure the research
excellence in Europe, meaning the effects of the European and national policies
on the modernisation of research institutions, the vitality of the research
environment and the quality of research outputs in both basic and applied
research."
• Threshold: MS below 70% of the EU average
• “low RDI performing” Member States for Widening actions: Latvia,
Croatia, Lithuania, Malta, Slovakia, Romania, Luxembourg, Poland, Bulgaria,
Estonia, Portugal, Slovenia, Cyprus, Czech Republic and Hungary
• “low RDI performing” Associated Countries: The same eligibility criteria
apply for Associated Countries to H2020
• MS above threshold may participate as the advanced partners in Teaming and
Twinning actions.

30. Steps in planning for Member States
/regions
 Perform a serious analysis of national, regional and local
characteristics
 Position the Member State / Region in its particular
international context and see what this implies for its future
priorities (consider re-positioning)
 Lay out a strategy for smart specialisation, in a bottom-up
process involving all relevant stakeholders
 Prioritise, evaluate, and choose
 Consider possible governance adjustments if needed
 Formulate a clear plan with limited and specific priorities,
where an evaluation process has to be built-in, with
relevant indicators

31. Learn more:
http://ec.europa.eu/research/horizon2020/index_en.cfm
http://ec.europa.eu/regional_policy/what/future/index_en.cfm
Thanks a lot for
your attention