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EU Cohesion Policy - What's in it for Living Labs? Katja Reppel DG Regional Policy, European Commission
1. EU Cohesion Policy:
What's in for LivingLabs?
Katja REPPEL
Head of Sector for innovation
DG Regional policy, Unit for thematic coordination and innovation
European Commission
2. Structure
• What does Cohesion Policy do for innovation, in
particular ICT?
• What changes as of 2014?
• Synergies with Horizon 2020?
3. Basics on current Cohesion Policy
€347 billion in 2007-13
invested for less well-off
regions or citizens in
infrastructure, business,
environment and training
of worker
Convergence objective:
regions with GDP per
capita under 75% of the EU
average. 81.5% of the
funds are spent on this
objective.
Regional competitiveness
Cohesion
and employment objective. Policy
4. Basics on current Cohesion Policy
COHESION POLICY
• Regional Policy (DG REGIO: Regional Policy)
- ERDF: European Regional Development Fund (→ activities)
- CF: Cohesion Fund (→ “basic” infrastructures, not for R&I)
• Social Policy (DG EMPL: Employment and Social Affairs)
- ESF: European Social Fund (→ people / workers)
OTHER POLICIES RELATED TO COHESION
• Common Agricultural Policy (DG AGRI: Agriculture and Rural
Development)
- EAFRD: European Agricultural Fund for Rural Development
• Common Fisheries Policy (DG MARE: Maritime Affairs and Fisheries)
- EMFF: European Maritime and Fisheries Fund
Cohesion
Policy
5. Basics on current Cohesion Policy
• Shared management
• Managing Authorities:
• SWOT & impact assessments
• manage implementation of Operational
Programmes
• payments, audits
• Commission:
• negotiates Operational Programmes
• monitors implementation, financial control
• approval of major projects
See list of Operational Programmes and Managing Authorities:
http://ec.europa.eu/regional_policy/atlas2007/index_en.htm
Cohesion
Policy
6. Basics on current Cohesion Policy
Contributes to unlocking growth potential by promoting
research and innovation in all regions
2007-2013 - € 86 billion for research and innovation,
over 25% of total cohesion policy budget:
- Focus on R&I capacity-building but also on infrastructure in
less developed regions (over €50 billion)
- Entrepreneurship: over €8.3 billion
- ICT capacities, research and take-up: over €13 billion
- Human capital for innovation: over €14.5 billion
For less developed regions, ERDF is the most important source
of funding for research and innovation
October 2011 – latest figures show that about € 50 % billion
of € 86 billion has been committed to projects in Research and
Innovation
7. Basics on current Cohesion Policy
For 2007-2013 the funds allocated to ICTs in 2007-13:
• over EUR 15 billion or 4.4% of the total cohesion policy budget.
• clear shift in the investment priorities from infrastructure to
support for content development, both in the public sector
(eHealth, eGovernment, etc.) and for SMEs (eLearning, eBusiness,
etc.)
Cohesion
Policy
8. Examples for ICT related Cohesion Policy investments
High Speed Broadband roll out in Auvergne 2006-9 (10 M€ ERDF)
q One of the most sparsely populated regions in France, launched the first
telecommunications public/private partnership in the country.
q EU funding: EUR 10 million ERDF grant to extend high-speed broadband
coverage to all households.
q Goal: extend high-speed broadband coverage to 100% of households. Mission
Accomplished: Some 99.6% of lines in Auvergne are now eligible for high-speed
broadband through DSL technology, while the other 0.4% have a satellite option.
Computer Literacy Basics for a Lithuanian e-Citizen, 2006-8
(EUR 2,694,534)
q Provides computer literacy training, in line with the objectives established by the
national Knowledge Society Council, establish Public Internet Access Points
q Key target groups: people living in remote areas with little access to digital
services, in particular in rural regions, the elderly and those with disabilities.
q Private and public partnership with local municipalities made to reach directly
persons living in district centres and rural areas.
q Over 50,400 adults have completed the LIA courses - helping to boost the
overall competitiveness of Lithuania’s economy by upgrading skills.
RegioStars award winners 2010: http://ec.europa.eu/regional_policy/innovation/regiostars_en.htm
9. Examples for ICT related Cohesion Policy investments
INTERREG networks for policy learning in the field of ICT: http://i4c.eu/approved_projects.html
B3 Regions: Regions for Better Broadband connection:
spreading good practices of the expert partners relating to broadband
implementation in disadvantaged areas and share experience with
Managing Authorities and ICT agencies willing to implement successful
broadband strategies with Structural Fund support.
IMMODI: Making the most of good practice in e-Government and e-health,
which contribute to the development of mountain and rural areas. Selected
examples are presented at technical and regional workshops, detailed in a
published guide and discussed with Managing Authorities in order to transfer
them into the regional development programmes of participating regions
PIKE: Promoting Innovation and the Knowledge Economy: to
improve regional and local Innovation & Knowledge Economy policies
through the exchange and transfer of examples of e-Government and
Wireless Broadband good practice, and through the integration of these into
the development policies of participating regions.
See guide:
http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/
documents/broadband2011_en.pdf
10. Examples for demand side related Cohesion Policy investments for
innovation
East of England pre-commercial procurement for health care
innovations
q May 2009: first pre-commercial procurement of an innovative process, material,
device, product or service to help meet current health priorities in the region;
q ERDF funded initiative: Up to £100,000 was awarded for winning tenders in a first
phase with the potential of further financial assistance to develop and evaluate
projects in a second phase.
q The aim is to provide procurement opportunities for innovative health care
businesses and bring the benefits of new innovations and technologies to patients.
RAPIDE ERDF Fast Track Network of 12 regions from across the EU
Exploring how the public sector can influence innovation.
Lead by the Regional Development Agency of South West England (UK), between
2008-2010 selection and adaptation of:
1. Innovation Voucher Schemes
2. Pre-Commercial Procurement projects (PCP)
3. Business Angel Networks
4. Assessment tool for start-ups in incubators
5. Pitching tool (media-based) to bring innovators to investors
See for CP examples: http://ec.europa.eu/regional_policy/sources/docgener/presenta/projectbook/dg_regio_project_book_en.pdf
Good practices database: http://ec.europa.eu/regional_policy/projects/practices/index_en.cfm
COM on smart growth: http://ec.europa.eu/regional_policy/information/pdf/brochures/rfec/2011_smart_growth_en.pdf
12. Future of Cohesion Policy 2014-2020
ü Deliver the Europe 2020 strategy objectives of
smart, sustainable and inclusive growth ("the
power of the purse")
ü Focus on results, not spending
ü Maximise the impact of EU funding ("do more
with less")
ü Strengthen partnership
ü Simplification
Cohesion
Policy
13. Future of Cohesion Policy 2014-2020
ü Thematic concentration to maximise the impact
of investment: focus ERDF on R&I + SME
competitiveness + low carbon economy
ü Conditionalities to ensure effective implementation,
e.g. research and innovation strategies for smart
specialisation (RIS3)
ü Common Strategic Framework: coherence across
funds (ERDF, ESF, CF, EAFRD, EMFF); clarify
synergies with Horizon 2020 etc.
Cohesion
Policy
14. Thematic objectives
1. Research and innovation
smart
2. Information and Communication Technologies
3. Competitiveness of Small and Medium-Sized Enterprises
(SME)
Europe 2020
4. Shift to a low-carbon economy
5. Climate change adaptation and risk management and
sustainable
prevention
6. Environmental protection and resource efficiency
7. Sustainable transport and disposal of congestion on major
network infrastructure
8. Employment and support for labour mobility
inclusive
9. Social inclusion and poverty reduction
10. Education, skills and lifelong learning
11. Increased institutional capacity and effectiveness of public
administration
Cohesion
Policy
15. How will funding be allocated?
Less developed regions/MS Transition regions More developed regions
100 500
15,8
Cohesion Fund¹ 68.7 90 % 450
Less developed regions 162.6
80 11,6 400
Transition regions 38.9 %
70 350 307.1
More developed regions 53.1
European Territorial 11.7 60 300
Cooperation
50 250
Outermost regions and 0.9
sparsely populated areas 40 68,7 200
Total 336.0 %
30 150 72.4
¹ €10 billion from the Cohesion Fund will be 20 100
allocated to the Connecting Europe Facility
10 50 119.2
0 0
Budget allocation Population covered
(in %) (in millions) │ 15
Cohesion
Policy
17. Concentration of ERDF investment
resources to maximise the impact
Research and Innovation
Energy efficiency and renewable energy
SMEs competitiveness
6%
60% 20%
44%
Developed regions and
Less developed regions
transition regions
Flexibility (different regions present different needs)
Special arrangements for the previously convergence regions
Cohesion
Policy
18. Thematic Objective & Investment Priority 1:
Strengthening RTD and innovation
Ex ante conditionality:
Research and innovation strategy for smart specialisation
Key actions:
►Staircase to excellence: R&I Infrastructures,
equipment, centres of competence …
►Innovation in enterprises: tech-transfer, take-up &
pilots on KETs, demand stimulation …
►Exploit new ideas: clusters, advisory services, new
business models, university-business links, …
18
19. Thematic Objective & Investment Priority 2:
Enhancing access to + use and quality of ICT
Ex ante conditionality:
Chapter for digital growth in RIS3
Next Generation Access Plan
Key actions:
►Broadband roll-out: Next Generation Access
►eGovernment
►Developing ICT products and services
►Large-scale uptake of ICT-based innovations
19
20. Thematic Objective & Investment Priority 3:
Enhancing the competitiveness of SMEs
Ex ante conditionality:
Small Business Act implementation
Late Payment Directive
Key actions:
►Entrepreneurship, financial instruments, incubation …
►New business models: exploit new ideas, value chains …
►Business advisory services: SME needs oriented …
►Web-tools to facilitate regulatory procedures for SMEs
20
21. Smart Specialisation ?
= Use innovation as driver for = differentiation: focus on competitive
structural change + competitiveness, advantages, potential for excellence,
emerging opportunities, profile region in
= fact-based: all assets + capabilities + global value chains
bottlenecks in a region, incl. external
perspective & cooperation potential = concentration of resources on
= no top-down decision but dynamic priorities, problems and core needs,
process uniting key stakeholders promoting critical
around shared vision mass/critical potential
= all forms of innovation, not only = diversification and place-based
technology-driven economic transformation: rejuvenate
= ecosystem approach: creating traditional sectors through higher-value
environment for change, efficiency of activities, cross-sectoral links, new
institutions market niches, KETs, new forms of
innovation
22. R&I Strategies for Smart Specialisation
= economic transformation agendas
1) Focus policy support and investments on key
national/regional priorities, challenges and needs
for knowledge-based development (= tough
choices)
2) Build on each country's/region’s strengths,
competitive advantages and potential for
excellence (= critical mass, differentiation)
3) Support all forms of innovation
4) Get stakeholders fully involved and encourage
experimentation and private sector investment
5) Evidence-based and include sound monitoring and
evaluation systems
Fact-sheet:
http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/
smart_specialisation_en.pdf
RIS3 guide: http://s3platform.jrc.ec.europa.eu/s3pguide
Cohesion
Policy
23. Guidance material
q RIS3 guide
q Incubators
q Universities & regional development
q Broadband
Soon available:
► Clusters ► Social Innovation
► Green growth ► Entrepreneurial spirit
► Creativity ► Service innovation
► Public procurement for innovation ….
Hands-on support:
• S3Platform (in IPTS-JRC): peer-reviews, analytical
support etc. (
http://ipts.jrc.ec.europa.eu/activities/research-and-
innovation/s3platform.cfm)
• OECD, World Bank support
• Expert advice
Cohesion
Policy
24. Guide on Connecting universities to regional growth
The Commission has published a practical guide in this area for:
→ providing an analysis of how universities can impact upon regions
and how they can be mobilised for regional, economic, social and
cultural development,
→ illustrating, by examples from around the EU, some of the potential
delivery mechanisms that can be used to maximize the contribution
of universities to regional growth (e.g. consulting, S&Tparks, spin-
offs, involvement in clusters & networks, LivingLabs ….),
→ outlining the key success factors in building university /regional
partnerships, particularly the drivers and barriers on both sides and
how these barriers may be overcome,
→ Suggesting pratical tools & processes to overcome barriers and
implement partnership & leadership to interconnect the actors in
regional innovation systems.
See: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/connecting_universities2011_en.pdf
26. Future EU programmes for R&I and SME
Horizon 2020: from idea to market ; € 80 bn
ü R&I to tackle societal challenges: health, environment, EIT
etc.
ü Leadership in enabling and industrial technologies: Access
to risk finance, Innovation in SMEs
ü Excellent research base: Fundamental research, mobility,
research infrastructures
COSME: SME competitiveness ; €2.5 bn
ü Financial instruments
ü Business & innovation support services (Enterprise Europe
Network)
ü SME internationalisation, entrepreneurship culture,
ü Framework conditions, clusters etc.
27. Combining policies with complementary objectives
Common political framework
→ Strengthening knowledge & innovation as drivers of growth & competitiveness
→ Tackling major societal challenges in the EU 2020 framework
→ Bridging the gap between science and the market, through successive stages
Horizon 2020 (H-2020)
→ Objectives: focus on excellence in R&I, S&T-driven R&D; also industrial
competitiveness (incl. SMEs) and societal challenges (climate, energy, food…)
→ Project selection: at EU level by competitive calls for proposals and through
independent / merit based peer review
→ Territorial impact: no pre-defined geographical distribution of funding, but
more beneficiaries in the more developed regions
Cohesion policy funds (CP)
→ Objectives: focus on applied R&I for the purpose of regional socio-economic
development, on innovative SMEs and how to build capacities for innovation &
growth through an innovation friendly business environment
→ Project selection: based on programmes designed / implemented in shared
management between EU, national & regional authorities; projects selected at
national / regional level on the basis of social and territorial impact criteria
→ Territorial impact: pre-defined geographical distribution of funding with
larger allocations to less developed regions.
28. Policy elements facilitating synergies H-2020/CP (1)
Same strategic goals: EU 2020 strategy
Same programming period: easier synchronisation and planning
Ex-ante-conditionality (new)
→ Existence, at national and/or regional level, of research and
innovation strategies for smart specialisation (RIS3) for
approving Partnership Contracts and Operational Programmes
submitted by the Member States.
→ RIS3 in line with the National Reform Programme and with features of
well-performing national or regional research and innovation systems
→ Peer review to assess RIS3 prepared by the national / regional
authorities: REGIO & RTD work together, with the assistance of the
RIS3-Platform
Same project supported by different funds [Art.55(8), CP Gen.Reg.]
→ possible for different expenditures items
Support outside of the programme area [Art.60(2), CP Gen.Reg.]
→ possible up to 10% (at priority leve)l: useful for enabling combined
support from CP & H-2020 to several partners in different countries.
29. Policy elements facilitating synergies H-2020/CP (2)
Simplified costs options under H-2020 & CP (new)
→ Similar eligibility rules proposed for simplifying the financial
management: lump sums, flat rates & unit costs possible under both
policies for funding direct/indirect costs without providing documents
proving real expenses.
→ Reduction of the administrative burden for the beneficiary managing
the same project with a support coming from different funds or
managing several projects supported separately by different funds.
Enhanced territorial cooperation CP budget share
→ 3.1% of total ERDF of which almost 6% for inter-regional cooperation
→ that allows to build trans-national linkages between regional
innovation actors, building on FP7 RoK (Regions of Knowledge) and
RegPot (Research Potential) measures or CIP cluster cooperation or
networking of procurers or innovation agencies, but allowing to
include less advanced regions in a targeted manner.
30. Synergies: limits and opportunities
Limits:
o Multi-country approach vs. place-based
o Competition for funds vs. geographical pre-allocation
o Annual work programmes vs. 7-year-OP
o Centralised management vs. implementation by MS/reg.
o Research excellence vs. socio-economic development
Opportunities:
ü Regulatory alignments (cost eligibility)
ü Horizon: innovation divide actions (ERA Chairs, networks,
research infrastructures, …)
ü COSME: EEN, cluster & SME internationalisation
ü CP: RIS3; combined funding; investments across borders;
CSF key actions (capacity-building, innovation in
enterprises)
Mutual information exchange & nat/reg. coordination bodies?
31. Conclusion
Get involved
with the planners of
future Operational Programmes
NOW!