Promoting Innovation in the Promoting Innovation in the European Union:European Union:

- Seventh Framework Program (FP7) - Seventh Framework Program (FP7) - Competitiveness and Innovation - Competitiveness and Innovation

Program (CIP)Program (CIP)

Mary KavanaghMary KavanaghScience, Technology and Education CounselorScience, Technology and Education CounselorEuropean Commission Delegation to the USAEuropean Commission Delegation to the USA

Technology Transfer Society, Washington DC, June 2007Technology Transfer Society, Washington DC, June 2007

Lisbon strategy

S&T contributes to the Lisbon objectives: economic growth, employment creation, environmental protection, social challenges:

fight poverty, improve human health and quality of life

R&D – Europe and the worldEU-25 US Japan

R&D intensity (% of GDP) (3) 1.93 2.59 3.15

Share of R&D financed by industry (%) (2) 54.8 63.1 74.5

Researchers per thousand labour force (FTE) (3) 5.4 9.0 10.1

Share of world scientific publications (%) (3) 38.3 31.1 9.6

Scientific publications per million population (3) 639 809 569

Share of world triadic patents (%) (1) 31.5 34.3 26.9

Triadic patents per million population (1) 30.5 53.1 92.6

High-tech exports as a share of total manufacturing exports (%) (3) 19.7 28.5 26.5

Share of world high-tech exports (%) (2) 16.7 19.5 10.6

Note: (1) 2000 data (2) 2002 data (3) 2003 data

Towards the Seventh Framework Programme 2007-2013 (‘co-decision’)

Summary

• Research: Seventh Framework Program

• Innovation: Competitiveness and Innovation Program

• Education: European Institute of Technology

• General Introduction to FP-7

The EU’s Seventh Research Framework Programme (FP7, 2007-

2013)

• FP-7: Seventh Framework Programme for Research and Technological Development

• The European Union’s main instrument for funding research in Europe between 2007 and 2013

• FP7 supports research in selected priority areas

EU Research Framework Programmes

Annual Budgets between 1984 and 2013

NB: budgets in current prices. Source: Annual Report 2003, plus FP7 revised proposal

0

2

4

6

8

10

12

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

€ bi l l i on

FP7 | The Structure

+

Ideas – Frontier Research

Capacities – Research Capacity

People – Marie Curie Actions

Cooperation – Collaborative research

JRC non-nuclear research

Euratom direct actions – JRC nuclear research

Euratom indirect actions – nuclear fusion and fission research

FP7 Indicative breakdown (€ million)

Cooperation programme (€ million)

• Process and Funding Schemes

Process

• Work Program (annual):Strategy/ approach, timing and content of calls (topics, funding schemes, budgets etc.)

• Calls for Proposals (no spontaneous applications)

• Deadlines for submission• Electronic submission of proposals• Eligibility Criteria• Evaluation Criteria • Peer review evaluation by at least 3

experts

Funding Schemes

• Collaborative projects– Consortia with participants from different countries– New knowledge, technology, products or common resources for research

• Networks of Excellence– Joint programmes by organisations integrating activities

in a given field

• Coordination and support actions– Networking, exchanges, trans-national access to research infrastructures,

studies, conferences, etc.

• Support to frontier research (ERC)

• Training and career development of researchers (Marie Curie)

• Research for the benefit of specific groups(in particular SMEs)

Promoting Innovation

European Technology Platforms

Industry-driven, competitiveness-focused European technology platforms

Concept

Stakeholders, led by industry, get together to define a Strategic Research Agenda on a number of strategically important issues with high societal relevance where achieving Europe’s future growth, competitiveness and sustainable objectives is dependent upon major research and technological advances in the medium to long term.

European Technology Platforms

• Bottom-up approach with industry in lead

• Wide stakeholder involvement

• Flexibility: No ‘one size fits all’

• EU Role: facilitating and guiding but not leading or owning

• Majority of strategic research agendas, where appropriate, taken into account in thematic priorities of FP7

• Minority of strategic research agendas lead to

‘Joint Technology Initiatives’

Joint Technology Initiatives

Identification criteria include:

• Added value of European-level intervention

• Degree and clarity of definition of objective

• Strength of commitment from industry

• Scale of impact on industrial competitiveness and growth

• Importance of contribution to broader policy objectives

• Capacity to attract additional national supportand leverage industry funding

• Inability of existing instruments to achieve objective

Potential Joint Technology Initiatives

Other possible themesto be identified later…

Hydrogen and Fuel Cells

Aeronautics and Air Transport

Global Monitoring for Environment

and Security

Embedded Computing Systems

Innovative Medicines

Nanoelectronics

More on SMEs

Co-operation Program: Research for the benefit of

SMEs

• Research for SMEs

• Research for SME associations

• Encourage and facilitate SME participation across FP7

Risk-sharing finance facility (RSFF)EIB/EC Partnership

EU FP7 EIB i2i

RISK-SHARING FINANCE FACILITY(reserve to cover risk of EIB lending)

Contribution of up to €1 billion

Contribution of up to €1 billion+

Risk-sharing finance facility (RSFF)“Doing more with less”: the leverage effect

FP7 Contribution: up

to €1 billion

EIB Contribution:up to €1 billion

EIB loans and guaranties:€8-12 billion

(average: 10)

Additional private investments in

research:€16-48 billion(average: 30)

x 2x 4-6

(average: 5) x 2-4(average: 3)

Matching contributions Provisioning and capital allocation representing

15% to 25% (average 20%)of volume of

individual loan

Loans representing on average one third

of total cost of financed research

projects

Risk-sharing finance facility (RSFF)

Beneficiaries

• All legal entities, irrespective of size– SMEs and larger companies– Public and private research

organisations (including universities) allowed to borrow

– Joint legal entities set up by a consortium including Public-Private-Partnerships

People Program: Marie CurieIndustry-academia pathways

Industry-academia knowledge-sharing scheme

– Embedded in longer-term co-operation between both sectors

– Two-way staff secondments/recruitment of experienced researchers from outside the partnership

– Organisation of common workshops/conferences, including for researchers from outside the partnership

– Salary costs of seconded researchers/recruited experienced researchers

– Special measure: specific equipment costs for SMEs

Competitiveness and Innovation Program

CIP Structure: 3 pillarsCIP Structure: 3 pillars

Entrepreneurship &

Innovation(EIP)

€ 2.170 million incl.€ 430 for eco-

innovation

ICTPolicy(ICT)

€ 730 million

IntelligentEnergyEurope(IEE)

€ 720 million

EIP committee IEE committee ICT committee

1st pillar: EIP1st pillar: EIP

Objectives:

• Access to finance

• SME cross-border cooperation

• Innovation and eco-innovation

• Entrepreneurship and innovation culture

• Policy development

Main instruments:

• Financial instruments (equity and loan guarantees)

• Business support services

• Projects (clusters, regional innovation)

• Analysis and monitoring

• Policy exchange

2nd pillar - ICT Programme2nd pillar - ICT Programme

Objectives:• Single information space• Innovation and investment in ICT• Inclusive information society

Main instruments:• Networks for exchange of knowledge • Pilot and market replication projects• Policy analysis & information

3rd pillar - IEE Programme3rd pillar - IEE Programme

Objectives:

• Energy efficiency & rational use of resources (SAVE)

• New & renewable energy sources (ALTENER)

• Energy in transport (STEER)

Main instruments:

• Promotion and dissemination projects  • Market Replication Projects

How FP7 and CIP complement each other

• Networks providing innovation support services

• Within projects• In thematic areas

• Dissemination of knowledge

CIPFP7-RTD

• Innovation clusters• Research-driven clusters• Regions

• Risk capital (start-up and expansion)

• SMEs guarantee facility• SMEs loan securitisation

• ‘Risk Sharing Finance Facility’ for large projects and infra-structures (with EIB)

• Access to finance

• Actions promoting SMEs’ participation in FP7

• Definition of thematic content

• Specific schemes for SMEs

• SMEs’ participation in Research

• Take-up of proven technologies: environmental, ICT and energy-efficiency

• Research, techno-logical development and demonstration

• Funding of

projects

European Institute of Technology

European Institute of European Institute of TechnologyTechnology

• A Flagship project for excellence in higher education, research and innovation

• Governing Board – light structure

• Strategic challenges in interdisciplinary areas

• “Knowledge and Innovation Communities” : integrated partnerships, universities, research organizations, industry

• Autonomous, multi-site – expect approx. 6 KICs by 2013

• Expected to start 2008

• Expected budget Euro 2.4 billion ($3 billion) over 7 years

InformationInformation

• EU research: http://ec.europa.eu/research

• Seventh Framework Programme: http://ec.europa.eu/research/fp7

• CIP: http://ec.europa.eu/enterprise/enterprise_policy/cip/index_en.htm

• RSFF: www.ec.europa.eu/research/ecri2007-rsff