SYNERGIES BETWEEN EUROPEAN STRUCTURAL AND INVESTMENT

FUNDS (ESIF) AND

HORIZON 2020 (H2020)

ON INNOVATION PROCUREMENT

Dr. Vassillis TsanidisPolicy Officer/Seconded National Expert European Commission DG CNECT Innovation Unit

Horizon 2020 Funding Instruments

in support of Innovation Procurement

Preparation Activities

Execution of the joint procurement

Validation/comparison of theperformance of the competing PCP solutions against jointly defined criteria in real-life operational conditions

Dissemination/exploitation of results

Preparation activities

Execution of the Joint Procurement Early adoption of the Innovative

Solution

Conformity Tests if needed

Dissemination/exploitation of results

PCP co-fund actions PPI co-fund actions

70% flat co-funding rate 20% flat co-funding rate

Participation requirement

Public procurers are contracting authorities or contracting entities as defined by the EU public procurement directives

Minimum 3 independent participants from 3 different Member States or Associated

Countries, of which minimum 2 public procurers (buyers group) from 2 different Member States or Associated Countries

Buyers group

Procurers that provide the financial commitments to undertake the PCP procurement

Sole participants can be also eligible if the minimum conditions are met by the legal entities forming the sole participant (e.g. European Research Infrastructure Consortia, European Groupings of Territorial Cooperation)

Lead procurerPublic procurer appointed by buyers group to lead and coordinate the PCP .Can be one of the procurers of the buyers group or another contracting authority not part of the buyers group

Buyers group & Lead procurer

PCP/PPI co-fund actions - Participants

Beneficiaries that

undertake together the PCP/PPI co-fund action

tasks

The Lead Procurer

The Buyers Group

In the proposal, the consortium shall have already identified one concrete procurement need as proposed focus for the PCP that is identified as a common challenge in the innovation plans of the buyers group and requires R&D!

One joint call for tender published EU wide One joint evaluation of offers One lead procurer awarding all contracts in the name and on behalf of all

procurers in buyers group Each winning tenderer gets: 1 framework agreement to participate in the PCP + one

specific contract per PCP phase (solution design, prototyping, testing) One joint total budget (grouping financial commitments of all procurers in buyers group)

from which all R&D providers are paid

But, actual payments can be carried out centralised or distributed Either all R&D providers paid by the lead procurer

Or each R&D provider paid pro rata by each procurer in the buyers group according to the

share of each procurer's contribution to the common pot

ONE JOINT PCP

In the proposal, the consortium shall have already identified one concrete procurement need that is identified as a common challenge in the innovation plans of the buyers group and does not require R&D!

One joint call for tender published EU wide (unless PPI procures limited set of prototypes / test products developed during PCP, then negotiated procedure without publication foreseen in public procurement directives possible)

One joint evaluation of offers

But contract award can be centralised or distributed Either one lead procurer awarding all contracts to all suppliers on

behalf of all procurers in the buyers groupOr one lead procurer only awarding a framework contract with lots (lots

per procurer) to each supplier, and each individual procurer awarding (a) specific contract(s) for his lot(s) to the supplier(s) delivering the solution(s) he buys

This means same core functionality and performance characteristics for solutions procured by all procurers, but possible additional local functionality for each procurer

Also payments can be centralised or distributed

ONE JOINT PPI

2014-2015: Horizon 2020: €130-140 million* 9 areas expect to cofund PCPs

1 in e-Health, 6 in ICT, 1 in security, 1 in research infrastructure 6 areas expect to cofund PPIs

1 in e-Health, 3 in ICT, 1 in Transport, 1 in research infrastructure 11 areas expect to support networks of procurers preparing future PCPs/PPIs

1 in bioeconomy, 4 in Energy, 2 in Climate, 2 in ICT, 1 in security, 1 in research infrastructure

+ Galileo/GNSS activities + possible Geant research infrastructure procurements

* Depends on actual take-up/proposals received

For comparison (funding in previous years)

2013: € 94 million 2011-2012: € 42,9 million 2009-2010: € 4,5 million

How much for PCP and PPI in 2014-2015

• ICT LEIT Work Program• ICT-24(d): Robotics for healthcare sector (€ 5M, 2015)

• ICT-8(a): Boosting public service productivity via cloud computing (€ 9M, 2015)

• ICT-36: Call open to any area of public interest needing ICT based solutions (€ 4M, 2015)

• Health Societal Challenge Work Program• PHC 27: Selfmanagement of health and disease and patient enpowerment supported by

ICT (€ 15M, 2015)

• Security Societal Challenge Work Program• DRS 18: Interoperable next generation of broadband radio communication system for

public safety and security (no predefined max budget for PCP cofund proposals, 2015)

• Research Infrastructrure Work Program• INFRASUPP2(b): Scientific instrumentation for research infrastruct. (part of € 14M, 2015)

• EINFRA8: Geant – novel telecom and Internet technologies (part of € 25M, 2015)

2015 Calls for PCP cofund actions

• ICT LEIT Work Program• ICT-8(b): Boosting public service productivity/services via cloud computing (€ 13M, 2015)

• ICT-20(d): ICT technologies for better human learning (€ 10M, 2015)

• ICT-27(b): Photonics – software defined optical networking technologies and services for National Research and Education Networks (€ 5M, 2015)

• Health Societal Challenge Work Program• PHC 29: eHealth services (€ 10M, 2015)

• Transport Societal Challenge Work Program• MG 8.3: Transport Infrastructure (€ 13M, 2015)

• Research Infrastructrure Work Program• INFRASUPP2(c): Scientific instrumentation for research infrastructure (part of € 14M,

2015)

2015 Calls for PPI cofund actions

• ICT LEIT Work Program• ICT-26(c): European cities focusing on wide deployment/PPI of SLL lighting solutions (part

of call for 3 CSAs for max total of € 5M, 2015)

Other calls for CSAs in other areas of ICT that can address PCP/PPI, for example:• ICT-30(b): CSAs to develop ecosystem for Internet of things that could address also PCP

(part of call for 3 CSAs for max total of € 5M, 2015)• ICT-7(c): CSAs to support adoption of cloud computing (€ 2M, 2015)

• Energy Societal challenge Work Program• EE 7-2015: Enhancing the capacity of public authorities to plan, finance and implement

sustainable energy plans & policies e.g. in buildings, mobility (part of big call, € 1,5/2M per project)

• EE 17-2015: Targeting min 25% higher-than available energy performance levels

b) Preparing and supporting procurements by large buyers groups (no max total budget, part of big call, € 1,5/2M per project)

• Research Infrastructrure Work Program• INFRASUPP2-2015 (a): Exploring future use of joint PCP and PPI in research infra (part of €

14M call, 2015)

2015 Calls for Coordination and Support Actions

Support of Innovation Procurement

in the ESIF context

Why Innovation Procurement at Regional Level ? ……it is a win-win situation for

Regions/ Public Authorities

Acquire value for money solutions that realise concrete quality and efficiency improvements to public services in the region

Improve the local innovation ecosystem as stronger local public sector demand for innovative solutions attracts additional financial investments into the region and combats relocation of innovative companies to other parts of the world

Enhance the technical know-how of the Region

Innovators

• Can get first client for new product (lead customer)

• Shorten time to the market (because of earlier customer feedback)

• Wider commercialization opprtunities (because they obtain the IPRs)

Cohesion Policy may support measures in the framework of the Operational Programs to:

Foster innovation through public procurement • TO 1 (IP1B) Strengthening research, technological development and innovation • Target group: public sector

Foster better meeting of public needs TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health TO 4 (all IPs) supporting the shift toward a low –carbon economy in all sectors TO 5 (all IPs) promoting climate change adaption, risk prevention and management TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures Target group: town planners, transport, environment, health etc. ministries – ERDF,

Cohesion Fund and ESF)

Foster more innovative public procurement procedures and administrative capacities

TO 11 (IP11) Enhancing institutional capacity and an efficient public administration TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-

health Target group: procurement officers

Cohesion Policy may also support:

Major projects / Joint Action Plans in cooperation with other Regions and key players in the Cohesion Policy

Coordination, Networking and Preparation activities for the implementation of a PCP and/or PPI

through European Territorial Cooperation Programs

COORDINATION AND SUPPORT ACTIVITIES IN THE FRAMEWORK OF THE ETC PROGRAMS

Specific calls on the Coordination

and Support Activities for

future Innovation Procurements

Encouragement of implementation of Coordination and

Support Activities for future Innovation

Procurements in the framework of relevant

Project Proposals

Encouragement of the establishment of

EGTCs that may implement

in the future joint Innovation Procurements

EUROPEAN TERRITORIAL COOPERATION PROGRAMS

PCP/PPI IN THE FRAMEWORK OF THE OPs /ROPs

(REGIONAL)OPERATIONAL PROGRAMME

PCP/PPI UNDER A SPECIFIC THEMATIC OBJECTIVE.

BUDGET ALLOCATION FOR SPECIFIC CALLS FOR PROPOSALS BY THE MAs

ON PCP/PPI

Example of the Italian Regions- In the previous programming period specific calls on PCP were launched with reference to

related priority axis of each respective Regional Operational Program -

HORIZONTAL PRESENCE - AFFECT ALL THEMATIC OBJECTIVES/INVESTMENT

PRIORITIES. NO SPECIFIC CALLS FOR PROPOSALS

BY THE MAs ON PCP/PPI.

PCPs/PPIs are implemented as projects in the framework of relevant calls for project

proposals launched by the MA of each respective OP

Possible Synergies between

the ESIF and H2020 on Innovation Procurement

SYNERGIES BETWEEN H2020 AND ESIF ON PCP/PPI WHY?

• BECAUSE:

The value of support for research, development and innovation could be further enhanced by combining funding resources (increase of effects at regional level)

Procurers could choose for higher ESIF co-funding rates instead

of H2020 co-funding rates' whilst participating to H2020 funded PCP/PPIs.

Better communication between "regional development community" and "Horizon-Science community"

A regional development scheme through the participation in a H2020 project acquires a European perspective

Include innovation procurement in the RIS3 SWOT and policy mix.

Build PCP/PPI references into OPs in every relevant thematic objective.

Ensure support of public demand driven innovation in the framework of the European Territorial Cooperation.

Involve MA from the beginning to ensure availability of ESIF & synchronisation.

CONDITIONS FOR SUCCESS

GENERAL RULE

IT IS NOT ALLOWED !!!!!!

- To use ESIF and H2020 funding accumulatively to finance the same cost/expenditure item

- To finance the own contribution of the participant from H2020 or ESIF

EUROPEAN TERRITORIAL COOPERATION

PROGRAMS

ESIF

COORDINATION AND SUPPORT

ACTIVITIES(CSAs)

H2020

PART OF THE PCP/PPI

IMPLEMENTION (CO-FUND ACTION

CALLS)

H2020 OR

SYNERGIES WITH THE ESIF

OR OR

COORDINATION AND SUPPORT ACTIVITIES

Possible scenario on the execution of a PCP In the framework of PCP Cofund action calls, some participants of the

consortium of the buyers group may receive co-funding from the ESIF and others from H2020.

This case is applicable only if there is a clear distinction between budgets offered per OP and between expenditures co-funded by the ESIF (per OP) vs expenditures co-funded by H2020.

Example - each R&D provider is paid pro rata by each procurer in the buyers group according to the share of each procurer's contribution to the jointly committed budget.

To achieve innovation goals in their territory by using ESI Funds procurers from less developed Regions could receive higher co-funding rates to participate in a PCP/PPI implemented in the framework of H2020 by/with procurers from more advanced Regions.

Condition for success : synchronization between the ESIF calls and the H2020 cofund action calls

Execution of a PCP – Combination of Funds between the ESIF and H2020

EXECUTION OF A JOINT PCP

PROCURER A (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution)

PROCURER C (Transitional Region) CO-FUNDS HIS CONTRIBUTION TO THE COMMON POT THROUGH THE ESIF

CO-FUNDING RATE up to 60% (for his contribution

PROCURER B (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution)

EXECUTION OF A JOINT PCP

PROCURER A (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE ESIF

CO-FUNDING RATE up to 85% (for his contribution)

PROCURER C (Transitional Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF

CO-FUNDING RATE up to 60% (for his contribution)

PROCURER B CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE H2020

CO-FUNDING RATE 70% (for his contribution)

PROCURER D CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE H2020

CO-FUNDING RATE 70% (for his contribution)

Execution of a PPI – Combination of Funds between the ESIF and H2020

EXECUTION OF A JOINT PPI

PROCURER A (Less developed Region) Purchases the innovative solution with the support of the ESIF

CO-FUNDING RATE up to 85% (for his contribution)

PROCURER B (Transitional Region)

Purchases the innovative solution with the support of the ESIF

CO-FUNDING RATE up to 60%(for his contribution)

PROCURER C

Purchases the innovative solution with the support of the H2020

FLAT CO-FUNDING RATE 20%(for his contribution)

PROCURER D

Purchases the innovative solution with the support of the H2020

FLAT CO-FUNDING RATE 20%(for his contribution)

SEQUENTIAL FUNDINGSeparate successive and legally/financially not linked projects with alternating H2020 or ESIF support –- First PCP and then PPI –

This is an easier way to combine funds with less risk of (involuntarily) creating double co-funding scenarios.

Sequential funding can go in both directions: First ESIF and then H2020 or vice versa.

First PCP (ESIF) to develop and test the innovative solution and then PPI (H2020) for the deployment of the innovative solutions developed and tested through PCP

and vice versa (H2020 for PCP and ESIF for PPI)

Example:

A group of Public Procurers from different cities are looking for a new

sustainable public water supply system. It requires R&D. At first they implement a PCP (Phases 1,2,3) with the support of H2020

and different solutions are developed and tested.

Thereafter they implement a PPI with the support of ESIF/ERDF to co-fund the preparation of the call for tender and the purchase of these

new solutions (each MA for the territory covered by its OP).

For more info on Innovation Procurement please visit the following site:

http://ec.europa.eu/digital-agenda/en/innovation-

procurement

If you would like to keep up to date on the latest Member States initiatives on Innovation Procurement and new upcoming EU funding

opportunities, please subscribe to the PCP/PPI newsletter :

http://cordis.europa.eu/fp7/ict/pcp/newsletter_en.html

Thank you very much for your attention

Dr. Vassillis TsanidisPolicy Officer/Seconded

National Expert European Commission

DG CNECT Innovation Unit

Vasileios.Tsanidis@ec.europa.eu