Synergies between the new framework programme for research and innovation and the new Cohesion Policy (2014-2020) in a context of Smart Specialisation : challenges and opportunities

for Cohesion regions

Dimitri CORPAKIS

Head of Unit RTD.B5

Smart Specialisation for Growth

Directorate General for Research and Innovation

European Commission

dimitri.corpakis@ec.europa.eu

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.

Policy Research and Innovation

Challenges and opportunities for Cohesion regions in Horizon 2020

Horizon 2020 is a game changer for research organisations and research and innovation-oriented businesses in Cohesion regions

Major opportunities in the form of:

increased simplification in terms of participation and management rules; more IT solutions, more trust and fewer audits!

Major attention paid to SMEs with several new openings

Policy Research and Innovation

Major challenges include: No special treatment on well known Cohesion

criteria: general criteria of excellence, impact and management only apply

Cohesion criteria (exceptionally applied in one FP7 case) replaced by performance indicators in terms of research and innovation

Increased competition

Significant efforts needed for synergies with Cohesion policy

The move towards Smart Specialisation

Challenges and opportunities for Cohesion regions in Horizon 2020 (II)

However: huge opportunities for SMEs, the engine of growth at regional level

• Integrated approach - around 20% of the total budget for societal challenges and LEITs to go to SMEs

• Simplification of particular benefit to SMEs (e.g. single entry point)

• A new SME instrument will be used across all societal challenges as well as for the LEITs

• A dedicated activity for research-intensive SMEs in 'Innovation in SMEs'

• 'Access to risk finance' will have a strong SME focus (debt and equity facility)

• 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)

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

Policy Research 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

D. Foray, P.A. David and B. Hall: Smart Specialisation: the Concept

Knowledge for Growth

High Level expert

group (2009)

A simple idea (KfG brief no 9, 2009)

“It should be understood at the outset that the idea of smart specialisation does not call for imposing specialisation through some form of top-down industrial policy that is directed in accord with a pre-conceived “grand plan”. Nor should the search for smart specialisation involve a foresight exercise, ordered from a consulting firm.

We are suggesting an entrepreneurial process of discovery that can reveal what a country or region does best in terms of science and technology. That is, we are suggesting a learning process to discover the research and innovation domains in which a region can hope to excel. In this learning process, entrepreneurial actors are likely to play leading roles in discovering promising areas of future specialisation, not least because the needed adaptations to local skills, materials, environmental conditions, and market access conditions are unlikely to be able to draw on codified, publicly shared knowledge, and instead will entail gathering localized information and the formation of social capital assets.”

Policy Research and Innovation

Smart Specialisation: Policy (1)

What are the main requirements?:

• Leadership: a long-term commitment of national and regional authorities

• Stakeholder involvement / Ownership of the strategy

• Strategy: a plan with clear objectives and measurable deliverables based on a SWOT-analysis

• (Tough) Choices: select few priorities on the basis of international specialisation and integration in international value chains

• Competitive Advantage: mobilise talent by matching RTD + i and business needs & capacities

• Critical Mass: identify areas where scale and scope can be developed

Policy Research and Innovation

Smart Specialisation: Policy (2) What are the main steps to take?

•Step 1 : Analysis of regional potential for innovation-driven differentiation

•Step 2: Smart Specialisation Strategy design and governance - ensuring participation & ownership

•Step 3: Elaboration of an overall vision for the future of the region

•Step 4: Selection of priorities for Smart Specialisation Strategy + definition of objectives

•Step 5: Definition of coherent policy mix, roadmaps and action plan

•Step 6: Integration of monitoring and evaluation mechanisms

Policy Research and Innovation

Smart Specialisation: Instruments and Vehicles

• Innovation-friendly business environment for SMEs: drive

towards internationalisation of firms • Key Enabling Technologies: systemic potential to induce

structural change • Research infrastructure/centres of competence: support to

ESFRI but also to smaller scale research infrastructures. Centres of competence combine research with training in advanced sectors

• Innovative financing solutions through financial engineering (risk capital, equity, new financial instruments through ESIF and Horizon 2020)

• Clusters for regional growth: business ecologies that drive innovation

• Social Innovation: new organisational forms to tackle societal challenges

• Lifelong Learning in research and innovation • Public Procurement for market pull

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

Policy Research 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

Policy Research 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

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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

The need for Synergies

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.

Policy Research 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

Smart Specialisation ex-ante conditionality

Thematic Concentration

Keys to Synergies

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

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

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 Synergies

Funding synergies are also possible

• 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)

Possible implications for H2020

Possible impact on Horizon 2020 future Work Programmes in all Priorities (especially Industrial Leadership and Societal Challenges)

Feedback from National and Regional Research and Innovation Strategies for Smart Specialisation could influence areas for future Topics and vice versa

Involvement of flagship Horizon 2020 projects and stakeholders in RIS3 should not be excluded although of course not compulsory and largely unpredictable. But this depends also on policies by MS and regions involved (active involvement policies may be supported by the Structural Funds)

RTDI projects can be simultaneously or consecutively supported by H2020 and the ESI Funds

Next 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

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