Vasileios TsanidisEuropean Commission DG CNECT Innovation Unit (F2)

SYNERGIES BETWEEN H2020 AND THE EUROPEAN STRUCTURAL AND

INVESTMENT FUNDS (ESIF)ON INNOVATION PROCUREMENT

H2020 Support to

Innovation Procurement

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Preparation, Coordination, Networking, Management etc.

Joint PCP procurement and implementation of the PCP contracts

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

Dissemination/exploitation of results

Preparation, Coordination, Networking, Management etc.

Joint PPI procurement

Conformity Tests if needed

Deployment of the innovation solutions and evaluation of results in real life- operating conditions

Dissemination/exploitation of results

PCP (Pre-Commercial

Procurement)actions

PPI (Public Procurement of Innovative Solutions)

actions

90% funding rate +25% for eligible indirect costs

35% funding rate

+25% for eligible indirect costs

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CSAs vs. Preparation, Coordination, Networking etc. activities

in the framework of the H2020 PCP / PPI actions

Specific calls for proposals

Funding rate 100% +25% for eligible indirect costs

No CSA calls will precede each PCP/PPI execution foreseen by the H2020 calls

Coordination and Support Actions (CSAs)

Part of a PCP/PPI action project

Funding rate the same as the execution stage in the context of a PCP / PPI action project implementation

PCP 90% / PPI 35% +25% eligible indirect costs

PCP/PPI actions

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Support of Innovation Procurement

in the ESIF context

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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)

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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

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INNOVATION PROCUREMENT IN THE FRAMEWORK OF THE OPs

OPERATIONAL PROGRAMME

PCP/PPI UNDER A SPECIFIC THEMATIC OBJECTIVE.

BUDGET ALLOCATION FOR SPECIFIC CALLS FOR PROPOSALS BY THE MAs

ON PCP/PPI

Specific calls on PCP/PPI are 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 context of relevant calls for proposals launched by the MA of each respective OP

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UNIT NAME DEFINITION/COMMENTS

EUR Investment -Procurement budget that was spent on Pre-Commercial Procurement

Total value of the procurement budget that was spent by the public procurers to buy R&D services through Pre-Commercial Procurement (PCP) aiming at tackling concrete public challenges and modernizing the public services.

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UNIT NAME DEFINITION/COMMENTS

EUR Investment -Procurement budget that was spent on Public Procurement of Innovative Solutions

Total value of the procurement budget that was spent by the public procurers to buy innovative solutions through Public Procurement of Innovative Solutions (PPI) aiming at tackling concrete public challenges and modernizing the public services.

UNIT NAME DEFINITION/COMMENTS

Number of Public Procurements of Innovative Solution

Total number of completed Public Procurements of Innovative Solutions

UNIT NAME DEFINITION/COMMENTS

Number of Pre-Commercial Procurements

Total number of completed Pre-Commercial Procurements

Measuring progress on PCP/PPI in ESIF

Possible Output Indicators

PCP

PPI

ESIF 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 (ETC)

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Possible Synergies between

the ESIF and H2020 on Innovation Procurement

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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 higher ESIF funding rates instead of

H2020 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

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Because : (2)

Smart use of the ESIF budget to improve the quality of the offered public services with breakthrough or innovative solutions for the benefit of the citizens

Improve of the local innovation eco-system for the companies of the region that are necessary for the maintenance and upgrading services of the new solutions.

Combating of fragmentation of demand aiming at triggering the supply side to submit better quality at a lower cost offers for the benefit of the public sector.

As far as Less Developed Regions are concerned, they can build a Staircase to Excellence by using all available means for funding research and innovation enabling schemes.

Administrative capacity of public procurement officers will be enhanced through the implementation of joint cross-border procurements of Innovation especially if it is coupled with ESIF funded training programs that aim to improve the administrative capacity of the participants officers.

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Include support to demand driven innovation / innovation procurement references into OPs in every relevant thematic objective.

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

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

CONDITIONS FOR SUCCESS

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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

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CATEGORIES OF POSSIBLE SYNERGIES BETWEEN H2020 AND ESIF ON THE

PCP/PPI IMPLEMENTATION

Joint or simultaneous use of funds

Sequential funding

Additional funding

Alternative funding

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A. JOINT OR SIMULTANEUS USE OF FUNDS

Different funding sources in the same project. This is only possible if the cost items (eligible and

submitted) are NOT the same.

Requires very strict financial management to separate the cost items clearly from the conception phase of the project and will only work if the funding decisions of H2020 and ESIF are synchronised.

The rules of both funding sources (ESIF – H2020) should be respected by all beneficiaries even if they receive co-financing from only one funding source. A partner who receives co-financing from ESIF to participate in a H2020 project should also respect the H2020 rules and vice versa.

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

the buyers group may receive 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 funded by the ESIF (per OP) vs expenditures 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 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 action calls

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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) HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET IS FUNDED THROUGH THE ESIF

FUNDING RATE up to 85% (for his contribution)

PROCURER C (Transitional Region) HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET IS FUNDED THROUGH THE ESIF

FUNDING RATE up to 60% (for his contribution)

PROCURER B HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET IS FUNDED THROUGH H2020

FUNDING RATE 90%+ 25% for eligible indirect costs (for his contribution)

PROCURER D HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET IS FUNDED THROUGH H2020

FUNDING RATE 90% + 25% for eligible indirect costs (for his contribution)

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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

FUNDING RATE up to 85% (for his contribution)

PROCURER B (Transitional Region)

Purchases the innovative solution with the support of the ESIF

FUNDING RATE up to 60%(for his contribution)

PROCURER C

Purchases the innovative solution with the support of H2020

FUNDING RATE 35% + 25% for eligible indirect costs (for his contribution)

PROCURER D

Purchases the innovative solution with the support of H2020

FUNDING RATE 35%+ 25% for eligible indirect costs (for his contribution)

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Possible Scenario on PPI

Applicable Scenario in cases:

under a joint Framework Contract/Agreement which provides the joint technical specifications separate contracts are implemented and awarded by the procurers according to their national law for the purchase of the innovative solutions.

Or the lead procurer launches one procurement procedure awards all the contracts but the

invoices are paid by every individual procurer.Or Under a joint Framework Contract/ Agreement that sets out the common functional

specifications separate contracts for different lots are implemented and awarded by the procurers according to their national law for the purchase of the innovative solutions.

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SEQUENTIAL FUNDING

Separate successive and legally/financially not linked projects with alternating H2020 or ESIF support –

- First PCP and then PPI –

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

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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 fund the preparation of the call for tender and the purchase of these new

solutions (each MA for the territory covered by its OP).23

ADDITIONAL/PARALLEL USE OF FUNDS

ESIF money is not linked to a H2020 project (PCP/PPI), but a regional/national authority decides to fund a

regional/national project or beneficiaries to enhance the H2020 project or programme in its region.

This may be particularly relevant to skills development or capacity building in innovation and cooperation

ExampleSkills enhancement of the public procurer focused on the use of the

innovative product that is purchased in the framework of a PPI that is funded by H2020 24

ALTERNATIVE FUNDING

• ESI Funds could be used for project proposals that have received positive evaluation under H2020 and could not be funded due to lack of H2020 funds under the call.

• These proposals could be reoriented towards ESIF requirements and submitted at national/regional level, if this type and topic of project fits into the operational programmes of the concerned territories.

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European Grouping for Territorial Cooperation (EGTC)

- Important Regional Policy legal tool that is foreseen in the provisions of the European Regulation 1082/2006

- The objective of EGTCs is to facilitate and promote cross-border, transnational and interregional cooperation between its members.

- An EGTC is made up of Member States, regional authorities, local authorities and/or bodies governed by public law, as the case may be.

- Can be a separate legal entity (or its tasks can be delegated to one of its members)

- Applicable national law is the law of the MS where the EGTC is established (or the country of the member that is delegated with its tasks)

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The special Role of the EGTCs in the Innovation

Procurement implementation

- New EU Procurement Directive 2014/24 foresee the implementation of joint cross-border procurements

- H2020 supports joint procurements (PCP/PPI) execution

- PCP/PPI actions minimum participation requirement :3 beneficiaries from 3 different MS/AC of which 2 public procurers (buyers group) from 2 different MS/AC.

- Sole participants: Exception for EGTCs are eligible if the meet the minimum participation requirement and have the responsibility to purchase R&D services or innovative solutions in the name and on behalf of the procurers/members of the EGTC.

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EGTCs as sole participants in PCP/PPI actions

Better coordination/management of the preparatory activities and Innovation procurement process

- Reinforcement of the cross-border character of the project

Active participation of all the participants in the implementation of the tendering process

The national law of the EGTC will be the applicable law of the Innovation Procurement (PCP/PPI)

Sustainability of the collaboration between the beneficiaries in view of future (joint) Innovation (or other) Procurements or other relevant project proposals

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PCP-PPI case examples from around EuropeEuropean Assistance for Innovation Procurement

Networking on H2020 calls on innovation procurement

Online programme and registrationhttp://eafip.eu/events/major-events/eafip-major-event-paris/

Next EU innovation procurement event

Paris City Hall

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

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

For the synergies between the H2020 and the ESIF please visit:

http://ec.europa.eu/regional_policy/sources/docgener/guides/synergy/synergies_en.pdf

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Thank you for your attention Questions ?

Vasileios Tsanidis Dr.Jur. European Commission DG CNECT Innovation Unit (F2)Vasileios.Tsanidis@ec.europa.eu