Dicember 2013EC DG RTD.C.5 DC How will European Regions contribute to an European Knowledge environment able to face global society changes Carlos GOMEZ Regional Dimension of Innovation DG Research and Innovation European Commission Carlos GOMEZ Regional Dimension of Innovation DG Research and Innovation European Commission

Consequences: 1.Thematic concentration to maximise the impact of investments 2.Conditionalities and strengthened partnership to ensure effective implementation 3.Common Strategic Framework: coherence across funds (ERDF, ESF, CF, EAFRD, EMFF); clarify synergies with Horizon 2020 etc. 4.Novelties – compared to current regulations Future Cohesion Policy

The need for Synergies with the ESIF

Smart Specialisation ex-ante conditionality Thematic Concentration Keys to Synergies

Europe 2020 inclusive sustainable smart Thematic objectives 1.Research and innovation 2.Information and Communication Technologies 3.Competitiveness of Small and Medium-Sized Enterprises (SME) 4.Shift to a low-carbon economy 5.Climate change adaptation and risk management and 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 9.Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration

The Synergies and Smart Specialisation Matrix

Billion EUR Less developed regions164.3 Transition regions31.7 More developed regions49.5 Cohesion Fund66.4 European territorial cooperation8.9 Of which Cross border cooperation6.6 Transnational cooperation1.8 Interregional cooperation0.5 Outermost regions and northern sparsely populated regions 1.4 Youth Employment initiative3.0 TOTAL Between € billion will be invested in innovation- drivers and take-up, notably research and innovation projects, SME competitiveness, digital growth and energy efficiency / renewable energies. € 70 billion for ESF investments in skills, life-long learning, social integration, employment services, social innovation … Via the Cohesion Fund around € 66 billion will go into trans-european transport connections and environmental projects Between € billion will be invested in innovation- drivers and take-up, notably research and innovation projects, SME competitiveness, digital growth and energy efficiency / renewable energies. € 70 billion for ESF investments in skills, life-long learning, social integration, employment services, social innovation … Via the Cohesion Fund around € 66 billion will go into trans-european transport connections and environmental projects In the future: "European Structural and Investment Funds" In the future: "European Structural and Investment Funds"

"Down-stream" Research & DevelopmentInnovationMarketCapacity Building Horizon 2020 ESIF National/Regional R&I systems "Up-stream" "Research Excellence" Excellence" "Staircase to Excellence" "Innovation Excellence" Hopefully also excellence, but "Innovation Excellence" € 70 billion € billion

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 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

Horizon 2020 marks a departure in terms of support to regional innovation  Focus is on institutions, companies and people, not on regions…. However:  Novelties such as new financial engineering instruments, the new SME instrument and the Fast Track to innovation pilot may have a strong and lasting effect at regional level  Focus is on institutions, companies and people, not on regions…. However:  Novelties such as new financial engineering instruments, the new SME instrument and the Fast Track to innovation pilot may have a strong and lasting effect at regional level

Spreading excellence and widening participation through Horizon 2020 New Part III-a in Horizon 2020 (budget circa EUR 800M) Main actions on Teaming (Centres of Excellence), Twinning (institutional networking), ERA Chairs (bringing excellence to institutions); also Policy Support Facility and a special action from COST on Widening actions New Part III-a in Horizon 2020 (budget circa EUR 800M) Main actions on Teaming (Centres of Excellence), Twinning (institutional networking), ERA Chairs (bringing excellence to institutions); also Policy Support Facility and a special action from COST on Widening actions

Combining EU funding sources H2020 and ESIF – Legal basis: The H2020 Rules for Participation (Article 31) and for the Common Provisions Regulation on the ESIF (Article 55(8)) both deviate from the Financial Regulation (Article 129) as they allow for the funding of the same action by two different instruments, subject to the absence of double funding. What is combined funding? Combined funding is the possibility to use different public funding sources, including EU funding sources, within a programme, project or a group of projects. It seeks to exploit complementarities and synergies while at the same time needs to avoid overlaps and exclude double-financing. Combining public funding sources for ambitious industrial projects

Potential cases of combining Horizon 2020 & ESIF Two potential cases of combined funding for the same industrial project 1.Simultaneous / additional / parallel use of funds for the same industrial project: the simultaneous use of different public funding sources in the same industrial project e.g. H2020 money and ESIF that are used together to fund different cost items within a single industrial project 2.Sequential funding for the same industrial project: the sequential use (in time) of different public funding sources in separate successive subprojects of the same industrial project e.g. first ESIF for R&I infrastructure, then Horizon 2020 for innovation activities

1."non-substitution principle" The use of a Union funding instrument to substitute the non-Union contribution to another Union instrument is not allowed: ESIF cannot be used to substitute the national or private contribution to H2020 projects. Substitution of a non-Union contribution (eg. to a Horizon 2020 project) with Union funding (eg. ESIF) is not possible 2. "no double funding principle" It will be possible to award a grant under Horizon 2020 for an industrial project which is also funded by an ESIF grant but the absence of double funding should be ensured. The two Union grants (Horizon 2020 and ESIF) may not cover the same cost item. Basic budgetary principles

Combining Horizon 2020 & ESIF for ambitious industrial project Look at eligibility of activities: localisation (e.g. region), type of cost items (e.g. equipment) in combination with beneficiaries and timeline Prepare financial master plan for industrial project: group activities in projects (=set of cost items for certain beneficiaries), identify costs and funding options for each (ESIF, H2020, national funds,…), contact Managing Authorities,… Prepare H2020 proposal (project & consortium) =>self-standing multi-national project Define scope of industrial project (incl. beneficiaries), detailed activities, budget (private/public) Prepare ESIF proposal (projects + beneficiaries) for each region/country involved taking into account Smart Specialisation Strategies Submit H2020 and ESIF proposals including master plan for industrial project)

Example: Industrial project with combined funding from Horizon2020 & ESIF Industrial project description (master plan) Work packages (ideally geographically attributable) and definition of cost items Horizon2020 proposal and budget Incl. public or private co- funding … But no ESIF! ESIF proposal and budget Incl. public or private co- funding + specifying which Operational Programme will co-fund and where … But no Horizon 2020! Combining Horizon 2020 & ESIF for ambitious industrial projects

ESIF MS/region Horizon 2020 public/ private co- funding public/ private co- funding ESIF of MS/reg + public/private co- funding Horizon public/ private co- funding Industrial project Grant agreement Horizon 2020 Grant agreement ESIF Example: Industrial project with combined funding from Horizon2020 & ESIF

Example : Industrial project with combined funding Horizon 2020 proposal to be delivered: Industrial project description (master plan including information on parts depending on other financial sources) (*) Horizon 2020 part => self-standing grant agreement Combining Horizon 2020 & ESIF for ambitious industrial projects (*) Modalities on sort of proof for existence of other funding sources being worked out

Evaluation Horizon 2020 Evaluators: look into this to appreciate the entire project … and negotiate this part of the budget. ESIF Managing Authority: … look into this to appreciate the entire project and looks into this part of the budget and checks the eligibility of the type of proposed costs, the location of the operation, etc. Industrial project description (master plan) Work packages (ideally geographically attributable) and definition of cost items Horizon2020 proposal and budget Incl. public or private co- funding … But no ESIF! ESIF proposal and budget Incl. public or private co- funding + specifying which OP will co-fund and where… But no H2! Example : Industrial project with combined funding Combining Horizon 2020 & ESIF for ambitious industrial projects

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