Higher Education and stakeholders A partner’s perspective by Jean-Jacques Mertens Head of EIB R&D Task Force

EUA, Marseille, 3 April EIB: a short overview The EU long term financing Institution 46 years old Owned by EU member states Capital: € 150 bn  €164 bn New loans signed 2003: € 42.3 bn

EUA, Marseille, 3 April EIF Financing of Venture Capital Funds (total end-2003: 200 funds, €2.5 bn) Guarantees for SME loans to intermediary institutions (2003: € 2 bn) Feasibility studies for setting up university-industry operations (starting). To be mentioned: Vives.

EUA, Marseille, 3 April Lending Policy Objectives in EU Economic and social cohesion Regional development, Accession and candidate countries, Health and education, TENS Sustainability Environmental protection, water management, renewable energy European competitiveness RDI, Knowledge, ICT, Edu & Training SMEs

EUA, Marseille, 3 April EIB Added Value (3 pillars) Consistency with EU objectives (KBE, growth, enlargement); Fulfilling EU mandates: Cotonou IF, FEMIP, Accession, TENs, Quality and soundness of projects (economic, technical, financial, …) Particular benefits from EIB funding (AAA, duration, grace period…)

EUA, Marseille, 3 April lending statistics Total signatures: € 42.3 bn of which: EU: 80%; NMC: 9.6%; RoW: 10.4% Reg Dev: 67% of direct EU loans Global Loans: 29%; Infra+Ene: 58%; Ind: 10%; Env: 40%

EUA, Marseille, 3 April Knowledge Map/Net ICTEDUCATION RESEARCH AND INNOVATION NEW PRODUCTS & BETTER PRODUCTION INCREASE IN TOTAL FACTOR PRODUCTIVITY Enablers Action Results

EUA, Marseille, 3 April i2i outcomes EIB’s Lisbon initiative, 3-year period; bn € from May 2000 to April 2003 For projects in Education, Entrepreneurship and SMEs, R&D, ICT, Diffusion of innovation Geographically, essentially EU15, partially widened to ACC countries Total signatures : 16 bn€ Good geographical and objectives spread (Edu 28%, R&D 32%, ICT 35%)

EUA, Marseille, 3 April i2010i Truly Innovative: Innovation leading theme of EIB finance for the decade €20 bn by 2006, €50 bn by 2010 Pan-european: EU15+NMC+CC+WB “Knowledge Net”: Integrated approach: education and ICT as enablers -> research -> innovation -> productivity gains and market competitiveness-> total factor productivity 2003: € 6.2 bn: Edu 44%, RDI 34%, ICT 23%

EUA, Marseille, 3 April Growth Initiative (GI) TENs: € 50 bn by 2010 RDI: € 40 bn from crucial for Europe growth! QSP: Quick Start Programme But at same time continuation of the ongoing EIB RDI lending programme

EUA, Marseille, 3 April RDI project types Industrial RD&I (pilot plants, labs, research activities) Health (Cancer Centre Madrid; Protons Berlin, Heavy Ion Therapy) Large Infrastructures (LHC of CERN, IMEC) Science parks, incubators (EMBL, Turku) Specific global loans for innovative SME’s Projects from Techn Platforms/FP6 (H2, Nanotechs, new mobile techs)

EUA, Marseille, 3 April RDI proponents Research organisations Industry (direct) Universities Specialized intermediaries Nat’l/Reg’l RDI support systems Networks Partners (Commission/Eureka/…)

EUA, Marseille, 3 April RDI funding instruments by EIB Group Direct and indirect loans (for private or public) Global loans (for small projects and SMEs) Grouped loans / framework loans (among other for midsize companies) EIF investment in VC funds EIF guarantees for SMEs

EUA, Marseille, 3 April RDI partners To develop RDI funding by EIB Group, the EIB relies on partnerships with: The Commission (DG RTD, ENTR) and related services (JRC, IPTS) The National & Regional RDI support systems Eureka, multilateral agencies Organisations regrouping research institutes, universities, and/or industries

EUA, Marseille, 3 April RDI appraisal issues RDI Project selection criteria and procedures RDI project definition Investment cost (facilities + activities) Environmental (and social) aspects Profitability Structure issues (legal entity & borrowing) LT vision, management of operations Organise monitoring Adequate security Coop with COM and other like ESF, etc…

EUA, Marseille, 3 April RD&I: « cost » definition: capital investments: buildings, equipment, ICT, (pre-) production units (pilot/prototypes) Intangibles (researchers salaries, engineering, testing, IPR/patents/registration, training, start-up costs) operational costs: materials, personnel costs Project or programme Financing: up to 50% of investment cost LOANS, not grants! Must be repaid.

EUA, Marseille, 3 April HEI types of projects Traditional University Infrastructure Research Laboratories and Costly Equipment Information and Communication Systems Academic R&D Programmes and Projects R&D Management and Support Systems University-Business R&D Spin-off Activities

EUA, Marseille, 3 April Traditional Univ Infrastructure Technical University Vienna: New Buildings for the Faculty of Mechanical Engineering Masaryk University in Brno: Complete University Campus, including Access Roads, Car Parkings, Canteens, Hostels, Conference Facilities, etc. University of Turin, Polytechnic of Milan: Two New Campuses and a new University Hospital in Milan University of Heidelberg: New Extensions and a Business-Science Park

EUA, Marseille, 3 April Further examples University of Vienna: Complete Renovation and Refurbishment of the 600-Year Old University Library plus new build of Library Extension University of Turin: Rehabilitation of Palazzo Badini and Palazzo Degli Stemmi, i.e. to accommodate the University Administration University of Cambridge: Refurbishment of the Aula Magna and several Halls of Residence

EUA, Marseille, 3 April HEI Research facilities Framework Lending to the Higher Education Funding Council for England, Scotland and Wales: Eligibility for Funding R&D Laboratories and Expensive Equipment Statens Serum Institut, Copenhagen: Rehabilitation of the Research Laboratories Finnish Higher Education Projects: Rehabilitation of Research Facilities and R&D Infrastructure

EUA, Marseille, 3 April HE ICT systems Open University ICT Networks Distance Education Programmes E-Learning Centres Management Systems Broadband Infrastructure

EUA, Marseille, 3 April Other examples Academic R&D Programmes: HEFCE: Competitive Project Finance; R&D Projects in Line with the 6 th Framework; Operational R&D Expenditures (salary cost!) Support Systems: Student Lending Frameworks with Banco Intesa (students at Milan and Turin Polytechnics) R&D Spin-off Activities Science Parks (University of Turku)

EUA, Marseille, 3 April Thank you!