European Funding Instruments in R&D: Opportunities and Possible Synergies in Regional Policy vs. Horizon 2020 Dr. Béla Kardon Workshop on Future Perspectives for EU-Japan Research and Innovation Cooperation Zürich, 18 July 2013

Topics of the Presentation Horizon 2020 + International Cooperation Regional/Cohesion Policy Best practices in Hungary Zürich, 18 July 2013

The Multiannual Financial Framework 2014-2020: Commission’s proposals of 29 June 2011 Key Challenge: stabilise the financial and economic system while taking measures to create economic opportunities Smart & inclusive growth (€491bn) Education, Youth, Sport Connecting Europe Cohesion Competitive Business SMEs Horizon 2020 Sustainable growth, natural resources (€383bn) Security and citizenship (€18.5bn) Global Europe (€70bn) Administration (€62.6bn) TOTAL: €1.025bn Source: EC, DG Research and Innovation

Horizon 2020 & The New International Cooperation Strategy

What’s new 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 Simplified access, for all companies, universities, institutes in all EU countries and beyond. *The 7th Research Framework Programme (FP7), innovation aspects of Competitiveness and Innovation Framework Programme (CIP), EU contribution to the European Institute of Innovation and Technology (EIT) Source: EC, DG Research and Innovation

Excellent science Industrial leadership Societal challenges Three priorities: Excellent science Industrial leadership Societal challenges Source: EC, DG Research and Innovation

Priority 1. Excellent science Why: World class science is the foundation of tomorrow’s technologies, jobs and wellbeing Europe needs to develop, attract and retain research talent Researchers need access to the best infrastructures Source: EC, DG Research and Innovation

Proposed funding (million euro, 2014-2020) European Research Council Frontier research by the best individual teams 13 268 Future and Emerging Technologies Collaborative research to open new fields of innovation 3 100 Marie Curie actions Opportunities for training and career development 5 572 Research infrastructures (including e-infrastructure) Ensuring access to world-class facilities 2 478 Source: EC, DG Research and Innovation

Priority 2. Industrial leadership Why: Strategic investments in key technologies (e.g. advanced manufacturing, micro-electronics) underpin innovation across existing and emerging sectors Europe needs to attract more private investment in research and innovation Europe needs more innovative SMEs to create growth and jobs Source: EC, DG Research and Innovation

Proposed funding (million euro, 2014-20) Leadership in enabling and industrial technologies (ICT, nanotechnologies, materials, biotechnology, manufacturing, space) 13 781 Access to risk finance Leveraging private finance and venture capital for research and innovation 3 538 Innovation in SMEs Fostering all forms of innovation in all types of SMEs 619 complemented by 6 829 (expected 15% of societal challenges + LEIT) and 'Access to risk finance' with strong SME focus Source: EC, DG Research and Innovation

Priority 3. Societal challenges Why: Concerns of citizens and society/EU policy objectives (climate, environment, energy, transport etc) cannot be achieved without innovation Breakthrough solutions come from multi-disciplinary collaborations, including social sciences & humanities Promising solutions need to be tested, demonstrated and scaled up Source: EC, DG Research and Innovation

Proposed funding (million euro, 2014-2020) Health, demographic change and wellbeing 8 033 Food security, sustainable agriculture, marine and maritime research & the bioeconomy 4 152 Secure, clean and efficient energy* 5 782 Smart, green and integrated transport 6 802 Climate action, resource efficiency and raw materials 3 160 Inclusive, innovative and secure societies 3 819 *Additional €1 788m for nuclear safety and security from the Euratom Treaty activities (2014-2018). Does not include ITER. Source: EC, DG Research and Innovation

Next steps Ongoing: Parliament and Council negotiations on the basis of the Commission proposals Ongoing: Parliament and Council negotiations on EU budget 2014-2020 (including overall budget for Horizon 2020) Mid 2013: Adoption of legislative acts by Parliament and Council on Horizon 2020 End 2013: Horizon 2020 starts, launch of first calls

International cooperation Enhancing and focusing EU international cooperation in research and innovation: A strategic approach

International Cooperation: A Strategic Approach International cooperation is crucial to address many Horizon 2020 objectives. Principle of general openness: the programme will remain to be the most open funding programme in the world. Targeted actions to be implemented taking a strategic approach to international cooperation (dedicated measures in the 'Inclusive, innovative and secure societies' challenge).

New strategy for international cooperation in research & innovation Need to engage more actively and strategically in international cooperation: Three main objectives: Strengthen the Union's excellence and attractiveness in research and innovation as well as its industrial and economic competitiveness Tackle global societal challenges Support the Union's external policies Combining openness with better targeted actions Strengthened partnership with Member States Stronger contribution of research and innovation to external policies of the Union

Key Novelties General opening of Horizon 2020, but with more restricted approach to automatic funding Targeted activities with scale and scope to achieve impact Multi-annual roadmaps for key partner countries/regions Stronger partnership with Member States Common principles for conduct of international cooperation Strengthened implementation, governance, monitoring and evaluation

Dual approach Openness: Targeted actions: Horizon 2020 open to participation from across the world Revision to the list of countries which receive automatic funding Targeted actions: Thematic: identifying areas for international cooperation on the basis of the Union's policy agenda Differentiation by countries/regions to target partners for cooperation  multi-annual roadmaps for cooperation with key partners

Thematic targeting Starting point: Horizon 2020 societal challenges and enabling technologies Identify areas based on analysis of a set of criteria of the EU and potential partners: Research and innovation capacity Access to markets Contribution to international commitments, e.g. MDG or Rio+20 Frameworks in place to engage in cooperation (EU, international partners and MS) – including lessons learnt from previous cooperation

Instruments Policy instruments Funding instruments more strategic use of S&T agreements with key third countries strategic partnerships (e.g. Russia) more visibility for STI in general cooperation frameworks Funding instruments collaborative projects (third country participation required and/or taken into account in evaluation) networking between existing projects joint initiatives of Union and third countries: coordinated calls, contribution of Union to third country/international organisations, ERA-Net/Art185 Information gathering (multiple sources: ERAWATCH, OECD, UNESCO, EEAS Delegations and Counsellors,…)

Coordination Coordination with other policies and instruments of the Union external policies (including development policy) other policies with strong international dimension, e.g. trade external dimension of other Union policies, e.g. education International organisations and multilateral fora shaping global agendas: UN bodies, OECD bodies, Carnegie forum,… strengthen links with intergovernmental organisations and initiatives: COST, EUREKA, EIROForum

Regional Policy

Cohesion Policy Cohesion Policy NEFMI TPF to reduce regional disparities in Europe terms of income, wealth and opportunities. Europe's poorer regions receive most of the support, but all European regions are eligible for funding under the policy's various funds and programmes. Aim: The European Social Fund (ESF) increasing the adaptability of workers and enterprises enhancing access to employment and participation in the labour market reinforcing social inclusion by combating discrimination facilitating access to the labour market for disadvantaged people promoting partnership for reform in the fields of employment and inclusion. The European Regional Development Fund (ERDF) regional development economic change enhanced competitiveness and territorial co-operation throughout the EU. Funding priorities include modernising economic structures, creating sustainable jobs and economic growth, research and innovation, environmental protection and risk prevention. Investment in infrastructure also retains an important role, especially in the least-developed regions

Objectives of the new Cohesion Policy EU 2020 is the basis of the new programming period, the multiannual financial framework 2014-2020   Concentration of resources on the objectives of Europe 2020 through a common set of thematic objectives to which the funds will contribute; Simplification through more coherent planning and implementation arrangements; Focus on results through a performance framework and reserve; Reduce the administrative burden for beneficiaries and managing authorities.

Coherence of EU- and National Strategies EU2020 headline goals NRP priorities SROP programmes Reducing study time overhang and drop out rates Improving foreign language skills Raising the number of engineering and IT graduates Developing the vocational training system and strengthening its labour market relevance Raise R&D expenditure to 1.8% of GDP 4.1.1/B Mentor services 4.1.1/C Regional cooperation 4.1.2/B Support for Teachers training 4.1.2/D Language training 4.2.2/A Innovative research teams 4.2.2/C Future programmes (R&D) 4.2.3. Dissemination and future HR 4.2.5/A Electronic content service 4.2.5/B Electronic content developing Increasing the share of those having completed tertiary level education Increasing employment rate Increasing expenditures on R&D Reducing the share of people living in poverty Increasing the share of renewable energy resources Digital agenda

Reducing regional disparities – improving competitiveness Competitive economy Competitive research The main criteria for competitveness is the existence of competitive enterprises Enterprises cannot be competitive without competitive workforce Competive workforce is highly dependent on higher education trainings and competitve higher education institutions Competitive higher education is based on competitive research Competitive enterprises Competitive higher education Competitive labour force Zürich, 18 July 2013

Funding Sources for RSDI – Hungarian example National Sources Hungarian Scientific Research Fund (OTKA) Research and Technological Innovation Fund (KTIA) EU Funding Framework Programmes for RTD (Horizon2020) CIP Etc. Cohesion Policy Structural Funds ESF ERDF Cohesion Funds Other Sources: Swiss Contribution; EEA financing mechanism, etc.

Expectations of the European Commission Using Cohesion Policy Operative Programmes National Regulations Expectations of the European Commission

Finding synergies between the different type of funds Budgetary sources -Structural funds Publishing complementary calls in regions not eligible for EU funding Structural Funds – FP7 Using ESF and ERDF to prepare institutions to participate in Horizon 2020 National Budget – FP7 COFUND Structural Funds - Structural Funds Harmonizing the content of operational programmes Structural Funds National budget FP7

Lessons learned / best practices A few examples for possible synergies Cohesion policy and national sources Publishing calls in regions not eligible for Cohesion Policy funding– using national sources. (KTIA – SROP 4.2.2.A & SROP 4.2.2.C) Cohesion Policy and FP7 European Social Fund based measure aiming at integrating Hungary into the European Research Area – increase involvement in FP7 calls. (SROP 4.2.2.A & SROP 4.2.2.C) Creating a national equivalent of a European Event using the Cohesion Policy funds – Researchers Night – SROP 4.2.3

Thank you for your attention!