Promoting Innovation in the European Union: - Seventh Framework Program (FP7) - Competitiveness and Innovation Program (CIP) Mary Kavanagh Science, Technology and Education Counselor European Commission Delegation to the USA Technology Transfer Society, Washington DC, June 2007

Lisbon strategy S&T contributes to the Lisbon objectives: economic growth, employment creation, environmental protection, social challenges: fight poverty, improve human health and quality of life

R&D – Europe and the world EU- 25 USJapan R&D intensity (% of GDP) (3) Share of R&D financed by industry (%) (2) Researchers per thousand labour force (FTE) (3) Share of world scientific publications (%) (3) Scientific publications per million population (3) Share of world triadic patents (%) (1) Triadic patents per million population (1) High-tech exports as a share of total manufacturing exports (%) (3) Share of world high-tech exports (%) (2) Note: (1) 2000 data (2) 2002 data (3) 2003 data

Towards the Seventh Framework Programme (‘co-decision’)

Summary Research: Seventh Framework Program Innovation: Competitiveness and Innovation Program Education: European Institute of Technology

General Introduction to FP-7

The EU’s Seventh Research Framework Programme (FP7, ) FP-7: Seventh Framework Programme for Research and Technological Development The European Union’s main instrument for funding research in Europe between 2007 and 2013 FP7 supports research in selected priority areas

EU Research Framework Programmes Annual Budgets between 1984 and 2013 NB: budgets in current prices. Source: Annual Report 2003, plus FP7 revised proposal

FP7 | The Structure + Ideas – Frontier Research Capacities – Research Capacity People – Marie Curie Actions Cooperation – Collaborative research JRC non-nuclear research Euratom direct actions – JRC nuclear research Euratom indirect actions – nuclear fusion and fission research

FP7 Indicative breakdown (€ million)

Cooperation programme (€ million)

Process and Funding Schemes

Process Work Program (annual):Strategy/ approach, timing and content of calls (topics, funding schemes, budgets etc.) Calls for Proposals (no spontaneous applications) Deadlines for submission Electronic submission of proposals Eligibility Criteria Evaluation Criteria Peer review evaluation by at least 3 experts

Funding Schemes Collaborative projects –Consortia with participants from different countries –New knowledge, technology, products or common resources for research Networks of Excellence –Joint programmes by organisations integrating activities in a given field Coordination and support actions –Networking, exchanges, trans-national access to research infrastructures, studies, conferences, etc. Support to frontier research (ERC) Training and career development of researchers (Marie Curie) Research for the benefit of specific groups (in particular SMEs)

Promoting Innovation

European Technology Platforms Industry-driven, competitiveness-focused European technology platforms Concept Stakeholders, led by industry, get together to define a Strategic Research Agenda on a number of strategically important issues with high societal relevance where achieving Europe’s future growth, competitiveness and sustainable objectives is dependent upon major research and technological advances in the medium to long term.

European Technology Platforms Bottom-up approach with industry in lead Wide stakeholder involvement Flexibility: No ‘one size fits all’ EU Role: facilitating and guiding but not leading or owning Majority of strategic research agendas, where appropriate, taken into account in thematic priorities of FP7 Minority of strategic research agendas lead to ‘Joint Technology Initiatives’

Joint Technology Initiatives Identification criteria include: Added value of European-level intervention Degree and clarity of definition of objective Strength of commitment from industry Scale of impact on industrial competitiveness and growth Importance of contribution to broader policy objectives Capacity to attract additional national support and leverage industry funding Inability of existing instruments to achieve objective

Potential Joint Technology Initiatives Other possible themes to be identified later… Hydrogen and Fuel Cells Aeronautics and Air Transport Global Monitoring for Environment and Security Embedded Computing Systems Innovative Medicines Nanoelectronics

More on SMEs Co-operation Program: Research for the benefit of SMEs Research for SMEs Research for SME associations Encourage and facilitate SME participation across FP7

Risk-sharing finance facility (RSFF) EIB/EC Partnership EU FP7 EIB i2i RISK-SHARING FINANCE FACILITY (reserve to cover risk of EIB lending) Contribution of up to €1 billion +

Risk-sharing finance facility (RSFF) “Doing more with less”: the leverage effect FP7 Contribution: up to €1 billion EIB Contribution: up to €1 billion EIB loans and guaranties: €8-12 billion (average: 10) Additional private investments in research: €16-48 billion (average: 30) x 2 x 4-6 (average: 5) x 2-4 (average: 3) Matching contributionsProvisioning and capital allocation representing 15% to 25% (average 20%) of volume of individual loan Loans representing on average one third of total cost of financed research projects

Risk-sharing finance facility (RSFF) Beneficiaries All legal entities, irrespective of size –SMEs and larger companies –Public and private research organisations (including universities) allowed to borrow –Joint legal entities set up by a consortium including Public-Private-Partnerships

People Program: Marie Curie Industry-academia pathways Industry-academia knowledge-sharing scheme –Embedded in longer-term co-operation between both sectors –Two-way staff secondments/recruitment of experienced researchers from outside the partnership –Organisation of common workshops/conferences, including for researchers from outside the partnership –Salary costs of seconded researchers/recruited experienced researchers –Special measure: specific equipment costs for SMEs

Competitiveness and Innovation Program

CIP Structure: 3 pillars Entrepreneurship & Innovation (EIP) € million incl. € 430 for eco-innovation ICT Policy (ICT) € 730 million Intelligent Energy Europe (IEE) € 720 million EIP committee IEE committee ICT committee

1st pillar: EIP Objectives: Access to finance SME cross-border cooperation Innovation and eco-innovation Entrepreneurship and innovation culture Policy development Main instruments: Financial instruments (equity and loan guarantees) Business support services Projects (clusters, regional innovation) Analysis and monitoring Policy exchange

2nd pillar - ICT Programme Objectives : Single information space Innovation and investment in ICT Inclusive information society Main instruments: Networks for exchange of knowledge Pilot and market replication projects Policy analysis & information

3rd pillar - IEE Programme Objectives: Energy efficiency & rational use of resources (SAVE) New & renewable energy sources (ALTENER) Energy in transport (STEER ) Main instruments: Promotion and dissemination projects Market Replication Projects

How FP7 and CIP complement each other Networks providing innovation support services Within projects In thematic areas Dissemination of knowledge CIPFP7-RTD Innovation clustersResearch-driven clusters Regions Risk capital (start-up and expansion) SMEs guarantee facility SMEs loan securitisation ‘ Risk Sharing Finance Facility’ for large projects and infra- structures (with EIB) Access to finance Actions promoting SMEs’ participation in FP7 Definition of thematic content Specific schemes for SMEs SMEs’ participation in Research Take-up of proven technologies: environmental, ICT and energy-efficiency Research, techno- logical development and demonstration Funding of projects

European Institute of Technology

A Flagship project for excellence in higher education, research and innovation Governing Board – light structure Strategic challenges in interdisciplinary areas “Knowledge and Innovation Communities” : integrated partnerships, universities, research organizations, industry Autonomous, multi-site – expect approx. 6 KICs by 2013 Expected to start 2008 Expected budget Euro 2.4 billion ($3 billion) over 7 years

Information EU research: Seventh Framework Programme: CIP: p/index_en.htm p/index_en.htm RSFF: