European Structural and Investment Funds & ICT investments State of Play

European Structural and Investment Funds

&ICT investments

State of Play

Katja ReppelG.1 CC smart and sustainable growth

& senior experts for smart growth

Regional PolicyRegional Policy

€347 billion in 2007-13

COHESION POLICY =•Regional & Urban Policy:

ERDF, incl. INTERREG, Cohesion Fund (“basic” infrastructures)

•Social Policy: ESFOTHER POLICIES RELATED TO COHESION•Common Agricultural Policy and Rural Development (EAFRD)•Common Fisheries Policy (EMFF)

Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent

on this objective. Regional competitiveness

and employment objective.

Basics on current Cohesion Policy

455 Operational Programmes … and almost as many Managing Authorities

Programmes are more or less 50/50 at national vs. regional level

455 Operational Programmes … and almost as many Managing Authorities

Programmes are more or less 50/50 at national vs. regional level

Disbursed via:

-Grants – to individual recipients

and consortia

-Financial instruments (loans, VC,

guarantees) = €12 billion = around

5.5% of ERDF (in the future: 10%)

-Public procurement: around 46%

= some €160 billion

-Support services, feasibility

studies, platforms & networks …

-Technical assistance

Disbursed via:

-Grants – to individual recipients

and consortia

-Financial instruments (loans, VC,

guarantees) = €12 billion = around

5.5% of ERDF (in the future: 10%)

-Public procurement: around 46%

= some €160 billion

-Support services, feasibility

studies, platforms & networks …

-Technical assistance


Research/Innovation

Environment

Transport

Information societySocial infrastructureEnergy

TourismCultureInstitutional capacity

Planned investments of total ERDF and Cohesion Fund (€ 271 billion):

Unlocking growth potential by promoting research and innovation in all regions:

€ 86 billion for research and innovation, over 25% of total cohesion policy budget:- R&I capacity-building and

infrastructure: over €50 billion- Entrepreneurship: over €8.3 billion- ICT capacities, research and take-

up: over €13 billion- Human capital for innovation: over

€14.5 billion

Unlocking growth potential by promoting research and innovation in all regions:

€ 86 billion for research and innovation, over 25% of total cohesion policy budget:- R&I capacity-building and

infrastructure: over €50 billion- Entrepreneurship: over €8.3 billion- ICT capacities, research and take-

up: over €13 billion- Human capital for innovation: over

€14.5 billion

In less developed regions, ERDF is

the most important source of funding for research and

innovation!


Funds allocated to ICTs in 2007-13: •over EUR 15 billion or 4.4% of the total cohesion policy budget. •Shift in the investment priorities from infrastructure to support for content development, both in the public sector (eHealth, eGovernment, etc.) and for SMEs (eLearning, eBusiness, etc.)

Basics on current Cohesion Policy

Cohesion Policy

"ABSORPTION" PROBLEMS!

"ABSORPTION" PROBLEMS!


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State of Play: Cohesion Policy achievements since 2007

•More than 15 900 cooperation project enterprises – research institutions.

•More than 15 600 Research jobs created. PT used the indicator but did not report achievements for 2011. But 8 MS did not use the jobs indicator, including some which devote significant resources to this thematic area (ES, GR, SI). BG, LV, SK reported zero achievements.

•More than 20 700 ICT projects

•More than 53 100 start-ups

See Strategic Report 2013: http://ec.europa.eu/regional_policy/how/policy/strategic_report_en.cfm#

sr2013


B3 Regions: Regions for Better Broadband connection: spreading good practices of the expert partners relating to broadband implementation in disadvantaged areas and share experience with Managing Authorities and ICT agencies willing to implement successful broadband strategies with Structural Fund support.

PIKE: Promoting Innovation and the Knowledge Economy: to improve regional and local Innovation & Knowledge Economy policies through the exchange and transfer of examples of e-Government and Wireless Broadband good practice, and through the integration of these into the development policies of participating regions.

IMMODI: Making the most of good practice in e-Government and e-health, which contribute to the development of mountain and rural areas. Selected examples are presented at technical and regional workshops, detailed in a published guide and discussed with Managing Authorities in order to transfer them into the regional development programmes of participating regions

Examples for ICT related Cohesion Policy investmentsExamples for ICT related Cohesion Policy investments

INTERREG networks for policy learning in the field of ICT: http://i4c.eu/approved_projects.html

See guide: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/broadband2011_en.pdf


Financial engineering for IT firms:

Cohesion Policy

JOint SmE Finance for INovation (JOSEFIN): To help knowledge-based SMEs in the Baltic Sea region expand internationally, the JOSEFIN project introduced a range of practical instruments designed to support them, including a European counter guarantee and a new risk-sharing model. See: www.josefin-org.eu ERDF contribution: €2.9 million (January 2009 to January 2012)

JEREMIE Holding Fund, Andalucia, Spain: The Innovation and Development Agency of Andalucia has put up a JEREMIE Holding Fund in 2009. The fund has a size of € 235m million (70% from ERDF and 30% from the Ministry of Economy, Innovation and Science of Andalusia). It consists of a MULTI-INSTRUMENT FUND (€ 185m) and a VENTURE CAPITAL FUND (€ 50m). At the end of 2010 the fund had already invested € 68m in 22 enterprises. These investments leveraged a total of €220m of new investment in these companies based on an average co-investment rate of 78% and a multiplier of 4.6, resulting in 3.060 new jobs and supporting 2.500 existing jobs. See: http://www.agenciaidea.es/fondos-reembolsables ERDF contribution: € 164,5 million


Deliver Europe 2020Strengthen partnershipSimplification Focus on results, not spendingMaximise the impact of EU funding

Future of Cohesion Policy 2014-2020


Billion EUR

Less developed regions 164.3

Transition regions 31.7

More developed regions 49.5

Cohesion Fund 66.4

European territorial cooperation

8.9

Of which

Cross border cooperation 6.6

Transnational cooperation 1.8

Interregional cooperation 0.5

Outermost regions and northern sparsely populated regions

1.4

Youth Employment initiative 3.0

TOTAL 325.1


Billion EUR

Less developed regions 164.3

Transition regions 31.7

More developed regions 49.5

Cohesion Fund 66.4

European territorial cooperation

8.9

Of which

Cross border cooperation 6.6

Transnational cooperation 1.8

Interregional cooperation 0.5

Outermost regions and northern sparsely populated regions

1.4

Youth Employment initiative 3.0

TOTAL 325.1

Up to €100 billion for innovation investments bolstering over 150 smart specialisation strategies, Digital growth strategies and NGN Plans


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Thematic objectivesThematic objectives1. Research and innovation2. Information and Communication Technologies3. Competitiveness of Small and Medium-Sized

Enterprises (SME)4. Shift to a low-carbon economy5. Climate change adaptation and risk management and

prevention6. Environmental protection and resource efficiency7. Sustainable transport and disposal of congestion on major

network infrastructure8. Employment and support for labour mobility9. Social inclusion and poverty reduction10. Education, skills and lifelong learning11. Increased institutional capacity and effectiveness of public

administration


Less developed regionsDeveloped regions and

transition regions

60% 20%

6%

44%

Flexibility (different regions present different needs)Special arrangements for the previously convergence regions

Research and Innovation Energy efficiency and renewable energy

SMEs competitiveness

Cohesion Policy

Thematic Concentration… and evermore need to concentrate on investments on themes that enable smart & sustainable growth


Less developed regionsDeveloped regions and

transition regions

60% 20%

6%

44%

Flexibility (different regions present different needs)Special arrangements for the previously convergence regions

Research and Innovation Energy efficiency and renewable energy

SMEs competitiveness + ICT access, quality and use

Transition regions: 60 % concentration (incl. 15% for energy/renewables)

12%Concentration on

"two ormore of the

thematic objectives 1, 2, 3

and 4"

Thematic concentration of the ERDF


Thematic concentration in Cohesion Policy

Innovation

SME competitiveness

ICT

Human CapitalSkills

Mobility

Public sectorInnovation+admin. capacity

Eco-innovation

Broadband

E-commerce

E-government

R&I infrastructures

E-skills

Entrepreneurship

skills

Researchers

New business

models

Energy

Public

procurement of

innovative

solutions

Smart Grids

Open Data


Thematic Objective 2 Thematic Objective 2 translates into

ERDF Investment Priority 2: Enhancing access to + use and quality of ICT

Investment priorities under TO 2:

a) diffusion of broadband and high speed networks, supporting adoption of emerging technologies and networks for the digital economy

b) development of ICT products and services, electronic commerce and increased demand for ICT

c) strengthening the application of ICT for eGovernment, eLearning, eInclusion and eHealth

Ex ante conditionalities:

Next Generation Access

Plan

Strategic policy framework for digital growth (also in RIS3)


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Ex ante conditionality for IP 2bcFinal result of the trilogue:

Thematic objectives

Investment priorities

Ex ante conditionality

Criteria for fulfilment

Enhancing access to and use and quality of information and communication technologies (Broadband target)

(referred to in Article 9(2))

ERDF:

- developing ICT products and services, e-commerce and enhancing demand for ICT

- strengthening ICT applications for e-government, e-learning, e-inclusion, e-culture and e-health

2.1 Digital growth : A strategic policy framework for digital growth to stimulate affordable, good quality and interoperable ICT-enabled private and public services and increase uptake by citizens, including vulnerable groups, businesses and public administrations including cross border initiatives.

A strategic policy framework for digital growth, for instance, within the national or regional smart specialisation strategy is in place that contains:

– budgeting and prioritisation of actions through a SWOT or similar analysis consistent with the Scoreboard of the Digital Agenda for Europe;

– an analysis of balancing support for demand and supply of information and communication technologies (ICT) should have been conducted;

– indicators to measure progress of interventions in areas such as digital literacy, e-inclusion, e-accessibility, and of e-health within the limits of Article 168 TFEU which are aligned with existing relevant sectoral Union, national or regional strategies;

– assessment of needs to reinforce ICT capacity-building.


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Ex ante conditionality for IP 2aFinal result of the trilogue:

Thematic objectives

Investment priorities

Ex ante conditionality Criteria for fulfilment

2. Enhancing access to and use and quality of information and communication technologies (Broadband target)

(referred to in Article 9(2))

ERDF:

–extending broadband deployment and the roll-out of high-speed networks and supporting the adoption of future and emerging technologies and networks for the digital economy

2.2 Next Generation Network (NGN) Infrastructure: The existence of national or regional NGN Plans which take account of regional actions in order to reach the EU high-speed Internet access targets, focusing on areas where the market fails to provide an open infrastructure at an affordable cost and to a quality in line with the EU competition and state aid rules, and provide accessible services to vulnerable groups.

A national and/or regional NGN Plan is in place that contains:

– a plan of infrastructure investments based on an economic analysis taking account of existing private and public infrastructures and planned investments;

– sustainable investment models that enhance competition and provide access to open, affordable, quality and future proof infrastructure and services;

– measures to stimulate private investment.


Investment Priority 1 result of trilogue in July

1. strengthening research, technological development and innovation through:

(a) enhancing research and innovation (R&I) infrastructure and capacities to develop R&I excellence and promoting centres of competence, in particular those of European interest;

(b) promoting business investment in innovation and research, and developing links and synergies between enterprises, R&D centres and higher education, in particular product and service development, technology transfer, social innovation, eco-innovation, public service applications, demand stimulation, networking, clusters and open innovation through smart specialisation and supporting technological and applied research, pilot lines, early product validation actions, advanced manufacturing capabilities and first production, in particular in Key Enabling Technologies and diffusion of general purpose technologies,

What other investment priorities are ICT relevant?What other investment priorities are ICT relevant?



enhancing the competitiveness of SMEs through:

(a) promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms, including through business incubators;

(b) developing and implementing new business models for SMEs, in particular for internationalisation;

(c) supporting the creation and the extension of advanced capacities for product and service development;

(d) supporting the capacity of SMEs to engage in growth in regional, national and international markets, and in innovation processes;



Low-carbon economyLow-carbon economy(4) supporting the shift towards a low-carbon economy in all sectors through:(a) promoting the production and distribution of energy derived from renewable

sources;(b) promoting energy efficiency and renewable energy use in enterprises;(c) supporting energy efficiency, smart energy management and renewable energy

use in publicinfrastructures, including in public buildings, and in the housing sector;(d) developing and implementing smart distribution systems at low and medium

voltage levels; promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multi-modal urban mobility and mitigation relevant

adaptation measures;(e) promoting research in, innovation in and adoption of low-carbon technologies;(f) promoting the use of high-efficiency co-generation of heat and power based on

useful heat demand, 20




State of play in negotiationsPartnership Agreements•Informal drafts received & ISC finalised: 14 MS ( FI, HU, SK, SE, SI, DK, LV, EE, LT, CZ, DE, PL, BG, NL )•ISC by mid-Dec if draft PA sufficiently developed: 10 MS (RO, LU, PT, ES, EL, UK, AT, FR, BE, MT )•No time for informal check: IT, CY, IE, HR •Problems: incomplete, inconsistent, attempts of "business as usual"

Operational Programmes: around 10-15% received as informal drafts – Problems: no intervention logic, X-mas treeing, retro-fitting …

Conclusions: Implement as many different types of measure as possible in support of the Information Society, provided they are in line with the local/regional needs and context


Which fields of specialisation emerge in the RIS3 analysis?

Cohesion Policy

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Regions and MS can indcate envisaged fields fo spacialisation and identify partners for cooperation

Most frequently cited fields of RIS3 are related to:•Energy•Life science•ICT•Environment•Agro-food•Tourism•New materials

Most frequently cited fields of RIS3 are related to:•Energy•Life science•ICT•Environment•Agro-food•Tourism•New materials

European Structural and Investment Funds & ICT investments State of Play

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