Financing RTD and Innovation Financing RTD and Innovation in the enlarged European Union - in the enlarged European Union -

CONFERENCE “FINANCING GROWTH AND COHESION CONFERENCE “FINANCING GROWTH AND COHESION IN THE ENLARGED EU”IN THE ENLARGED EU”

Mr Louis BELLEMINMr Louis BELLEMINHead of Unit RTD-M3, European Commission, Directorate General for Head of Unit RTD-M3, European Commission, Directorate General for

ResearchResearch

Competition aspects and Structural policiesCompetition aspects and Structural policies

Directorate M - Investing in Research and Links with other Community Directorate M - Investing in Research and Links with other Community policiespolicies

Workshop 1: Financing research, technological development and innovation in the Workshop 1: Financing research, technological development and innovation in the EU - developing and financing institution-building in the Member States, EU - developing and financing institution-building in the Member States,

Brussels, November 24, 2005Brussels, November 24, 2005

24/11/052 CEC-DG RTD

‘‘3%’ Objective3%’ ObjectiveWhatWhat is at stake? is at stake?

EU-US R&D GapEU-US R&D Gap € 130 bn every year & € 130 bn every year & growinggrowing

– Public Public fundingfunding gap € 25 bn gap € 25 bn– Business Business fundingfunding gap € 105 gap € 105

bnbn

Estimated gainsEstimated gainsif EU reaches 3% in 2010if EU reaches 3% in 2010

– Until 2010 :Until 2010 : +0.25% GDP every year+0.25% GDP every year +2 million jobs over 2004-+2 million jobs over 2004-

1010– After 2010 :After 2010 : +0.5% GDP every year+0.5% GDP every year +400,000 net jobs every +400,000 net jobs every

yearyear

0% 5% 10% 15%

Productquality

Productivity

Jobs

Growth

2010 2030

Long term gains : by 2010 and by 2030

Gains from reaching 3% R&D by 2010 compared to statu quo

24/11/053 CEC-DG RTD

Knowledge and Knowledge and Innovation for Innovation for

GrowthGrowth• Knowledge through investment in R&D, a key driver Knowledge through investment in R&D, a key driver

for economic growth and employmentfor economic growth and employment• European R&D : European R&D :

– contributes to the creation of new markets or production contributes to the creation of new markets or production processes; processes;

– leads to incremental improvements in conventional leads to incremental improvements in conventional industries and technologiesindustries and technologies

– increases the capacity of countries and regions to absorb increases the capacity of countries and regions to absorb new technologiesnew technologies

– an essential part of the innovation processan essential part of the innovation process

24/11/054 CEC-DG RTD

24/11/055 CEC-DG RTD

About the About the RTDRTD Framework ProgrammeFramework Programme

• The Framework Programme has been traditionally a The Framework Programme has been traditionally a policy planning tool for research and policy planning tool for research and technological development at EU level technological development at EU level (an (an instrument to promote transnational co-operation instrument to promote transnational co-operation among RTD players by supporting collaborative RTD). among RTD players by supporting collaborative RTD).

• Financial Instrument to build the European Financial Instrument to build the European Research AreaResearch Area

• Not specifically pointing to Regions - without Not specifically pointing to Regions - without however excluding them as suchhowever excluding them as such

24/11/056 CEC-DG RTD

Specific ProgrammesSpecific Programmes

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

JRC (nuclear)JRC (nuclear)

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

JRC (non-nuclear)JRC (non-nuclear)

EuratomEuratom

+

FP7 2007 - 2013FP7 2007 - 2013

24/11/057 CEC-DG RTD

Financial Instruments in Financial Instruments in support of the Lisbon agendasupport of the Lisbon agenda

RSFF – supported by FP7

Loans for large European RTD actions

RSFF – supported by FP7

Loans for large European RTD actions

SME Guarantee Facility, GIF 1 and GIF 2 – supported by CIP

Guarantees and equity capital for high growth

and innovative SMEs

SME Guarantee Facility, GIF 1 and GIF 2 – supported by CIP

Guarantees and equity capital for high growth

and innovative SMEs

JASPERS and JEREMIE– supported by RSDF

Venture capital and micro credit for SMEs at regional level

JASPERS and JEREMIE– supported by RSDF

Venture capital and micro credit for SMEs at regional level

EIB / EIFEIB / EIF

CIPCIPCIPCIP

EIB / EIFEIB / EIFEIB / EIFEIB / EIF

Lisbon strategy /funding RTD and Innovation:Lisbon strategy /funding RTD and Innovation:key instruments / key challengeskey instruments / key challenges

FPFP

SFSF

MEMBER STATES /MEMBER STATES /REGIONSREGIONS

Key challenges for Research and Innovation:- Innovation Poles / Clusters

- Investment Strategies- Human Resources-SMEs involvement-Access to finance

-Services to businesses- Public / Private Partnerships

-From R&D to technology market take-up

24/11/059 CEC-DG RTD

The Regional Dimension: FP7 vs CIPThe Regional Dimension: FP7 vs CIP

FP7Direct support:• Support to cooperation between

Regional R&D driven clusters (Regions of Knowledge)

• Support for exchange of best practice among regional policy makers (OMC-NET)

• Unlocking Research Potential in Convergence Regions

• Co-funding of national / regional programmes in Human Resources for R&D

• Research in Social and Economic Sciences focused on Cohesion aspects

Indirect support: • Research Infrastructure• SME R&D including Article 169

initiative on High-Tech SMEs• Support to large scale Joint

Technology Initiatives

FP7Direct support:• Support to cooperation between

Regional R&D driven clusters (Regions of Knowledge)

• Support for exchange of best practice among regional policy makers (OMC-NET)

• Unlocking Research Potential in Convergence Regions

• Co-funding of national / regional programmes in Human Resources for R&D

• Research in Social and Economic Sciences focused on Cohesion aspects

Indirect support: • Research Infrastructure• SME R&D including Article 169

initiative on High-Tech SMEs• Support to large scale Joint

Technology Initiatives

CIPInstruments:• Community financial instruments

for SMEs; networks bringing together a variety of stakeholders; innovation take-up projects; support to joint actions of Member States or regions; twinning between authorities at national and regional level

Actions:• Access to finance (risk capital)• support to business services

networks (tech.transfer)• coordination of innovation

programmes (INNO-NET)• support and coordination for

innovation policies• transnational cooperation of

innovation clusters

CIPInstruments:• Community financial instruments

for SMEs; networks bringing together a variety of stakeholders; innovation take-up projects; support to joint actions of Member States or regions; twinning between authorities at national and regional level

Actions:• Access to finance (risk capital)• support to business services

networks (tech.transfer)• coordination of innovation

programmes (INNO-NET)• support and coordination for

innovation policies• transnational cooperation of

innovation clusters

24/11/0510 CEC-DG RTD

FP7 and CIP vs Structural FundsFP7 and CIP vs Structural Funds

• Mutually reinforcing - ComplementaryMutually reinforcing - Complementary• Different tools and approaches - same Different tools and approaches - same

Objectives: success of the Lisbon StrategyObjectives: success of the Lisbon Strategy

FP7 CIP

Structural Funds

24/11/0511 CEC-DG RTD

How the Structural Funds How the Structural Funds can stimulate R&D can stimulate R&D

investment in European investment in European regionsregions

• R&D infrastructure and equipment (conventional R&D infrastructure and equipment (conventional approach- still valid)approach- still valid)

• favouring the establishment of medium and long favouring the establishment of medium and long term R&D and innovation investment strategiesterm R&D and innovation investment strategies

• help create the appropriate framework conditions help create the appropriate framework conditions for stimulating R&D and innovation especially in for stimulating R&D and innovation especially in connecting academia and industryconnecting academia and industry

• stimulate the emergence of clusters of stimulate the emergence of clusters of technological competence / excellence involving technological competence / excellence involving especially SMEsespecially SMEs

24/11/0512 CEC-DG RTD

Different planning Different planning and implementation and implementation

cyclescycles• FP projects will emerge while STRF Programmes will FP projects will emerge while STRF Programmes will

result from planningresult from planning• However planning may be adjusted to overall strategic However planning may be adjusted to overall strategic

research priorities of the Union, at national or regional research priorities of the Union, at national or regional level / medium or long termlevel / medium or long term

• Such planning may maximise chances for emerging Such planning may maximise chances for emerging projects / create the best possible conditions for projects / create the best possible conditions for research and creativityresearch and creativity

• A major contribution to the ERA process / a huge A major contribution to the ERA process / a huge responsibility for the national / regional planning responsibility for the national / regional planning authoritiesauthorities

24/11/0513 CEC-DG RTD

How to ensure complementarity How to ensure complementarity between FP7 and the New between FP7 and the New

Structural FundsStructural Funds

• Need for fine tuning of Need for fine tuning of national and regional national and regional Research investment prioritiesResearch investment priorities at short, medium at short, medium and long term in the future SF Strategic Reference and long term in the future SF Strategic Reference Frameworks / Operational Programmes Frameworks / Operational Programmes

• Guiding principlesGuiding principles: the 7th Framework Programme : the 7th Framework Programme (2007-2013) proposals, the developing ERA (2007-2013) proposals, the developing ERA process, the 3% Action Plan, and of course the process, the 3% Action Plan, and of course the Strategic Guidelines for CohesionStrategic Guidelines for Cohesion

• main responsibility lies with the national /regional main responsibility lies with the national /regional authoritiesauthorities

14 CEC-DG RTD24/11/05

Net linksNet links

• http://europa.eu.int/invest-in-research/http://europa.eu.int/invest-in-research/

Investing in European Research WebsiteInvesting in European Research Website• Information on research programmes and projects:Information on research programmes and projects:

http://www.cordis.luhttp://www.cordis.lu• 7th Framework Programme: 7th Framework Programme:

http://europa.eu.int/comm/research/future/index_en.cfmhttp://europa.eu.int/comm/research/future/index_en.cfm• http://http://www.cordis.lu/era/regions.htmwww.cordis.lu/era/regions.htm (Regional Dimension of the (Regional Dimension of the

ERA)ERA)• http://www.innovating-regions.orghttp://www.innovating-regions.org/ / (The IRE Network, Innovating (The IRE Network, Innovating

regions in Europe)regions in Europe)• RTD info magazine:RTD info magazine:

http://europa.eu.int/comm/research/rtdinfo/http://europa.eu.int/comm/research/rtdinfo/• Information requests:Information requests:

research@cec.eu.intresearch@cec.eu.int