The Connected Smart Cities Network and Living Labs - Towards Horizon 2020 - Katja reppel
EU Cohesion Policy: Whats in for LivingLabs? Katja REPPEL Head of Sector for innovationDG Regional policy, Unit for thematic coordination and innovation European Commission
Structure• What does Cohesion Policy do for innovation, in particular ICT?• What changes as of 2014?• Synergies with Horizon 2020?
Basics on current Cohesion Policy€347 billion in 2007-13invested for less well-offregions or citizens ininfrastructure, business,environment and trainingof worker 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 Cohesion and employment objective. Policy
Basics on current Cohesion PolicyCOHESION POLICY• Regional Policy (DG REGIO: Regional Policy) - ERDF: European Regional Development Fund (→ activities) - CF: Cohesion Fund (→ “basic” infrastructures, not for R&I)• Social Policy (DG EMPL: Employment and Social Affairs) - ESF: European Social Fund (→ people / workers)OTHER POLICIES RELATED TO COHESION• Common Agricultural Policy (DG AGRI: Agriculture and RuralDevelopment) - EAFRD: European Agricultural Fund for Rural Development• Common Fisheries Policy (DG MARE: Maritime Affairs and Fisheries) - EMFF: European Maritime and Fisheries Fund Cohesion Policy
Basics on current Cohesion Policy• Shared management • Managing Authorities: • SWOT & impact assessments • manage implementation of Operational Programmes • payments, audits • Commission: • negotiates Operational Programmes • monitors implementation, financial control • approval of major projects See list of Operational Programmes and Managing Authorities: http://ec.europa.eu/regional_policy/atlas2007/index_en.htm Cohesion Policy
Basics on current Cohesion PolicyContributes to unlocking growth potential by promotingresearch and innovation in all regions2007-2013 - € 86 billion for research and innovation,over 25% of total cohesion policy budget:- Focus on R&I capacity-building but also on infrastructure in less developed regions (over €50 billion)- Entrepreneurship: over €8.3 billion- ICT capacities, research and take-up: over €13 billion- Human capital for innovation: over €14.5 billionFor less developed regions, ERDF is the most important source of funding for research and innovationOctober 2011 – latest figures show that about € 50 % billionof € 86 billion has been committed to projects in Research andInnovation
Basics on current Cohesion PolicyFor 2007-2013 the funds allocated to ICTs in 2007-13:• over EUR 15 billion or 4.4% of the total cohesion policy budget.• clear 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.) Cohesion Policy
Examples for ICT related Cohesion Policy investmentsHigh Speed Broadband roll out in Auvergne 2006-9 (10 M€ ERDF)q One of the most sparsely populated regions in France, launched the firsttelecommunications public/private partnership in the country.q EU funding: EUR 10 million ERDF grant to extend high-speed broadbandcoverage to all households.q Goal: extend high-speed broadband coverage to 100% of households. MissionAccomplished: Some 99.6% of lines in Auvergne are now eligible for high-speedbroadband through DSL technology, while the other 0.4% have a satellite option.Computer Literacy Basics for a Lithuanian e-Citizen, 2006-8(EUR 2,694,534)q Provides computer literacy training, in line with the objectives established by thenational Knowledge Society Council, establish Public Internet Access Pointsq Key target groups: people living in remote areas with little access to digitalservices, in particular in rural regions, the elderly and those with disabilities.q Private and public partnership with local municipalities made to reach directlypersons living in district centres and rural areas.q Over 50,400 adults have completed the LIA courses - helping to boost theoverall competitiveness of Lithuania’s economy by upgrading skills. RegioStars award winners 2010: http://ec.europa.eu/regional_policy/innovation/regiostars_en.htm
Examples for ICT related Cohesion Policy investmentsINTERREG networks for policy learning in the field of ICT: http://i4c.eu/approved_projects.htmlB3 Regions: Regions for Better Broadband connection:spreading good practices of the expert partners relating to broadbandimplementation in disadvantaged areas and share experience withManaging Authorities and ICT agencies willing to implement successfulbroadband strategies with Structural Fund support.IMMODI: Making the most of good practice in e-Government and e-health,which contribute to the development of mountain and rural areas. Selectedexamples are presented at technical and regional workshops, detailed in apublished guide and discussed with Managing Authorities in order to transferthem into the regional development programmes of participating regionsPIKE: Promoting Innovation and the Knowledge Economy: toimprove regional and local Innovation & Knowledge Economy policiesthrough the exchange and transfer of examples of e-Government andWireless Broadband good practice, and through the integration of these intothe development policies of participating regions.See guide:http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/broadband2011_en.pdf
Examples for demand side related Cohesion Policy investments for innovation East of England pre-commercial procurement for health care innovations q May 2009: first pre-commercial procurement of an innovative process, material, device, product or service to help meet current health priorities in the region; q ERDF funded initiative: Up to £100,000 was awarded for winning tenders in a first phase with the potential of further financial assistance to develop and evaluate projects in a second phase. q The aim is to provide procurement opportunities for innovative health care businesses and bring the benefits of new innovations and technologies to patients. RAPIDE ERDF Fast Track Network of 12 regions from across the EU Exploring how the public sector can influence innovation. Lead by the Regional Development Agency of South West England (UK), between 2008-2010 selection and adaptation of: 1. Innovation Voucher Schemes 2. Pre-Commercial Procurement projects (PCP) 3. Business Angel Networks 4. Assessment tool for start-ups in incubators 5. Pitching tool (media-based) to bring innovators to investorsSee for CP examples: http://ec.europa.eu/regional_policy/sources/docgener/presenta/projectbook/dg_regio_project_book_en.pdfGood practices database: http://ec.europa.eu/regional_policy/projects/practices/index_en.cfmCOM on smart growth: http://ec.europa.eu/regional_policy/information/pdf/brochures/rfec/2011_smart_growth_en.pdf
Future of Cohesion Policy 2014-2020ü Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth ("the power of the purse")ü Focus on results, not spendingü Maximise the impact of EU funding ("do more with less")ü Strengthen partnershipü Simplification Cohesion Policy
Future of Cohesion Policy 2014-2020ü Thematic concentration to maximise the impact of investment: focus ERDF on R&I + SME competitiveness + low carbon economyü Conditionalities to ensure effective implementation, e.g. research and innovation strategies for smart specialisation (RIS3)ü Common Strategic Framework: coherence acrossfunds (ERDF, ESF, CF, EAFRD, EMFF); clarifysynergies with Horizon 2020 etc. Cohesion Policy
Thematic objectives 1. Research and innovation smart 2. Information and Communication Technologies 3. Competitiveness of Small and Medium-Sized Enterprises (SME)Europe 2020 4. Shift to a low-carbon economy 5. Climate change adaptation and risk management and sustainable prevention 6. Environmental protection and resource efficiency 7. Sustainable transport and disposal of congestion on major network infrastructure 8. Employment and support for labour mobility inclusive 9. Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration Cohesion Policy
How will funding be allocated? Less developed regions/MS Transition regions More developed regions 100 500 15,8 Cohesion Fund¹ 68.7 90 % 450 Less developed regions 162.6 80 11,6 400 Transition regions 38.9 % 70 350 307.1 More developed regions 53.1 European Territorial 11.7 60 300 Cooperation 50 250 Outermost regions and 0.9 sparsely populated areas 40 68,7 200 Total 336.0 % 30 150 72.4¹ €10 billion from the Cohesion Fund will be 20 100allocated to the Connecting Europe Facility 10 50 119.2 0 0 Budget allocation Population covered (in %) (in millions) │ 15 Cohesion Policy
Concentration of ERDF investment resources to maximise the impact Research and Innovation Energy efficiency and renewable energy SMEs competitiveness 6% 60% 20% 44% Developed regions and Less developed regions transition regions Flexibility (different regions present different needs) Special arrangements for the previously convergence regions Cohesion Policy
Thematic Objective & Investment Priority 1: Strengthening RTD and innovationEx ante conditionality:Research and innovation strategy for smart specialisationKey actions: ►Staircase to excellence: R&I Infrastructures, equipment, centres of competence … ►Innovation in enterprises: tech-transfer, take-up & pilots on KETs, demand stimulation … ►Exploit new ideas: clusters, advisory services, new business models, university-business links, … 18
Thematic Objective & Investment Priority 2: Enhancing access to + use and quality of ICTEx ante conditionality: Chapter for digital growth in RIS3 Next Generation Access PlanKey actions: ►Broadband roll-out: Next Generation Access ►eGovernment ►Developing ICT products and services ►Large-scale uptake of ICT-based innovations 19
Thematic Objective & Investment Priority 3: Enhancing the competitiveness of SMEsEx ante conditionality: Small Business Act implementation Late Payment DirectiveKey actions: ►Entrepreneurship, financial instruments, incubation … ►New business models: exploit new ideas, value chains … ►Business advisory services: SME needs oriented … ►Web-tools to facilitate regulatory procedures for SMEs 20
Smart Specialisation ?= Use innovation as driver for = differentiation: focus on competitive structural change + competitiveness, advantages, potential for excellence, emerging opportunities, profile region in= fact-based: all assets + capabilities + global value chains bottlenecks in a region, incl. external perspective & cooperation potential = concentration of resources on= no top-down decision but dynamic priorities, problems and core needs, process uniting key stakeholders promoting critical around shared vision mass/critical potential= all forms of innovation, not only = diversification and place-based technology-driven economic transformation: rejuvenate= ecosystem approach: creating traditional sectors through higher-value environment for change, efficiency of activities, cross-sectoral links, new institutions market niches, KETs, new forms of innovation
R&I Strategies for Smart Specialisation= economic transformation agendas1) Focus policy support and investments on key national/regional priorities, challenges and needs for knowledge-based development (= tough choices)2) Build on each countrys/region’s strengths, competitive advantages and potential for excellence (= critical mass, differentiation)3) Support all forms of innovation4) Get stakeholders fully involved and encourage experimentation and private sector investment5) Evidence-based and include sound monitoring and evaluation systemsFact-sheet:http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/smart_specialisation_en.pdfRIS3 guide: http://s3platform.jrc.ec.europa.eu/s3pguide Cohesion Policy
Guidance materialq RIS3 guideq Incubatorsq Universities & regional developmentq BroadbandSoon available:► Clusters ► Social Innovation► Green growth ► Entrepreneurial spirit► Creativity ► Service innovation► Public procurement for innovation ….Hands-on support:• S3Platform (in IPTS-JRC): peer-reviews, analytical support etc. ( http://ipts.jrc.ec.europa.eu/activities/research-and- innovation/s3platform.cfm)• OECD, World Bank support• Expert advice Cohesion Policy
Guide on Connecting universities to regional growthThe Commission has published a practical guide in this area for:→ providing an analysis of how universities can impact upon regions and how they can be mobilised for regional, economic, social and cultural development,→ illustrating, by examples from around the EU, some of the potential delivery mechanisms that can be used to maximize the contribution of universities to regional growth (e.g. consulting, S&Tparks, spin- offs, involvement in clusters & networks, LivingLabs ….),→ outlining the key success factors in building university /regional partnerships, particularly the drivers and barriers on both sides and how these barriers may be overcome,→ Suggesting pratical tools & processes to overcome barriers and implement partnership & leadership to interconnect the actors in regional innovation systems.See: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/connecting_universities2011_en.pdf
Future EU programmes for R&I and SMEHorizon 2020: from idea to market ; € 80 bn ü R&I to tackle societal challenges: health, environment, EIT etc. ü Leadership in enabling and industrial technologies: Access to risk finance, Innovation in SMEs ü Excellent research base: Fundamental research, mobility, research infrastructuresCOSME: SME competitiveness ; €2.5 bn ü Financial instruments ü Business & innovation support services (Enterprise Europe Network) ü SME internationalisation, entrepreneurship culture, ü Framework conditions, clusters etc.
Combining policies with complementary objectives Common political framework→ Strengthening knowledge & innovation as drivers of growth & competitiveness→ Tackling major societal challenges in the EU 2020 framework→ Bridging the gap between science and the market, through successive stages Horizon 2020 (H-2020)→ Objectives: focus on excellence in R&I, S&T-driven R&D; also industrial competitiveness (incl. SMEs) and societal challenges (climate, energy, food…)→ Project selection: at EU level by competitive calls for proposals and through independent / merit based peer review→ Territorial impact: no pre-defined geographical distribution of funding, but more beneficiaries in the more developed regions Cohesion policy funds (CP)→ Objectives: focus on applied R&I for the purpose of regional socio-economic development, on innovative SMEs and how to build capacities for innovation & growth through an innovation friendly business environment→ Project selection: based on programmes designed / implemented in shared management between EU, national & regional authorities; projects selected at national / regional level on the basis of social and territorial impact criteria→ Territorial impact: pre-defined geographical distribution of funding with larger allocations to less developed regions.
Policy elements facilitating synergies H-2020/CP (1)Same strategic goals: EU 2020 strategySame programming period: easier synchronisation and planningEx-ante-conditionality (new)→ Existence, at national and/or regional level, of research and innovation strategies for smart specialisation (RIS3) for approving Partnership Contracts and Operational Programmes submitted by the Member States.→ RIS3 in line with the National Reform Programme and with features of well-performing national or regional research and innovation systems→ Peer review to assess RIS3 prepared by the national / regional authorities: REGIO & RTD work together, with the assistance of the RIS3-PlatformSame project supported by different funds [Art.55(8), CP Gen.Reg.]→ possible for different expenditures itemsSupport outside of the programme area [Art.60(2), CP Gen.Reg.]→ possible up to 10% (at priority leve)l: useful for enabling combined support from CP & H-2020 to several partners in different countries.
Policy elements facilitating synergies H-2020/CP (2)Simplified costs options under H-2020 & CP (new)→ Similar eligibility rules proposed for simplifying the financial management: lump sums, flat rates & unit costs possible under both policies for funding direct/indirect costs without providing documents proving real expenses.→ Reduction of the administrative burden for the beneficiary managing the same project with a support coming from different funds or managing several projects supported separately by different funds.Enhanced territorial cooperation CP budget share→ 3.1% of total ERDF of which almost 6% for inter-regional cooperation→ that allows to build trans-national linkages between regional innovation actors, building on FP7 RoK (Regions of Knowledge) and RegPot (Research Potential) measures or CIP cluster cooperation or networking of procurers or innovation agencies, but allowing to include less advanced regions in a targeted manner.
Synergies: limits and opportunitiesLimits: o Multi-country approach vs. place-based o Competition for funds vs. geographical pre-allocation o Annual work programmes vs. 7-year-OP o Centralised management vs. implementation by MS/reg. o Research excellence vs. socio-economic developmentOpportunities: ü Regulatory alignments (cost eligibility) ü Horizon: innovation divide actions (ERA Chairs, networks, research infrastructures, …) ü COSME: EEN, cluster & SME internationalisation ü CP: RIS3; combined funding; investments across borders; CSF key actions (capacity-building, innovation in enterprises) Mutual information exchange & nat/reg. coordination bodies?
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