Innovation Union and Horizon 2020

1. Innovation Union and Horizon 2020 Charlotte Andersdotter DG Research and Innovation Innovation Policy Unit

2. Innovation Union: the policy context

3. EU and the rest of the world EU27 Innovation performance compared to main competitors (over a five-year period) Note: For these graph a restricted set of 12 indicators is used.

4. Europe 2020 - 5 headline target EMPLOYMENT75% of the population aged 20-64 should be employed R & INNOVATION3% of the EU's GDP should be invested in R&D A reduction of CO2 emissions by 20% CLIMATE / ENERGYA share of renewable energies up to 20% An increase in energy efficiency by 20% EDUCATIONThe share of early school leavers should be under 10% At least 40% of the younger generation should have a degree or diploma POVERTY20 million fewer people should be at risk of poverty

5. The 7 “Flagship Initiatives”

6. Innovation Union at a glance STRENGHTENING THE KNOWLEDGE BASE 1. Training researchers 2. University ranking system 3. Developing new curricula 4. ERA Framework 5. European Research infrastructures 6. Programmes focusing on EU2020 (HORIZON 2020) 7. Involvement of SMEs in R&I BRINGING IDEAS TO MARKET 8. Forum on Forward Looking Activities 9. EIT to expand its activities 11. Free Venture Capital funds 12. Cross-border matching of innovative firms 13. Review of State aid R&D&I 14. EU Patent 10. New financial instruments for private finance 15. Screening of key regulatory frameworks 16. Modernise standard-setting 17. Pre-commercial and public procurements 18. Eco-innovation action plan 19. European Design Board 21. Knowledge transfer 20. Open access ENSURING TERRITORIAL AND SOCIAL COHESION 22. European market for patents and licensing 23. Safeguard of IPRs 24. Smart Specialisation 25. Focus on Innovation in the next Structural Funds 26. European Social innovation pilot 27. Research programmes on public sector and social innovation 28. Partners consultation on knowledge economy INTERNATIONAL DIMENSION PARTNERSHIPS MONITORING INNOVATION 29. European Innovation Partnerships 33. MS to carry out self assessments 30. Policies for researchers to reside in Europe 31. Scientific cooperation with third countries 32. International agreements on research infrastructures 34. Newindicator for fast-growing companies and monitoring

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8. The first steps in building the Innovation Union

9. What do EU innovation leaders share? • They: • …perform very well in Business R&D expenditures; • …perform well in other indicators related to firm activities; • …have higher scores in Public-private co-publications per million populations (=good linkages between science and enterprises); • …excel in the commercialisation of their technological knowledge (i.e. indicator License and patent revenues from abroad). • …have a balanced national research and innovation system (small variance in performance across all innovation dimensions)

10. Improving “Smart” fiscal consolidation • Fiscal consolidation must preserve sources of future growth: • Education; • R&D; • Innovation; • Smart research infrastructure; • Global market. • =>through growth-friendly Stability and Convergence Programmes;

11. Improving “Smart” conditions • A European Research Area in 2014; • A better performing IPR system; • Faster setting of European standards; • Use public procurement budget to boost innovation; • Remove remaining obstacles to the cross-border operation of venture capital.

12. State of the Innovation Union 2011 In 2011 • Good progress in 30 out of the 34 Innovation Union commitments: • 6 legislative proposals; • Horizon 2020 proposal enacting many IU commitments; • public consultation for completing European Research Area by 2014 In 2012 • the Commission will deliver the ERA Framework and innovation headline indicator. • …and more…

13. Creating better market conditions • A public consultation on a new European Regime for Venture capital funds in June; legislative proposal at the end 2011 • 2 implementing proposals for a unitary Patent protection on 13 April • A “standardisation package” adopted on 1st June • Proposals to exploit public procurement budgets by the end of 2011 (Green Paper launched on the 27th January; pilot call launched in June) • Most Knowledge Transfer actions will be in Work Programme 2012 - So far, facilitating Knowledge Transfer in Framework Programmes & developing set model consortium contract agreements

14. Pooling resources European Innovation Partnerships • Council endorsement in February; • A pilot European Innovation partnership on Active and Healthy Ageing (AHA) has been launched: • Target by 2020: • 2 extra healthy life years

15. Features of the Pilot EIP • Effective stakeholders mobilisation around grand challenges; • Clear need for action, including funding, from Member States (national, regional, local), private sources and the EU; • The pilot has taken dueaccount of existing initiatives and has added value; • Governance hasachieved a well balanced representation; • Its Strategic Implementation Plan has presented a common vision and a set of priority actions;

16. What’s next for EIPs? • For the pilot EIP • Early-’12: Commission proposal for EU support to SIP • June ’12: Council and Parliament support to SIP • New EIP proposals under preparation • Raw materials • Agricultural productivity and sustainability • Smart Cities • Water-efficient Europe • Smart mobility …

17. Content • From FP7 to Horizon 2020 • The structure of Horizon 2020 • What is new and what is remained the same • Focus on the Rules for Participation

18. Lessons from current EU R&I funding • Cross-border pooling of resources • More competition in research • Focus on Excellence • Wide range of training possibilities • Raise of the international attractiveness of EU R&I • Fragmentation • Need for further simplification • Better strategy for innovation • Need to focus resources to address grand challenges • Broaden participation • Clearer agendas

19. Towards Horizon 2020 • 2007 • - 2013 • 2014 • - 2020 Innovation Union • . • R&D • 7FP • Innovation • CIP • R&D&I • HORIZON • 2020 The European Institute for Innovation and Technology

20. What’s going on until December 2013? Design SMEs RSFF Procurement Social Innovation Services Standards Investment readiness Knowledge Transfer

22. Horizon 2020 structure • *729 million€ in MFF proposals for EURATOM 2019-2020 • NB features in 2011 constant prices

23. 1. Excellent Science • To raise the level of excellence in Europe's science base, make Europe an attractive location for researchers and secure Europe's long-term competitiveness: • European Research Council supporting the most talented and creative individuals and their teams to carry out frontier research; • "Future and Emerging Technologies“: collaborative research to open up new and promising fields of research and innovation; • "Marie Curie“ actions, providing researchers with excellent training and career development opportunities; • Research Infrastructures accessible to all researchers in Europe and beyond.

24. 2. Industrial leadership To make Europe a more attractive location to invest in R&I, by promoting activities where businesses set the agenda: • Leadership in enabling and industrial technologies– especially Key enabling technologies (Micro- and nano-electronics; photonics; nanotechnologies; Biotechnology etc); • Access to financefor innovative enterprises, financial instruments in partnership with the European Investment Bank; • Innovation in SME

25. 3. Societal challenges • Actions from research to market with a new focus on innovation-related activities (in the framework of Europe 2020): • Health, demographic change and wellbeing; • Food security, sustainable agriculture, marine and maritime research, and the bio-economy; • Secure, clean and efficient energy; • Smart, green and integrated transport; • Climate action, resource efficiency and raw materials • Inclusive, innovative and secure societies;

26. The proposed budget breakdown

27. What innovation in Horizon 2020? • Horizon 2020 will support every kind of Innovation: • - from R&D activities; • from other activities, including innovative combinations of existing technologies, development of new business models etc. • for non-commercial and/or non-technological applications, i.e. 'social innovation'.

28. Horizon 2020 approach to innovation • 1. Increased support to innovative processes (testing, piloting, demonstration); • 2. Support to innovation “market demand”: • standard; • public procurement, • inducement prizes • bottom-up activities (more flexible call for proposals) • 3. A new SME instrument (on “Leadership in enabling and industrial technologies” e “Societal challenges”; • 4. Broader use of financial instruments with leverage effect (Debt & Equity instruments)

29. Main aim: simplification • SIMPLIFICATION to… • reduce the participants administrative costs; • accelerate all processes of proposal and grant management; • decrease the financial error rate. • How? • Structure: one Programme, better defined objectives. • Rules: One set of rules for the whole Programme.

30. The new Rules for Participation • Simpler cost eligibility and partnering rules; • Cost based reimbursement but broader acceptance of the participants' accounting systems; • Simpler time-recording requirements (i.e. abolition of time-recording obligations for staff full time on an EU project); • Only two reimbursement rates: 100% for research actions, 70% for demonstration, piloting, market replication, programme co-fund actions = No differentiation depending on legal status!; • One method to calculate indirect cost (single flat rate);

31. RfP: audit and checks • Extension of the guarantee fund to all Horizon 2020 actions to reduce: • ex-ante financial capacity checks • number of certificates on financial statements • Ex-post audits limited on a risk-based audit and fraud detection (a maximum of 7% of participants would be subject to audit). • Revised procedures for proposal and project implementation; • TARGET • to reduce the average time to grant by 100 days (to 250)

32. Next steps Ongoing: Parliament and Council negotiations on the basis of the Commission proposal Ongoing: Parliament and Council negotiations on EU budget 2014-202 (incl overall budget for Horizon 2020) N.B. July 2012: Final calls under FP7 to bridge gap towards Horizon 2020 Mid 2013: Adoption of legislative acts by Parliament and Council on Horizon 2020 1 Jan 2014: Horizon 2020 starts, launch of first calls

33. Thanks for your attention! charlotte.andersdotter@ec.europa.eu +32 2 2987798