Germán ESTEBAN MUÑIZ Industrial Technologies DG Research and Innovation

1. Horizon 2020 Article 185, Article 187 and cPPPs Ljubljana, 29th November 2013 Germán ESTEBAN MUÑIZ Industrial Technologies DG Research and Innovation

2. Overview: • Public-Public Partnerships (P2Ps), Article 185 TFEU • Joint Technology Initiatives (JTIs), Article 187 TFEU • Contractual PPPs (cPPPs)

3. “Partnering in Research and Innovation”COM(2011) 572 • P2Ps:Public to Public • - Increase efficiency ‐ reduce fragmentation and avoid duplication • - Work together ‐ co‐operation between EC and MS, where MS steer • Strategic Research Agenda and activities • - Leverage investments ‐ impact areas of common interest • - Help Europe to become global partner • PPPs: Public‐Private‐Partnerships • - Solve problems jointly with industry • - Strengthen European industrial leadership • - Facilitate prioritisation of R&I in line with industry needs • - Leverage research and innovation investments

4. Legal basis Article 185 TFEU • Article 185 TFEU (ex Article 169 TEC): • “In implementing the multiannual framework programme, the Union may make provision, in agreement with the Member States concerned, for participation in research and development programmes undertaken by several Member States, including participation in the structures created for the execution of those programmes” • - Participating Member States are the driving force • - Commission proposes formally to Council and Parliament • (Commission “designs” the proposal and IA !) • - Parliament and Council ”ordinary legislative procedure” • - Economic and Social Committee is consulted

5. Public-Public partnerships in Horizon 2020 (Art.20 Commission Proposal) 1. Horizon 2020 shall contribute to the strengthening of public-public partnerships where actions at regional, national or international level are jointly implemented within the Union. Particular attention shall be paid to joint programming initiatives between Member States. 2. Public-public partnerships may be supported either within, or across, the priorities set out in Article 5(2), in particular through: (a) an ERA-NET instrument …. (b) Union participation in programmes undertaken by several Member States in accordance with Article 185 TFEU. …

6. Art. 185 TFEU in Horizon 2020 (Art.20 Commission Proposal) • For the purposes of point (b) such initiatives shall only be proposed in cases where there is a need for a dedicated implementation structure and where there is a high level of commitment of the participating countries to integration at scientific, management and financial levels. In addition, proposals for initiatives referred to in point (b) shall be identified on the basis of all of the following criteria: • (a) a clear definition of the objective to be pursued and its relevance to the objectives of Horizon 2020 and broader Union policy objectives; • (b) clear financial commitments of the participating countries, including prior commitments to pool national and/or regional investments for transnational research and innovation; • (c) the added value of action at Union level; • (d) the critical mass, with regard to the size and the number of programmes involved, the similarity of activities and the share of relevant research they cover; • (e) the efficiency of Article 185TFEU as the most appropriate means for achieving the objectives.

7. Art.185 Initiatives Existing InitiativesAll 5 (AAL, EUROSTARS, EDCTP, EMPIR and BONUS) plan successor programmes based on Art. 185 under H2020 (BONUS comes later) • No proposalsbeforeGeneral Agreement on Horizon 2020 • Adoption of the Commission Proposals for AAL, EUROSTARS, EDCTP, EMPIR on 10 July Potential New Initiatives • No Proposals before Adoption of Horizon 2020 • "Geoscience" and "PRIMA" – need for a clearly defined joint programme proposal • Joint Programming Initiatives: Possibility of support under Article 185 (e.g. Neurodegenerative, Agriculture) - Only where SRA demonstrates capacity for significant collaboration and necessary scale and scope for full integration of national programmes  Important: Rules for Participation of Horizon 2020 will apply

8. Public Private Partnerships Article 19 - Public-private partnerships Horizon 2020 may be implemented through public-private partnerships where all the partners concerned commit to support the development and implementation of research and innovation activities of strategic importance to the Union's competitiveness and industrial leadership or to address specific societal challenges.

9. Article 19 Public-private partnerships Public-private partnerships shall be identified in an open and transparent way based on all of the following criteria: • the added value of action at Union level; • the scale of impact on industrial competitiveness, sustainable growth and socio-economic issues; • the long-term commitment from all partners based on a shared vision and clearly defined objectives; • the scale of the resources involved and the ability to leverage additional investments in research and innovation; • a clear definition of roles for each of the partners and agreed key performance indicators over the period chosen.

10. Why Public-Private Partnerships? • To solve problems together with industry • To strengthen European industrial leadership • To support R&I initiatives in line with the Europe 2020 objectives and industry needs • To translate research into innovation • To increaseindustrycommitment to joint objectives

11. Two types of PPPs • 'contractual' PPPs: annual ring fenced budget for participation in normal calls, based on an industry developed Strategic Research Agenda • Joint Technology Initiatives: like the 'contractual PPPs' but ring fenced budget over 7 years and strong commitments of industry outside calls

12. PPPs for H2020 mentioned in the COM(2013) 494 10th July • Continuation of existing JTIs/JUs • Continuation of existing "contractual" PPPs • Factories of the Future, Energy-efficient Buildings, Green Vehicles, Future Internet • New initiatives under development: • JTI under preparation: Bio-based industry • New contractual PPPs under preparation: Sustainable process industry (SPIRE), Photonics, Robotics

13. Why does the EC build JTIs ? • Strategic importance of the addressed domains • Risk of market failure • Added value at Union level • Scale of impact on industrial competitiveness and sustainable growth • Long-term industry commitment • Inadequacy of existing Community instruments

14. JTIs in H2020 • Joint Technology Initiatives (JTIs), implemented as Joint Undertakings (Art. 187 TFEU) • Clean Sky • Innovative Medicines Initiative (IMI) • Fuel Cells and Hydrogen (FCH) • ARTEMIS and ENIAC (to be merged into ECSEL) • New: Bio-based Industries JTI

15. Joint Technology Initiatives (JTIs) • PPPs Implemented through Joint Undertakings with public and private membership (EU bodies) • In fields of major European public and industrial interest, with large scale and long term goals • Lengthy process to set them up • Specific solutions outside FP rules

16. What is expected from JTIs ? (I) • A contribution to structure and build an internal market for innovative products and services • Mitigate risks linked to the outsourcing of research activities and maintain of longer value chains • Costs saving by allowing for a longer cooperation of competitors over the innovation chain

17. What is expected from JTIs ? (II) • Facilitatethe timely deployment and commercialisation of new technologies and products in key sectors • Pool resources to maintain and create a well trained workforce and sectorial creativity • Overcome fragmentations, create new synergies, and enhance the translation of scientific leadership into industrial advantages

18. What about Contractual PPPs? • - Earmarked budget is only indicative • - Industry proposes strategy and advises on WPs • - Commitology as usual under Horizon 2020 • - EC manages the programme • - Framework Programme rules for participation • - Industry commitment via Partnership Agreement

19. Industry EU ContractualPPPs Common objectives Cross-sectorialimplementation Activities Open to all IMPACT Jobs, growth, social benefits

20. cPPPs in H2020 • Contractual PPPs, implemented through WP based on industrial roadmaps Contractual agreements set out objectives, commitments and outputs • Factories of the Future • Energy-efficient Buildings • Sustainable Process Industry (SPIRE) • Green Vehicles • Future Internet (focusing on 5G) • Robotics • Photonics • High-performance Computing

21. Experience with cPPPs: • Public Private Partnerships (PPPs) have been identified as useful and effective instruments to generate critical mass and leverage private investment. • To implement R+I activities of strategic importance • High involvement of industry, providing effective translation of research into the marketplace (bridging the valley of death) • Suitable instrument for an innovation oriented programme

22. Implementation of "contractual" PPPs - Industry has a leading role in defining research priorities - Ad-hoc Industrial Advisory Group advises on implementation - Multi-annual Roadmap allows long-term investment plans - Pre-defined budget ensures continuity - More emphasis on relevance of industry and impact - Focused on enabling industrial technologies - Increased use of SME-friendly instruments and demonstration

23. Particularities of the cPPP calls • Involvement of industry in the preparation of the WP • Added value from (and for) industrial stakeholders • High involvement of experts from industry in the evaluation process (> 50%) • One stage evaluation to reduce time-to-grant • Many DEMO topics • Exploitation of resultshas a very high priority • subject to the same rules and regulation than other FP7/H2020 call

24. What are the benefits? • Long-term commitments and strategies • Increased efficiency • Covering whole value chain and interrelated sectors • High level SME participation • Expanding technological competencies and skills • Shortening time to market

25. Thank you for your attention! Germán ESTEBAN MUÑIZgerman.esteban-muniz@ec.europa.eu tel: +32-2-29 91568