EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...

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EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
EC proposal for the next
MFF/smart specialisation
Santiago Donat
Desk Officer and Smart Growth Specialist
DG Regional and Urban Policy

Seminar - iCRAG: Geosciences research for
Europe
26 February 2019

   #CohesionPolicy
   #EUinmyRegion
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
Package of legislative proposals has been proposed by
  the European Commission in May/June 2018
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
Timeline
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
Common Provisions Regulation *
                       governs 7 Funds
                                                            •    European Regional Development Fund
                                                                 (€ 200 billion, incl.€8.4 bn "Interreg")

                                                            •    Cohesion Fund (€ 41 bn, incl.€11bn under
                                                                 CEF2)

                                                            •    European Social Fund Plus (€101 bn)
                                                            •    European Maritime and Fisheries Fund
                                                                 (€6.1 bn)

                                                            •    Asylum and Migration Fund (€ 11.3 bn)
                                                            •    Internal Security Fund (€ 2.5 bn)
                                                            •    Border Management and Visa
                                                                 Instrument (€ 8 bn)

       Not included anymore: European Agricultural Fund for Rural Development (€ 78.8)

*) https://ec.europa.eu/commission/publications/regional-development-and-cohesion_en
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
Total ERDF
 budget:
 €200 bn

    New
 regional
 eligibility
    map
2021-2027
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
Policy objectives

11 objectives are simplified and consolidated to 5:

1. A smarter Europe (innovative & smart economic transformation)

2. A greener, low-carbon Europe (including energy transition, the
   circular economy, climate adaptation and risk management)

3. A more connected Europe (mobility and ICT connectivity)

4. A more social Europe (the European Pillar of Social Rights)

5. A Europe closer to citizens (sustainable development of urban,
   rural and coastal areas and local initiatives)
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
ERDF THEMATIC CONCENTRATION
▪ Maintaining spending in the key areas for growth and jobs

▪ At national level based on GNI per head => flexibility

 For countries       minimum % PO1          minimum % PO2 ("greener,
     with:          ("smarter Europe")         low carbon Europe")
GNI below 75%              35%                         30%
 GNI 75-100%               45%                         30%
GNI above 100%             60%                 PO1 + PO2 min. 85%

▪ 6% of budget to urban development, delivered through local
  development partnerships
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
European Semester country report, Cohesion policy investments in 2021-2027

Minimum for Policy Objective 1 & 2
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
Scope of support from the ERDF
The ERDF shall support (Art. 4 ERDF Regulation):
     • investments in infrastructure;
     • investments in access to services;
     • productive investments in SMEs;
     • equipment, software and intangible assets;
     • information, communication, studies, networking, cooperation,
       exchange of experience and activities involving clusters;
     •   technical assistance.
In addition, the ERDF shall also support:
•   productive investments in enterprises other than SMEs when they involve
    cooperation with SMEs in research and innovation capacities and the uptake
    of advanced technologies under PO1 Smart Growth (a) (i)
•   training, life-long learning and education activities under PO1 (a) (iv);
EC PROPOSAL FOR THE NEXT MFF/SMART SPECIALISATION - #COHESIONPOLICY #EUINMYREGION - ISC ...
A smarter Europe by promoting innovative
    and smart economic transformation

     Market orientation   Digitalisation -
       of research         an innovation
         activities           enabler

                   A smarter
                    Europe

                          Location matters
      Development of
                           for SMEs and
          skills
                             start-ups

   Interregional cooperation in value chains
Key issues for smart specialisation post-2020

• How to better adapt smart specialisation to different regional needs?
• How to broaden innovation and reinforce innovation diffusion?
• How to strengthen links between regional innovation ecosystems and
  national reforms?
• How to strengthen cooperation and internationalisation?
• How to improve links with other EU programmes such as Horizon
  Europe and industrial competitiveness policies?
• How to make smart specialisation more responsive to industrial change
  and technological disruption?
• How to strengthen monitoring and evaluation, lesson learning?
• How to strengthen and embed governance?
• How to promote inclusive growth?
Enabling condition for smart specialisation
   Policy objective           Specific objective        Name of enabling condition
1. A smarter Europe ERDF:                           Good governance of national
by          promoting All specific objectives under or regional smart specialisation
innovative and smart this policy objectives         strategy
economic
transformation

                   Fulfilment criteria for the enabling condition
Smart specialisation strategy(ies) shall be supported by:
1. Up-to-date analysis of bottlenecks for innovation diffusion, including digitalisation
2. Existence of competent regional / national institution or body, responsible for the
   management of the smart specialisation strategy
3. Monitoring and evaluation tools to measure performance towards the objectives of
   the strategy
4. Effective functioning of entrepreneurial discovery process
5. Actions necessary to improve national or regional research and innovation
   systems
6. Actions to manage industrial transition
7. Measures for international collaboration
Thematic S3 Platforms
      3 platforms, 1 goal

•    Joint EC-initiative (DG REGIO,
     GROW, AGRI, ENER, JRC, …)

•    Bottom-up approach
      •   > 100 regions involved
      •   > 25 partnerships under the 3
          platforms
•    Using S3 as a coordination principle
     in strategic EU priority domains
•    Alignment of regional S3
•    Creation of interregional value
     chains → investment projects
•    Alignment of strategic investments
     (public/ private)
Testing new approaches for interregional
  innovation investments

Test new ways to:

• Commercialize and scale-up
  interregional innovation
  projects that can create or
  reshape European value
  chains
• Attract private investment for
  promising innovation projects
• Explore and strengthen
  synergies between different
  EU instruments (ESI funds,
  the Investment Plan, Horizon
  2020, COSME)
S3P Industrial modernisation - 16 partnerships
S3P Agro-food - 5 partnerships
S3P Energy – 6 partnerships

        BIO-             BIOENERGY     MARINE RENEWABLE
      ECONOMY                          ENERGY

        SMART                  SOLAR        SUSTAINABLE
        GRIDS                 ENERGY         BUILDINGS
Moving from learning to commercialisation
and scale-up in interregional partnerships
                               Need to accelerate the work done within the
                                          thematic platforms.

                              The focus will be on projects on higher TRLs (>5/6 TRL).
Support from S3Platform and     The results will feed into preprations for 2021-2027.
     external experts

 Learn             Connect    Demonstrate         Commercialise             Scale-up
Interregional innovation investments
WHAT

Interregional innovation investments through the commercialisation and scaling
up of interregional innovation projects having the potential to encourage the
development of European value chains ('component 5'). (ETC Art 3.5)

HOW MUCH

11.5 % of ETC Resources (i.e., a total of EUR 970m) for interregional innovation
investments (component 5). (ETC Art. 9.2)

HOW

It shall be implemented under direct or indirect management. (ETC Art 16.1)

FOR WHOM

At the initiative of the Commission, the ERDF may support interregional innovation
investments, as set out in point 5 of Article 3, bringing together researchers,
businesses, civil society and public administrations involved in smart
specialisation strategies established at national or regional levels. (ETC Art 61)
Programmes/Funds supporting innovation (1/2)
•   ERDF focus on regional relevance, economic transformation, diffusion of
    existing knowledge & technology to places that need it, based on smart
    specialisation strategies; new interregional innovation investment support
    developing European value chains by helping partnerships cooperate in
    investments in shared S3 priority areas (€226.3bn with minimum thematic
    concentration of 35% to 60% on innovation, digitisation, SMEs)
•   Horizon Europe focus on European research and innovation excellence, the
    generation and exploitation of new knowledge and disruptive, market-creating
    innovations (€100 bn)
•   InvestEU focus on market-based instruments, for strategic investments (€38bn
    (incl. €23 for R&I and SMEs) mobilising €650bn (incl. €415 for R&I, digitisation
    and SMEs)
•   Digital Europe focus on digital transformation via AI, cyber-security, high
    performance computing, advanced digital skills, interoperability, deployment of
    digital solutions in business and administrations, incl. networking of Digital
    Innovation Hubs (€9.2 bn)
•   Single Market Programme focus on improving the functioning of the internal
    market, SMEs' access to markets, favourable business environment,
    competitiveness of sectors, the modernisation of industry and the promotion of
    entrepreneurship (€6 bn, of which €3bn for SMEs)
Programmes/Funds supporting innovation (2/2)
•   ESF+: inclusion, education and skills (notably basic digital skills) to adapt to the current
    and future needs of the economy, health, labour mobility and social innovation (€100 bn)
•   EAFRD: sharing of knowledge, uptake of innovation and digitalisation in agro-food sector
    (€78.8bn)
•   Erasmus+: learning mobility of individuals and cooperation, for education and training,
    creativity and innovation at the level of organisations (€30bn)
•   Reform Support Programme: institutional reform and efficient and service-oriented
    functioning of public administration and e-government (€25 bn)
•   Space Programme: support to space sector, space infrastructures and services
    (Copernicus, Galileo, EGNOS) (€16 bn)
•   Defence Fund: minimising fragmentation and boosting competitiveness and innovation
    of the EU defence industry (€13bn, incl. €4.1 from Horizon Europe)
•   LIFE programme: support demonstrating techniques and best practice in Circular
    Economy, quality of life, climate mitigation and adaptation; and Clean Energy Transition
    that can be replicated and up-scaled in larger programmes (€5.4bn)
•   Creative Europe: competitiveness and innovation capacity the creative and audiovisual
    industry, promote cultural diversity and heritage, support culture-based creativity in
    education and innovation (€1.8 bn)
Synergies
▪ The “Seal of Excellence” allows projects successfully
  evaluated under Horizon Europe to be funded by Cohesion
  Policy without having to pass another selection process, if
  they are consistent with the region’s or the programme’s smart
  specialisation strategy.
▪ On a voluntary basis, and up to 5%, Member States can
  transfer Cohesion Policy resources to another EU instrument
  to fund a project; in this case, the rules of the other instrument
  apply.
▪ The other way around, Member States can also choose to use
  their Cohesion Policy money to finance a project selected
  under another EU budget tool; in this case Cohesion Policy
  rules apply.
▪ Member States can choose to transfer up to 5% of their
  Cohesion Policy resources to the new InvestEU fund.
Thank you!
DEVELOPING SKILLS FOR SMART SPECIALISATION,
  INDUSTRIAL TRANSITION AND ENTREPRENEURSHIP
  ERDF:
  • Innovation management in SMEs
  • Specific skills for (training, re/upskilling) for smart
    specialisation areas in concrete territories
  • Integration of education and training institution in
    innovation ecosystem
  • Skills for higher education to increase commercial
    viability
  Other sources:
  Horizontal skills for smart specialisation like:
  STEM, but also interpersonal skills: communication, emotional intelligence,
  conflict resolution and mediation, team-working/grouping/participatory
  methods, decision making and problem solving
  Personal skills: creativity, cognitive, leadership, learning, presentation,digital
Interregional innovation investments
‘Component 5’ → Implementation

Managed in direct management (i.e. by the Commission or
an executive body) and possibly as well in indirect
management. This will:

• Facilitate the implementation of interregional investment
  projects which have high coordination costs,
• Ensure alignment with EU policies and priorities, and
  enhance complementarities with actions under Horizon
  Europe and the Single Market programme,
• Simplify compliance with state aid requirements.

The instrument could cover third countries in line with the
arrangements foreseen under the Horizon Europe proposal.
Interregional innovation investments
‘Component 5’ → Support

Strand 1 - Financial and advisory support for investments in interregional
innovation projects
•   Supporting partnerships to develop, connect or make complementary use of
    testing and demonstration facilities to accelerate market uptake and scale up
    of innovation solutions in shared smart specialisation priority areas.
•   Managed through support to the development of a portfolio of projects by
    selected partnerships.

Strand 2 - Financial and advisory support to the development of value
chains in less developed regions
•   Increasing the capacity of regional innovation eco-systems in less developed
    regions to participate in global value chains as well as the capacity to
    participate in partnerships with other regions.
•   Strong cohesion dimension creating linkages between less developed regions
    with those in lead regions.
•   Focus both on foreign direct investment-driven value chains and other
    emerging sectors.

                       + learning activities, evaluation and capitalisation
Interregional innovation investments
‘Component 5’ → Governance

• Launch work with broad consultation on priorities.
• Establishment of a dedicated expert group.
   •   The group would be composed of a mix of representatives
       from Member States/regions, other EU institutions, relevant
       stakeholders and representatives of academia.
   •   The role of the expert group would be to support the
       Commission in defining a long-term work programme and
       related calls matching EU priorities with smart specialisation
       strategies.
   •   Calls would be open to any partnership in an identified
       thematic area that brought together regional partnerships
       sharing smart specialisation priorities.
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