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Horizon 2020: Commission proposes €80 billion investment in Research & Innovation to boost growth and jobs

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Brussels, 30 November 2011 – The European Commission has today presented a package of measures to boost research, innovation and competitiveness in Europe.

Commissioner Máire Geoghegan-Quinn has announced Horizon 2020, an €80 billion Programme for investment in research and innovation. Commissioner Androulla Vassiliou has put forward a Strategic Innovation Agenda for the European Institute of Innovation and Technology (EIT), which will receive €2.8 billion of funding under Horizon 2020. In parallel, Vice-President Antonio Tajani has announced a complementary new programme to boost competitiveness and innovation in SMEs, with an additional budget of €2.5 billion. The funding programmes run from 2014 to 2020.

Presenting Horizon 2020, Commissioner for Research, Innovation and Science Máire Geoghegan-Quinn said: "We need a new vision for European research and innovation in a dramatically changed economic environment. Horizon 2020 provides direct stimulus to the economy and secures our science and technology base and industrial competitiveness for the future, promising a smarter, more sustainable and more inclusive society."
For the first time, Horizon 2020 brings together all EU research and innovation funding under a single programme. It focuses more than ever on turning scientific breakthroughs into innovative products and services that provide business opportunities and change people’s lives for the better. At the same time it drastically cuts red tape, with simplification of rules and procedures to attract more top researchers and a broader range of innovative businesses.

Horizon 2020 will focus funds on three key objectives. It will support the EU’s position as a world leader in science with a dedicated budget of €24.6 billion, including an increase in funding of 77% for the very successful European Research Council (ERC). It will help secure industrial leadership in innovation with a budget of €17.9 billion. This includes a major investment of €13.7 billion in key technologies, as well as greater access to capital and support for SMEs. Finally, €31.7 billion will go towards addressing major concerns shared by all Europeans, across six key themes: Health, demographic change and well-being; 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; and Inclusive, innovative and secure societies.

Background

Horizon 2020 is a key pillar of Innovation Union, a Europe 2020 flagship initiative aimed at enhancing Europe's global competitiveness. The European Union is a global leader in many technologies, but it faces increasing competition from traditional powers and emerging economies alike. The Commission proposal will now be discussed by the Council and the European Parliament, with a view to adoption before the end of 2013.
Funding provided by Horizon 2020 will be easier to access thanks to this simpler programme architecture, a single set of rules and less red tape. Horizon 2020 will mean: drastically simplified reimbursement by introducing a single flat rate for indirect costs and only two funding rates - for research and for close to market activities respectively; a single point of access for participants; less paperwork in preparing proposals; and no unnecessary controls and audits. One key goal is to reduce the time until funding is received following a grant application by 100 days on average, meaning projects can start more quickly.

The Commission will make major efforts to open up the programme to more participants from across Europe by exploring synergies with funds under the EU's Cohesion policy. Horizon 2020 will identify potential centres of excellence in underperforming regions and offer them policy advice and support, while EU Structural Funds can be used to upgrade infrastructure and equipment.

€3.5 billion will be devoted to a scaled up and expanded use of financial instruments that leverage lending from private sector financial institutions. These have been shown to be extremely effective at stimulating private investment in innovation that leads directly to growth and jobs. Small and medium-sized enterprises (SMEs) will benefit from around €8.6 billion, recognising their critical role in innovation.

Horizon 2020 will invest nearly €6 billion in developing European industrial capabilities in Key Enabling Technologies (KETs). These include: Photonics and micro- and nanoelectronics, nanotechnologies, advanced materials and advanced manufacturing and processing, and biotechnology. Development of these technologies requires a multi-disciplinary, knowledge- and capital-intensive approach.

Under the Commission proposal, €5.75 billion (+21%) will be allocated to the Marie Curie Actions, which has supported the training, mobility and skills development of more than 50 000 researchers since its launch in 1996.
As an integral part of Horizon 2020, the EIT will play an important role by bringing together excellent higher education institutions, research centres and businesses to create the entrepreneurs of tomorrow and to ensure that the European 'knowledge triangle' is a match for the world's best. The Commission has decided to significantly step up its support for the EIT by proposing a budget of €2.8 billion for 2014-2020 (up from €309 million since its launch in 2008). The EIT is based on a pioneering concept of cross-border public-private-partnership hubs known as Knowledge and Innovation Communities (KICs). Its three existing KICs, focused on sustainable energy (KIC InnoEnergy), climate change (Climate KIC) and information and communication society (EIT ICT Labs), will be expanded with six new ones in 2014-2020.

Funding for the European Research Council (ERC) will increase by 77% to €13.2 billion. The ERC supports the most talented and creative scientists to carry out frontier research of the highest quality in Europe, in a programme that is internationally recognised and respected.

International cooperation will also be further promoted in Horizon 2020, in order to strengthen the EU's excellence and attractiveness in research, to tackle global challenges jointly and to support EU external policies.
The Joint Research Centre (JRC), the in-house science service of the European Commission, will continue providing scientific and technical support to EU policy making on everything from environment, agriculture and fisheries through to nanotechnology and nuclear safety.

Horizon 2020 will be complemented by further measures to complete the European Research Area, a genuine single market for knowledge, research and innovation by 2014.

For further information:

Horizon 2020 website homepage

Innovation Union

Europe 2020

Digital Agenda

CIP Programme

EIT website

 

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