Public Private Partnerships in research

As part of the European Economic Recovery Plan, the Commission has launched in 2009 three Public-Private Partnerships (PPPs). The three PPPs represent a powerful means of boosting research efforts in three large industrial sectors - automotive, construction and manufacturing - which have been particularly affected by the economic downturn and where innovation can significantly contribute towards a more green and sustainable economy.

Interim Assessment of the Research PPPs

In 2011 the PPPs a group of Experts did a first interim assessment of the three running research PPPs established. The overall result of this assessment is positive, the initial signs are good and the research PPPs are seen as a useful scheme for organising Research and Innovation topics with direct industrial utility.

The PPPs have all been successful in engaging top industrial companies, SMEs and research organisations within Europe, increasing significantly the large industry and SME participation, suggesting that they are seen as relevant to the needs of industrial companies while also focusing on pertinent research issues.

Nevertheless, to meet the needs of industry and in particular to engage new organisations in the process, further work needs to be undertaken. The Group of Experts in charge of the Assessment formulated five main recommendations. Each recommendation has an associated set of actions which are further detailed in the report (PDF version, 720KB).

The Commission and the industrial partners work intensively together to develop the implementation plans for the three partnerships:

• "Factories of the Future" initiative for the manufacturing sector (€1.2 billion for R&D);
• "Energy-efficient Buildings" initiative for the construction sector (€1 billion for R&D); and
• "Green Cars" initiative for the automotive sector worth a total of €5 billion, of which €1 billion is for research activities.

The Commission foresees to provide a contribution of 50% to the total R&D budget from the budget of the 7th Framework Programme, with matching investment coming from the private sector.

In the PPP approach, there are the following advantages:

• renewed confidence to invest in long-term research even when faced with short-term economic problems;
• a leading role for industry, including SMEs, in the definition of the strategic priorities and the implementation of the research;
• a multi-annual integrated work programme with a pre-defined budget, ensuring continuity and allowing industry to make long-term investment plans,
• a cross-thematic approach going from basic and applied research through to validation and large-scale demonstration, with an increased emphasis on impact and exploitation;
• increased opportunities to support innovation in SMEs; and
• a single-stage submission of proposals leading to a faster evaluation process and time to contract.