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TOPIC : Supply and demand-oriented economic policies to boost robust growth in Europe – Addressing the social and economic challenges in Europe

Topic identifier: TRANSFORMATIONS-14-2018
Publication date: 27 October 2017

Types of action: RIA Research and Innovation action
DeadlineModel:
Opening date:
single-stage
07 November 2017
Deadline: 13 March 2018 17:00:00

Time Zone : (Brussels time)
  Horizon 2020 H2020 website
Pillar: Societal Challenges
Work Programme Year: H2020-2018-2020
Topic Description
Specific Challenge:

Years after the crisis and near-zero interest rates, resilient economic growth is still low in Europe. Boosting economic growth requires concerted actions to simultaneously stimulate supply and demand side economic policies. From the supply side, the “productivity puzzle”, namely the deceleration of productivity growth despite technological advances, has regained the attention of policy and academic communities. With a view to the next decades that will bring far-reaching demographic changes, this situation will become problematic: shrinking working-age populations with fast-increasing numbers of older people and considerations on inter-generational fairness will make strong productivity gains ever more essential. Re-acceleration of productivity growth through creating a strong knowledge base is hence key for maintaining the EU's current economic and welfare position. At the same time, the ways in which knowledge- driven economies work in their national contexts and interact internationally have also changed. Therefore, productivity and growth cannot be addressed without taking into account with greater precision the impact of globalisation on national economies. To understand productivity dynamism, one needs to study its micro foundations (intangible assets, market entry, digitalisation) and the role of public sector intangibles (culture, education, skills) to identify their role in the growth-productivity relationship in Europe.

Availability of data and official statistics for comparative economic research on these challenges is essential. Data provision and its take up in the official statistical systems in Europe is central with a view to supporting policy making. From the demand side angle, weak economic performance may reflect an unusually prolonged shortfall of aggregate demand that may have given rise to what has been called "secular stagnation". Against this backdrop, the question that arises is what government demand policies can do to boost economic growth, and how the fiscal and monetary policy can have a redefined role in this low growth environment.

Scope:

Building on past economic research in the fields of productivity and growth measurement, proposals should analyse the underlying reasons for the "productivity puzzle", together with the impact of globalisation and demographic change on national economies, and the distribution of income flows generated by global value chains (for example by the mobility of intangible assets, the role of of Multi-National Firms). Proposals should also examine the degree to which productivity may be inadequately measured due to data problems and conceptual gaps. Furthermore, attention should be paid to both alternative explanations and the micro and macro-economic underpinnings of growth and productivity in a global context. In this vein, the barriers for low entry and weak dynamism (finance, skills, knowledge diffusion, scaling-up) in European SMEs and start-ups should be elucidated. Understanding the role of the government sector and its intangibles for European growth and productivity dynamism is also important.

Research should pay strong attention to improved or even new measurements and accompanying macro- and firm-level statistics on productivity, intangible assets and global value chains and their interactions. Thus, collaborative statistical and economic research should integrate the new and improved statistics and data in the official statistical system in a sustainable fashion. Along with better measurement and statistics, the combined effects of globalisation and technological change in terms of their distributional impacts through labour market dynamics and innovation remain central questions to be addressed.

Furthermore, proposals should focus on understanding whether the growth stagnation of the past years is truly "secular" or not and, what kind of fiscal and monetary policy tools e.g. interest rate policies, would be well equipped to support growth-enhancing reforms. Proposals should focus on understanding whether demand stabilisation policies have changed since the crisis what the role of fiscal and monetary policies, e.g. the role of balance sheet policies, would be with a view to boosting aggregate demand.

The Commission considers that proposals requesting a contribution from the EU in the order of EUR 3 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

Expected Impact:

This research action will foster new economic policy thinking and bring about new statistical advances concerning how to address the challenges of maintaining productivity in an ageing society with intergenerational fairness, investment, globalisation and macroeconomic policies, and will thereby address key concerns of citizens in Europe. The research will improve the European statistical systems and policy design in key economic areas.

Cross-cutting Priorities:

Socio-economic science and humanities

Topic conditions and documents

1. Eligible countries: described in Annex A of the Work Programme.
A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon 2020 projects. See the information in the Online Manual.

 

2. Eligibility and admissibility conditions: described in Annex B and Annex C of the Work Programme.

Proposal page limits and layout: please refer to Part B of the proposal template in the submission system below.

 

3. Evaluation:

  • Evaluation criteria, scoring and thresholds are described in Annex H of the Work Programme. 
  • Submission and evaluation processes are described in the Online Manual.

4. Indicative time for evaluation and grant agreements:

Information on the outcome of evaluation (single-stage call): maximum 5 months from the deadline for submission.
Signature of grant agreements: maximum 8 months from the deadline for submission.

5. Proposal templates, evaluation forms and model grant agreements (MGA):

Research and Innovation Action:

Specific provisions and funding rates
Standard proposal template
Standard evaluation form
General MGA - Multi-Beneficiary
Annotated Grant Agreement

6. Additional provisions:

Horizon 2020 budget flexibility
 

Members of consortium are required to conclude a consortium agreement, in principle prior to the signature of the grant agreement.

7. Open access must be granted to all scientific publications resulting from Horizon 2020 actions.

Where relevant, proposals should also provide information on how the participants will manage the research data generated and/or collected during the project, such as details on what types of data the project will generate, whether and how this data will be exploited or made accessible for verification and re-use, and how it will be curated and preserved.

Open access to research data
The Open Research Data Pilot has been extended to cover all Horizon 2020 topics for which the submission is opened on 26 July 2016 or later. Projects funded under this topic will therefore by default provide open access to the research data they generate, except if they decide to opt-out under the conditions described in Annex L of the Work Programme. Projects can opt-out at any stage, that is both before and after the grant signature.

Note that the evaluation phase proposals will not be evaluated more favourably because they plan to open or share their data, and will not be penalised for opting out.

Open research data sharing applies to the data needed to validate the results presented in scientific publications. Additionally, projects can choose to make other data available open access and need to describe their approach in a Data Management Plan.

Projects need to create a Data Management Plan (DMP), except if they opt-out of making their research data open access. A first version of the DMP must be provided as an early deliverable within six months of the project and should be updated during the project as appropriate. The Commission already provides guidance documents, including a template for DMPs. See the Online Manual.

Eligibility of costs: costs related to data management and data sharing are eligible for reimbursement during the project duration.

The legal requirements for projects participating in this pilot are in the article 29.3 of the Model Grant Agreement.

 

8. Additional documents:

1. Introduction WP 2018-2020
2. Europe in a changing world - inclusive, innovative and reflective societies WP 2018-2020
3. Dissemination, Exploitation and Evaluation WP 2018-2020

General annexes to the Work Programme 2018-2020

Legal basis: Horizon 2020 Regulation of Establishment
Legal basis: Horizon 2020 Rules for Participation
Legal basis: Horizon 2020 Specific Programme

Submission Service

To access the Electronic Submission Service of the topic, please select the type of action that is most relevant to your proposal from the list below and click on the 'Start Submission' button. You will then be asked to confirm your choice of the type of action and topic, as these cannot be changed in the submission system. Upon confirmation you will be linked to the correct entry point.

To access existing draft proposals for this topic, please login to the Participant Portal and select the My Proposals page of the My Area section.

Type of Action Research and Innovation action [RIA]
Topic Supply and demand-oriented economic policies to boost robust growth in Europe – Addressing the social and economic challenges in Europe - TRANSFORMATIONS-14-2018
Guidance on proposal submission: H2020 online manual
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