SYNERGIES BETWEEN
EUROPEAN STRUCTURAL AND INVESTMENT
FUNDS (ESIF)
AND
HORIZON 2020 (H2020)
ON INNOVATION PROCUREMENT
Dr. Vassillis Tsanidis
Policy Officer/Seconded National Expert
European Commission
DG CNECT
Innovation Unit
Horizon 2020
Funding Instruments
in support of
Innovation Procurement
PCP co-fund actions
Preparation Activities
Execution of the joint procurement
Validation/comparison of the
performance of the competing PCP
solutions against jointly defined
criteria in real-life operational
conditions
Dissemination/exploitation of
results
70% flat co-funding rate
PPI co-fund actions
 Preparation activities
 Execution of the Joint Procurement
 Early adoption of the Innovative
Solution
 Conformity Tests if needed
 Dissemination/exploitation of
results
20% flat co-funding rate
Participation requirement
Minimum 3 independent participants from
3 different Member States or Associated
Countries, of which minimum 2 public
procurers (buyers group) from 2 different
Member States or Associated Countries
Public procurers are contracting authorities or contracting entities as defined by
the EU public procurement directives
Buyers group & Lead procurer
 Buyers group
Procurers that provide the financial commitments to undertake the PCP
procurement
Sole participants can be also eligible if the minimum conditions are met by the legal
entities forming the sole participant (e.g. European Research Infrastructure Consortia,
European Groupings of Territorial Cooperation)
 Lead procurer
Public procurer appointed by buyers group to lead and coordinate the PCP .Can be
one of the procurers of the buyers group or another contracting authority not part of the
buyers group
PCP/PPI co-fund actions - Participants
Beneficiaries that undertake together
the PCP/PPI co-fund action tasks
The Buyers
Group
The Lead
Procurer
ONE JOINT PCP
 In the proposal, the consortium shall have already identified one concrete procurement
need as proposed focus for the PCP that is identified as a common challenge in the
innovation plans of the buyers group and requires R&D!
 One joint call for tender published EU wide
 One joint evaluation of offers
 One lead procurer awarding all contracts in the name and on behalf of all
procurers in buyers group
 Each winning tenderer gets: 1 framework agreement to participate in the PCP + one
specific contract per PCP phase (solution design, prototyping, testing)
 One joint total budget (grouping financial commitments of all procurers in buyers group)
from which all R&D providers are paid
 But, actual payments can be carried out centralised or distributed
 Either all R&D providers paid by the lead procurer
Or
 each R&D provider paid pro rata by each procurer in the buyers group according to the
share of each procurer's contribution to the common pot
ONE JOINT PPI
 In the proposal, the consortium shall have already identified one concrete procurement
need that is identified as a common challenge in the innovation plans of the buyers group
and does not require R&D!
 One joint call for tender published EU wide (unless PPI procures limited set of
prototypes / test products developed during PCP, then negotiated procedure
without publication foreseen in public procurement directives possible)
 One joint evaluation of offers
 But contract award can be centralised or distributed
 Either one lead procurer awarding all contracts to all suppliers on
behalf of all procurers in the buyers group
Or
 one lead procurer only awarding a framework contract with lots (lots
per procurer) to each supplier, and each individual procurer awarding
(a) specific contract(s) for his lot(s) to the supplier(s) delivering the
solution(s) he buys
This means same core functionality and performance characteristics for solutions
procured by all procurers, but possible additional local functionality for each
procurer
 Also payments can be centralised or distributed
How much for PCP and PPI in 2014-2015
2014-2015: Horizon 2020: €130-140 million*
 9 areas expect to cofund PCPs
 1 in e-Health, 6 in ICT, 1 in security, 1 in research infrastructure
 6 areas expect to cofund PPIs
 1 in e-Health, 3 in ICT, 1 in Transport, 1 in research infrastructure
 11 areas expect to support networks of procurers preparing future PCPs/PPIs
 1 in bioeconomy, 4 in Energy, 2 in Climate, 2 in ICT, 1 in security, 1 in research
infrastructure
+ Galileo/GNSS activities + possible Geant research infrastructure procurements
* Depends on actual take-up/proposals received
For comparison (funding in previous years)
2013: € 94 million
2011-2012: € 42,9 million
2009-2010: € 4,5 million
2015 Calls for PCP cofund actions
• ICT LEIT Work Program
•
ICT-24(d): Robotics for healthcare sector (€ 5M, 2015)
•
ICT-8(a): Boosting public service productivity via cloud computing (€ 9M, 2015)
•
ICT-36: Call open to any area of public interest needing ICT based solutions (€ 4M, 2015)
• Health Societal Challenge Work Program
•
PHC 27: Selfmanagement of health and disease and patient enpowerment supported by
ICT (€ 15M, 2015)
• Security Societal Challenge Work Program
•
DRS 18: Interoperable next generation of broadband radio communication system for
public safety and security (no predefined max budget for PCP cofund proposals, 2015)
• Research Infrastructrure Work Program
•
INFRASUPP2(b): Scientific instrumentation for research infrastruct. (part of € 14M, 2015)
•
EINFRA8: Geant – novel telecom and Internet technologies (part of € 25M, 2015)
2015 Calls for PPI cofund actions
• ICT LEIT Work Program
•
ICT-8(b): Boosting public service productivity/services via cloud computing (€ 13M, 2015)
•
ICT-20(d): ICT technologies for better human learning (€ 10M, 2015)
•
ICT-27(b): Photonics – software defined optical networking technologies and services for
National Research and Education Networks (€ 5M, 2015)
• Health Societal Challenge Work Program
•
PHC 29: eHealth services (€ 10M, 2015)
• Transport Societal Challenge Work Program
•
MG 8.3: Transport Infrastructure (€ 13M, 2015)
• Research Infrastructrure Work Program
•
INFRASUPP2(c): Scientific instrumentation for research infrastructure (part of € 14M,
2015)
2015 Calls for Coordination and Support Actions
• ICT LEIT Work Program
ICT-26(c): European cities focusing on wide deployment/PPI of SLL lighting solutions
(part of call for 3 CSAs for max total of € 5M, 2015)
Other calls for CSAs in other areas of ICT that can address PCP/PPI, for example:
•
ICT-30(b): CSAs to develop ecosystem for Internet of things that could address also PCP
(part of call for 3 CSAs for max total of € 5M, 2015)
•
ICT-7(c): CSAs to support adoption of cloud computing (€ 2M, 2015)
•
• Energy Societal challenge Work Program
•
EE 7-2015: Enhancing the capacity of public authorities to plan, finance and implement
sustainable energy plans & policies e.g. in buildings, mobility (part of big call, € 1,5/2M
per project)
•
EE 17-2015: Targeting min 25% higher-than available energy performance levels
b) Preparing and supporting procurements by large buyers groups
(no max total budget, part of big call, € 1,5/2M per project)
• Research Infrastructrure Work Program
•
INFRASUPP2-2015 (a): Exploring future use of joint PCP and PPI in research infra (part of
€ 14M call, 2015)
Support of
Innovation Procurement
in the ESIF context
Why Innovation Procurement at Regional Level ?
……it is a win-win situation for

Regions/ Public Authorities

Acquire value for money solutions that realise concrete quality and efficiency improvements
to public services in the region

Improve the local innovation ecosystem as stronger local public sector demand for innovative
solutions attracts additional financial investments into the region and combats relocation of
innovative companies to other parts of the world

Enhance the technical know-how of the Region

Innovators
•
Can get first client for new product (lead customer)
•
Shorten time to the market (because of earlier customer feedback)
•
Wider commercialization opprtunities (because they obtain the IPRs)
Cohesion Policy may support measures in the
framework of the Operational Programs to:

Foster innovation through public procurement
•
•
TO 1 (IP1B) Strengthening research, technological development and innovation
Target group: public sector

Foster better meeting of public needs
TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure
TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and
e-health
TO 4 (all IPs) supporting the shift toward a low –carbon economy in all sectors
TO 5 (all IPs) promoting climate change adaption, risk prevention and management
TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency
TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures
Target group: town planners, transport, environment, health etc. ministries – ERDF,
Cohesion Fund and ESF)

Foster more innovative public procurement procedures and administrative
capacities
TO 11 (IP11) Enhancing institutional capacity and an efficient public administration
TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and ehealth Target group: procurement officers
Cohesion Policy may also support:
 Major projects / Joint Action Plans in cooperation with other
Regions and key players in the Cohesion Policy
 Coordination, Networking and Preparation activities for the
implementation of a PCP and/or PPI
through European Territorial Cooperation Programs
COORDINATION AND SUPPORT ACTIVITIES IN THE
FRAMEWORK OF THE ETC PROGRAMS
EUROPEAN TERRITORIAL COOPERATION PROGRAMS
Specific calls on
the Coordination
and Support
Activities for
future Innovation
Procurements
Encouragement of
implementation of
Coordination and
Support Activities for
future Innovation
Procurements in the
framework of relevant
Project Proposals
Encouragement of
the establishment of
EGTCs that may
implement
in the future
joint Innovation
Procurements
PCP/PPI IN THE
FRAMEWORK OF THE OPs /ROPs
(REGIONAL)OPERATIONAL
PROGRAMME
PCP/PPI UNDER A SPECIFIC THEMATIC
OBJECTIVE.
BUDGET ALLOCATION FOR SPECIFIC
CALLS FOR PROPOSALS BY THE MAs
ON PCP/PPI
Example of the Italian Regions
- In the previous programming period specific
calls on PCP were launched with reference to
related priority axis of each respective Regional
Operational Program -
HORIZONTAL PRESENCE - AFFECT ALL
THEMATIC OBJECTIVES/INVESTMENT
PRIORITIES.
NO SPECIFIC CALLS FOR PROPOSALS
BY THE MAs ON PCP/PPI.
PCPs/PPIs are implemented as projects in
the framework of relevant calls for project
proposals launched by the MA of each
respective OP
Possible Synergies
between
the ESIF and H2020 on
Innovation Procurement
SYNERGIES BETWEEN H2020 AND ESIF ON PCP/PPI
WHY?
• BECAUSE:
 The value of support for research, development and innovation
could be further enhanced by combining funding resources
(increase of effects at regional level)
 Procurers could choose for higher ESIF co-funding rates instead
of H2020 co-funding rates' whilst participating to H2020 funded
PCP/PPIs.
 Better communication between "regional development community"
and "Horizon-Science community"
 A regional development scheme through the participation in a
H2020 project acquires a European perspective
CONDITIONS FOR SUCCESS
Include innovation procurement in the RIS3 SWOT and policy
mix.
Build PCP/PPI references into OPs in every relevant thematic
objective.
 Ensure support of public demand driven innovation in the
framework of the European Territorial Cooperation.
Involve MA from the beginning to ensure availability of ESIF &
synchronisation.
GENERAL RULE
IT IS NOT ALLOWED !!!!!!
- To use ESIF and H2020 funding accumulatively to
finance the same cost/expenditure item
- To finance the own contribution of the participant
from H2020 or ESIF
COORDINATION AND SUPPORT
ACTIVITIES
EUROPEAN
TERRITORIAL
COOPERATION
PROGRAMS
ESIF
PART OF THE
PCP/PPI
IMPLEMENTION
(CO-FUND ACTION
CALLS)
COORDINATION
AND SUPPORT
ACTIVITIES
(CSAs)
OR
H2020
OR
H2020
OR
SYNERGIES
WITH THE ESIF
Possible scenario on the execution of a PCP
 In the framework of PCP Cofund action calls, some participants of the
consortium of the buyers group may receive co-funding from the ESIF and
others from H2020.
 This case is applicable only if there is a clear distinction between budgets
offered per OP and between expenditures co-funded by the ESIF (per OP) vs
expenditures co-funded by H2020.
Example - each R&D provider is paid pro rata by each procurer in the buyers group
according to the share of each procurer's contribution to the jointly committed budget.
 To achieve innovation goals in their territory by using ESI Funds procurers
from less developed Regions could receive higher co-funding rates to
participate in a PCP/PPI implemented in the framework of H2020 by/with
procurers from more advanced Regions.
Condition for success : synchronization between the ESIF calls and the
H2020 cofund action calls
Execution of a PCP – Combination of Funds
between the ESIF and H2020
PROCURER A (Less developed Region)
PROCURER A (Less developed Region)
PROCURER
C (Transitional
Region)
PROCURER
C (Transitional
Region)
CO-FUNDS HIS CONTRIBUTION TO THE
CO-FUNDS HIS CONTRIBUTION TO THE
JOINTLY COMMITED BUDGET THROUGH THE
JOINTLY COMMITED BUDGET THROUGH THE
ESIF
ESIF
CO-FUNDS
HIS
CONTRIBUTION
THE
CO-FUNDS
HIS
CONTRIBUTION
TOTO
THE
JOINTLY
COMMON
POT
THROUGH
THE
ESIF
COMMITTED BUDGET THROUGH THE ESIF
CO-FUNDING RATE
CO-FUNDING RATE
up to 85% (for his contribution)
up to 85% (for his contribution)
CO-FUNDING
RATE
CO-FUNDING
RATE
up up
to 60%
(for(for
his contribution)
to 60%
his contribution
EXECUTION
EXECUTIONOF
OFAAJOINT
JOINTPCP
PCP
PROCURER
PROCURERBB (Less developed Region)
CO-FUNDS
CO-FUNDSHIS
HISCONTRIBUTION
CONTRIBUTIONTO
TOTHE
THE
JOINTLY
JOINTLYCOMMITTED
COMMITTEDBUDGET
BUDGETTHROUGH
THROUGHTHE
THE
H2020
ESIF
CO-FUNDING RATE
up to 85% (for
his70%
contribution)
CO-FUNDING
RATE
(for his contribution)
PROCURER D
CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY
COMMITED BUDGET THROUGH THE H2020
CO-FUNDING RATE 70% (for his contribution)
Execution of a PPI – Combination of Funds
between the ESIF and H2020
PROCURER A (Less developed Region)
PROCURER C
Purchases the innovative solution with the
support of the ESIF
Purchases the innovative solution with the
support of the H2020
CO-FUNDING RATE
up to 85% (for his contribution)
FLAT CO-FUNDING RATE
20%(for his contribution)
EXECUTION OF A JOINT PPI
PROCURER B (Transitional Region)
PROCURER D
Purchases the innovative solution with the
support of the ESIF
Purchases the innovative solution with the
support of the H2020
CO-FUNDING RATE
up to 60%(for his contribution)
FLAT CO-FUNDING RATE
20%(for his contribution)
SEQUENTIAL FUNDING
Separate successive and legally/financially not linked
projects with alternating H2020 or ESIF support –
- First PCP and then PPI –
This is an easier way to combine funds with less risk
of (involuntarily) creating double co-funding
scenarios.
Sequential funding can go in both directions:
First ESIF and then H2020 or vice versa.
First PCP (ESIF) to develop and test the innovative
solution and then PPI (H2020) for the deployment of the
innovative solutions developed and tested through PCP
and vice versa (H2020 for PCP and ESIF for PPI)
Example:
A group of Public Procurers from different cities are looking for a new
sustainable public water supply system. It requires R&D. At
first they implement a PCP (Phases 1,2,3) with the support of H2020
and different solutions are developed and tested.
Thereafter they implement a PPI with the support of ESIF/ERDF to cofund the preparation of the call for tender and the purchase of these
new solutions (each MA for the territory covered by its OP).
For more info on Innovation Procurement please
visit the following site:
http://ec.europa.eu/digital-agenda/en/innovationprocurement
If you would like to keep up to date on the latest Member States
initiatives on Innovation Procurement and new upcoming EU funding
opportunities, please subscribe to the PCP/PPI newsletter :
http://cordis.europa.eu/fp7/ict/pcp/newsletter_en.html
Thank you very much for
your attention
Dr. Vassillis Tsanidis
Policy Officer/Seconded
National Expert
European Commission
DG CNECT
Innovation Unit
Vasileios.Tsanidis@ec.europa.eu