A Guide to EU Structural Funds and ELIXIR Table of Contents 1. Background ............................................................................................................. 1 2. EU Structural Funds and ESFRI Research Infrastructures .................................. 1 3. Overview of EU Structural Funds .......................................................................... 2 4. Suggestions and advice ......................................................................................... 4 5. Finding your managing authority .......................................................................... 4 1. Background EU Structural Funds are a financial instrument of the European Union, which are used to reduce economic disparities between regions. Unlike EU R&D programmes, which are administered by the European Commission in Brussels, the responsibility for managing EU Structural Funds programmes is devolved to Member States and sometimes also to regions within Member States. There is a push from both ESFRI and the European Commission to use EU Structural Funds more to support the construction and operation of Research Infrastructures. Whilst distributed Research Infrastructures face many practical challenges in harnessing EU Structural Funds, there does exist potential for using them for ELIXIR Nodes, particularly in the next period (from 2014 - 2020) when improvements are expected to be approved to the Structural Funds regulation and because there is already a drive by Member States to invest more Structural Funds on research and innovation. All Member States and regions within the European Union are eligible for some Structural Funds. However, in reality the amount that is available and the focus of the funding can vary greatly depending on the GDP of that Member State or region1. Member States are currently in the process of developing their Operational Programmes. The exact timeline for the finalisation of these varies from country to country. However, it is important to engage in this process now if you are to stand a chance of shaping their development and accessing the funds once they are approved. 2. EU Structural Funds and ESFRI Research Infrastructures The current Structural Funds programming period (2007 - 2013) is coming to an end and the negotiation of the next programme (2014 - 2020) is already underway. A budget of €376 billion has been proposed for EU Structural Funds in this period2, although this needs to be agreed by the European Parliament and European Council and so may change. The European Commission has proposed eleven ‘thematic objectives’ 3, which Member States need to pick and choose from when developing their Operational Programmes. ‘Research and Innovation’ is one of these eleven. In addition, Member States are being asked by the European Commission to 1 Interactive map showing regions of Europe and what Structural Funds they are eligible for in the current period: http://ec.europa.eu/regional_policy/atlas2007/index_en.htm 2 EC Proposal: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0496:FIN:EN:PDF 3 11 ‘Thematic Objectives’ are listed on page 26 of the following: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0496:FIN:EN:PDF 1 concentrate funding in support of research and innovation 4. For regions that have a GDP of above 75% of the EU average then 60% of their Structural Funds have to be spent on research and innovation and Competitiveness of SMEs. For regions that have a GDP of less than 75% of the EU average then the target is 44%. The rules on what EU Structural Funds can be spent on are governed by regulation, which is currently being revised. It is expected that this revision will see many improvements including, for example, allowing more funds to be able to be transferred outside of national boundaries than at present. In the current Structural Funds period, several ESFRI Research Infrastructures have already used EU Structural Funds. The Extreme Light Infrastructure (ELI) is an ESFRI pan-European laser facility located in Czech Republic, Hungary and Romania. The majority of the funding for the project has been provided through EU Structural Funds. ELIXIR is more distributed than ELI and so in reality the scope for using Structural Funds to the same extent simply does not exist. However, there are examples of organisations involved in ELIXIR, which have already directly or indirectly benefitted from Structural Funds. CEITEC – Central European Institute of Technology CEITEC is a partner in the Czech ELIXIR Node Application. It is a joint undertaking between the Universities of Masaryk, the Brno University of Technology and four other partners (universities and research institutes) to establish a centre of excellence in life sciences and advanced materials. It has received funding of over €200 million through the European Regional Development Fund. Around 80% of this amount is towards the construction of buildings, labs and equipment, with 20% on staff and running costs. Kajaani Paper Mill and Data Centre The city of Kajaani in Finland used EU Structural Funds to support the conversion of a former paper storage warehouse into a data centre. CSC – IT Center for Science, which is the lead partner in the Finnish ELIXIR Node Application, hosts Finland’s largest super-computing systems in Kajaani and leveraged this funding when establishing this site. 3. Overview of EU Structural Funds EU Structural Funds are administered nationally and Member States define the priorities on which funds are spent. The European Commission (through DG REGIO) must approve Member States’ priorities. Each country develops a series of Operational Programmes, which are the regional or thematic programmes, setting out what the EU Structural Funds can be used for in that country. Managing Authorities are the agencies and bodies (typically government departments), which have responsibility for developing and managing the Operational Programmes. Member States are being encouraged by the European Commission to develop ‘Smart Specialisation Strategies’, which set out more strategically what they invest their Structural Funds in and how these are relevant to the actual needs and skills of that region. Within these ‘Smart Specialisation Strategies’, all regions must show how they address ESFRI Research Infrastructures 5. However, even when Member States prioritise funding on ‘Research and Innovation’, there are likely to be many 4 http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2014/proposals/regulation/erdf /erdf_proposal_en.pdf (Page 11) 5 http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/smart_specialisation_en.pdf 2 regional differences in which sectors are supported. For example, some regions may wish to develop their capacity in life sciences or in ICT, whilst others may want to focus on say environmental research or process engineering. The main instruments of the EU Structural Funds are the European Regional Development Fund (ERDF), the European Social Fund (ESF) and for some regions the Cohesion Funds. ERDF typically funds bricks and mortar and the physical construction of buildings and infrastructure, although some also covers staff costs. ELIXIR Nodes will likely need to use ERDF funding. ESF funds ‘softer’ activities such as training and up-skilling of the workforce. Additionally, the Transnational Cooperation programme encourages co-operations between regions in neighbouring countries. This might be of interest to those who plan to cooperate closely with other Nodes in neighbouring countries. This table summarises the differences and similarities between Horizon 2020 and EU Structural Funds6. Horizon 2020 EU Structural Funds Differences non-territorial approach, no pre-defined geographical distribution of funding place-based approach; defined financial envelope for different eligible categories of regions Based mainly on individual R&D Projects tackling the whole cycle of innovation from precompetitive, leading edge basic research to demonstration projects, pilot activities, market replication as well as innovative public procurement and the award of prizes for the achievement of pre-specified targets. Based on multiannual Programmes aiming at increased competitiveness through close to the market competitive R&D and innovation efforts In general awarded directly to final beneficiaries like firms, public and private R&D centers, universities or research funding organisations Awarded through shared management to national and regional public intermediaries Mostly competitive calls evaluated through peer-review based on excellence criteria Non-competitive attribution addressed to regional players based on strategic planning negotiation Complementarities Horizon 2020 will focus on tackling major societal challenges, maximising the competitiveness impact of research and innovation and raising and spreading levels of excellence in the research base 6 Cohesion policy will focus on galvanising smart specialisation that will act as a capacity building instrument, based on learning mechanisms and the creation of critical skills in regions and Member States. One of the results will be a better capacity to participate in Horizon 2020. Table based on information presented by Rita Lecbychova, European Commission, to EMBL in October 2012 3 4. Suggestions and advice The Managing Authorities responsible for developing Operational Programmes are looking for your input. They want ideas as to how they can use Structural Funds to support their region’s research base and so now is a good time to feed into the process. See ‘Finding your Managing Authority’ below for contact details. The evaluation process for Structural Funds is different to EU and national research funding. For Structural Funds, there is more focus on economic impact. Applicants, for example, should stress the number of people that would be employed through the funding, the local businesses that would be supported through contracts and tenders, any technology transfer that may be stimulated and any spin outs that may be created. Consider your interactions with other ESFRI Research Infrastructures. In order to receive Structural Funds applicants usually need to demonstrate an appropriate level of critical mass. A project proposal that would fund 5 members of staff will not appeal as greatly as one that employs many times more. Therefore, if the partners involved in your ELIXIR Node are also involved in other ESFRI Research Infrastructures then consider submitting a joint application that would address ELIXIR as well as other ESFRI Bio Medical Sciences Research Infrastructures. If ELIXIR is on the national Research Infrastructures roadmap then this is something that should be stressed to the managing authority as it is likely to support the case. 5. Finding your Managing Authority In some countries Operational Programmes cover a particular region, whilst in other countries the Operational Programme is managed nationally and covers a particular theme (like ‘Research and Innovation’ or Transport). In other countries there is a mixture of ‘regional’ and ‘thematic’ Operational Programmes. ELIXIR Nodes should make contact with the appropriate ‘regional’ or ‘thematic’ Managing Authorities in their country. The table below lists the links to or the contact details of those responsible for the current Operational Programmes in ELIXIR Member States 7 ELIXIR Member State Czech Republic National or Regional Operational Programmes List of regional Operational Programmes Thematic Operational Programmes of interest Operational Programme 'Research and Development for Innovations' European Territorial Cooperation Denmark Estonia Danish Authority for Enterprise and Construction: Operational Programme 'Innovation and Knowledge' Vejlsøvej 29 DK-8600 Silkeborg Head of unit Preben, Gregersen Tel.: +45 35 46 64 07 E-mail.: pgr@ebst.dk European Territorial Cooperation Ministry of Finance of the Republic of Estonia Operational Programme 'Development of Economic Environment' Suur-Ameerika 1 EE-15006 Tallinn 7 European Territorial Cooperation http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm 4 Tel.: +372 611 3558 E-mail.: info@fin.ee Finland List of regional Operational Programmes European Territorial Cooperation Italy List of regional Operational Programmes Operational Programme 'Research and Competitiveness' Israel N/A European Territorial Cooperation N/A Netherlands List of regional Operational Programmes European Territorial Cooperation Norway N/A N/A Portugal List of regional Operational Programmes European Territorial Cooperation Slovenia List of regional Operational Programmes European Territorial Cooperation Sweden List of regional Operational Programmes European Territorial Cooperation Spain List of regional Operational Programmes European Territorial Cooperation Switzerland N/A N/A UK List of Regional Operational Programmes European Territorial Cooperation November 2012 5