Non-paper on synergies between
Horizon 2020 and Cohesion Policy funds
1.
Characteristics of Horizon 2020 and the future Cohesion Policy funds
Both funding instruments have shared objectives linked to the smart growth objective of Europe
2020, but have different characteristics and focus:
Horizon 2020 focuses on excellence in research and innovation, and science and technology-driven
research and development, and increasingly targets its investments towards addressing societal
challenges and fostering the competitiveness of industry, with special attention paid to SMEs.
Horizon is under centralised direct management mode. Its work programmes will be designed at EU
level and evolve annually with a planning perspective of 1-2 years. Projects will be selected at EU
level through independent and excellence based peer review stemming mainly from competitive
calls for proposals. There is no pre-defined geographical distribution of funding,. The overwhelming
majority of projects have a trans-national perspective (except fundamental research (ERC) and parts
of the new SME instrument).
Cohesion Policy (CP) focuses on applied research and innovation for the purpose of regional socioeconomic development, on innovative SMEs and how to build capacities for innovation and growth
through the promotion of innovation friendly business environments. Programmes are designed in
shared management with national / regional authorities and with a medium to long term planning
perspective (3-10 years). The financial distribution is place-based, with a defined financial envelope
and a larger allocation to less developed regions. Projects are selected on the basis of economic,
social and territorial impact criteria and mainly involve actors from one Member State or region
(except for territorial cooperation). The new regulatory provisions for thematic concentration ensure
that the thematic objective for R&I is part of the minimum 80% concentration for ERDF funds in more
developed regions (50% in less developed regions).
2.
Regulatory elements facilitating linkages and promoting synergies
The regulatory proposals set out the following main elements for facilitating linkages and concerted
efforts between CP funds and Horizon 2020:

The two actions share the same programming period of seven (7) years that makes easier
synchronisation of funding and provides for better planning with a strong potential for real
synergies

Although the two actions have distinct objectives they share the same strategic goals of serving
the Europe 2020 strategy for smart, sustainable and inclusive growth

Harmonisation of cost eligibility rules between Horizon 2020 and CP (Lump sums, flat rates and
unit costs possible under both for funding direct and indirect costs without providing documents
proving real expenses, harmonisation of VAT rules) are major simplification for beneficiaries
compared to the current multiple sets of rules.

Possibility to combine CP and Horizon 2020 funding (and from other Union instruments) in same
project for different expenditure items, which opens the way to combined funding of individual
Horizon 2020 projects (Art. 55(8) of proposed Gen.Reg.1)
1
COM(2011) 615 final
1

Possibility to invest in other EU regions from a mainstream OP, i.e. up to 10% of an OP budget
(for EAFRD 3%) if the measure is for the benefit of the OP territory, which could be important for
cross-border research infrastructure (incl. ESFRI Roadmap2) or cluster or value chain networking
investments (Art. 60(2))

The development of research and innovation strategies (RIS3) for smart specialisation is a
conditionality for the approval of the R&I elements of the Partnership Contracts and the
Operational Programmes. They are the key instrument to maximise also the synergies with
Horizon 2020.

The enhanced territorial cooperation CP budget share (3.1% of total ERDF of which almost 6% for
inter-regional cooperation) that allows to build trans-national linkages between regional
innovation actors, building on FP7 Regions of Knowledge and Research Potential measures or CIP
cluster cooperation or networking of procurers or innovation agencies, but allowing to include
less advanced regions in a targeted manner.
3.
How to put this into practice
3.1.
Smart Specialisation Strategies
In order to fully exploit the opportunities for synergies, it is essential that the research and
innovation strategies for smart specialisation (RIS3) are elaborated3 by national and/or regional
managing authorities for CP in close collaboration with the authorities and bodies responsible for
research and innovation most directly concerned by Horizon 2020 and by the shaping of a European
Research Area (ERA). These strategies should consider both upstream and downstream actions to
and from Horizon 2020 as key actions for the CP funding.
The strategy design should also involve stakeholders such as universities and higher education
institutions, local industry, research and technology centres, development and innovation agencies,
social partners, etc.. It should be based on a solid analysis in particular of fields of economic and
industrial strengths, research and technology excellence4, innovation capacities, competitive
advantages and potential for future excellence and market potential. The strategies should integrate
relevant elements from the forthcoming ERA framework and identify those EU level priorities (e.g.
infrastructures, joint programmes, KETs priorities and other strategic initiatives, etc.) which align with
the existing and potential strengths of regions and/or countries. The Smart Specialisation Platform5
established by the Commission (in the Joint Research Centre in Seville) offers analytical and hands-on
support to the development of these strategies, policy learning at regional level through
international evaluation by peers and best practice sharing. The Commission is also establishing a
support system whereby regions can benefit from an assessment of their draft strategies based on
structured assessment questions and with the assistance of the Commission's services and external
experts. The Commission's analysis of the smart specialisation strategies will feed into the
negotiation process of Operational Programmes in the field of research and innovation, including ICT.
Under Horizon 2020 the policy support for smart specialisation will be expanded to supporting the
monitoring of RIS3 through a dedicated policy support facility. This strategy will allow excellence to
2
The European Strategy Forum on Research Infrastructures- roadmap
EU Parliament resolution, 2011/C 161 E/16 "Implementation of the synergies of research and innovation earmarked funds
in Regulation (EC) N° 1080/2006 concerning the European Fund of Regional Development and the Seventh Framework
Programme for Research and Development".
4 E.g. exploiting information on past and current participation of Member States and regions in FP7
5 COM2010) 546 final, 'Europe 2020 Flagship Initiative - Innovation Union’, p. 21.: http://cordis.europa.eu/eu-fundingguide/home_en.html
3
2
be built –up in the different regions and as such pave the way for a better participation in Horizon
2020.
3.2 Closing the innovation divide
Horizon 2020 pays special attention to closing the research and innovation divide in Europe, by:

Linking emerging institutions, centres of excellence and innovative regions in less developed
MS to international leading counterparts elsewhere in Europe in teaming activities based on
competition. Building links with innovative clusters and recognising excellence in less
developed regions including through awarding labels of excellence,

Attracting outstanding academics to institutions with a potential for research excellence (ERA
Chairs),

Supporting access to international networks for excellent researchers and innovators,

Supporting the development of smart specialisation strategies.
In implementing Horizon 2020, a tentative expenditure and activity planning should be drawn up for
the 7 years to raise awareness about European priorities in research and innovation policy. CP
managing authorities should be informed about it (and the subsequent multi-annual work
programme up-dates) as soon as possible, in order to feed into the development of the RIS3
strategies and operational programmes (first half of 2013). More specific information needs to be
provided as soon as possible on the timing and modalities for implementing Horizon 2020 measures
with particular CP synergy potentials, e.g. the ERA chairs, regional partner facilities of ESFRI, labels of
excellence, and the SME instrument, in order to allow the managing authorities to consider the
various opportunities for the preparation of the respective OPs.
The development of research and innovation agendas by industry and business, together with the
research community for the Industrial Leadership pillar of Horizon 2020, and the European
Innovation Partnerships that will be linked to the Societal Challenges pillar, should influence the
drawing of RIS3 specialisations and involve actors from the relevant regions, while CP pilot actions
and demonstration activities and public procurement of innovation should take account of the
priorities of the European Innovation Partnerships.
3.3 Implementation
At national level structures should be set up to facilitate the strategic identification of priorities for
the different instruments and to seek to avoid duplication of effort and identify areas where
additional financial support is needed. On the CP side these structures should be set out in the
Partnership Contract, and where appropriate, in programmes. This strategic and operational
coordination should be based on joint meetings between authorities and agencies involved in the
implementation of CP and Horizon 2020 (including National Contact Points) based on the Partnership
principle (Gen. reg.) and the respective Guidelines.
The two-ways communication between Horizon 2020 National Contact Points and ministries
involved in its governance and CP managing authorities in each country should also be strengthened
regarding Horizon 2020 project participants in a region and potential links of the projects to RIS3
fields.
3
Indicators for CP and Horizon 2020 project monitoring should be aligned in substance (e.g. measure
growth and innovation impact in firms that received support) and regional break downs should be
provided.
Information exchange about the RIS3 specialisation areas and their implementation, should be
brought to the attention of the Horizon 2020 programme committees in view of an alignment and
vice-versa regarding Horizon 2020 work programme up-dates and measures (names of beneficiaries
and expected results), e.g. through joint meetings of the COCOF and the Horizon 2020 horizontal
configuration programme committee.
3.4.
Up-stream and down-stream measures as key CP actions
As set out above, both upstream and downstream actions, are considered as key actions under the
current Community Strategic Framework for Cohesion Policy6.
Upstream actions are those to prepare regional R&I players to participate in Horizon 2020 projects
("Staircase to Excellence"):
Key actions for the ERDF:
–
capacity-building in Member States and regions for R&I excellence and technological change,
by investing in innovative solutions and research infrastructures and equipment, in particular
those of European interest in the context of Joint Programming Initiatives7, the ESFRI
('European Strategy Forum on Research Infrastructures')8 research infrastructures, the
development of the Regional Partner Facilities and within the Strategic Energy Technology
Plan9. This includes support for “satellite infrastructures” linked to the ESFRI-related research
infrastructures, national/regional research facilities and technology centres, competence
centres and science parks, with a clear focus on enhancing applied research, through
reinforced cooperation with industry to leverage private R&I investment;
A number of other "upstream" interventions can be supported by CP, including smaller research
partnering facilities of regional importance upgrading into research excellence; the modernisation of
universities and higher education institutions and research organisations, including the development
of post-graduate studies; the improvement of research skills of students, the training of researchers,
as well as developing technology auditing, international partner search and information campaigns in
firms and technology centres to stimulate and facilitate participation in Horizon 2020.
Downstream actions should provide the means to exploit and diffuse swiftly R&I results stemming
from Horizon 2020- (as well as national) funded basic research into the market, with particular
6
SWD(2012) 61 final
Special competence could be build up in key areas for industry and economic development like the metrology sector, as
part of the European Metrology Research Programme, which supports capacity building in certain countries/regions
through a joint programme between 22 countries and the European Union.
8
Innovation Union Commitment 5, COM (2010) 546 final, Communication from the Commission to the European
Parliament, the Council, the Economic and Social Committee and the Committee of Regions 'Europe 2020 Flagship
Initiative - Innovation Union’.
9
COM(2009) 519 final,'Investing in the Development of Low Carbon Technologies (SET-Plan)'.
7
4
attention to creating innovation-friendly market conditions and business environment, in particular
for SMEs10.
Key actions for the ERDF:
–
innovation in enterprises: This includes the dissemination and adoption of new technologies,
in particular key enabling technologies, through cooperation with actors in the world of
research and education, technology transfer, applied research, technology development and
demonstration facilities, in order to help companies develop more innovative products,
processes, marketing and services and diversify the national/regional economy through new
high-growth activities;
–
capacity-building for the swift economic exploitation of new ideas stemming from research
and innovation (R&I). This includes support for clusters, cooperative partnerships between
research, education and innovation actors, business R&I infrastructures, promotion of R&I
business advisory services, also in the field of services, creative hubs, cultural and creative
industries and social innovation, pilots and demonstration activities, and creating more
demand for innovative products through public procurement of innovation.
Moreover, the following "downstream" interventions can also be considered: living Labs; proof of
concept and early stage financing; incubation facilities, applied research, creative hubs, value-chain
networks and early-stage funding of spin-offs from universities and research institutions.
Besides the above key actions under the CSF for Cohesion Policy, Horizon 2020 offers a host of new
opportunities for synergies, both upstream and downstream of its key focus on R&D excellence:

Attracting private R&I investments through large-scale pilot actions and demonstration
activities, test beds and living labs, prototyping and product validation in pilot lines and
through allowing the combination of different key enabling technologies in projects, which
could give additional EU added value to the CP funded KET activities.

New SME instrument targeting SMEs with the potential to grow and internationalise which
allows for all types of innovations (high-tech / research-driven / social and service-driven
innovations) in phases (1. explore scientific or technical feasibility and the commercial
potential of an idea, 2. main grant for R&D, demonstration, market replication, IPR
protection, outsourcing tasks, 3. innovation, networking and tech-transfer services, support
to access VC, public procurement).

New or strengthened implementation tools, such as prizes, financial engineering (debt and
equity facilities), public procurement of innovations to speed up their market entry, etc.

The societal challenge-based approach can bring together a critical mass of resources and
knowledge across different fields, technologies and scientific disciplines with a new focus on
piloting, demonstration, test-beds, support for end-user driven innovation, social innovation
and market take-up.

More attention to research infrastructure beyond the implementation of the ESFRI
Roadmap, policy support to avoid duplication and to pool resources, development of
regional partner facilities.
10
Expert Group on synergies between FP7, the CIP and the Cohesion Policy Funds, “Final Report of the Synergies Expert
Group”, EU Commission June 2011.
5

Explore new forms of innovation, including efficiency, openness and citizen-centric public
services; social innovation, creativity, crowd-sourcing etc.
All these Horizon 2020 new actions can spark and/or leverage further investments through the key
actions contained in the CP CSF, in particular in those less favoured regions which are in most need
for improving their R&I performance. In order to do so Horizon 2020 should emphasise the
communication of the outcomes of research to companies, innovators, other researchers, and policy
makers, strengthen NCPs and other information tools Europe-wide (in particular online ones and
networks like the Enterprise Europe Network11) so that positive impact is maximised especially in less
performing regions of the Union.
11
EEN will be funded from the COSME programme
6