Third countries may contribute to the Programme through association agreements. The conditions determining the level of financial contribution will be laid down in association agreements with each country and shall ensure an automatic correction of any significant imbalance compared to the amount that entities established in the associated country receive through participation in the programme, taking into account the costs in managing the programme.

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

- Contribution to the implementation of the communication of the EIT;- Contribution to the management of the EIT coordinated activities;

- Contribution to the assurance of compliance of the EIT labelled degrees with actions undertaken in the context of Higher Education Area;

- Contribution to the preparation of the new waves of designation and selection of new KICs;

- Contribution to the preparation of the Commission processes of the strategic planning and programming cycle (AAR …) budget;

- Contribution to the assurance of compliance of the EIT labelled degrees with actions undertaken in the context of Higher Education Area;

- Contribution to the organisation of the annual meetings between the EIT-KICs and Commission services;

- Contribution to the general coordination with other services of the Commission and coordination and alignment with other EU initiatives, in particular Horizon Europe;

- Follow up of Audits from Internal Audit Capability (IAC) and Internal Audit Service (IAS) and of the European Court of Auditors (ECA).

- Tasks related to the preparation of the Commission processes of the strategic planning and programming cycle (AAR …) and budget management;

- Assurance of compliance of the EIT labelled degrees with actions undertaken in the context of Higher Education Area;

- General coordination with other services of the Commission and coordination and alignment with other EU initiatives, in particular Horizon Europe;

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

X The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

◻ The proposal/initiative does not require the use of appropriations of an administrative nature

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement , which is uploaded to DECIDE for interservice consultation purposes.

The EIT has since 2015 had an Anti-Fraud Strategy in line with that of the Commission and is continuously improving its measures to prevent and detect fraud.

The EIT is determined to fight against fraud at all stages of the grant management process and other activities that are implemented. All decisions adopted and contracts concluded by the EIT provide explicitly that the European Antifraud Office (OLAF) and the Court of Auditors may carry out on the-spot inspections of the documents of all contractors and sub-contractors which have received Union funds, including at the premises of the final beneficiaries.

The EIT shall take appropriate measures ensuring that the financial interest of the Union are protected.

Based on the most recent estimation the cost of controls of EIT are below 3% of the funds managed, coupled with a risk of error of 1%. Corrective actions are routinely applied via certificates on financial statements and ex post audits. The combination of a small size and an effective and efficient outsourcing approach enables the costs of controls to remain low and the level of assurance sufficient, as demonstrated by the recent declarations of assurance by the European Court of Auditors.

2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)

Audit certificates on the financial statements are provided by the KICs and the different partners, whereby independent auditors contracted by the EIT certify the legality and conformity of the amounts declared in the financial reports.

As regards the internal control Framework of the EIT, the EIT has developed an overall strategy, including a supervisory structure, on the implementation of internal control processes that support the entire expenditure life cycle. Its senior management ensures that this overall strategy is formally accepted by the Governing Board and implemented. Major elements of this strategy are a planning and reporting exercise following the Commission standards and linked with the Risk-Management approach. Moreover, the EIT has also developed a number of Standard Operating Procedures (SOP). The SOP are detailed, written instructions to achieve uniformity of the performance of a specific process; the instructions usually cover more than one task or area within the EIT, Unit, Section or teams.

The control system set up by the EIT provides reasonable assurance of achieving adequate management of the risks relating to the effectiveness and efficiency of the operations, assuring the legality and regularity of the underlying transactions and achieving a balance between trust and control. As part of the control system implemented by the EIT, the audit strategy is based on the financial audit of a representative sample of expenditure across the whole EIT budget, notably through the annual grants awarded to KICs in a yearly basis. This representative sample may be complemented by a selection based on an assessment of the risks related to expenditure during the ex-ante checks of 100% of claims and the experience obtained will be used in the assessment of the control framework of risk assessment for grants implementation. Audits of expenditure will continue to be carried out in a coherent manner in accordance with the principles of economy, efficiency and effectiveness.

A number of simplification measures put in place from 2014 have resulted in reducing the error rates. The detected error rate resulting from the ex-post verification of the EIT grants is well below the materiality level of 2 %.

The Risk Management Exercise is done on a yearly basis in order to mitigate any risks linked with the implementation of all EIT activities. In this context, the EIT should take into account, when establishing the internal control framework, the risks of the activities implemented, the specific characteristics of the population and recurrence of beneficiaries, the frequency of the grants awarded and the size of transactions as well as avoiding any overlap of funding.

The EIT has in place the organisational structure and the internal management and control systems and procedures suited to the performance of the EIT duties. This has been done in compliance with the standards adopted by the Governing Board on the basis of equivalent standards laid down by the Commission, and having due regard to the risks associated with the management environment and the nature of the action financed.

Taking into account the clear need to manage the European budget in an efficient and effective manner, and to ensure sound financial management, the EIT has in place an internal control system to give reasonable assurance that the error over the course of the multiannual expenditure period, is within, and indeed lower than, the limits proposed under Horizon Europe.The EIT internal control framework will also build on: the Commission Internal Control Standards, EIT’s own procedures, ex-ante checks of 100% of KICs' declared expenditures financed by the EIT, audit certificates, ex-ante certification of cost declaration methodologies, ex-post audits on a sample of claims, projects results and external evaluation.

2.2.2. Information concerning the risks identified and the internal control system(s) set up to mitigate them

The EIT’s performance in 2014-2020, with an error rate found to be consistently below 2%, is one of the best in the research family, and due to its bespoke design, combines low error rates with a control approach which by careful use of outsourcing keeps control costs low while retaining effectiveness and efficiency.

As a body fully integrated into the Horizon Europe programme, the funding implementation mechanisms, payment modalities, and control strategy proposed are aligned to those of Horizon Europe to ensure the beneficiaries and stakeholders experience a consistent approach as regards eligibility rules and sound financial management.

The KICs reporting conditions have been established under the Framework Partnerships Agreement and the Grant Agreements (performance and cost reporting). In order to increase the efficiency and cost-effectiveness and based on the experience gained by the EIT during the implementation of the grant agreements by the KICs, a number of simplification measures will be implemented in the grant management process, which will have as major goals to reduce the administrative workload for KICs and to increase the quality of data gathered.

• The Annual Activity Report (AAR) for the previous year (n-1) will include the results of the monitoring process for n-1 and describe how and to what extent objectives have been achieved. The AAR should take account of the Cost and Performance Reports of the KIC for the previous year (n-1) of their operations.

• The Single Programming Document (SPD) of the EIT, adopted yearly, contains a multiannual work programme (n+3) and an annual work programme (n+1). These work programmes shall set out the overall strategic programming for the years n+1 to n+3, including the objectives, expected results and performance indicators to monitor the achievement of the objectives and the results. In addition, the SPD will contain among others an estimate of its revenue and expenditure; a resources programming document; information on its building policy; strategy for achieving efficiency gains and synergies; strategy for the organisational management and internal control systems including their anti-fraud strategy as last updated and an indication of measures to prevent recurrence of cases of conflict of interest, irregularities and fraud.

. As regards the reporting on the implementation of the monitoring system:

The EIT is a Union body receiving a subsidy from the European Union budget. From a financial management and control perspective, the EIT will be treated like other bodies set up under the Treaty. This means that the Inter-institutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management applies to the EIT.

The periodic evaluations of the EIT activities, including those managed through KICs, will be carried out by the Commission in 2023 and 2026 in line with the EIT Regulation and Horizon Europe Regulation. Those evaluations will assess the effectiveness, efficiency, relevance, coherence and EU added value of the EIT activities. They will be based on independent external evaluations and will feed into the mid-term and ex-post evaluations of the overall Horizon Europe programme with a view to ensure synergies between the EIT and other parts of the programme. Moreover, the Commission may at any time carry out further evaluations on themes or topics of strategic relevance. The synergies of EIT planned activities with other EU programmes should be assured via the assessment by the Commission of the EIT Single Programming Document.

This monitoring of EIT’s activities will track the degree of achievement of the SIA and Single Programming Document through the analysis of its indicators. It will also measure for instance the EIT's performance in providing support to the KICs, manage projects linked to the EIT coordinated activities, the intensity and coverage of awareness raising and outreach event (the number of workshop and best practice events), dissemination and international activities and the impact of the EIT in the wider European policy innovation, research and education agendas.

2. The monitoring of the EIT's own activities (outputs, results and impacts of the activities) will combine quantitative and qualitative indicators in a medium-term perspective. Following the granting of the full financial autonomy to the EIT in January 2018, a Memorandum of Understanding (MoU) has been signed between the EIT and the Commission (DG EAC). This MoU defines the modalities of cooperation between them and the detailed arrangements concerning the provision of the financial contribution from the general budget of the European Union to the EIT.

It will be a responsibility of the EIT to regularly monitor the operational performance and results of the KICs and to adapt continuously its monitoring systems. The results of such monitoring will feed into KICs’ business planning processes and the EIT decision-making on the allocation of the budget, the preparation of the framework partnership agreements and specific grant agreements with the KICs as beneficiaries.

1. The monitoring of the implementation of its operational budget, mainly through KICs, will be a primary task of the EIT. The Commission will take part in the co-design of all relevant impact and monitoring tools developed or applied by the EIT in order to ensure compatibility and consistency with the overall Horizon Europe monitoring system, including the key impact pathways, the criteria framework for European Partnerships and the Strategic Planning Process.

The EIT monitoring will be set up in line with the following layers:

The EIT will apply an evaluation and monitoring framework that allows flexibility at all relevant levels and ensures coherence with the general objectives of Horizon Europe and the impacts sought. In particular, feedback loops between the Commission, EIT and KICs will be ensured in order to address the objectives in a consistent, coherent and efficient manner.

If more than one management mode is indicated, please provide details in the ‘Comments’ section.

◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

X Financial impact from 2021 to 2027 for commitment appropriations and from 2021 to 2029 for payment appropriations.

Creative Europe: The Programme will be specifically relevant for the activities of a future KIC on CCI. Strong synergies and complementarities will be developed with the programme in areas such as creative skills, jobs and business models.

InvestEU: EIT KICs will seek the collaboration of the InvestEU Advisory Hub to provide technical support and assistance to KICs’-backed ventures for the preparation, development, and implementation of projects.

Cohesion Policy Funds (in particular ERDF and ESIF+): EIT KICs, through their co-location centres, will promote regional and cross-regional cooperation between the knowledge triangle actors (education, research, business) and managing authorities, in synergy with the work of the European Commission on interregional cooperation and investments in related smart specialisation priorities.

Digital Europe Programme (DEP): KICs’ co-location centres will collaborate with the European Digital Innovation Hubs to support the digital transformation of the industry and public sector organisations.

Synergies will be ensured, where possible, with the European Universities initiative that could help mainstream EIT’s educational and training activities to reach a systemic impact.

Erasmus: Erasmus and EIT will establish synergies between their respective communities. Cooperation will be geared towards ensuring access for Erasmus learners participating in KIC partner education and training institutions to KICs’ summer schools or other relevant training activities (for instance, on entrepreneurship and innovation management) and establishing contacts with the KICs’ alumni network.

In the [Global Challenges and Industrial Competitiveness] Pillar, through its KICs, the EIT can collaborate with European Partnerships, contribute to missions, support demand-side measures and provide exploitation services to boost technology transfer and accelerate the commercialisation of results achieved by the thematic clusters or other European partnerships.

Horizon Europe: Strong synergies between the EIT and the entire Horizon Europe Programme are expected. In particular, synergies with the EIC will be key for the impact of the Open Innovation Pillar as well as the support to ecosystems.

Building on its broad scope of action and distinctive role, the EIT is well placed to create synergies and provide complementarities with other EU programmes or instruments, including by reinforcing its support to KICs in their planning and implementing activities. The non-exhaustive list below offers concrete examples where the EIT will contribute to synergies in the mid to long term within and beyond Horizon Europe.

- Increasing the synergies and complementarities with other Horizon Europe and other EU and MS instruments

- Increasing EIT’s impact at regional and local levels and in particular in countries with lower innovation performance

- Reinforcing openness and transparency of the KICs and their alignment with the proposed approach for European Partnerships under Horizon Europe

- Further simplification of procedures for the efficient management of KICs (e.g. with the introduction of a new co-funding mechanism, multi-annuality of grants, etc.).

For 2021-2027, main improvements to the EIT will aim in particular at:

The EIT’s design as an independent body allows it to be flexible, autonomous, business driven and agile in decision-making. The time to grant is 4 months as compared to an average of 6 months in Horizon 2020. The rules for competitive funding, financial sustainability and simplification foster innovation in KICs. The EIT administrative costs are very low with less than 2% of the total budget compared to the average of 4.6% reported for Horizon 2020.

The EIT has created Europe’s an innovation ecosystem with more than 1200 partners from business, research and education, organised in 8 Knowledge and Innovation Communities (KICs) spanning over 40 co-location centres. More than 50% of partners from the business sector (industry, SMEs and start-ups) demonstrate that the instrument is close to the market. The EIT Community brings results: over 600 new products and services launched in the market, more than 1250 start-ups and innovative ventures supported, more than 890 MEUR of external investment; and more than 6.000 created jobs. The first cohorts of some 1.700 graduates from EIT labelled master courses are now entering the labour market.

The EIT was set up in 2008 to address major societal challenges by improving the innovation capacity and performance of the EU. In 2017, the mid-term evaluation of the EIT concluded that the EIT remains strongly relevant and has a clear EU added-value. There is no other instrument that builds EU-wide innovation networks of education, research, business and other stakeholders.

The EIT is expected to meet its objectives for the period 2021 – 2027 as outlined in the Horizon Europe proposal. The specific benefit of EU investment in the EIT will result in:

The Horizon Europe impact assessment identified specific structural weaknesses in the EU’s innovation capacity that need to be addressed at EU level and that would be the focus of the EIT’s contributions. In particular, European Higher Education Institutions need to stimulate entrepreneurship, overcome disciplinary borders and institutionalise strong EU wide non-disciplinary academia-industry collaborations. Access to entrepreneurial talent, together with access to professional services, capital and markets on the EU level, and bringing key innovation actors together around a common goal are key ingredients for nurturing an innovation ecosystem. There is a need to coordinate efforts across the EU in order to create a critical mass of interconnected EU-wide entrepreneurial clusters and ecosystems. This level of magnitude and scale of intervention goes beyond what Member States can do alone and require an intervention at EU level.

The nature and scale of the innovation challenges require mobilising players and resources at European scale, by fostering cross-border collaboration. There is a need to break down silos between disciplines and along value chains and nurture the establishment of a favourable environment for an effective exchange of knowledge and expertise, and for the development and attraction of entrepreneurial talents.

1.4.2. Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone

Through the Regional Innovation Scheme and the new EIT-coordinated activities, the EIT will increase its regional innovation outreach and related impact.

The EIT will aim at supporting higher education institutions (HEIs) to integrate better in innovation value chains and ecosystems. The EIT will implement, through its KICs, a support action bringing together in projects HEIs and other key innovation players such as businesses to work on strategic capacity development areas. The partners will share common goals and work together towards mutually beneficial results and outcomes. The action will ensure an inclusive approach to attract HEIs beyond the KICs’ partners; an inter-disciplinary and inter-sectoral approach; and a link with the European Commission Smart Specialization Strategy, relevant thematic platforms and the EIT RIS.

3- Business creation and support activities, such as accelerator schemes to help entrepreneurs translate their ideas into successful ventures and speed up the growth process.

1- Education and training activities with strong entrepreneurship components to train the next generation of talents, including the design and implementation of EIT-labelled programmes, in particular at master and doctoral level (EIT Label);

The EIT will provide support to KICs that are running portfolios of knowledge triangle activities through:

The EIT will also launch two new KICs in specific thematic areas in order to tackle future emerging global societal challenges and needs (calls foreseen in 2021 and 2024).

The EIT will consolidate the eight existing KICs, fostering their growth and impact, and accompany their transition to financial sustainability. In particular, this will concern the first wave of three KICs launched in 2009 (EIT Climate, EIT Digital and EIT InnoEnergy) whose framework partnership agreements will terminate after 2024.

In delivering on its activities, the EIT will develop synergies and bring added value within Horizon Europe. The implementation will take place via support to KICs and through EIT-coordinated activities.

(2) Fostering the development of entrepreneurial and innovation skills in a lifelong learning perspective and support the entrepreneurial transformation of EU HEIs;

The EIT will continue to operate primarily through its Knowledge Innovation Communities (KICs), which are large-scale European partnerships addressing specific societal challenges. It will continue to strengthen innovation ecosystems around them by fostering the integration of the three sides of the Knowledge Triangle. Each KIC will keep its organisational structure, based on “Co-Location Centres”, which are the geographical centres bringing together the actors of the Knowledge Triangle and allowing for geographical proximity and closer collaboration.

The overall mission of the EIT for the period 2021-2027 is to contribute to sustainable European economic growth and competitiveness by reinforcing the innovation capacity of the Member States and the Union. It shall do this by promoting and integrating education, research and innovation of the highest standards.

The initiative aims to make the EIT Regulation compatible with Horizon Europe and improve the functioning of the EIT taking into account the lessons learnt from the past years. It also aims to propose a new Strategic Innovation Agenda (SIA), which sets out the strategy and priorities of the EIT for the period 2021-2027 and defines its objectives, key actions, expected results and resources needed.

The Horizon Europe proposal confirmed the importance and contribution of the EIT and its KICs in delivering the EU's strategic priorities in the area of innovation. It proposes the EIT budget for 2021-2027, its scope, added-value and main areas of activity, while pointing to a revised role of the EIT in order to reinforce its contribution to Horizon Europe’s objectives.

The European Institute of Innovation and Technology (EIT) is an integral part of the Commission’s proposal for Horizon Europe (2021 – 2027) under the Open Innovation Pillar but has a separate legal base (the EIT Regulation).

1.4.1. Requirement(s) to be met in the short or long term including a detailed ti meline for roll-out of the implementation of the initiative

◻ a merger or redirection of one or more actions towards another/a new action

Decision of the European Parliament and of the Council on establishing a Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT) 2021-2027

Amendment of the Regulation of the European Parliament and the Council establishing the European Institute of Innovation and Technology (EIT), and

2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)

2.2.2. Information concerning the risks identified and the internal control system(s) set up to mitigate them

1.4.2. Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone

1.4.1. Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union.

The SIA shall be implemented in accordance with Regulation (EU) No on the European Institute of Innovation and Technology.

The Strategic Innovation Agenda of the European Institute of Innovation and Technology for the period from 2021 to 2027 as set out in the Annex is hereby adopted.

(3)The SIA should include an analysis of potential and appropriate synergies and complementarities between EIT activities and other Union initiatives, instruments and programmes.

(2)The SIA should define the priority fields and the long-term strategy for the European Institute of Innovation and Technology (‘EIT’) and include an assessment of its socio-economic impact and its capacity to generate best innovation added value. The SIA should take into account the results of the monitoring and evaluation of the EIT.

Having regard to Regulation (EC) No 294/2008 of the European Parliament and of the Council of 11 March 2008 establishing the European Institute of Innovation and Technology, and in particular Article 17 thereof,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 173(3) thereof,

on the Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT) 2021-2027: Boosting the Innovation Talent and Capacity of Europe

The SIA identifies Cultural and Creative Industries as a priority field for a new KIC with a call to be launched in 2021. A second call for a new KIC is foreseen in 2024 if Annex I is amended to add new priority fields. Other priority fields could be added in the SIA and, subsequently, further calls for new KICs could be launched in case additional budget to that of the EIT would become available.

The EIT will put a strong emphasis on cross-cutting actions such as communication, identification, codification and dissemination of good practices, and international cooperation. Another key area of action for the EIT will be the expansion and strengthening of its regional outreach through the Regional Innovation Scheme (RIS). RIS will offer in particular opportunities to Member States with low innovation performance and enhance their access to the EIT KICs.

In addition, the SIA introduces clear objectives for a new support and coordination action to be launched. This new action will support the development of entrepreneurial and innovation capacity of European Higher Education Institutions (HEIs) beyond KICs in order to enable them to be better integrated in local innovation ecosystems. The EIT Label will be part of the reinforced education focus of the EIT.

The SIA provides specific clarifications on principles established in the EIT Regulation. It provides an overview of the financial and human resources needed for the implementation of the EIT objectives. Clear monitoring and evaluation provisions are defined taking into account the Horizon Europe framework and the EIT’s specificities.

The SIA includes a number of improvements to the existing EIT model. They concern the alignment with the European partnerships under Horizon Europe and their governing rules, the improvement of the current funding model as recommended by the European Court of Auditors and the inclusion of the possibility for the EIT to conclude memoranda of cooperation with KICs to keep former KICs as active members of the EIT Community after the termination of their framework partnership agreement.

The Strategic Innovation Agenda (SIA) of the EIT for 2021-2027 underlines the EIT’s contribution to the objectives of Horizon Europe, the Union framework programme supporting research and innovation for that period. It identifies the key strengths of the EIT on which to build its future strategy and the specific challenges and issues that it will address. Furthermore, the SIA clarifies the role of the EIT in the Horizon Europe programme and sets out its complementarity to the various parts of Horizon Europe, notably also the European Innovation Council.

With regard to the KICs, a specific indicator framework will be used to assess the performance of the KICs during the next programming period (detailed in the proposal for a new SIA). That framework draws from current and previous indicators, fills gaps and deficiencies identified in the existing performance measurement system. It is also aligned with the Horizon Europe indicator framework.

The evaluation of the performance of the EIT will be carried out by the Commission in line with the requirements of the amended EIT Regulation and will feed into the overall Horizon Europe programme evaluation that will be carried out mid-term and ex-post. This will include an assessment of the synergies of the EIT with the other instruments of the programme.

EIT will closely follow the deployment of the Innovation Radar methodology in Horizon Europe, and will explore how Innovation Radar could be leveraged by the KICs for enhancement of its monitoring activities.

In parallel and in full compliance with existing monitoring tools, close alignment will be sought between the EIT monitoring provisions and those that are put in place for Horizon Europe. For example, the EIT will align its monitoring tools with the Impact Pathways of Horizon Europe that seek to address the need for scientific, economic and societal impacts indicators more comprehensively. It will be a responsibility of the EIT to regularly monitor the operational performance of the KICs and to adapt its monitoring and reporting systems continuously. The results of such monitoring will feed into the business planning processes of the KICs and into the EIT decision-making on the allocation of the budget and preparation of the framework partnership agreements with the KICs as beneficiaries. The monitoring results should feed continuously into the policy-making process.

All inputs, outputs, results and impacts identified in the impact assessment accompanying this proposal will be monitored through indicators. Such indicators already exist for the majority of the categories. Whenever they do not exist, new indicators will be developed in order to enable the EIT to monitor the achievement of its objectives.

Monitoring and evaluation are fundamental tools in measuring the impact of the EIT and will be further strengthened and continuously improved over the next programming period. Given the nature of the knowledge triangle integration model, it will be important to apply a monitoring framework that allows flexibility at all relevant levels and ensures coherence with the general objectives of Horizon Europe and impacts sought.

The budgetary implications of the proposal as well as the human and administrative resources required are described in detail in the legislative financial statement.

The Commission proposal respects the fundamental rights and observes the principles of the EU Charter of Fundamental Rights.

Option 2 was identified as the preferred option as it strikes the best balance in achieving the objectives of the initiative while considering the resources available and offering the highest economic and societal impacts. It will also entail significant improvements of the EIT in the next programming period.

The baseline option 1 represents the continuation of EIT’s activities as they are today with only the adjustments necessary to align it with the proposal for Horizon Europe. Option 2 builds on the baseline. In addition, it adopts a number of technical measures to enhance the functioning of the EIT and proposes a new action to foster entrepreneurial education across Europe. Option 3 differs from option 2 in that it would set up an EIT Hub in each Member State in order to increase the impact of the EIT activities all across Europe.

The impact assessment identified the following policy options: a baseline option and two different options addressing the problems and technical issues highlighted in the impact assessment.

The Impact Assessment on the EIT built on the Impact Assessment carried out for Horizon Europe. The opinion of the Regulatory Scrutiny Board was “positive” recommending to further explain (i) the stakeholder views of the different options, (ii) the delivery mechanisms of the new funding model and (iii) the regional outreach.

This proposal is supported by an Impact Assessment covering both the proposals for revision of the EIT Regulation and for a SIA of the EIT for the period 2021 – 2027.

The proposal takes into account the results of the Open Public Consultation (OPC) that was run as a component of the European Commission’s Impact assessment to support its proposals for revision of the Regulation establishing the European Institute of Innovation and Technology (EIT) (EC No 294/2008) and for a new Strategic Innovation Agenda of the EIT for 2021-2027. The purpose of the OPC was to gather information, opinions and views from a wide range of stakeholders on 1) the challenges and opportunities in the European research and innovation area, 2) the policy objectives of the EIT, and 3) the policy options to tackle the challenges.

The proposal builds on the external evaluation of the EIT carried out in 2017 which confirmed that the rationale behind the establishment of the EIT is valid and that its model of innovation-driven knowledge triangle integration remains relevant. The EIT model targets structural weaknesses of the innovation capacities in the EU (in key thematic areas) such as the limited entrepreneurial culture, the low level of cooperation between academia and industry and the insufficient development of human potential, and aims to contribute to closing the innovation gap between the EU and its key competitors.

The EIT is also the sole instrument within Horizon Europe with a distinct focus on education as a key driver of innovation, growth and competitiveness.

The EIT has a unique way of building EU-wide innovation ecosystems of education, research, business and other stakeholders. Cooperation activities supported by the EIT lead to an increased quality of action, innovation and internationalisation of KIC partners and organisations, the creation of cross-border, multidisciplinary networks, more cross-sectoral cooperation and geographical outreach.

The proposal for a Strategic Innovation Agenda for 2021 - 2027 respects the principles of subsidiarity and proportionality. It does not go beyond what is required for achieving the Union's objectives and provides a clear EU added-value in terms of economies of scale, scope and speed of investments in research and innovation areas, compared to national and regional initiatives and solutions. Moreover, EU action would not interfere with purely domestic scenarios or require harmonisation of the laws and regulations of the Member States.

The proposed reinforcement of the activities of the EIT, including in the area of education and the regional dimension, is innovation-driven and aims to fulfil the objective set out in Article 173 TFEU.

The EU has a shared competence in industry policy based on Article 173 TFEU (Title XVII). According to Article 173(1), the Union and the Member States shall ensure that conditions necessary for the competitiveness of the Union's industry exist. For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed also at fostering better exploitation of the industrial potential of policies of innovation, research and technological development. Article 173(3) foresees that the European Parliament and the Council, acting in accordance with the ordinary legislative procedure referred to in Article 294, may decide on specific measures in support of action taken in the Member States to achieve the mentioned objective, excluding any harmonisation of the laws and regulations of the Member States. This provision is the legal basis of the current EIT Regulation and of the SIA 2014-2020.

The SIA will foster synergies not only with the Union framework programme supporting research and innovation but also with other relevant Union programmes of the respective MFF. In particular, it will ensure appropriate synergies and complementarities between the EIT activities and other Union initiatives, policies and instruments. Cooperation will be pursued with regard to programmes and instruments such as Erasmus, Digital Europe, the European Structural and Investment Funds, the InvestEU Programme or Creative Europe. Furthermore, synergies and complementarities of EIT and KIC activities with national programmes and initiatives will be ensured through the enhanced role of the Member States’ Representatives Group.

Cooperation between the EIT and the European Innovation Council (EIC) will also be established with a view to avoid duplications and ensure synergies and greater impact of their actions. The EIC will identify, develop and deploy breakthrough innovations, and support the rapid scale-up of innovative firms carrying out market-creating innovations at the European and international levels. For its part, the EIT will contribute to the development of Europe’s innovation capacity through the knowledge triangle integration and support to innovation ecosystems.

The multiannual Strategic Planning process under Horizon Europe will ensure that all activities under Horizon Europe, including the EIT KICs, which are institutionalised European partnerships, are coordinated in an effective manner. In this context, the Horizon Europe proposal emphasises that “proposals for future EIT KICs in compliance with the EIT Regulation will be indicated in the SIA and will take into account the outcome of the Strategic Planning process and the priorities of the Global Challenges and European Industrial Competitiveness pillar”.

The EIT is integrated within Horizon Europe as part of its Pillar III (“Innovative Europe”). However, the synergies and complementarities with the other components of the programme will be ensured. The EIT through its KICs will also contribute to addressing the global challenges under Pillar II (“Global Challenges and European Industrial Competitiveness”) and Pillar I (“Excellent Science”).

The SIA of the EIT for 2021-2027 lays down the priority fields, the strategy and financial needs for the EIT for that period and sets how the EIT will contribute to the attainment of the objectives of Horizon Europe. It also outlines the planned higher education, research and innovation activities and the respective budget breakdown. It sets the time schedule for the selection and designation of new KICs for the next programming period.

The present proposal for a new Strategic Innovation Agenda (SIA) of the EIT for 2021-2027 is therefore submitted alongside the proposal for a recast of the EIT Regulation.

Furthermore, Article 17 of the EIT Regulation requires that every seven years the Commission submits to the European Parliament and the Council a proposal for a Strategic Innovation Agenda (SIA) that lays down the priority fields and the long-term strategy and financial needs for the EIT. The SIA therefore needs to be in line with the applicable Framework Programme for Research and Innovation. For the period 2021-2027, the SIA should thus ensure alignment with the objectives of Horizon Europe as well as the strategic multiannual planning, monitoring and other requirements of that programme, and foster synergies with other relevant programmes.

For the period 2021-2027, Horizon Europe will be the Union programme funding the EIT. The EIT is an integral part of the Commission proposal establishing Horizon Europe and one of the three components of its "Innovative Europe" pillar. The Horizon Europe proposal sets out the budget for the EIT for the next MFF as well as its rationale, added value, areas of intervention and broad lines of activity. However, the Horizon Europe proposal itself does not provide the legal basis for continuing the EIT operations as from 2021 . The legal base of the EIT remains the EIT Regulation that sets out its mission, its key tasks and the framework for its functioning.

The European Institute of Innovation and Technology (EIT) was established in 2008 by Regulation (EC) No 294/2008. Its purpose is to address major societal challenges by improving the innovation capacity and performance of the EU through the integration of the knowledge triangle of education, research and innovation. The EIT achieves these goals primarily through its Knowledge and Innovation Communities (KICs).

on the Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT) 2021-2027: Boosting the Innovation Talent and Capacity of Europe

EUROPEAN COMMISSION Brussels, 11.7.2019 COM(2019) 330 final ANNEX to the Proposal for a Decision of the European Parliament and of Council on the Strategic Innovation Agenda of the European Institute of

Innovation and Technology (EIT) 2021-2027:

Boosting the Innovation Talent and Capacity of Europe {SEC(2019) 275 final} - {SWD(2019) 330 final} - {SWD(2019) 331 final}



ANNEX Table of contents 1.Introduction 1.1.The EIT: a fundamental EU innovation instrument 1.2.Key strengths 1.3.Key Challenges 2.Raising the bar: the EIT in 2021-2027 2.1.Objectives 2.2.Positioning in Horizon Europe 3.Boosting the Innovation Talent and Capacity of Europe 3.1.Knowledge and Innovation Communities 3.2.Supporting the innovation capacity of higher education 3.3.EIT cross-cutting activities 3.4.Making it work 3.5.Synergies & complementarities with other programmes 4.Resources 4.1.Budget needs 4.2.Impact (monitoring and evaluation) 5.Annex 1A

6.Annex 1B



1.Introduction This Strategic Innovation Agenda (SIA) sets out the strategy and priorities for the European Institute of Innovation and Technology (EIT) for the period 2021-2027. It represents the main policy document of the EIT over the next programming period and defines its objectives, key actions, expected results and resources needed. The SIA ensures the necessary alignment of the EIT with the [Horizon Europe proposal], which is the Union framework programme supporting research and innovation for the period 2021-2027. It also ensures appropriate synergies and complementarities between the EIT activities and other Union initiatives, policies and instruments. The SIA 2021-2027 is informed by the impact assessment carried out by the European Commission. It takes into account the draft SIA from the EIT Governing Board submitted to the European Commission on 20 December 2017, in accordance with the EIT Regulation. It also reflects the new [Horizon Europe proposal] of the European Commission of June 2018 and, in particular, the key role of the EIT as part of the [Open Innovation] Pillar (Pillar III), and its contribution to addressing global challenges, including established targets for climate objectives, and European industrial competitiveness (Pillar II) and to excellent science (Pillar I). The SIA builds on the lessons learnt over the last years of operation of the EIT and the results of a wide consultation process with key stakeholders. The SIA takes into account the Strategic Planning of Horizon Europe to ensure alignment with the Framework Programme activities, with other relevant Union programmes and consistency with EU priorities and commitments and increase complementarity and synergies with national and regional funding programmes and priorities.



1.1.The EIT: a fundamental EU innovation instrument The EIT was established in 2008 in order to contribute to sustainable economic growth and competitiveness by reinforcing the innovation capacity of the Member States and the European Union. It pioneered the integration of education, business and research (knowledge triangle) together with a strong emphasis on entrepreneurial talent and innovation skills. The mid-term evaluation of the EIT in 2018 confirmed that the overarching rationale of the EIT remains valid and the model of innovation-driven knowledge triangle integration remains relevant. A decade after EIT’s establishment, the pace of innovation has accelerated dramatically. Innovation is reshaping economic sectors, disrupting existing businesses and creating unprecedented opportunities. With a shifting global economic order and international competition on the rise, the EU’s dependence on talent and its capacity to innovate is growing. Co-design, collaboration and co-creation across disciplines and between education, business and research have never been as important as today to contribute to address global challenges related to climate change and unsustainable use on natural recources, digital transformation, demographic shifts or the future of healthcare and food. With the [Horizon Europe proposal] for a new Framework Programme supporting research and innovation for the period 2021-2027, the European Commission made a firm commitment to raise further Europe's innovation potential in order to be able to respond to the challenges of the future. The EIT’s distinctive role in fostering innovation by bringing together business, education, research, public authorities and civil society is reinforced by its positioning in the [Innovative Europe Pillar] of the [Horizon Europe proposal]. The [Horizon Europe proposal] reflects the growing ambition of the EU on innovation and the necessity to deliver on it. 1.2.Key strengths Since its set up, the EIT has established itself gradually as a successful instrument addressing societal challenges. The EIT operates mainly through Knowledge and Innovation Communities (KICs), which are large-scale European partnerships between education and training, business and research organisations. There are currently eight KICs that operate in the following areas: climate change, digital transformation, energy, food, health, raw materials, urban mobility and added-value manufacturing (see Figure 2). Each KIC is organised around five to ten of co-location centres (CLCs) which are intended to act as geographical hubs for the practical integration of the knowledge triangle. They are organised and structured according to their respective national and regional innovation context and build on a pan-European network of existing labs, offices or campuses of a KICs’ core partners. The KICs aim at running portfolios of knowledge triangle activities through: ·Education and training activities with strong entrepreneurship components to train the next generation of talents, including the design and implementation of programmes awarded the EIT Label, in particular at master and doctoral level; ·Activities supporting innovation to develop innovative, products, processes and services that address a specific business opportunity; ·Business creation and support activities, such as accelerator schemes to help entrepreneurs translate their ideas into successful ventures and speed up the growth process. The KICs represent dynamic innovation ecosystems that produce a wide range of results (see Figure 1 below). Figure 1: EIT results up to date, source: EIT

Education and training, talent and skills development are at the core of the EIT model. No other EU action on innovation includes higher education in the innovation value chain to the extent the EIT does. The EIT’s education agenda is key for developing highly entrepreneurial and skilled innovators. By 2017, more than 1700 graduates have successfully completed an EIT-labelled master and/or doctoral programme, and thousands have participated in entrepreneurial and innovative education activities and formats. The focus on global challenges through the integration of the knowledge triangle distinguishes the EIT from other innovation instruments. By providing a grant for up to 15 years to KICs, the EIT is delivering on its long-term objective of tackling global challenges through innovative products and services and bringing concrete benefits to our society and citizens. The EIT also has set the objective to the KICs to become financially sustainable after 15 years, which is a unique feature that leads to a business and result oriented innovation instrument. In this context, KICs have to develop and implement revenue-creating strategies in order to maintain their innovation ecosystem beyond the period covered by the grant agreement. The EIT approach contributes to both incremental and disruptive innovations to happen, to effectively address market failures and help transform industries. It enables the creation of long-term business strategies for addressing global challenges and helps creating the framework conditions that are essential for a well-functioning innovation ecosystem to grow and innovation to thrive. The EIT offers an efficient and effective platform for launching, scaling up and managing KICs with strong network effects and positive spill-overs (see Figure 2 below). The first wave of KICs (EIT Digital, EIT Climate-KIC and EIT InnoEnergy), launched in 2009, is established and mature and after 2024 their framework partnership agreements will be terminated, in line with the maximum grant duration. A second and third generation of KICs (EIT Health and EIT Raw Materials (2014), EIT Food (2016)) is maturing. EIT Urban Mobility and EIT Manufacturing, the two KICs designated in December 2018, are starting their operations in 2019. Figure 2: EIT Knowledge and Innovation Communities, source: European Commission Through its eight KICs with more than 1000 partners from business, research and education, the EIT represents the largest EU-supported innovation ecosystem. The EIT has supported more than 1200 start-ups and innovative ventures, leading to over EUR 890 million in external funding attracted by those companies and more than 6000 jobs created by the supported start-ups. More than 50% of KIC partners are from the business sector (industry, SMEs and start-ups) demonstrating the proximity to the market. The increase in number of partners in each KIC shows the attractiveness and long-term potential of the EIT model. By 2019, there are more than 600 businesses, 250 HEIs, 200 research organisations, and more than 50 civil society organisations and authorities participating in EIT KICs. In the backdrop of persisting regional disparities in innovation performance, the EIT launched a Regional Innovation Scheme (RIS) in 2014 to widen its regional outreach to modest and moderate innovator countries. Through the RIS, the EIT has expanded its activities across Europe and offers now opportunities for regions with low innovation performance to engage in knowledge triangle activities as part of the a KIC community. This is also reflected in the share of EIT funding allocated to EU-13 partners (8.3% as compared to 4.8% in Horizon 2020 as of 2018). Figure 3: EIT in Europe, source: EIT, 2018 The EIT has been able to stay agile and to develop the governance principles and rules for the successful management of its KICs under the overall umbrella of Horizon 2020, in accordance with the EIT Regulation. Its operational independence has allowed it to test and effectively implement a number of novelties in the management of its beneficiaries such as a competitive funding mechanism, financial sustainability targets and specific key performance indicators. 1.3.Key Challenges The EIT is part of the overall Horizon Europe framework that aims, inter alia, to deliver scientific, economic/technological and societal impact so as to strengthen the scientific and technological bases of the Union; deliver on the Union strategic policy priorities, foster its competitiveness in all Member States, including in its industry, and contribute to tackling global challenges, including the Sustainable Development Goals. A core condition for being successful in this endeavor is to respond to the persisting need to increase innovation capacity across the Union. There are in particular three challenges the EU faces that will guide EIT’s actions in 2021-2027 as reflected by its general objectives. First, today’s economies are increasingly driven by the skills and abilities of people and organisations to turn ideas into products and services. Innovation skills and an entrepreneurial culture make all the difference today, in particular in the technological and scientific domains but increasingly also in other disciplines. There is a strong need to further boost the innovation capacity of higher education institutions in Europe. The EIT is in a unique position to deliver on this in the Horizon Europe framework. Second, physical proximity is a key enabling factor for innovation. Initiatives aiming at developing innovation networks and providing services that support the creation, sharing and transfer of knowledge, play a key role in fostering the interactions between business, academia, research organisations, governments and individuals. Still, research and innovation performances across the EU, as reflected in the annual European Innovation Scoreboard, vary considerably. It is of crucial importance that innovation is inclusive and rooted in the local territories. EIT activities, thanks to their “place-based” approach, are well suited to contribute to strengthening local innovation ecosystems. Finally, vibrant innovation ecosystems require a mix of knowledge, infrastructure and talent. Framework conditions for cooperation between European research, education and innovation along with strong synergies need to be in place to ensure proper and efficient investment of scarce resources into research and innovation. Deepening the knowledge triangle integration through existing and new KICs is a proven way to foster an environment conducive to innovation and is a guiding objective for the EIT. 2.Raising the bar: the EIT in 2021-2027 The EIT as an integral part of the Horizon Europe programme will contribute delivering on its overarching objectives and priorities. The KICs will be part of the Institutionalised European Partnerships, meaning they will follow a set of principles and life-cycle criteria to ensure a more coherent, open and impact-driven approach. The EIT general objectives therefore reflect the overall role of the EIT in Horizon Europe and its place in the [Innovative Europe Pillar]. 2.1.Objectives The overarching areas of intervention for the EIT are defined in the [Horizon Europe proposal]. The EIT will continue to support its Knowledge and Innovation Communities (KICs) in order to strengthen the innovation ecosystems that help to tackle global challenges. It will do so by fostering the integration of education, research and business, thereby creating environments conducive to innovation, and by promoting and supporting a new generation of entrepreneurs and stimulating the creation of innovative companies in close synergy and complementarity with the EIC. In doing so it will in particular: (1)Strengthen sustainable innovation ecosystems across Europe;

(2)Foster innovation and entrepreneurship through better education; (3)Bring new solutions to global challenges to market. In line with the identified challenges that the EIT is facing (described in chapter 1.3.) and in order to contribute to the above overarching objectives defined for the EIT in the [Horizon Europe proposal], the specific objectives of the EIT for the period of 2021-2027 are to: (a)Increase the impact of KICs and knowledge triangle integration; (b)Increase the innovation capacity of the higher education sector by promoting institutional change in higher education institutions (HEIs); (c)Increase the regional outreach of the EIT in order to address regional disparities in innovation capacity across the EU. 2.2.Positioning in Horizon Europe By delivering on these objectives, the EIT will contribute to the overall achievement of Horizon Europe scientific, economic/technological and societal impacts. It will continue to strengthen innovation ecosystems that help to tackle global challenges, by fostering the integration of the knowledge triangle in the areas of activity of the KICs. The Horizon Europe Strategic Planning process will ensure closer alignment between the EIT activities and the rest of Horizon Europe. Based on its proven track record, the EIT will play an important role in the Open Innovation Pillar. Strong synergies between the EIT and the European Innovation Council will be key for the impact of the [Innovative Europe] Pillar. The EIT and the EIC will run complementary activities aiming at streamlining the support provided to innovative ventures. Based on the expertise of its KICs, the EIT will provide business acceleration services and trainings to beneficiaries awarded EIC funding. The EIT will furthermore facilitate the access of EIC beneficiaries to KICs’ innovation ecosystems and relevant actors of the knowledge triangle. In this way EIC beneficiaries can become actively involved in KICs’ activities and benefit from KICs’ services. In parallel, EIT beneficiaries will be able to apply to the EIC instruments, when EIT KICs support may not be available. The EIC may help start-ups supported by KICs with a high growth potential to rapidly scale-up. In particular, the most innovative KICs’-backed ventures may, if selected under the EIC, benefit from the blended finance support offered by the EIC Accelerator and/or by the financial support offered by InvestEU instruments. The EIT will ensure stronger synergies also with programmes and initiatives in the [Excellent Science] Pillar, to accelerate the transfer of knowledge resulting from blue sky research into concrete applications benefiting the society. In particular, with regard to the Marie-Skłodowska-Curie Actions (MSCA), the EIT will collaborate on the development of innovation and entrepreneurial skills of MSCA fellows. The EIT will contribute to the [Global Challenges and Industrial Competitiveness] Pillar and complement relevant activities to tackle global challenges and increase the competitiveness of the EU on a global scale. In particular, through its KICs, the EIT will seek to contribute to relevant missions and thematic clusters and other European Partnerships by notably supporting demand-side measures and providing exploitation services to boost technology transfer and accelerate the commercialisation of results achieved. The EIT will ensure coherence with the European innovation ecosystems strand of Horizon Europe. In particular, the EIT will take an active part in the activities of the EIC Forum and will establish links between the EIT Community and relevant activities supporting innovation ecosystems in order to avoid duplication and ensure coherence and complementarity of actions. Opportunities for synergies will be also explored between the Sharing Excellence part of Horizon Europe and the outreach activities supported by the EIT. In particular, target countries of the Horizon Europe Sharing Excellence part will be able to leverage on EIT expertise and support for the development of downstream activities (i.e. close to market), as the target group for for EIT outreach activities. 3.Boosting the Innovation Talent and Capacity of Europe A reinforced role of the EIT, through a focus on actions where it will add value at the EU level and contribute to achieving the objectives of Horizon Europe, will guide the EIT strategy for 2021-2027. First, the EIT will continue to support the innovation capacity and ecosystems through KICs, their further development and expansion, and through the launch of new KICs. Secondly, building on its experience with the knowledge triangle integration, the EIT will directly support the development of the entrepreneurial and innovation capacity in the higher education sector. Finally, through more effective cross-cutting measures, the EIT will ensure that its impact at the EU level increases. In addition, the EIT will also improve its operations in a number of areas in order to increase its effectiveness, efficiency and impact. 3.1.Knowledge and Innovation Communities (1)Support to existing KICs The integration of the knowledge triangle by the EIT and KICs at EU, Member States, regional and local levels will remain a core task for strengthening innovation ecosystems and making them sustainable, as well as for developing new solutions to global challenges. The EIT will continue support a portfolio of KICs (see Figure 2) and will further strengthen its successful platform for launching, growing and managing them. KICs will continue to operate through co-location centers (CLC). The KICs will continue to pursue financial sustainability in order to achieve financial independence from the EIT grant in the long-term (at the latest, after 15 years) through leveraging public and private investment. The EIT will dedicate a large share of its budget to support KICs. It will monitor and analyse their performance and ensure they deliver towards the objectives of the EIT and of the Horizon Europe Programme. Beyond financial support, based on lessons learned, the EIT will provide strategic supervision to KICs, as well as guidance on horizontal and specific issues, including on the establishment of synergies within Horizon Europe and with other EU initiatives. In particular, the EIT will support KICs in establishing interfaces and fostering joint activities with relevant European Partnerships and other relevant Union initiatives and programmes.

It will also monitor the award of the EIT Label to KICs’ education and training programmes and explore a more effective quality assurance mechanism, including external recognition and accreditation for the EIT Label. The EIT will facilitate shared services towards the KICs and exchanges of experiences and good practices between KICs and foster collaboration between them (cross-KIC activities) on both thematic and horizontal topics. Cross-KIC activities have highest potential where several KICs alreadyaddress common EU policy priorities where no dedicated KICs exist. Bringing together the different KICs communities in dedicated joint actions of mutual benefit has high potential for synergies and The EIT will boost such activitiesand take an active part in defining the content and structure of the cross-KIC activities. It will monitor the implementation of cross-KIC activities as well as the results achieved, with the aim of making those activities an integral part of the KICs’ strategies. (2)Increasing the regional impact of KICs The EIT will further increase its regional impact through an enhanced openness towards potential partners and stakeholders and a better articulated regional strategy of KICs, including links to the relevant Smart Specialisation Strategies. The EIT Regional Innovation Scheme, steered by the EIT and implemented by KICs, has been so far run on a voluntary basis. From 2021 on, the EIT RIS will become an integral part of the KIC’ multi-annual strategy. The EIT will continue to provide guidance and support to KICs in the preparation of multi-annual EIT RIS strategies and in their implementation. EIT RIS activities will continue with improved support to the innovation capacity of countries and regions that underperform in terms of innovation. The EIT budget devoted to implementing EIT RIS activities will be at least 10% of the overall EIT support funding to KICs, thereby increasing the number of KIC partners from targeted regions. Activities supported through the RIS will aim to: ·improve the innovation capacities of the local ecosystem, via capacity building activities and closer interactions between the local innovation actors (clusters, networks, regional authorities, HEIs, research organisations, VET institutions); ·link local innovation ecosystems to pan-European innovation ecosystems through cooperation with EIT KICs and their co-locations centres. In addition, in order to ensure KICs’ deeper integration in local innovation ecosystems, each KIC will be required to develop and implement a strategy aiming at strengthening the relationship with regional and local innovation actors, and the EIT will actively monitor the implementation. A “place-based” innovation approach should be integrated within the KIC’s multi-annual strategy and business plan and build on KIC’s CLCs (and RIS), thus leveraging on their role as gateway for accessing a KIC community and interacting with the co-located partners. KICs should demonstrate links with local Smart Specialisation Strategies and with the activities of relevant thematic platforms and interregional initiatives, including the Managing Authorities of ESI Funds. The EIT will also monitor how CLCs operate and how they integrate in the local innovation ecosystems. (3)Launch of new KICs In order to contribute to addressing new and emerging global challenges, the EIT will launch new KICs in priority fields selected based on criteria assessing, among other aspects, their relevance to Horizon Europe policy priorities, and their potential and added value to be addressed through the EIT model. The launch of new KICs will take into account the Strategic Planning of Horizon Europe and the budget allocated to the EIT in 2021-2027. The relevant selection criteria for European Partnerships defined in Annex III of the [Horizon Europe Regulation] will be included in the KIC Call for proposals and assessed during the evaluation. The list of priority fields for future KICs is set out in Annex 1A to this SIA. Based on a proposal from the EIT Governing Board and an analysis thereof, a first KIC in the field of Cultural and Creative Industries (CCI) is proposed to be launched in 2022 with a call for proposals to be published in 2021. This priority field has the strongest complementarity with the eight KICs that have already been launched by the EIT, as well as with the potential priority areas for other European Partnerships to be launched in the framework of Horizon Europe. CCI are a sector with a high growth potential, many grass-roots initiatives and strong citizen appeal. They are strongly embedded in their local and regional ecosystems. However, CCI are still a very fragmented sector and the innovators and business creators lack the needed entrepreneurial and innovation skills. These bottlenecks would be best tackled by a KIC thanks to its knowledge triangle integration approach, long-term perspective and place-based approach. A factsheet summarizing the challenges of the CCI field and the expected impact of the future KIC is included in Annex 1B to this SIA. Based on the proposed budget for the EIT, a second new KIC could be launched in 2025 with a call to be published in 2024, after an amendment to Annex 1A to add new priority field(s). The priority area(s) will be selected in light of the proposals of the EIT Governing Board. These proposals will take into account the priority areas to be identified in the Horizon Europe Strategic Research and Innovation Plan and the criteria set for the selection of European Partnerships, in particular openness, transparency, EU added value, coherence and synergies. The criteria for selecting new KICs will be aligned with those in the Horizon Europe. They will also support delivery on EU policy priorities such as missions and Sustainable Development Goals. Other new KIC/KICs could be selected in case additional budget to that of the EIT would become available. The EIT will: ·Strengthen innovation ecosystems by continuing to support existing KICs in addressing global challenges through the integration of the knowledge triangle. ·Define areas of and promote stronger cross-KIC collaboration on topics of strategic and policy relevance. ·Ensure that KICs develop and implement a strategy to create collaboration and synergies with relevant European Partnerships and other relevant Union initiatives and programmes. ·Ensure that KICs have an inclusive approach aiming at strengthening their relationship with national, regional and local innovation actors. ·Ensure that EIT RIS activities deliver on increased regional impact and are fully integrated in KICs’ multi-annual strategies. ·Launch new KICs in selected thematic areas of strategic importance, starting with a KIC in the field of Cultural and Creative Industries in 2022. 3.2.Supporting the innovation capacity of higher education Through the knowledge triangle integration model, the EIT has helped to bridge the persistent gap between higher education, research and innovation. In particular, the EIT is a key tool for the development of human capital through its distinctive focus on entrepreneurial education. However, the impact of the EIT remains limited to the KICs’ partners. To support innovation more widely, higher education institutions in Europe need to be innovative and entrepreneurial in their approach to education, research, and engagement with businesses and the broader local innovation ecosystem, including civil society. Developing HEIs into more innovative and entrepreneurial organisations requires a clear strategy, a methodological framework and commitment of resources. Based on its experience, the EIT is uniquely positioned to support the development of entrepreneurial and innovation capacity of HEIs under Horizon Europe. Activities will be implemented by the EIT through the KICs in an open and targeted way which will aim at increasing the innovation capacity in higher education in order to integrate a wider number of HEIs in innovation value chains and ecosystems. These activities will complement the intervention of the EIT on education as core part of the Knowledge Triangle Integration activities of KICs, in particular through making them more open and accessible to non-partners of the KICs. The impact of the EIT would reach beyond the KICs and contribute to the EIT's core mission of boosting sustainable economic growth and competitiveness by reinforcing the innovation capacity of Member States, in line with the Horizon Europe goals of fostering entrepreneurial and innovation skills in a lifelong learning perspective, including increasing the capacities of HEIs across Europe.

The EIT support will build on policy initiatives such as the HEInnovate and RIIA frameworks that have proven their value in a number of HEIs and Member States across the EU. The EIT will design the support activities in close collaboration with the Commission ensuring coherence and complementarity with relevant activities within Horizon Europe , Erasmusand other programmes. The specific details of the implementation and delivery mechanism process will be further developed and fine-tuned in the first three years and will be subject to monitoring and evaluation during this pilot phase before further upscaling. The EIT will play a steering and coordination role in the implementation and monitoring of the activities that will be run by the KICs. Particular attention will be paid to ensuring: an inclusive approach to attract HEIs beyond the KICs’ partners; an inter-disciplinary and inter-sectoral approach; and a link with the European Commission Smart Specialization Strategy, relevant thematic platforms and the EIT RIS. The EIT will link its support to developing innovation capacity in higher education to the EIT Label, which is awarded currently to the KICs’ education programmes. In particular, participating HEIs may be involved in the use of the EIT Label. The EIT will also extend the EIT Label to lifelong learning activities involving and reaching out to a wider target group of students, adult learners and institutions (including VET institutions) beyond the KICs. The application of the Label beyond the EIT community will have a more structuring effect at all levels (individual, programme and institution). The EIT will in particular target HEIs from countries that are moderate and modest innovators and other low performing regions that wish to strengthen their innovation footprint and Smart Specialisation Strategies. The EIT will allocate to this measure at least 25% of the overall budget allocated to these activities. The EIT will: ·In cooperation with the Commission, design and launch activities to support the development of innovation capacity in higher education, which will be implemented through the KICs, starting in 2021. ·Introduce an outreach scheme to incentivize HEIs from moderate and modest innovator countries to develop their innovation capacities. ·Provide specific guidance, expertise and coaching to participating HEIs. ·Strengthen and widen the scope of the EIT Label beyond the KICs to include the HEIs participating in the action. 3.3.EIT cross-cutting activities (1)Communication The EIT will reinforce its communication and visibility. With a growing number of KICs and a new action supporting the entrepreneurial development of HEIs, the EIT will boost its efforts to increase its recognition as a quality brand for innovation. This brand management and improved communication is crucial especially towards citizens as the innovations coming out of the EIT contribute to demonstrate the concrete impact of EU investments through the European Research and Innovation Framework Programme. The EIT will apply an improved branding strategy towards its main stakeholders (HEIs, research organisation, businesses, etc.) in all Member States and beyond, in line with Horizon Europe communication approach. In order to ensure wider dissemination and better understanding of the opportunities offered by the EIT, the EIT will explore the possibility to reinforce guidance and assistance on aspects related to participation in EIT KICs across Europe by building on existing networks of information across Europe. In order to ensure that a large stakeholder community across the knowledge triangle at EU, national, regional and local levels are aware of all EIT (and KICs) calls and funded projects, they will appear also in the European Funding and Tender Opportunities Portal, under Horizon Europe. EIT will organise regular meetings of the Member States’ Representatives Group as well as Commission related services, at least twice a year, to ensure an appropriate communication and flow of information with Member States and at EU level, and keep them informed of the performances and achievements of the EIT-funded activities. The Member States’ Representatives Group shall also ensure appropriate support to liaise EIT-supported activities with national programmes and initiatives, including the potential national co-financing of those activities. The EIT will continue running the EIT Stakeholder Forum and the EIT awards in order to promote the interactions with European actors of the knowledge triangle and recognise the most promising entrepreneurs and innovators in Europe. The EIT will continue to steer and provide strategic guidance to the EIT Alumni Community (in collaboration with the EIT Alumni Board) to maximise its entrepreneurial and societal impact and the continuous involvement of its members in EIT-supported activities. In the course of 2021-2027 the Community will continue growing and will also include the alumni taking part to the actions supporting the innovation capacities of HEIs. (2)Identify and share good practices with stakeholders The EIT has a key role in disseminating good practices and lessons learned. The KICs and the projects supporting innovation and entrepreneurial capacity of HEI are a valuable source of evidence and experimental learning for policy-makers, providing examples of good practices and support in the development and implementation of EU policy in their thematic domains. So far, the good practices and learnings stemming from the KICs have not been sufficiently codified and disseminated effectively. In its support function as a knowledge partner for policy makers and the entire innovation community, the EIT will further develop its role as an innovation institute able to detect, analyse, codify, share and ensure the take-up of innovative practices, learnings and results from the EIT-funded activities (education & training, support to innovation, support to entrepreneurship) on a broader scale. This activity will build on the links and synergies with the other initiatives within the [Innovative Europe Pillar]of the [Horizon Europe proposal]. (3)International cooperation Within the scope of the EIT Regulation, the EIT will seek greater impact of its activities through international cooperation and will coordinate international EIT-funded activities by the KICs. Its focus will align closely with relevant industrial policy objectives of the European Union as well as its research and innovation priorities and ensuring European added value. In its international cooperation the EIT, in consultation with the Commission, will focus on effective tackling of global societal challenges, contributing to relevant international initiatives and the Sustainable Development Goals, ensuring access to talent and enhanced supply and demand of innovative solutions. The EIT and KICs will plan and perform their international activities in close collaboration with the Commission, in compliance with the Horizon Europe approach and other relevant EU policies, and under the supervision of the EIT Governing Board. The EIT will: ·Improve its visibility through a stronger branding strategy towards main stakeholders in Member States. ·Ensure visibility of the European Union’s support. ·Explore the feasibility to use existing EU information networks and provide coordination to their activities in order to ensure better advice and guidance to potential EIT KICs partners. ·Organise regular meetings of the Member States’ Representatives Group to ensure an effective communication and flow of information with MS. ·Increase the visibility of its action towards citizens and its community of stakeholders through the Stakeholder Forum, the EIT Awards and the EIT Alumni. ·Identify, codify, and effectively share learnings and good practices emerging from EIT-funded activities; engage with EU Member States authorities at both national and regional level, establishing a structured dialogue and coordinating efforts, in order to identify, share and disseminate good practices and learnings. ·Develop broad lines of international cooperation of the EIT and the KICs under the supervision of the EIT Governing Board, in compliance with the Commission’s strategy for international cooperation on research and innovation and in consultation with the the respective Commission services.

3.4.Making it work This section includes a number of measures that aim to adapt and improve the current functioning of the EIT and the KICs. An effective and strategic EIT Governing Board will monitor the implementation of those measures at the EIT level, and will provide the necessary incentives and control, including through the funding allocation process, to ensure that the KICs implement them. (4)KIC operational model The EIT will provide operational guidance to and monitor the KICs on compliance with sound management principles, the principles and criteria set out for European Partnerships in the Horizon Europe regulation and alignment with Horizon Europe priorities in order to maximize their performance and impact. Measures ensuring continuous openness of the KICs and transparency during implementation will be improved notably by including common provisions for new members that add value to the partnerships. They will also run their activities in a fully transparent way. KICs will remain dynamic partnerships that new partners, including an increasing share of SMEs, can join on the basis of excellence and strategic fit. In order to limit the concentration of funding and ensure that KICs activities benefit from a wide network of partners, the procedure for the preparation of the Business Plan (including the identification of priorities, the selection of activities and the allocation of funds) will be made more transparent and inclusive. Finally, KICs will increase the share of calls, in particular for innovation projects that are open to third parties. All these measures will increase the number of participating entities involved in KICs’ activities. Finally, KICs should report on the involvement of new partners in their regular reporting. As KICs operate across the entire value chain of innovation, they will ensure an appropriate balance of education, entrepreneurship and innovation activities in their Business Plan portfolio. KICs operations will be implemented through a lean, efficient and cost-effective structure that would keep administrative and overhead costs to a minimum. EIT will ensure that KICs will achieve their expected impacts through a broad range of activities, identified in the KICs’ Business Plans, which effectively support the fulfilment of their objectives. Commitments from each KIC’s partner throughout the contractual duration of the initiative will be ensured by regularly monitoring the actual partner’s contributions against the original commitments. EIT will ensure that KICs have a risk management system in place for cases where some partners are not able to meet their original commitments. The EIT will: ·Ensure that KICs apply strict principles of openness and transparency, in particular as regards the selection of new partners and the procedure for the preparation of the Business Plans. ·Ensure that the implementation of the KICs is in full compliance with the respective requirements stemming from the Horizon Europe regulation. ·Ensure an appropriate balance in the Business Plans between activities of the knowledge triangle. ·Ensure that KICs keep their administrative costs to a minimum. ·Ensure transition of existing eight KICs towards delivery of the new implementation criteria of Horizon Europe for European Partnerships. (5)KIC funding model Through a lean and simplified funding model, the EIT will enhance the impact and contribution of KICs towards reaching the objectives of the Horizon Europe Programme. In order to increase the value added of its support, the EIT will adapt its funding model. There are four main areas where the EIT will implement improvements. Firstly, the EIT will introduce a co-funding rate in order to increase the levels of private and public investments. The adaptation of the funding model will facilitate the KICs in the transition towards financial sustainability. It will incentivise them to decrease gradually during the duration of the framework partnership agreements the share of EIT funding in their Business Plan while increasing the level of co-investment from non-EIT sources. Fixed decreasing co-funding rates will be applicable across phases of the entire KICs’ life cycle (start-up, ramp-up, maturity, exit from the EIT grant) as presented below. Start-up Ramp-up Maturity Exit from EIT grant Years 1 – 4 5 – 7 8 – 11 12 - 15 EIT Co-funding rate Up to 100% Up to 80% Up to 70% 50% at year 12, decreasing by 10% per annum Figure 4: EIT co-funding rates 2021-2027 Secondly, the grant allocation process currently used will be geared more strongly towards competitive performance and results and the use of multiannual grants. The EIT Governing Board will provide stronger incentives to KICs in particular based on their individual performance in order to ensure the highest level of impact. The EIT will therefore amend its competitive funding provisions in order to improve its impact as part of Horizon Europe. Thirdly, the EIT will apply strict rules for reinforcing the review mechanism prior to the expiry of the first 7 years initial period of KIC’s operations. This mid-term review to be undertaken with the help of external experts should be in line with the best international practice, in line with Horizon Europe criteria for the monitoring and evaluation of European Partnerships and take place before the expiry of the initial seven years period. As a result of the review, a decision will be made by the Governing Board to either continue the financial contribution to a KIC, or to discontinue it (thus not extending the framework partnership agreement with that KIC) and reallocate the resources to better performing activities. Finally, the EIT will continue its efforts towards simplification in order to alleviate unnecessary administrative burden of the KIC, allowing the implementation of their annual Business Plan and multi-annual strategy in an agile and efficient way. This will include the use of lump sum or unit costs for relevant KIC activities. Moreover, in order to provide a better planning of the resources, in particular of innovation activities, as well as facilitate stronger commitment and long-term investment from participating partners in KICs activities, the EIT will sign multi-annual grant agreements with KICs, when appropriate, under the respective framework partnership agreements. These multi-annual grant agreements should not exceed 3 years. The EIT will: ·Implement a new funding model designed to incentivise commitment from KICs’ partners. ·Continuously improve the funding model by simplifying KIC’s reporting practices and, when deemed appropriate, sign multi-annual grant agreements with KICs under the respective framework partnership agreements. ·Adapt the competitive grant allocation process to reward performance and results. ·Reinforce the comprehensive review of the performance of each KIC prior to the expiry of their 7th year of activity to support a Governing Board decision on the continuation or termination of their financial support, in line with Horizon Europe framework for European Partnerships. (6)EIT relation with KICs after the termination of the framework partnership agreement Subject to an in-depth independent study in close cooperation with the Commission, by the end of 2023, the EIT will define its relations with the KICs that will stop receiving support grants in the course of the 2021-2027 programming period. Subject to a positive outcome of a final review, the EIT may conclude a “Memorandum of Co-operation” with each KIC, aiming to maintain cooperation with KICs after the termination of the framework partnership agreement. This Memorandum should include, inter alia, rights and obligations linked to: ·the use of the EIT brand, participation in EIT Awards and in other initiatives organized by the EIT;

·the use of the EIT Label for education & training programmes; ·participation in EIT competitive calls for cross-KIC activities and shared services; ·relations with the EIT Alumni Community. The EIT will: ·Develop the general principles for the relation with KICs after the termination of the framework partnership agreement, in line with Horizon Europe framework for European Partnerships; ·Conclude, subject to a positive final review and EIT Governing Board decision, Memoranda of Cooperation with the KICs in order to keep them as active members of the EIT Community. 3.5.Synergies & complementarities with other programmes Building on its broad scope of action and distinctive role, the EIT is well placed to create synergies and provide complementarities with other EU programmes or instruments, including by reinforcing its support to KICs in their planning and implementing activities. The list below offers concrete examples where the EIT will contribute to synergies in the mid to long term beyond Horizon Europe. Erasmus ·Erasmus and EIT will establish synergies between their respective communities. Cooperation will be geared towards ensuring access for Erasmus students participating in KIC partner higher education institutions to KICs’ summer schools or other relevant training activities (for instance, on entrepreneurship and innovation management) and establishing contacts with the KICs’ alumni network. ·Cooperation activities can also include delivery of training by EIT/KICs to academic staff (coming from all Higher Education Institutions, beyond the KICs) for curricula integrating entrepreneurship and innovation, as well as testing, adoption and scaling-up of innovative practices developed within Erasmus networks (like the Knowledge Alliances between higher education institutions and businesses) by KICs and vice versa. ·Synergies will be ensured, where possible, with the European Universities initiative that could help mainstream EIT’s educational activities to reach a systemic impact. Digital Europe Programme (DEP) ·KICs’ co-location centres will collaborate with the European Digital Innovation Hubs to support the digital transformation of the industry and public sector organisations. ·Feasibilities will be explored to use infrastructures and capacities developed within the DEP (e.g. data resources and libraries of artificial intelligence algorithms; high performance computing competence centres in Member States) by the KICs in education & training, as well as for testing and demonstration purposes in innovation projects. Cohesion Policy Funds (in particular European Regional and Development Fund and European Social Fund) ·EIT KICs, through their co-location centres and RIS entities, will promote regional and cross-regional cooperation between the knowledge triangle actors (education, research, business) and managing authorities, in synergy with interregional cooperation and investments along value chains in related smart specialization priorities areas, and the work of the thematic smart specialisation platforms. The EIT will also explore contributing to the skills development initiatives under the Cohesion Policy Funds through exchange of best practices. ·EIT KICs will promote the collaboration with the Smart Specialisation Platforms, particularly the projects having experience in working with the Managing Authorities of Cohesion Policy Funds, in order to facilitate synergies between EIT resources, Cohesion Policy Funds and other European, national and/or regional programmes. InvestEU ·EIT KICs will seek the collaboration of the InvestEU Advisory Hub to provide technical support and assistance to KICs’-backed ventures for the preparation, development, and implementation of projects. ·EIT KICs will contribute to feed the InvestEU Portal in order to bring investors closer to KICs’-backed ventures, in close collaboration with Commission services. Creative Europe

·The new Creative Europe Programme will be specifically relevant for the activities of a future KIC on CCI. Strong synergies and complementarities will be developed with the programme in areas such as creative skills, jobs and business models. Single Market Programme (COSME) ·KICs will seek cooperation with the Enterprise Europe Network (EEN) and its Sector Groups to facilitate business-to-business cooperation, technology transfer and innovation partnerships for entrepreneurs wishing to develop their activities across the EU and beyond. EEN organisations will promote EIT KICs activities among their SME clients. The EIT will explore cooperation the mobility programmes for new entrepreneurs to improve their entrepreneurial skills. 4.Resources 4.1.Budget needs The EIT's budget needs in the period 2021-2027 are EUR [3000] million and are based on three main components: 1) the expenditure for the existing eight KICs (reflecting that for three of them the framework partnership agreements will come to an end by 2024) and the launch of two new KICs (in 2022 and 2025); 2) the launch of a new EIT support and coordination action; and 3) administrative expenditure. Around EUR [2500] million (83,3 % of the total EIT budget) is envisaged to fund existing and new KICs and includes EUR [200] million for the Regional Innovation Scheme. Through the introduction of a co-funding rate, the KICs are expected to mobilise a further EUR [1500] million of other public and private sources. The budget for the launch of two new KICs (to be launched in 2022 and 2025, respectively) will be around EUR [300] million. Should additional budget to that of the EIT become available, the EIT could also launch additional KICs. The EIT will launch a new support action to help develop the entrepreneurial and innovation capacity of HEIs. This action will require horizontal project management and monitoring services. Around EUR [400] million of the EIT budget (max. 14%) is needed to implement these activities, with EUR [120] million dedicated to the start-up phase (first 3 years) and the rest for the scale-up phase (final 4 years) The EIT will continue to be a lean and dynamic organisation. The costs of administrative expenditure, covering necessary staff, administrative, infrastructure and operational expenses, will increase but on average not exceed 3% of the EIT budget. Part of the administrative expenditure is covered by Hungary through provision of free of charge office space until the end of 2029. On this basis, administrative expenditure will therefore be approximately EUR 73 million for 2021-2027. The budget breakdown is presented below: 4.2.Impact (monitoring and evaluation) The measurement of EIT’s impact will be continuously improved over the next programming period taking into account the lessons learnt and the experiences gained so far. The EIT will apply an evaluation, reporting and monitoring framework ensuring coherence with the overall approach taken for Horizon Europe while catering for flexibility. In particular, feedback loops between the Commission, EIT and KICs will be improved in order to address the objectives in a consistent, coherent and efficient manner. Evaluation The periodic evaluations of the EIT activities, including those managed through KICs, will be carried out by the Commission in line with the provisions of the EIT Regulation and Horizon Europe Regulation. These evaluations will assess the effectiveness, efficiency, relevance, coherence and EU added value of the EIT activities including the KICs. They will be based on independent external evaluations and will feed into the overall mid-term and ex-post evaluations of Horizon Europe. Furthermore, each KIC will be subject to a thorough review by the EIT before the end of the 7th and 14th year of operation under the Framework Partnership Agreements. Reporting and Monitoring The reporting and monitoring of the KICs operational performance and their results will be a primary task of the EIT and will be implemented in cooperation with Horizon Europe common corporate services. The reporting and monitoring system for KICs will be built into the overall Horizon Europe monitoring system, in particular by implementing common data models including data collection. The Commission will take part in the co-design of all relevant impact and monitoring indicators and tools developed or applied by the EIT in order to ensure compatibility and consistency with the overall Horizon Europe monitoring system, including the key impact pathways, the criteria framework for European Partnerships and the Strategic Planning Process. Furthermore, EIT will take into account the deployment of the Innovation Radar methodology in Horizon Europe, and will explore how Innovation Radar could be leveraged by the KICs for enhancement of its monitoring activities. Overall, it will be a responsibility of the EIT to regularly monitor the operational performance of the KICs and to adapt continuously its monitoring systems in line with Horizon Europe monitoring and reporting framework for European Partnerships and in cooperation with the Horizon Europe common corporate services. The results of such monitoring will feed into the KICs business planning processes and into the EIT decision-making on the allocation of the budget and preparation of the framework partnership agreements with the KICs as beneficiaries. The EIT activities, including those managed through KICs, are expected to have (1)economic/innovation impact by influencing the creation and growth of companies, as well as the creation of new innovative solutions to address global challenges, creating direct and indirect jobs and mobilising other public and private investments; (2)scientific and educational impact by strengthening human capital in research and innovation, enhancing innovative and entrepreneurial skills both at individual and organisational levels and fostering the diffusion of knowledge and innovation openly within society;

(3)soci