Communication from the Commission - «The regions and the new economy» - Guidelines for innovative actions under the ERDF in 2000-2006
Date: 2001-01-31
Institutions: European Commission
Subjects: EU regional policy, European Regional Development Fund, action programme, economic and social cohesion, information society, innovation, regional development

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.01.2001
COM(2001) 60 final

COMMUNICATION FROM THE COMMISSION

"The regions and the new economy"

GUIDELINES FOR INNOVATIVE ACTIONS UNDER THE ERDF
IN 2000-2006

COMMUNICATION FROM THE COMMISSION

"The regions and the new economy"

GUIDELINES FOR INNOVATIVE ACTIONS UNDER THE ERDF
IN 2000-2006

I. The regulatory framework

1.

Article 22 of Council Regulation (EC) No 1260/1999 laying down general provisions
on the Structural Funds (OJ L 161, 26 June 1999) states that, in accordance with
Article 4 of Regulation (EC) No 1783/1999 on the ERDF (OJ L 213, 13 August
1999), "At the initiative of the Commission .... the Funds may finance innovative
actions ....[which] contribute to the preparation of innovative methods and practices
designed to improve the quality of assistance under Objectives 1, 2 and 3. They shall
transparent fashion and in accordance with the
be implemented in a simple,
principles of sound financial management."

II. Aims, general principles and value-added of innovative actions

2.

3.

4.

This Communication forms part of the European Union's overall strategy aimed at
reinforcing the competitiveness of the European economy1. It contributes to the
operational implementation at regional level of the objective of "preparing the
transition to a knowledge-based economy and society by better policies for the
information society and R&D, as well as by stepping up the process of structural
reform for competitiveness and innovation."

There is at present a wide gap between regions in the fields of innovation and RTD
(research and technological development) and in the level of use of the new
information and communications technologies. In order to prevent this gap from
widening further and, at the same time, to take advantage of the opportunities offered
by the new economy for catching up swiftly, the less-favoured regions must be in a
position to introduce innovative practices which effectively explore these
opportunities. The new generation of innovative measures is aimed specifically at
reducing these gaps by giving regions where development is lagging behind or
conversion is under way easier access to experimental tools in future-oriented fields.

Globalisation is resulting in stiffer competition on account of the greater integration
of markets, whether in the form of the internationalisation of financial markets, the
growth of trade and direct investment or the rising number of inter-company co-
operation agreements, etc. The transition to a knowledge-based economy and the
promotion of the use of new technologies in regional economies as a whole are,
therefore, becoming priorities.

1

European Council held in March 2000 in Lisbon, Presidency Conclusions.

2

5.

6.

7.

If they wish to be more competitive, businesses and in particular small and medium-
sized enterprises (SMEs), which form the basis of the regions' productive fabric,
must anticipate and adapt to the technological changes that are occurring increasingly
rapidly on international markets. In this new economy, knowledge and knowhow are
becoming the raw materials. Consequently, the possibility of gaining swift, easy
access to them will be one of the principal strategic competitive weapons. In these
circumstances, human capital is proving to be more and more of a determining
factor; continuing training and lifelong learning are becoming the keys to innovation
and regional competitiveness.

It is important, therefore, that
innovative actions should help the less-favoured
regions to devise a regional policy which effectively meets the new challenges of the
future, particularly the globalisation of the economy and the acceleration of
technological change, while promoting economic and social cohesion in the
European Union. At the same time, the regions must find innovative solutions which
guarantee sustainable development and the enhancement of regional identities - the
factors which form the basis of regional human and physical capital. The regional
level is particularly appropriate for mobilising a critical mass of partners able both to
promote innovation and to implement it effectively and at grass-roots level. The
regions which may present proposals for innovative actions are listed in Annex A.

The capacity of the regions to innovate and continually adapt to economic change
will enable them to acquire most of the assets they need in order to increase their
competitiveness and thereby achieve the objective of reducing disparities and
creating high-quality jobs. It is, therefore, a matter of identifying and disseminating
the best innovative practices and encouraging the regional-policy authorities and
managing authorities to promote these practices. Innovative actions can be seen as a
laboratory for the development of Community regional policy and its adaptation to
new challenges.

Improving the quality of assistance under Objective 1 and 2 programmes part-financed by the
ERDF

8.

The prime objective of innovative actions is to influence the quality of the assistance
provided by programmes part-financed by the ERDF under Objectives 1 and 2.
Strengthening the links between innovative actions and operational programmes
requires the introduction of incentives to experiment with innovative regional-policy
methods and practices. Closer collaboration between those responsible for innovative
actions and the authorities responsible for managing Objective 1 and 2 programmes
part-financed by the ERDF is essential in order to achieve this goal.

if innovative actions are to act as a catalyst and an
This is especially vital
experimental tool in exploring the future orientation of regional policy in areas of
strategic importance to the least-developed regions of the Union, namely:

(cid:1)

(cid:1)

(cid:1)

regional economies based on knowledge and technological innovation

e-EuropeRegio: the information society at the service of regional development

regional identity and sustainable development.

3

9.

As a means of reinforcing competitiveness, these strategic themes are consistent with
the new Structural Fund guidelines adopted by the Commission for programmes part-
financed by the ERDF under Objectives 1 and 22.

Accordingly, the challenge will lie in ensuring that actions part-financed in the
context of innovative actions do not duplicate those covered by mainstream
assistance but positively influence them in an innovative direction. These actions
should be more adventurous - even though this may entail some risk of failure - and
should offer the least advanced regions an opportunity to experiment with more
sophisticated ideas which may not usually be dealt with in the context of
programmes part-financed by the ERDF.

10.

Community regional policy must help regions, particularly those which are less
developed,
to better incorporate such intangibles into their Objective 1 and 2
programmes part-financed by the ERDF. It should be emphasised that, in terms of
the three strategic themes under consideration, the less-developed regions tend to
under-invest compared with the more developed regions.

It should in fact be noted that the programmes in the least-developed regions and
lean towards reducing development gaps in areas such as
Member States still
physical infrastructure (transport and communications, energy, environment). There
is, therefore, reason to fear that disparities will grow in the context of both the
knowledge-based economy and intangible competitive factors, such as the capacity
initiative,
to innovate, an enterprise culture which encourages the spirit of
management quality, etc.

Developing and strengthening the regional public/private partnership

11.

As in the case of the Objective 1 and 2 programmes part-financed by the ERDF, the
Commission wishes the competent authorities in the regions to participate as fully as
possible in these innovative actions. This will involve them establishing, at regional
and local level, a reinforced partnership including the authorities responsible for
Objective 1 and 2 programmes part-financed by the ERDF and the private sector.
This partnership will pave the way for the emergence of high-quality regional
programmes of innovative actions and stimulate the exchange of experience and
networking between regions.

Synergy with other Community policies

12.

Innovative actions in 2000-06 should help to demonstrate how to exploit
the
synergies between regional policy and other Community policies, particularly those
which help to reinforce the spirit of enterprise and innovation at regional level,
implement the e-Europe initiative and encourage the setting up of a European
research area. Consequently, innovative actions will have to be better coordinated
with measures under Objective 1 and 2 programmes part-financed by the ERDF so
that they make a greater impact on cohesion. These activities should complement, as
much as possible, those financed by the ESF under the same Objectives. There is
obviously no question of any funding overlapping with other Community financial
instruments.

2

Commission Communication concerning the Structural Funds and their coordination with the Cohesion
Fund – Guidelines for programmes in the period 2000 to 2006 (OJ C 267, 22.9.1999).

4

Facilitating interregional exchanges and collective learning

13.

14.

15.

16.

17.

3

Innovative actions constitute a particularly appropriate means of
facilitating
interregional exchanges and collective learning through the comparison and
dissemination of best practice. The new innovative actions will make it possible to
enrich the regions working within a thematic network, while respecting their specific
characteristics. Innovation is by its very nature closely linked to the idea of risk and
change. The new generation of innovative actions gives regions greater control over
change and allows them to take the risks required in order to test out certain key
regional policy guidelines for the future.

III. Past experience

In 1994-99, the Commission distributed the ERDF resources available for innovative
actions (less than 1% of the Structural Fund budget) among eight themes: new
sources of employment, culture and heritage, spatial planning (Terra), urban pilot
projects (UPPs), internal interregional co-operation (Recite II), external interregional
co-operation (Ecos-Ouverture), promotion of technological
innovation (RIS and
RTTs) and the information society (RISI I and II). These resulted in some 350
innovative projects involving over 2 000 bodies. They made it possible to experiment
with new practices and promote the development of the public-private partnership at
local, regional and international level as well as stimulating co-operation between
different regions within the European Union and in the applicant countries. In this
way, a genuine experimentation policy has been established on the basis of
endogenous regional and local economic development factors.

Innovative actions involving new sources of employment provided a framework for
the new Community approach used in the Territorial Pacts for Employment. The
experience gained from other innovative interregional co-operation actions, such as
Terra, Recite II and Ecos-Ouverture, fed into the preparation of the interregional
dimension of the Interreg III Community Initiative, while experience gained from the
urban pilot projects inspired the new Urban II Community Initiative.

The experience acquired in the context of the innovative actions carried out in 1994-
99 fuelled the general debate on innovation in regional policy, which resulted in
three Commission communications, on technological innovation, the information
society and urban development respectively3, highlighting the relevance of the
approach followed in the preceding period.

Five years after the projects were launched in 1994, an assessment carried out by a
group of independent experts showed that a large proportion of those financed under
ERDF innovative actions for the period 1994-99 had already produced sound results
(see Annex B). A final evaluation will be carried out on completion of these projects
which will give further indications of their likely impact. Some innovative actions
under Article 10 of the ERDF Regulation for the period 1994-99, including Regional
Innovation Strategies (RIS) and the Regional Information Society Initiative (RISI),

"Reinforcing cohesion and competitiveness
technological development and
innovation" (COM(98) 275), "Cohesion and the information society" (COM(97) 7) and "Sustainable
urban development in the European Union: A framework for action" (COM(98) 605).

through research,

5

have been successful examples (see Annex C), which have illustrated the significant
the
role played by the regions
complementary role of the RITTS projects, which form part of the Innovation
Programme, should be noted and reinforced in the future, particularly with regards to
accompanying measures4 .

in promoting innovation.

respect,

In this

18.

19.

These strategies have contributed to the emergence and implementation of pilot
projects in the context of a broad-based public-private partnership, the result of
in technological development and the
which has been to boost
information society under programmes part-financed by the ERDF. Taking account
of the lessons of the past5, the objective of the new generation of innovative actions
is to deepen and broaden this approach, particularly in the areas mentioned.

investment

IV. New approach: types of actions and beneficiary regions

With a view to reinforcing the links with Objective 1 and 2 programmes part-
financed by the ERDF and guaranteeing simple, transparent implementation based on
sound financial management principles,
the Commission is proposing a
programming approach as opposed to an individual project approach, a reduction in
the number of strategic themes and a structured co-operation between those
responsible for the management of innovative actions and those in charge of the
Objective 1 and 2 programmes part-financed by the ERDF.

20.

The new generation of innovative actions will comprise three strands:

• part-financing of regional programmes of innovative actions and of the pilot

projects deriving from them;

• accompanying measures: support for exchange of experiences and the creation of

interregional networks;

• organisation of competitions aimed at identifying and developing best practice.

4

5

Regional Innovation and Technology Transfer Strategy projects (RITTS) were carried out under the
"Innovation and Participation of SMEs" programme in the RTD framework programme,
complementing the 1994-99 ERDF innovative actions. These projects involved more than 60 European
regions and led to the establishment of the IRE (Innovative Regions of Europe) network, to which over
100 regions belong.
European Commission, 1999, "On-going evaluation of the Regional Innovation Strategies Under
Article 10 of the ERDF ", ECOTEC Research and Consulting Ltd.
European Commission, 1999, "The Evaluation of the Inter-regional Information Society Initiative
(IRISI)", Technopolis Ltd.
European Commission, 1997,"External evaluation of the Regional Technology Plans", Technopolis Ltd.
in co-operation with the University of Athens (Greece).
European Commission, 1999, Evaluation of research, technological development and innovation-related
actions under the Structural Funds (Objective 2), ADE – Entrepise Plc – Zenit.
European Commission, 1999, "Thematic evaluation of the impact of the Structural Funds (1994/99) on
research, technology, development and innovation (RTDI) in Objective 1 and 6 regions", T. Higgins
and L. Tsipouri.
European Commission, 2000, “Assessment of the Regional Innovation and Technology Transfer
Strategies and Infrastructures (RITTS) scheme”, Centre for Urban and Regional Development Studies,
University of Newcastle.

6

21.

22.

The beneficiaries will be the regions listed in Annex A which are eligible in whole or
in part under Objective 1 or Objective 2 and those receiving transitional support
under those Objectives. The entire region, including those areas not covered by
Objectives 1 or 2, is considered eligible under the regional programme of innovative
actions .

V. Strategic themes 2000-06

For reasons of simplification and with a view to concentrating resources,
the
Commission proposes to reduce the number of strategic themes from eight in 1994-
99 to three in 2000-06. These three themes are interlinked. Their complementary
nature should be exploited in such a way as to develop the strategic approach which
best meets the specific requirements of each region. The new generation of
innovative actions is intended to promote innovatory methods and practices in the
following strategic areas.

(cid:1)

Regional economies based on knowledge and technological innovation: helping less-
favoured regions to raise their technological level

23.

24.

A substantial technology gap still divides the advanced and less-developed regions of
the European Union, in both the public and private sectors, in the sphere of research,
technological development and innovation (RTDI) systems. It is necessary, therefore,
to help Community regions to develop competitive assets based on innovation6 rather
than leave them to base their regional competitive advantage on costs (particularly
wage costs), since such an advantage could be swiftly eliminated in an increasingly
globalised economy.

For this reason, innovative actions should be introduced in the regions in order to try
and establish co-operation between the public sector and the bodies responsible for
RTDI and businesses, with a view to creating efficient regional innovation systems.
The aim is to encourage links not only between enterprises7, but also with the
universities, advisory services, financial markets and other technology partners. In
other words, it is a matter of establishing an environment and a regional institutional
the creation,
framework which will promote, by reinforcing human capital,
dissemination and integration of knowledge within the productive fabric as a
principal source of innovation and competitive advantage.

25.

The content of regional programmes of innovative actions in this area could, for
example, cover the following aspects:

• creation or reinforcement of co-operation networks between firms or groups of
firms, research centres and universities, organisations responsible for improving
the quality of human resources, financial institutions and specialist consultants,
etc.;

6

7

The term "innovation" designates both a process and its result (Green Paper on Innovation,
European Commission, 1996, COM(95) 688). It
involves the transformation of an idea into a
marketable product or service, a new or improved manufacturing or distribution process, or a new
method of social service. The term also covers social, institutional and organisational innovation,
including in the services sector.
I.e. universities, technology centres and training institutions.

7

• staff exchanges between research centres, universities and firms, particularly

SMEs;

• dissemination of research results and technological adaptation within SMEs;

• establishment of technological strategies for the regions, including pilot projects;

• support for incubators for new enterprises which have links with universities and
research centres; encouragement for spin-offs from university centres or large
companies oriented towards innovation and technology;

• schemes for assisting science and technology projects carried out

jointly by

SMEs, universities and research centres;

• contribution to the development of new financial instruments (venture capital) for

business start-ups.

(cid:1)

26.

27.

e-EuropeRegio: the information society at the service of regional development

the particularly swift development of
There is a greater risk than ever
information and communication technologies will create new gaps between the
regions of the European Union in the field of access to the information society.

that

In these circumstances, the less-favoured regions need to be able to rise to the
challenges generated by the growth of these technologies by taking full advantage of
the new opportunities offered by the information society where the productive sector,
public services or inhabitants' individual needs are concerned.

through its powerful networking effects ("net-economy", on-line
Consequently,
digital and mobile services),
the information society can contribute to the
geographical and economic opening-up of these regions. This will enable them to
reduce their handicaps (particularly peripheral location) and develop their assets by
reinforcing the competitiveness of businesses, especially SMEs. Information society
applications which assist citizens and administrations are also a factor which can
promote equal opportunities for their inhabitants.

28.

This approach is in keeping with the strategy and objectives adopted by the Lisbon
European Council in March 2000 in the context of the e-Europe initiative and, in
particular, the application at regional and local level of the following aspects:

• bringing all citizens, households, businesses, schools and administrations into the

digital era and giving them on-line access;

• introducing into Europe a digital culture underpinned by a spirit of enterprise that

encourages the funding and development of new ideas;

• ensuring that

this entire process is geared towards social

integration, wins

consumer confidence and builds social cohesion.

29.

Innovative actions should play a leading role in this approach by making it possible,
especially through pilot and demonstration projects, to promote:

8

• awareness and networking of all regional actors as regards regional development

applications of the information society;

• development of skill centres which are specific to the region and are based on its

assets and economic, cultural and social potential;

• transfer of technology and exchange of experience and good practices in this area.

30.

The content of regional programmes of innovative actions in this area could, for
example, cover the following aspects :

• establishing strategies for innovation in the region and encouraging the formation

of partnerships in the sphere of the information society;

• improving digital and mobile services for young people, the elderly and the

disabled, and for healthcare purposes;

• encouraging SMEs to include electronic commerce in their development strategies
and to find suitable ways of meeting their employees' needs in computer skills;

• identifying and developing specific areas for experimenting with the innovative

use of information-society technology;

• providing collective access to the Internet, digital applications and multimedia

resources (e.g. public Internet access points);

• using and experimenting with advanced digital technology (e.g. access to the
Internet by radio/satellite) for the benefit of rural, remote and otherwise isolated
areas;

identity and sustainable development: promoting regional cohesion and
Regional
competitiveness through an integrated approach to economic, environmental, cultural
and social activities

The regions should rely to a greater extent on their assets for the purpose of
developing a sustainable and competitive economy and improving the living and
working environment of their inhabitants. These assets and opportunities may be
based on the region's heritage and cultural diversity, or else on specific skills, a
strategic location, an exceptionally high-quality environment, educational and
cultural
regional
infrastructure,
products or cuisine, etc.

language skills, musical

traditions, handicrafts,

is
As job mobility tends to increase, thanks to the technological progress that
reducing the constraint of physical location, individuals will be freer to choose where
to work and live. Less densely populated, rural or outlying regions, including border
areas, can try to turn this development to their advantage and attract inhabitants by
offering them a different way of life from the towns and cities and other densely
populated areas. Conversely, the latter can attempt to improve their quality of life
through better use of transport and energy systems, a reduction in noise and
atmospheric pollution, the organisation of collective services, etc. Innovative actions
should explore these avenues.

9

(cid:1)

31.

32.

33.

The content of regional programmes of innovative actions in this area could, for
example, cover the following aspects:

• assistance for micro-companies in the craft or traditional handicraft industries
aimed at improving their technological awareness so as to achieve greater market
integration;

• development of culture-based and ecological tourism;

• support for SMEs starting up in innovative media and cultural fields;

• development of new forms of local services;

• new working arrangements between the public and private sectors in order to

optimise use of existing resources and infrastructures;

• assistance for micro-companies wishing to benefit from research activities in their

region;

• development of schemes targeted at environmental management, adoption of

clean technologies, recycling of waste and economical use of energy.

VI. Regional Programmes of innovative actions

Preparation of submissions

34.

35.

36.

The Commission invites the competent authorities in the regions defined in point 21
to submit their draft regional programmes of innovative actions to the Commission.
The designation of a managing body and a paying body must be included in the
programme proposal.

The competent authorities in the region may submit a programme proposal no later
than 31 May of each year from 2001 to 2005. The maximum length of a programme
is two years. Community support is limited to two programmes per region for the
period 2000-06. A second programme may be submitted only once the Commission
has received and approved the financial and final reports for the first programme.

The competent authorities in the region should set up a Steering Committee, which
draws up the proposal for a regional programme of innovative actions in the context
of a regional partnership including the financial partners, the authorities responsible
for programmes under Objectives 1 or 2 part-financed by the ERDF,
those
responsible for other Community programmes in the region (where relevant), and the
public and private actors involved at regional level.

Content of programmes

37.

Each proposal should contain a strategy for defining innovative actions agreed
between the different regional actors. This strategy should provide the framework for
the implementation of individual projects, the transfer of results to programmes
under Objectives 1 or 2 part-financed by the ERDF in the regions concerned and the
exchange of experience between regions. The strategy may be based on one of the

10

three strategic themes proposed by the Commission, or on a combination of these
themes, in order to meet the specific needs of each region as fully as possible.

38.

Each proposal must contain the elements required for the Commission to approve a
regional programme of innovative actions in accordance with Article 24(1) of the
General Regulation governing the Structural Funds. These elements are set out in
more detail in Annex D.

Appraisal of regional programmes of innovative actions

39.

The Commission will appraise the programmes for part-financing on the basis of the
points set out below. It will allocate between
3 million to the
programmes selected.

300 000 and

€

€

• Quality of the proposal, in particular the clarity of the strategic approach, the
innovative nature of the goals and the targeting of resources on a limited number
of actions.

• Potential influence on programmes under Objectives 1 and 2 part-financed by

the ERDF.

• Feasibility of the proposal and consistency between the goals set and the

resources allocated.

• Expected impact in the Objective 1 and 2 areas: effects on the modernisation
and diversification of the regional economy, creation of long-term quality jobs,
enhanced performance (including in environmental terms), etc.

• Private-sector contribution to the financing of the programme.

• Commitment and quality of the regional public-private partnership in
preparing the regional programme of innovative actions and ability to enlist other
regional and local agents, particularly small firms.

• Arrangements for co-operation between the competent authorities in the region
responsible for the preparation and implementation of the regional programmes of
innovative actions and the managing authorities for programmes under Objectives
1 and 2 part-financed by the ERDF.

• Expected sustainability of

the actions when the regional programme of

innovative actions has finished.

• Transferability of the results to other regions.

• Synergy and compatibility with the other Community policies such as
research, the information society, enterprise, the environment, rural development
(common agricultural policy), equal opportunities and competition; consistency
with the Commission guidelines for programmes in 2000-06.

11

Finance and administrative management

40.

41.

42.

The Commission’s contribution will be granted to the managing body designated
under a financing agreement in accordance with Article 24 of Regulation (EC) No
1260/1999.

A paying body and a control system should be designated in the programme
proposal.8 Payment procedures will be specified in the financing agreement. The
control system should be a separate function from the paying body. The latter shall
certify the correctness of the request for final payment.

In accordance with Article 24(3) of Regulation (EC) No 1260/1999, Articles 38 and
39 of that Regulation do not apply.

The Steering Committee is to oversee the implementation and monitoring of the
regional programme of innovative actions, including the selection of the resulting
pilot projects, and is to approve the final report at the end of the programmes.

The Committee should establish co-operation between regional programmes of
innovative actions and programmes under Objectives 1 and 2 part-financed by the
ERDF. The projects are to be chosen in accordance with selection criteria agreed for
each programme.

Evaluation

43.

An evaluation of programmes will be conducted in 2003. This may result in changes
being made in the remaining period, particularly as regards the strategic priority
themes to be supported.

VII. Accompanying measures:
Promoting the exchange of experience and establishing networks
between regions

44.

45.

8

Using appropriate assistance and with the aid of the Commission, regions should
seek to exchange the lessons they have learned from their projects and the good
practice used with other European regions, especially those responsible for
programmes under Objectives 1 and 2 part-financed by the ERDF.

Regions wishing to participate in networks or act as a lead partner in a network or
undertake other forms of exchange of experience may include a specific action for
this purpose in their proposal for a regional programme of innovative actions.
Participating regions are invited to set aside a minimum of 1% and a maximum of
3% of the total programme finance for this purpose.

To avoid duplicating channels for the payment and checking of Community appropriations within a
given region, which is likely to cause problems, particularly in terms of deadlines, the Commission
suggests that the competent authorities in the regions designate the same paying and control bodies as
for programmes under Objectives 1 and 2 part-financed by the ERDF to be responsible for the sound
implementation of Community appropriations for the regional programmes of innovative actions.

12

46.

In addition, the Commission will part-finance specific programmes to set up and
least
operate networks which involve a minimum of
five Member States. Groups of interested regions should designate a lead partner to
submit programme proposals to the Commission by no later than 31 May each year
over the period 2001-2004.9

five regions

from at

The duration of programmes may vary depending on the proposals but the end-date
for part-financing of these specific programmes to set up and operate networks and
their work will be 31 December 2006. Regions may participate in one or more
specific network programmes but may act as a lead partner in only one programme at
a time. The programme proposal must include the designation of a managing body
and a paying body.

47.

Each programme proposal
Commission to approve a specific network programme as set out in Annex E.

should contain the elements necessary for

the

48.

49.

50.

51.

The Commission will select the best proposals for ERDF part-financing based on the
quality of the proposal, the degree of participation among the regions, and the
capacity to transfer best practices to Objective 1 and 2 programmes part-financed by
the ERDF.

All regions are invited to take an active part
particularly the networks for the exchange of experiences.

in the accompanying measures,

Regions which wish to establish specific measures for interregional cooperation
involving regional innovation which go beyond networking may seek support under
Interreg III C.

VIII. Competitions to identify and exploit best practice

In the period 2000-06,
the Commission will publish two announcements of
competitions in the Official Journal and on the Inforegio site10 relating to the
strategic themes. The Commission will invite the regional authorities to nominate the
project in each region which they regard as the most innovative.

A panel of high-level experts will be set up to select the best projects.

IX. Finance

The budget for innovative actions in 2000-06 will stay within the ceiling set in
Article 22 of Regulation (EC) No 1260/1999, i.e. 0.4% of the annual funding of the
ERDF. The annual amount of funds allocated to innovative actions under the ERDF
for the period 2000-06 will be established in the light of the allocations agreed by the
in Berlin and in accordance with the budget appropriations
European Council
adopted each year.

9

10

These supporting measures will be carried out in tandem with existing networks part-financed by the
Commission in the areas covered by the strategic themes for innovative measures in 2000-2006.
http://www.inforegio.cec.eu.int

13

52.

53.

54.

55.

No more than 6% of the total allocation should be spent on the exchange of
experience, the establishment of networks between regions and the organisation of
assistance, with the remainder going to part-finance regional programmes of
innovative actions. Technical assistance measures undertaken at the initiative of the
Commission will be financed in accordance with Article 23 of Regulation (EC) No
1260/1999.

The Commission will part-finance regional programmes of innovative actions at up
to 50%. However, a maximum rate of up to 80% may be applied to projects located
in Objective 1 regions and, in justified cases of particular Community interest as
regards innovative actions, a maximum rate of 60% may be applied in Objective 2
areas.

The Commission will part-finance specific programmes to set up and operate
networks, as referred to in point 46, up to a maximum of 50%.

X. Reporting to the European Institutions

the Commission

the
From 2002,
European Parliament,
the Committee for the Development and Conversion of
Regions, the Committee of the Regions and the Economic and Social Committee on
progress with innovative actions.

present

annual

report

an

to

to

is

XI. Other matters

Any correspondence about this notice should be sent to:
Mr G. Crauser
Director-General
Directorate-General for Regional Policy
Rue de la Loi, 200
1049 Brussels Belgium

14

Annex A

List of eligible regions

Note :

The regions below are those which are eligible in whole or in part under Objective 1 or
Objective 2 and those receiving transitional support under those Objectives. In most cases
the regions are classified at NUTS I or NUTS II level, as established by Eurostat.

Country

Name

BE

BE1

BE2

BE3

DK

DE

DE1

DE2

DE3

DE4

DE5

DE6

DE7

DE8

DE9

DEA

DEB

DEC

DED

DEE

DEF

DEG

GR

GR11

GR12

GR13

GR14

GR21

GR22

GR23

GR24

GR25

GR3

GR41

GR42

GR43

BELGIQUE-BELGIË

REG. BRUXELLES-CAP. / BRUSSELS HFDST. GEW.

VLAAMSGEWEST

RÉGIONWALLONNE

DANMARK

DEUTSCHLAND

BADEN-WÜRTTEMBERG

BAYERN

BERLIN

BRANDENBURG

BREMEN

HAMBURG

HESSEN

MECKLENBURG-VORPOMMERN

NIEDERSACHSEN

NORDRHEIN-WESTFALEN

RHEINLAND-PFALZ

SAARLAND

SACHSEN

SACHSEN-ANHALT

SCHLESWIG-HOLSTEIN

THÜRINGEN

ELLADA

ANATOLIKI MAKEDONIA, THRAKI

KENTRIKI MAKEDONIA

DYTIKI MAKEDONIA

THESSALIA

IPEIROS

IONIA NISIA

DYTIKI ELLADA

STEREA ELLADA

PELOPONNISOS

ATTIKI

VOREIO AIGAIO

NOTIO AIGAIO

KRITI

15

NUTS
level
P000

0123

0100

0100

P120

P000

0100

0100

0120

0120

0120

0123

0100

0120

0100

0100

0100

0120

0100

0100

0120

0120

P000

0020

0020

0020

0020

0020

0020

0020

0020

0020

0123

0020

0020

0020

Objective (including
phasing out)

02

02

01and02

02

02

02

01and02

01

02

02

02

01

02

02

02

02

01

01

02

01

01

01

01

01

01

01

01

01

01

01

01

01

01

ES

ES11

ES12

ES13

ES21

ES22

ES23

ES24

ES3

ES41

ES42

ES43

ES51

ES52

ES53

ES61

ES62

ES63

ES7

FR

FR1

FR21

FR22

FR23

FR24

FR25

FR26

FR3

FR41

FR42

FR43

FR51

FR52

FR53

FR61

FR62

FR63

FR71

FR72

FR81

FR82

FR83

FR91

FR92

FR93

FR94

IE

IE01

IE02

List of eligible regions

ESPAÑA

GALICIA

PRINCIPADO DE ASTURIAS

CANTABRIA

PAIS VASCO

COMUNIDAD FORAL DE NAVARRA

LA RIOJA

ARAGÓN

COMUNIDAD DE MADRID

CASTILLA Y LEÓN

CASTILLA-LA MANCHA

EXTREMADURA

CATALUÑA

COMUNIDAD VALENCIANA

ISLAS BALEARES

ANDALUCÍA

REGIÓN DE MURCIA

CEUTA Y MELILLA

CANARIAS

FRANCE

ÎLE DE FRANCE

CHAMPAGNE-ARDENNE

PICARDIE

HAUTE-NORMANDIE

CENTRE

BASSE-NORMANDIE

BOURGOGNE

NORD - PAS-DE-CALAIS

LORRAINE

ALSACE

FRANCHE-COMTÉ

PAYS DE LA LOIRE

BRETAGNE

POITOU-CHARENTES

AQUITAINE

MIDI-PYRÉNÉES

LIMOUSIN

RHÔNE-ALPES

AUVERGNE

LANGUEDOC-ROUSSILLON

PROVENCE-ALPES-CÔTE D'AZUR

CORSE

GUADELOUPE

MARTINIQUE

GUYANE

RÉUNION

IRELAND

BORDER, MIDLAND AND WESTERN

SOUTHERN AND EASTERN

16

P000

0020

0023

0023

0020

0023

0023

0020

0123

0020

0020

0020

0020

0020

0023

0020

0023

0020

0120

P000

0120

0020

0020

0020

0020

0020

0020

0120

0020

0020

0020

0020

0020

0020

0020

0020

0020

0020

0020

0020

0020

0020

0023

0023

0023

0023

P000

0020

0020

01

01

01

02

02

02

02

02

01

01

01

02

01

02

01

01

01

01

02

02

02

02

02

02

02

01 and 02

02

02

02

02

02

02

02

02

02

02

02

02

02

01

01

01

01

01

01

01

List of eligible regions

IT

IT11

IT12

IT13

IT2

IT31

IT32

IT33

IT4

IT51

IT52

IT53

IT6

IT71

IT72

IT8

IT91

IT92

IT93

ITA

ITB

LU

NL

NL11

NL12

NL13

NL21

NL22

NL23

NL31

NL32

NL33

NL34

NL41

NL42

AT

AT11

AT12

AT13

AT21

AT22

AT31

AT32

AT33

AT34

ITALIA

PIEMONTE

VALLE D'AOSTA

LIGURIA

LOMBARDIA

TRENTINO-ALTO ADIGE

VENETO

FRIULI-VENEZIA GIULIA

EMILIA-ROMAGNA

TOSCANA

UMBRIA

MARCHE

LAZIO

ABRUZZO

MOLISE

CAMPANIA

PUGLIA

BASILICATA

CALABRIA

SICILIA

SARDEGNA

LUXEMBOURG (GRAND-DUCHÉ)

NEDERLAND

GRONINGEN

FRIESLAND

DRENTHE

OVERIJSSEL

GELDERLAND

FLEVOLAND

UTRECHT

NOORD-HOLLAND

ZUID-HOLLAND

ZEELAND

NOORD-BRABANT

LIMBURG (NL)

ÖSTERREICH

BURGENLAND

NIEDERÖSTERREICH

WIEN

KÄRNTEN

STEIERMARK

OBERÖSTERREICH

SALZBURG

TIROL

VORARLBERG

17

P000

0020

0023

0020

0120

0020

0020

0020

0120

0020

0020

0020

0120

0020

0020

0120

0020

0020

0020

0120

0120

P123

P000

0020

0020

0020

0020

0020

0023

0023

0020

0020

0020

0020

0020

P000

0020

0020

0023

0020

0020

0020

0020

0020

0020

02

02

02

02

02

02

02

02

02

02

02

02

02

01

01

01

01

01

01

01

02

02

02

02

02

02

01

02

02

02

02

02

02

01

02

02

02

02

02

02

02

02

List of eligible regions

PT

PT11

PT12

PT13

PT14

PT15

PT2

PT3

FI

FI13

FI14

FI15

FI17

FI2

SE

SE01

SE02

SE04

SE06

SE07

SE08

SE09

SE0A

UK

UKC

UKD

UKE

UKF

UKG

UKH

UKI

UKJ

UKK

UKL

UKM

UKN

UK

PORTUGAL

NORTE

CENTRO (P)

LISBOA E VALE DO TEJO

ALENTEJO

ALGARVE

AÇORES

MADEIRA

SUOMI/FINLAND

ITÄ-SUOMI

LÄNSI-SUOMI

POHJOIS-SUOMI

ETELÄ-SUOMI

AHVENANMAA/ÅLAND

SVERIGE

STOCKHOLM

ÖSTRA MELLANSVERIGE

SYDSVERIGE

NORRA MELLANSVERIGE

MELLERSTA NORRLAND

ÖVRE NORRLAND

SMÅLAND MED ÖARNA

VÄSTSVERIGE

UNITED KINGDOM

NORTH EAST

NORTH WEST (INC. MERSEYSIDE)

YORKSHIRE & THE HUMBER

EAST MIDLANDS

WEST MIDLANDS

EASTERN

LONDON

SOUTH EAST

SOUTH WEST

WALES

SCOTLAND

NORTHERN IRELAND

GIBRALTAR

P000

0020

0020

0020

0020

0023

0123

0123

P000

0020

0020

0020

0020

0123

P100

0020

0020

0020

0020

0020

0020

0020

0020

P000

0100

0100

0100

0100

0100

0100

0100

0100

0100

0100

0100

0120

01

01

01

01

01

01

01

01 and 02

01 and 02

01 and 02

02

02

02

02

02

01 and 02

01 and 02

01 and 02

02

02

02

01 and 02

01 and 02

02

02

02

02

02

01 and 02

01 and 02

01 and 02

01

02

18

Annex B

Lessons from the past: innovative measures in the 1994-99
programming period

Review of innovative actions between 1994 and 1999 by
independent experts11

Note:
The following conclusions do not necessarily reflect the position of the Commission.

“From experience of innovative measures, we would say that the most innovative features of
Article 10 measures are as follows.

1. The measures have succeeded in being a laboratory for experimentation for new ideas,
methods and institutional arrangements, a learning process which is sadly lacking in most
less-favoured regions of the EU. For reasons which we examine later, there is very little scope
for genuine experiments in the mainstream Structural Funds, therefore Article 10 has a unique
status which needs to be preserved for the sake of innovation in the broadest sense. Although
innovation and experimentation are largely ‘bottom-up’ processes, there is not doubt that
regions involved in the RTP [Regional Technology Plan], RIS and RISI have benefited
enormously from the ‘top-down’ guidance and methodological support provided by the
Commission.

2. The measures have triggered new and more effective social partnerships, at least in the
most receptive regions and cities, and these partnerships have been most effective where the
local actors appreciate the significance of social capital (i.e. the norms and networks of trust,
reciprocity and civic engagement).

3. The measures provided the recipients with a direct link with the EC, without the political
mediation of, and interference from, central governments, and this direct link has been a
stimulating experience for the local actors even though this has caused management problems
for the EC itself.

4. The regional focus of the measures is something to be valued because it allows good
level and this allows for the
practice to be disseminated more broadly than the local
development of critical mass, which is essential for the growth of networks and clusters.

5. The urban focus of the UPPs [urban pilot projects] has helped the measures to address the
local governance by supporting innovative approaches to local
important
empowerment, local capacity building and public-private partnerships.

issue of

6. The capacity for inter-regional exchange of experience has been of great benefit to
regions and cities which are committed to ‘learning to learn’. A number of regional
beneficiaries extolled this dimension of Article 10 because it was a good antidote to
parochialism and because firms/regions/cities often learn best from other firms/regions/cities.

11

European Commission, 1999, review of Article 10 projects by a group of external experts (1998):
Professors Kevin Morgan, Massimo Florio, Sylvie Harburger and Frieder Naschold.

19

If these are the assets which need to be enhanced, there are also problems which need to be
overcome. From our experience the main problems are as follows:

1. At the regional level Article 10 runs the risk of being a potential ghetto: since Article 10
measures are autonomous of the mainstream Structural Funds (which is necessary to provide
space for experimentation), there have been problems in integrating these activities with the
mainstream programmes. […]

2. At the European level, the audit culture of the Commission threatens to turn it into a risk-
averse institution which is afraid to innovate because of the fear of failure. […]

3. One of the major flaws in the design of Article 10 (at least as far as the RTP, RIS and RISI
the regional
programmes were concerned) was
beneficiaries were not funded for implementing their projects, so they had no means of testing
their innovative designs in practice. [...]

the conception/execution barrier:

4. The heterogeneity of programmes, selection procedures and objectives proves that
diversity can be a liability as well as a potential asset. […]

5. Last but not least is the problem of evaluation, especially the lack of in-depth ex-post
evaluation. […]”

20

Annex C

Examples of innovative measures 1994-99

Technologicalinnovation(RIS)12

Limburg (NL) has developed a regional
innovation strategy (RIS+Limburg) in close
collaboration with intermediary R&TDI organisations and with firms. Five programmes and
more than 144 projects have been implemented as part of this strategy, and an advisory
system and investment system have also been set up; some 3 000 enterprises are involved
altogether. RIS projects account for a total of EUR 125 million, including a Community
contribution of nearly EUR 30 million from the various Structural Funds, which is helping to
create and preserve more than 2 000 jobs. The ‘R&D vouchers’ project is an innovative
example of one such project: the research department of a large regional enterprise (DSM) is
helping small businesses solve their technology problems by means of technology mentoring.
Other examples of RIS projects include the launch of a new type of public aid to encourage
small businesses in the Limburg region to adopt ICT applications as quickly as possible;
special public support for technology start-ups, etc.

Over the past three years Yorkshire and Humberside has seen more than EUR 50 million
invested in projects supporting innovation under the framework of the Y&H RIS regional
innovation strategy. Investments have helped set up a Chemicals Industries Regional Centre
of Excellence (CIRCE) (EUR 5 million) and a new EMM Venture Capital Fund for
engineering
–
(EUR 12 millions),
Finance2Business.com – to simplify and promote access to financial assistance for SMEs, and
set up a centre of technology and innovation in the food sector and a knowledge-based web
site, etc. The Y&H RIS has also introduced a strategy and operational structure for
complementary aid to existing regional and local measures which support innovation in the
region, which includes setting up fifteen major sectoral clusters for the local economy.

and manufacturing

new web

design

site

a

Informationsociety(RISI)13

The regional approach underlying this RISI project has had a unifying impact in the Nord
Pas-de-Calais Region. It has acted as a catalyst and innovator, helping to develop new skills,
new activities and a new culture. Its influence is acknowledged by nearly all regional actors.
The carefully structured approach, which is in line with the regional strategy, has had a
including within the framework of the
positive influence on job creation in particular,
Structural Funds.

This positive result has had a strong impact on integration in the key structural operations.
Two NICT [new information and communication technologies] measures have been set up
under the ERDF, one under Objective 1 (1994-99) and the other under Objective 2, with a
total allocation of FRF 197 million. Together these measures have helped part-finance 141
projects in various fields: education and distance learning, economic and business
development, health, culture, cyber centres, public services, digital sites and transport. A total

12

13

Detailed information on RIS measures,
http://www.innovating-regions.org
Detailed information on RISI measures,
http://www.ispo.cec.be/risi, http://www.erisa.be and http://www.inforegio.cec.eu.int/

including the results of evaluations, may be found at

including the results of evaluations, may be found at

21

of FRF 392 million has been invested in these projects, with the ERDF providing a 30%
share.

More generally, by integrating the RISI approach the ERDF has had a significant multiplier
effect in terms of project development, job creation, setting up centres of specialised regional
skills (e.g. ‘health and multimedia’, ‘image and multimedia’, ‘education and training’,
‘transport ticketing, ‘e-commerce’, etc.). This has helped position the region as one of the
major centres of development of teleservices and teleworking in France, and as a key actor in
Europe’s ‘Net Economy’ and ‘Net Culture’.

22

Annex D

Information to be provided in proposals for a regional
programme

of innovative actions 2000-200614

Programme proposals should contain the following information to help the Commission
decide on a contribution from the ERDF budget for innovative measures. Proposals should
not exceed 25 pages as a rule. Before taking its decision, the Commission may ask the
competent authorities in the region to provide more information.

Introduction

A brief description of the region, identifying its particular strengths and weaknesses and the
opportunities and threats to development.

Theproposedprogrammeofregionalinnovativeactions

A description of the proposed programme, its scope including geographical coverage, its
specific aims and the composition of the partnership involved in preparing the programme
proposal.

• Objectives (quantified if possible)

• A description of the strategy to promote innovation covering one or more of the three

strategic themes in the light of the specific features of the region:

(i)

regional economies based on knowledge and technological innovation,

(ii) e-EuropeRegio: the information society at the service of regional development,

(iii)

regional identity and sustainable development.

• A description of the types of operation to be funded (studies, pilot projects, strategic

planning, participation in networks, technical assistance,15 etc.).

• A description of the potential impact of the regional programme of innovative actions

on the Objective 1 and 2 programmes part-financed by the ERDF in the region.

• Compatibility and synergy with other Community policies.

•

•

14

15

Project selection criteria (indicative).

Procedures and conditions for applications by potential beneficiaries.

Information on the submission of regional programmes of innovative actions will be available at
http://www.inforegio.cec.eu.int/innovating
In accordance with Commission Regulation (EC) No 1685/2000 of 28 July 2000 – OJ L 193 – on the
eligibility of expenditure of operations co-financed by the Structural Funds.

23

• Main target groups.

24

Bodiesresponsibleformanagementandimplementation

• Managing body (to be designated by the competent authorities in the region)

•

Paying body (to be designated by the competent authorities in the region)

• Composition of the Steering Committee

• A description of the implementation system

• A description of the financial system

• A description of the control system

•

Practical arrangements for exchange of information and co-operation between the
partners

• Monitoring and evaluation provisions.

Financingplan(attachedtablestobecompleted)

• Total cost: the ERDF contribution and public and private contributions broken down

by
- the actions proposed and Objective 1 and 2 areas concerned,
- the three strategic themes.

• Rate(s) of assistance envisaged for actions in different parts of the region (Objective 1

areas, Objective 2 areas and non-Objective areas).

Partnership

• Description of the consultation procedure at the programme drafting stage.

Informationandpromotion

A description of publicity and information activities to promote the programme in the region.

25

Annex E

Information to be provided in proposals for a specific network
programme

Programme proposals should contain the following information to help the Commission
decide on a contribution from the ERDF budget for innovative actions. Proposals should not
exceed 25 pages. Before taking its decision,
the Commission may ask the programme
applicants to provide more information.

Theproposednetworkprogramme

A description of the proposed programme, its scope including geographical coverage, its
specific aims, its duration and the composition of the participating regions.

• A description of the themes involved in the network's activities:

(i)

regional economies based on knowledge and technological innovation,

(ii) e-EuropeRegio: the information society at the service of regional development,

(iii) regional identity and sustainable development.

• A description of the types of actions to be funded:

- conferences,
- seminars and workshops,
- study-trips,
- websites,
- newsletters,

- other forms of exchange of experience, etc.

• Detailed workplan and timetable for the implementation of the programme.

• A description of the links with Objective 1 and 2 programmes part-financed by the ERDF.

Bodiesresponsibleandarrangementsforimplementation

• Lead region (to be designated by the participating regions).

• Managing body (to be designated by the participating regions).

•

•

Paying body (to be designated by the participating regions).

Practical arrangements for exchange of information and co-operation between the
partners.

• Monitoring and evaluation provisions.

26

Financingplan(attachedtablestobecompleted)

• Total cost showing:

•

the ERDF contribution and public and private contributions broken down between

- the different actions proposed,
- the three strategic themes.

• Detailed breakdown of the cost of each action.

27