Opinion of the Committee of the Regions on More efficient support for research and innovation in EU regions
Date: 2008-02-06
Institutions: European Committee of the Regions
Subjects: EU programme, EU research policy, Structural Funds, competitiveness, growth point, innovation, regional cooperation, regional development

25.4.2008

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Official Journal of the European Union

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III

(Preparatory Acts)

COMMITTEE OF THE REGIONS

73rd PLENARY SESSION HELD ON 6 AND 7 FEBRUARY 2008

Opinion of the Committee of the Regions on ‘More efficient support for research and innovation in
EU regions’

(2008/C 105/01)

THE COMMITTEE OF THE REGIONS

— urges the importance of regions in finding practical solutions — and the need for more assistance for
this by the EU and Member States — of the complementary use of research and innovation funding
and the Structural Funds, providing a central means to push forward the research and innovation
dimension of the renewed Lisbon strategy at regional and local level;

— supports the need to develop regional research and innovation strategies and to strengthen the
regional governance of research and innovation, increasing responsibility among all interested parties,
in particular of the private sector;

— calls for further activities at EU level to promote synergies of EU funding for research and innovation,
such as giving priority to applications within the FP7 and CIP that have an outstanding importance
for a regional innovation strategy as well as dedicating a substantial and growing share of the Struc-
tural Funds to research and innovation;

— stresses the need for a more sophisticated EU policy mix and balance between fostering existing ‘poles
of excellence’ and enabling new ones to emerge. Consequently, consideration might be given to
adding a territorial dimension to the CIP and FP7, whilst recognising the FP7's focus on the excellence
principle;

— calls upon the Commission to oversee an effective coordination of interregional network funding
under the SF, FP7 and CIP in the field of research and innovation, including the regular and better
coordinated dissemination of results and good practices and greater interaction of their different
‘communities’.

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Rapporteur:

Jyrki MYLLYVIRTA (FI/EPP), Mayor of the City of Lahti

Reference documents

Council Conclusions on ‘More efficient support to research and innovation: Coordinating the use of the
Research Framework Programme and the Structural Funds — Response to the CREST report’,
2811th Competitiveness Council meeting, Luxembourg, 25 June 2007

Communication from the Commission on Competitive European Regions through Research and Innova-
tion — A contribution to more growth and more and better jobs

COM(2007) 474 final

Policy recommendations

THE COMMITTEE OF THE REGIONS

Strengthen synergies between different EU funding instruments
2007-2013

1.
strongly welcomes the conclusions adopted by the Compe-
titiveness Council on 25 June 2007 ‘on more efficient support
to research and innovation: coordinating the use of the research
framework programme and the structural funds — response to
the CREST report’ (1), where the Council
invited the Member
States and regions to implement the CREST guidelines on a
voluntary basis and in particular invited the CoR to follow-up
the CoR would like to invite the
the subject. For its part,
Council to return to the subject in light of this CoR opinion;

acknowledges the need for improved synergies between
2.
the EU cohesion, research and innovation policies, in light of
their respective goals, and, in particular, the need for an effec-
tive, coordinated use of their funding instruments by Member
States and regions. The CoR has urged in several opinions, as
endorsed by the CoR ‘Study on structural capacity and motiva-
tion of regions and local and regional authorities in R&D’ (2),
the importance of the regions in finding practical solutions —
and the need for more assistance for this by the EU and
research
Member States — of
funding and the Structural Funds, with a special emphasis on
the new Member States;

the complementary use of

3.
agrees with the Council and the Commission that this
provides a central means to push forward the research and inno-
vation dimension of the renewed Lisbon strategy at regional and
local level, improving the research and innovation performance
within EU regions. The CoR points out that the research estab-
lishments and their ways of working are versatile; new knowl-
edge can be produced in establishments of varying size and

(1) CREST 1203/07 — CREST (EUROPEAN UNION SCIENTIFIC AND
TECHNICAL RESEARCH COMMITTEE) ‘Guidelines on Coordinating
the Research Framework Programme and the Structural Funds to
support research and development’.

(2) CDR/ETU/21/2005.

type. Even small institutions can produce knowledge of world-
wide interest in restricted specialties, especially when they parti-
cipate in global networks and collaborate with knowledge-based
businesses;

for

and Rural Development

4.
welcomes, endorsing the suggestions made by the CoR
study in this respect, the increased potential in the design of the
7th Research Framework Programme (FP7), the Structural Funds
(SF), the Competitiveness and Innovation Programme (CIP) and
the European Agriculture
Fund
their coordinated use by regions to promote
(EARDF)
research and innovation. With,
in particular, a common time
frame and more resources it is possible to get substantial results
through increased synergies. The FP7 now has 54 billion euros
in the budget for 2007-2013 and, for research and innovation;
there is also roughly 10 %, or 45 billion euros, reserved in the
structural funds. In addition to this, a similar amount of money
still comes from national cofinancing. This shows the impor-
tance and the potential of the SF compared to the similar total
FP7 budget;

5.
whereas the Council Conclusions and the CREST guide-
lines focus only on the coordinated use of SF and FP7, the CoR
would like to take a broader scope, in line with the European
Commission Communication, on the subject and consider the
potential of
the Competitiveness and Innovation Programme
(CIP) and to some extent, the European Agriculture and Rural
Development Fund (EARDF), too;

6.
reiterates that the renewed Lisbon Strategy in 2005 has
put research and innovation as the key drivers for growth and
the forefront of European policy, and
competitiveness at
acknowledges the ‘Broad-Based Innovation Strategy for Europe’,
endorsed by the Informal Lahti Summit in October 2006 as an
important further step in this regard. To support further invest-
ment in research and innovation within the EU regions, the CoR
calls upon the European Spring Council of 2008 to strengthen
the research and innovation dimension of the new generation of
the
the
2008-2011 governance cycle of the Lisbon Strategy;

for growth and jobs

integrated guidelines

for

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7.
agrees that a more detailed assessment of spatial coverage
of possible synergies is required. This means strengthening
regional level analysis of research and innovation potential and
needs, notably by improving the statistical and qualitative data
available through, for instance, EU level initiatives such as the
Regional Key Figures database, or
the Trend Chart and
ERAWATCH policy monitoring exercises, which are being
extended to the regional level;

proposes, that the interim and ex-post evaluation studies
the EU funding instruments should include analysis of
instruments in view of achieving

8.
of
inter-relations with other
synergies in supporting research and innovation in EU regions;

Functioning multi-level governance

9.
stresses that the process of building up research and inno-
vation potential for sustainable competitive advantage in Europe
can only succeed with the involvement of cities and regional
authorities. Given their physical proximity, they are the main
catalysts for knowledge and innovation in Europe. An increasing
number of European regions are making research and innova-
tion a top priority of their public funding;

urges that

further actions are needed.

to achieve the ambitions of

10.
the renewed
Lisbon agenda and the Barcelona objective of spending at least
3 % of GDP in the EU on R&D by 2010, with two-thirds of this
coming from the private sector, and to ensure economic and
social cohesion in the EU,
It
reiterates that increasing the research and innovation capacity
amongst European regions can only be done through shared
commitment and coordinated actions by the Member States, the
EU, and the regions. EU financing is always a small proportion
of total public funding for research and innovation, and it is
important that EU policy promotes the increase and coordina-
the investments by the Member States. Besides the
tion of
public contribution, the EU particularly needs stronger commit-
ments by the private sector;

11.
wants to assure a coordinated use of FP7, SF and CIP,
because this is essential in terms of the competitiveness of the
EU and the mutual synergy between cohesion policy, research
policy and innovation policy at national and regional level. The
development of rural areas is also an inherent part of regional
development and has to be synchronised with other policies,
including the research and innovation policies;

that

believes

12.
the FP7 which strengthens European
competitiveness has a crucial role in fulfilling the objectives of
the Lisbon Strategy and in developing the European Research
Area, but at the same time will have to complement national
research work and focus on supporting such projects that
level. By combining the
cannot be accomplished at national

resources of various Member States,
European and national interests;

this can serve both

is satisfied that

13.
the FP7 will strengthen the regional
dimension of the EU's research support through initiatives such
as Regions of Knowledge 2 and Research Potential. However,
the volume of these specific initiatives is too limited, and the
CoR encourages the increase of such initiatives and calls on the
Commission to provide regional authorities with a regional
breakdown of FP7 funding as well;

14.
reiterates the view taken in its earlier opinion on the
European Institute of Technology (EIT), that provision must be
the regions
the inclusion and involvement of
made for
and SMEs, even in large EU cooperation projects such as the
EIT; e.g. the concept of the EIT ‘Knowledge and Innovation
Communities’
should be used to create partnerships with
industry and local and regional authorities;

15.
supports CREST's emphasis on the need to develop
Research, Technological Development and Innovation (RTDI)
strategies and to strengthen the regional governance of research
and innovation. An important part in that is to develop a
specific strategy for using FP7 and SF together for research and
innovation strategy development. The needs for coordinated
support should be taken into consideration at an early stage of
the planning, which could be done within a bottom-up process
of selecting strategic research and innovation objectives in the
operational programmes. This could be supported e.g. by
including a funding reserve in the operational programmes as is
the case for some EU regions;

16.
states that the coordination of major EU instruments
such as FP7, SF and CIP is not only a question of political inten-
tions, but also a challenge of policy coherence. Ensuring policy
coherence in the case of multi-level and multi-stakeholder
programmes requires the existence of an efficient multi-level
governance system;

More active and focused activities and cooperation

17.
believes that the CIP should focus on the innovation and
replication phase whereas the FP7 should focus on the research
and development phase to foster the international competitive-
ness of Europe. This should avoid financing gaps between
research, development and application;

18.
suggests, as endorsed by the CoR study, considering a
specific priority for FP7 and CIP applications, in terms of impor-
innovation. It could be an option to give
tance for regional
priority to applications within the FP7 and CIP that have a clear,
outstanding importance for a regional innovation strategy when
they fulfil the criteria for research quality at the same time;

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19.
would like to ask the Commission to focus more on the
Structural Funds for investment in research and innovation. The
CoR recognises a need to dedicate a substantial and growing
share of the SF to research and innovation, as has been done in
SF programmes for
the Lisbon
agenda, and to follow, for example, the recommendation of the
Aho Report ‘Creating an Innovative Europe’, as endorsed by the
EURAB advisory board, to dedicate a minimum of 20 % invest-
ment in innovation and knowledge in future SF programmes,
with this condition as such becoming an integrated part of the
EU implementation process of the Lisbon strategy;

the period 2007-2013 for

20.
encourages adding incentives within the Structural Funds
to support research and innovation. Such incentives could
include differential grant rates favouring investments in research
and innovation projects, and adopting a lower (e.g. 10 %)
contribution of the national/ regional beneficiary in order to a
mirror the supposed risks and long-term return typical
for
many research and innovation activities,
in particular those
requiring the creation of a new infrastructure;

stresses the special role of cohesion policy in supporting
21.
innovation activity in the regions and states that the European
Regional Development Fund (ERDF), can also be used for
funding business incubators and science parks (infrastructure
and connections). These are important ways to disseminate
knowledge for use in the markets and they can help in forging
connections between SMEs and universities. For its part, the
European Social Fund (ESF) can provide financial support for
the development of skills (training, guiding services, etc.), as well
as the development and modernisation of educational structures
and systems. During the 2007-2013 programme period there
will be more emphasis than previously on the strengthening of
research and innovation by means of knowledge transfer;

22.
emphasises the importance of the communication and
exploitation of knowledge and that knowledge should be
provided in such a form that it can become part of production
activity. Solutions and methods developed must be openly
accessible to all,
in particular for SMEs in those areas where
there are no high-level research institutes or universities, In prac-
tice, this could be done within the framework of regional clus-
ters. So-called cluster offices which have been developed in
some countries to help in disseminating knowledge, should be
considered for use more extensively in Europe;

wants

to highlight

24.
the importance of decentralised
innovation activity also in smaller cities and regions. Nationally
(as e.g. in Finland) or regionally coordinated centres of expertise
networks are an example of a system that combines regional or
local research and business potential and resources with national
and EU policies and financing. The centres of expertise form
clusters
in international
networks;

in related fields

and participate

Promoting research and innovation strategies and capacities in the
regions

emphasises the key role of regional research and innova-
25.
tion strategies in linking the various relevant partners within a
region to the strategy. Such strategies, as stressed by the CoR
study, can strengthen research institutions by placing them
within innovative surroundings,
increase a sense of responsi-
bility among all interested parties, and thus lead to a stronger
regional research and innovation system. Support
from the
different programmes available for the different phases of the
creation of a new research infrastructure is crucial;

26.
stresses the value of taking a focused approach within
regional research and innovation strategies, including the identi-
fication of flagship projects. In doing so, different approaches
need to be balanced. One is, as recommended by CREST, to
select priorities at regional
level that are complementary to
those of the FP7 and CIP in order to increase possible chances
of linking the regional research and innovation system with EU
funding;

27.
recognises the number of options currently offered by SF
and FP7 for both supporting efficient education and training
systems for researchers and businesses in EU regions and for
setting up or upgrading research and innovation infrastructure,
and welcomes the recommendations made by CREST to benefit
from this. The CoR welcomes the European Strategy Forum for
Research Infrastructures (ESFRI), which will produce an analysis
on regional aspects of pan-European Research Infrastructures in
early 2008, and urges that the new Member States in particular
are involved in this initiative;

28.
repeats its call for joint research and innovation funds to
be set up as new ways of public-private institutional cooperation
at local and regional level, underlining that the development of
research and innovation capacities is an ongoing task;

23.
welcomes in particular the CREST recommendations to
improve the competence of SMEs in research and their capaci-
ties to exploit knowledge generated elsewhere, but points out
that the CREST guidelines can only be implemented on a volun-
tary basis in the regions since the joint preparation of
the
programmes
regions) has now been
concluded. SF should be used for networking, training and quali-
fication of SMEs to participate in FP7 and then making interna-
tional and trans-national connections. The CIP should be used
to assist SMEs in overcoming a possible gap at the innovation
stage;

(Commission and

Balanced excellence and cohesion

29.
shares the concern regarding the Commission's analysis
that research investment and activity within the EU is highly
concentrated in a few regions. The CoR has noted with concern
that
research and development expenditure in more than
100 regions in Europe is below 1 % of GDP;

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30.
underlines, that European research, innovation and cohe-
sion policy should pursue complementary goals and collaborate
in seeking to improve research and development in Europe. This
implies a continuing challenge of balancing support for excel-
lence and for cohesion. If research and innovation are central to
growth, EU policies need to support a more sophisticated policy
mix and balance between fostering existing ‘poles of excellence’
and enabling new ones to emerge;

36.
reflects on criticisms related to overlaps in the support
for research infrastructure under both Structural Funds and FP7,
and stresses that in this regard a more effective coordination
and reasoned approach to R&D infrastructure investments based
on both EU instruments is needed, which balances the cohesion
versus excellence approach and focuses on the support
for
different phases of infrastructure creation;

reiterates that the CoR has urged the SF to strengthen the
31.
proportion of high-quality public research and innovation
investment in EU regions substantially, under both the conver-
gence and regional competitiveness and employment objectives.
It acknowledges that cohesion policy pursues an integrated
approach and therefore does not consider research in isolation,
but in conjunction with innovation;

37.
recalls in this context the CoR's view that the concept of
‘excellence’ within the European Research Area, as well as EU
and national research funding, must also take into account
highly specialised smaller research centres and less research-
intensive players. These are essential for the implementation of
innovation and the development of knowledge of worldwide
interest in narrow fields of expertise. Research should not only
focus on high-tech research, ‘low-tech’ research can also be very
important for innovation and development in regions;

32.
stresses that although FP7 and CIP are not cohesion
instruments as such, they inevitably have an impact on cohe-
sion. The CoR has urged the goal of cohesion to be relevant to
sectoral European policies. Consequently, consideration
all
might be given to adding a territorial dimension to the CIP and
FP7, whilst recognising the FP7's focus on the excellence prin-
ciple;

foresees

38.
that gearing EU funding into moving the
research and innovation systems to excellence is a crucial chal-
lenge for regions within the ‘Regional Competitiveness and
Employment’ objective of the SF. They cannot fully rely on
receiving FP7 funding and have much less SF funding available
for doing so than earlier;

33.
acknowledges the recommendations provided by CREST
on how regions can make the best use of SF and FP7 to move
their research and innovation systems towards excellence and to
the level of European or international competitiveness. This
includes improving regional networking between research insti-
tutes, universities, SMEs and other relevant actors for creating
clusters, regional technology platforms and poles, and assist
them to connect with collaborative EU research and innovation
projects and agendas such as ERA-Net and the European Tech-
nology Platforms, as well as international networks of research
actors and enterprises;

34.
calls upon the European Commission in this regard to
continue its relevant schemes such as the ‘Regions of Knowl-
edge’ under FP7,
‘Regions for Economic Change’ under the
ERDF and ‘Innova-Inno’ under the CIP. The CoR also highlights
that the SF should play a supporting role to raise the scientific,
technological, entrepreneurial and managerial capacity of local
and regional actors, especially of SMEs, to participate in FP7 and
CIP projects;

urges, as endorsed in the CoR study, a significant shift
35.
when using EU funding,
in particular SF by regions, towards
stimulating in particular the demand side for research and inno-
vation, fostering user-driven and open innovation as a regional
potential. Missing absorption mechanisms for exploiting the
global knowledge-base are the key bottle-neck preventing the
regions to benefit from open innovation;

Dissemination of good practice and expertise

emphasises the importance of planned actions presented

39.
by the European Commission to:

— make better use of European funding by launching,

in
spring 2008, a practical guide for identifying the most
funding for potential beneficiaries
appropriate source of
the CoR
(research institutions and companies). However,
calls on the Commission for greater coordination with the
CREST's proposal
to develop the CREST guidelines into
more operational recommendations;

— report in due course on the progress made at national and
regional level on the co-ordinated use of the Community's
instruments and on examples of good practice at national
and regional level;

— hold regular events at which those involved in research,
innovation and regional development can come together to
share ideas, exchange best practice and access support and
advice; considering the CoR as an important partner in this
regard;

— improve information exchange with national/regional autho-
rities about the FP7/CIP beneficiaries in their territories to
facilitate complementary funding by national/regional/EU
instruments.

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40.
underlines the importance of using the new cooperation
and communication programmes under SF, Interreg IV C and
URBACT programmes. These programmes are to disseminate
advantages through the Regions for Economic Change initiative
and networking even straight from one region to another which
could and wants to benefit from the results of the successful
project of the advanced region;

Brussels, 6 February 2008.

41.
calls upon the Commission to oversee an effective coor-
dination of interregional network funding under the SF, FP7 and
CIP in the field of research and innovation, including the regular
and better coordinated dissemination of results and good prac-
tices and greater interaction of their different ‘communities’.

The President

of the Committee of the Regions

Luc VAN DEN BRANDE