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
Date: 2008-03-11
Institutions: Council of the European Union, European Parliament
Subjects: EU research policy, higher education, innovation, operation of the Institutions, research and development, research body, technology

9.4.2008

EN

Official Journal of the European Union

L 97/1

I

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

REGULATIONS

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

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO-
PEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 157(3) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the procedure laid down in Article 251
of the Treaty (3),

Whereas:

(1)

(2)

(3)

The Lisbon Growth and Jobs Agenda underscores the need
to develop conditions which are attractive to investment in
knowledge and innovation in Europe in order to boost
competitiveness, growth and jobs in the European Union.

Member States are primarily responsible for sustaining a
strong European industrial, competitive and innovative
base. However, the nature and scale of the innovation chal-
lenge in the European Union also require action to be taken
at Community level.

The Community should provide support to foster innova-
tion, in particular through the Seventh Framework Pro-
gramme for Research, Technological Development and

(1) OJ C 161, 13.7.2007, p. 28.
(2) OJ C 146, 30.6.2007, p. 27.
(3) Opinion of the European Parliament of 26 September 2007 (not yet
published in the Official Journal), Council Common Position of
21 January 2008 (OJ C 52 E, 26.2.2008, p. 7) and position of the
European Parliament of 11 March 2008 (not yet published in the Offi-
cial Journal).

Demonstration Activities, the Competitiveness and Inno-
vation Framework Programme, the Lifelong Learning Pro-
gramme and the Structural Funds.

A new initiative at Community level, the European Insti-
tute of Innovation and Technology (hereinafter referred to
as the EIT) should be established to complement existing
Community and national policies and initiatives by foster-
ing the integration of the knowledge triangle — higher
education, research and innovation — across the European
Union.

The European Council of 15 and 16 June 2006 invited the
Commission to prepare a formal proposal for the estab-
lishment of the EIT to be presented in autumn 2006.

The EIT should primarily have the objective of contribut-
ing to the development of the Community’s and the Mem-
innovation capacity, by involving higher
ber States’
education, research and innovation activities at the highest
standards.
In so doing, the EIT should facilitate and
enhance networking and cooperation and create synergies
between innovation communities in Europe.

The activities of the EIT should address strategic long-term
challenges for innovation in Europe, particularly in trans-
and/or inter-disciplinary areas including those already
identified at European level. In so doing, the EIT should
promote periodic dialogue with civil society.

The EIT should give priority to the transfer of its higher
education, research and innovation activities to the busi-
ness context and their commercial application, as well as
to supporting the creation of start-ups, spin-offs and small
and medium-sized enterprises (SMEs).

(4)

(5)

(6)

(7)

(8)

L 97/2

EN

Official Journal of the European Union

9.4.2008

(9)

(10)

(11)

(12)

The EIT should primarily operate through excellence-
driven, autonomous partnerships of higher education insti-
tutions, research organisations, companies and other
stakeholders in the form of sustainable and long-term self-
supporting strategic networks in the innovation process.
These partnerships should be selected by the Governing
Board of the EIT on the basis of a transparent and
excellence-based process and designated as Knowledge and
Innovation Communities (hereinafter referred to as KICs).
The Governing Board should also steer the activities of the
EIT and evaluate the activities of the KICs. Membership of
the Governing Board should balance experience from the
business and the higher education and/or research worlds
as well as from the innovation sector.

In order to contribute to the competitiveness and to rein-
force the international attractiveness of the European
economy and its innovation capacity, the EIT and the KICs
should be able to attract partner organisations, researchers
and students from all over the world, including by encour-
aging their mobility, as well as to cooperate with third-
country organisations.

Relations between the EIT and the KICs should be based on
contractual agreements, which will set out the KICs’ rights
and obligations, ensure an adequate level of coordination
and outline the mechanism for monitoring and evaluating
KICs’ activities and outcomes.

There is a need to support higher education as an integral,
but often missing, component of a comprehensive inno-
vation strategy. The agreement between the EIT and KICs
should provide that the degrees and diplomas awarded
through the KICs should be awarded by participating
higher education institutions, which should be encouraged
to label them also as EIT degrees and diplomas. Through
its activities and work, the EIT should help promote mobil-
ity within the European Research Area and the Higher Edu-
cation Area as well as encourage the transferability of
grants awarded to researchers and students in the context
of the KICs. All these activities should be carried out with-
out prejudice to Directive 2005/36/EC of the European
Parliament and of the Council of 7 September 2005 on the
recognition of professional qualifications (1).

(13)

The EIT should establish clear and transparent guidelines
for the management of intellectual property, which should
foster the use of intellectual property under appropriate
conditions. These guidelines should provide that due
account is taken of the contributions to be made by the
various partner organisations of the KICs, irrespective of
their size. In the event of the activities being funded under
the Community Framework Programmes for Research and

(1) OJ L 255, 30.9.2005, p. 22. Directive as last amended by Commis-
sion Regulation (EC) No 1430/2007 (OJ L 320, 6.12.2007, p. 3).

Technological Development,
grammes should apply.

the rules of

those pro-

(14) Appropriate provisions should be made to guarantee the
liability and transparency of the EIT. Appropriate rules
governing its functioning should be laid down in the Stat-
utes of the EIT.

(15)

(16)

(17)

(18)

(19)

The EIT should possess legal personality and, in order to
guarantee its functional autonomy and independence, it
should administer its own budget whose revenue should
include a contribution from the Community.

The EIT should seek to raise an increasing financial contri-
bution from the private sector and from income generated
by its own activities. Therefore, it is expected that indus-
try, the finance and service sectors will contribute signifi-
cantly to the budget of the EIT and, in particular, to the
budget of the KICs. The KICs should aim at maximising the
share of contributions from the private sector. The KICs
and their partner organisations should publicise the fact
that their activities are undertaken in the context of the EIT
and that they receive a financial contribution from the gen-
eral budget of the European Union.

The Community contribution to the EIT should finance the
costs arising from the establishment, administrative and
coordination activities of the EIT and the KICs. In order to
avoid double funding, these activities should not benefit
simultaneously from a contribution from other Commu-
nity programmes, such as the Framework Programme for
Research, Technological Development and Demonstration
Activities, the Competitiveness and Innovation Framework
Programme, the Lifelong Learning Programme, or from the
Structural Funds. Furthermore, in the event that a KIC or
its partner organisations apply directly for Community
assistance from these programmes or funds, their applica-
tions should be treated without any preference over other
applications.

The Community budgetary procedure should be applicable
as far as the Community subsidy and any other grants
chargeable to the general budget of the European Union
are concerned. The auditing of accounts should be under-
taken by the Court of Auditors in accordance with Coun-
cil Regulation (EC, Euratom) No 1605/2002 of 25 June
2002 on the Financial Regulation applicable to the general
budget of the European Communities (2).

This Regulation establishes a financial envelope for the
period 2008 to 2013 which is to be the prime reference
for the budgetary authority, within the meaning of
point 37 of the Interinstitutional Agreement of 17 May
2006 between the European Parliament, the Council and
the Commission on budgetary discipline and sound finan-
cial management (3).

(2) OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regulation

(EC) No 1525/2007 (OJ L 343, 27.12.2007, p. 9).

(3) OJ C 139, 14.6.2006, p. 1. Interinstitutional Agreement as amended
by Decision 2008/29/EC of the European Parliament and of the Coun-
cil (OJ L 6, 10.1.2008, p. 7).

(20)

(21)

(22)

(23)

(24)

9.4.2008

EN

Official Journal of the European Union

L 97/3

The EIT is a body set up by the Communities within the
meaning of Article 185(1) of Regulation (EC, Euratom)
No 1605/2002 and should adopt its financial rules accord-
ingly. Consequently Commission Regulation (EC, Euratom)
No 2343/2002 of 19 November 2002 on the framework
referred to in
Financial Regulation for
Article 185 of Council Regulation (EC, Euratom)
No 1605/2002 (1) should apply to the EIT.

the bodies

(25)

Since the objective of the action to be taken, namely to
establish the EIT, cannot be sufficiently achieved by the
Member States and can therefore, for reasons of scale and
transnationality, be better achieved at Community level,
the Community may adopt measures, in accordance with
the principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportional-
ity, as set out in that Article, this Regulation does not go
beyond what is necessary in order to achieve that objective,

The EIT should produce an annual report, outlining the
activities conducted in the preceding calendar year and a
rolling triennial work programme outlining its planned ini-
tiatives and allowing the EIT to respond to internal and
external developments in the fields of science, technology,
higher education,
innovation and other relevant areas.
These documents should be transmitted to the European
Parliament, the Council, the Commission, the Court of
Auditors, the European Economic and Social Committee
and the Committee of the Regions for information. The
European Parliament, the Council and the Commission
should be entitled to present an opinion on the draft of the
EIT’s first triennial work programme.

The strategic, long-term priority fields and financial needs
for the EIT for a period of seven years should be laid down
in a Strategic Innovation Agenda (hereinafter referred to as
SIA). Given the importance of the SIA for the Community
innovation policy and the resulting political significance of
its socio-economic impact for the Community the SIA
should be adopted by the European Parliament and the
Council on the basis of a Commission proposal prepared
on the basis of a draft provided by the EIT.

It is appropriate that the Commission initiate an indepen-
dent, external evaluation of the operation of the EIT, in
particular with a view to preparing the SIA. Where appro-
priate, the Commission should make proposals to amend
this Regulation.

It is appropriate to pursue a gradual, phased implementa-
tion of the EIT in view of its long-term development. An
initial phase with a limited number of KICs is needed in
order to evaluate properly the functioning of the EIT and
the KICs and, where necessary, to introduce improve-
ments. Within a period of 18 months from its creation, the
Governing Board should select two or three KICs in areas
that help the European Union to face current and future
challenges, which could include such fields as climate
change, renewable energy and the next generation of infor-
mation and communication technologies. The selection
and designation of further KICs should be enabled after the
adoption of the first SIA, which, in order to address the
long-term perspective, should also include detailed modali-
ties on the operation of the EIT.

(1) OJ L 357, 31.12.2002, p. 72.

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter

A European Institute of Innovation and Technology (hereinafter
referred to as the EIT) is hereby established.

Article 2

Definitions

For the purpose of this Regulation, the following definitions shall
apply:

1.

2.

3.

4.

5.

6.

7.

‘innovation’ means the process, including its outcome, by
which new ideas respond to societal or economic demand
and generate new products, services or business and organi-
sational models that are successfully introduced into an exist-
ing market or that are able to create new markets;

‘Knowledge and Innovation Community’ (KIC) means an
autonomous partnership of higher education institutions,
research organisations, companies and other stakeholders in
the innovation process in the form of a strategic network
based on joint mid- to long-term innovation planning to
achieve the EIT challenges, regardless of its precise legal form;

‘participating State’ means either a Member State of the Euro-
pean Union or another country having an agreement with
the Community on the EIT;

‘third country’ means any State which is not a participating
State;

‘partner organisation’ means any organisation which is a
member of a KIC and may include in particular: higher edu-
cation institutions, research organisations, public or private
companies, financial institutions, regional and local authori-
ties, foundations;

‘research organisation’ means any public or private legal
entity which undertakes research or technological develop-
ment as one of its main objectives;

‘higher education institution’ means a university or any type
of higher education institution which, in accordance with
national legislation or practice, offers degrees and diplomas
at masters or doctoral level, irrespective of its denomination
in the national context;

L 97/4

EN

Official Journal of the European Union

9.4.2008

8.

9.

‘degrees and diplomas’ means qualifications resulting in mas-
ters or doctorates awarded by participating higher education
institutions in the context of higher education activities
undertaken in a KIC;

‘Strategic Innovation Agenda’ (SIA) means a policy document
outlining the priority fields of the EIT for future initiatives,
including an overview of the planned higher education,
research and innovation activities, for a period of seven years.

(b)

raise awareness among potential partner organisations and
encourage their participation in its activities;

(c)

select and designate KICs in the priority fields in accordance
with Article 7 and define their rights and obligations by
agreement; provide them with appropriate support; apply
appropriate quality control measures; continuously monitor
and periodically evaluate their activities; and ensure an appro-
priate level of coordination between them;

Article 3

Objective

The EIT’s objective is to contribute to sustainable European eco-
nomic growth and competitiveness by reinforcing the innovation
capacity of the Member States and the Community. It shall do this
by promoting and integrating higher education, research and
innovation of the highest standards.

Article 4

EIT bodies

1.

The bodies of the EIT shall be:

(a) a Governing Board composed of high-level members experi-
enced in higher education, research, innovation and business.
It shall be responsible for steering the activities of the EIT, for
the selection, designation and evaluation of the KICs, and for
all other strategic decisions;

(d) mobilise funds from public and private sources and use its
resources in accordance with this Regulation. It shall in par-
ticular seek to raise a significant and increasing proportion of
its budget from private sources and from income generated
by its own activities;

(e)

encourage the recognition in the Member States of degrees
and diplomas which are awarded by higher education insti-
tutions that are partner organisations and which may be
labelled EIT degrees and diplomas;

(f) promote the dissemination of good practices for the integra-
tion of the knowledge triangle in order to develop a common
innovation and knowledge transfer culture;

(g)

seek to become a world class body for excellence in higher
education, research and innovation;

(b) an Executive Committee which shall oversee the running of
the EIT and take such decisions as are necessary between
meetings of the Governing Board;

(h) ensure complementarity and synergy between EIT activities

and other Community programmes.

(c) a Director who shall be responsible to the Governing Board
for the administrative and financial management of the EIT
and shall be the legal representative of the EIT;

(d) an Internal Auditing Function which shall advise the Govern-
ing Board and the Director on financial and administrative
management and control structures within the EIT, on the
organisation of financial links with KICs and on any other
subject requested by the Governing Board.

The EIT shall have power to establish a Foundation (herein-
2.
after referred to as the EIT Foundation) with the specific objective
of promoting and supporting the activities of the EIT.

Article 6

KICs

The Commission may appoint observers to take part in the

2.
meetings of the Governing Board.

1.

KICs shall undertake in particular:

The detailed provisions regarding the EIT bodies are set out

3.
in the Statutes of the EIT, annexed to this Regulation.

Article 5

Tasks

(a)

innovation activities and investments with European added
value, fully integrating the higher education and research
dimensions to attain a critical mass and stimulating the dis-
semination and exploitation of results;

1.

In order to achieve its objective, the EIT shall:

(a)

identify its priority fields;

(b) cutting-edge and innovation-driven research in areas of key
economic and societal interest and drawing on the results of
to
European and national research, with the potential
strengthen Europe’s competitiveness at international level;

9.4.2008

EN

Official Journal of the European Union

L 97/5

(c)

education and training activities at masters and doctoral level,
in disciplines with the potential to meet future European
socio-economic needs and which promote the development
of innovation-related skills, the improvement of managerial
and entrepreneurial skills and the mobility of researchers and
students;

(f) measures to support the involvement of and cooperation
with the private sector, including the financial sector and in
particular SMEs, as well as the creation of start-ups, spin-offs
and SMEs, in view of the commercial exploitation of the
results of the activities of KICs;

(d)

the dissemination of best practices in the innovation sector
with a focus on the development of cooperation between
higher education, research and business, including the service
and financial sectors.

KICs shall have substantial overall autonomy to define their
2.
internal organisation and composition, as well as their precise
agenda and working methods. In particular, KICs shall aim to be
open to new members whenever these members add value to the
partnership.

The relationship between the EIT and each KIC shall be

3.
based on a contractual agreement.

Article 7

Selection of KICs

1.
A partnership shall be selected and designated by the EIT to
become a KIC on the basis of a competitive, open and transpar-
ent procedure. Detailed criteria for the selection of the KICs, based
on the principles of excellence and innovation relevance, shall be
adopted and published by the EIT; external and independent
experts shall be involved in the selection process.

In accordance with the principles enshrined in paragraph 1,

2.
the selection of a KIC shall take particular account of:

(a)

the current and potential innovation capacity within the part-
nership as well as its excellence in higher education, research
and innovation;

(b)

the partnership’s capacity to achieve the goals of the SIA;

(c)

(d)

(e)

the partnership’s capacity to ensure sustainable and long-
term self-supporting financing including a substantial and
increasing contribution from the private sector, industry and
services;

the participation in the partnership of organisations active in
the knowledge triangle of higher education, research and
innovation;

the demonstration of a plan for the management of intellec-
tual property appropriate to the sector concerned and con-
sistent with the EIT principles and guidelines for the
management of intellectual property, including the way in
which contributions from the various partner organisations
have been taken into account;

(g)

readiness to interact with other organisations and networks
outside the KIC with the aim of sharing good practices and
excellence.

3.
The minimum condition to form a KIC is the participation
of at least three partner organisations, established in at least two
different Member States. All these partner organisations must be
independent of each other, within the meaning of Article 6 of
Regulation (EC) No 1906/2006 of the European Parliament and
of the Council of 18 December 2006 laying down the rules for
the participation of undertakings, research centres and universi-
ties in actions under the Seventh Framework Programme and for
the dissemination of research results (2007-2013) (1).

4.
A KIC may include partner organisations from third coun-
tries, subject to the approval of the Governing Board. The major-
ity of the partner organisations forming a KIC shall be established
in the Member States. At least one higher education institution
and one private company shall be part of each KIC.

Article 8

Degrees and diplomas

Degrees and diplomas relating to the higher education
1.
activities referred to in Article 6(1)(c) shall be awarded by partici-
pating higher education institutions in accordance with national
rules and accreditation procedures. The agreement between the
EIT and the KICs shall provide that these degrees and diplomas
may also be labelled EIT degrees and diplomas.

The EIT shall encourage participating higher education insti-

2.
tutions to:

(a) award joint or multiple degrees and diplomas, reflecting the
integrated nature of the KICs. However, these may also be
awarded by a single higher education institution;

(b)

take into account:

(i) Community action undertaken in accordance with

Articles 149 and 150 of the Treaty;

(ii) action undertaken in the context of the European Higher

Education Area.

(1) OJ L 391, 30.12.2006, p. 1.

L 97/6

EN

Official Journal of the European Union

9.4.2008

Article 9

Independence of the EIT and consistency with
Community, Member State or intergovernmental action

In the case of non-contractual liability, the EIT shall, in
3.
accordance with the general principles common to the laws of the
Member States, make good any damage caused by it or its ser-
vants in the performance of their duties.

The EIT shall carry out its activities independently of

1.
national authorities and external pressures.

The Court of Justice shall have jurisdiction in any dispute relating
to compensation for such damage.

The activity of the EIT shall be consistent with other action
2.
and instruments to be implemented at Community level, in par-
ticular in the fields of higher education, research and innovation.

Any payment by the EIT for covering the liability referred
4.
to in paragraphs 2 and 3 and the costs and expenses incurred in
connection therewith shall be considered expenditure of the EIT
and shall be covered by the resources of the EIT.

The EIT shall also take appropriate account of policies and
3.
initiatives at regional, national and intergovernmental levels in
order to make use of best practices, well established concepts and
existing resources.

5.
The Court of Justice shall have jurisdiction in actions
brought against the EIT under the conditions provided for in
Articles 230 and 232 of the Treaty.

Article 10

Article 13

Management of intellectual property

Transparency and access to documents

The EIT shall adopt guidelines for the management of intel-
alia, Regulation (EC)
inter

1.
lectual property based on,
No 1906/2006.

1.
The EIT shall ensure that its activities are conducted with a
high level of transparency. In particular, the EIT shall set up an
accessible, free website providing information about the activities
of the EIT and individual KICs.

2.
On the basis of these guidelines, the partner organisations
of each KIC shall conclude among themselves an agreement on
the management and use of intellectual property which shall
define, in particular, how the contributions of the various partner
organisations, including SMEs, will be taken into account.

2.
The EIT shall make public its rules of procedure, its specific
financial rules referred to in Article 21(1) and the detailed criteria
for the selection of the KICs referred to in Article 7 before the first
call of proposals for the selection of the first KICs.

Article 11

Legal status

The EIT shall be a Community body and shall have legal
1.
personality. In each of the Member States, it shall enjoy the wid-
est possible legal capacity accorded to legal persons under national
legislation. In particular, it may acquire or dispose of movable and
immovable property and be a party to legal proceedings.

The Protocol on the Privileges and Immunities of the Euro-

2.
pean Communities shall apply to the EIT.

Article 12

Liability

The EIT shall be solely responsible for meeting its

1.
obligations.

2.
The contractual liability of the EIT shall be governed by the
relevant contractual provisions and the law applicable to the con-
tract in question. The Court of Justice shall have jurisdiction pur-
suant to any arbitration clause contained in a contract concluded
by the EIT.

3.
The EIT shall make public without delay its rolling triennial
work programme and annual activity report referred to in
Article 15.

4. Without prejudice to paragraphs 5 and 6, the EIT shall not
divulge to third parties confidential information it has received for
which confidential treatment has been requested and is justified.

The members of the EIT bodies shall be subject to the con-
5.
fidentiality requirement referred to in Article 287 of the Treaty.

The information gathered by the EIT in accordance with this
Regulation shall be subject to Regulation (EC) No 45/2001 of the
European Parliament and of the Council of 18 December 2000 on
the protection of individuals with regard to the processing of per-
sonal data by the Community institutions and bodies and on the
free movement of such data (1).

6.
Regulation (EC) No 1049/2001 of the European Parliament
and of the Council of 30 May 2001 regarding public access to
European Parliament, Council and Commission documents (2)
shall apply to the documents held by the EIT. The Governing
Board shall adopt practical arrangements for applying that Regu-
lation no later than six months after the EIT has been set up.

(1) OJ L 8, 12.1.2001, p. 1.
(2) OJ L 145, 31.5.2001, p. 43.

9.4.2008

EN

Official Journal of the European Union

L 97/7

Official documents and publications of the EIT shall be
7.
translated in accordance with the Regulation No 1 of 15 April
1958 determining the languages to be used by the European Eco-
nomic Community (1). The required translation services shall be
provided by the Translation Centre for bodies of the European
Union, set up by Council Regulation (EC) No 2965/1994 (2).

Article 14

Financial resources

1.
The EIT shall be financed through a contribution from the
general budget of the European Union within the financial enve-
lope as set out in Article 19 and other private and public sources.

The KICs shall be financed, in particular, from the follow-

2.
ing sources:

(a)

contributions from companies or private organisations,
forming a substantial source of funding;

(b) contributions from the general budget of the European

Union;

(c)

statutory or voluntary contributions from participating
States, third countries or public authorities within them;

(d) bequests, donations and contributions from individuals, insti-

tutions, foundations or any other national bodies;

(e)

revenue generated by the KICs’ own activities and royalties
from intellectual property rights;

The contribution from the general budget of the European
4.
Union to the establishment, administrative and coordination costs
of the KICs shall be provided from the financial envelope as set
out in Article 19.

5.
The KICs or their partner organisations may apply for Com-
munity assistance, in particular in the framework of Community
programmes and funds, in accordance with their respective rules
and on an equal footing with other applications. In that case, such
assistance shall not be attributed for activities already funded
through the general budget of the European Union.

Article 15

Programming and reporting

The EIT shall adopt:

(a) a rolling triennial work programme, based on the SIA, once
it is adopted, containing a statement of its major priorities
and planned initiatives, including an estimate of financing
needs and sources. The work programme shall be transmit-
ted by the EIT to the European Parliament, the Council, the
Commission, the European Economic and Social Committee
and the Committee for the Regions for information;

(b) an annual report by 30 June each year. The report shall out-
line the activities conducted by the EIT during the preceding
calendar year and assess the results with respect to the objec-
tives and timetable set, the risks associated with the activities
carried out, the use of resources and the general operation of
the EIT.

(f)

revenue generated by the EIT’s activities outcomes or capital
endowments,
including those managed by the EIT
Foundation;

Article 16

Monitoring and evaluation of the EIT

(g) contributions from international bodies or institutions;

(h)

loans and contributions from the European Investment Bank,
including the possibility to use the Risk Sharing Finance
Facility, pursuant to the eligibility criteria and the selection
procedure.

1.
The EIT shall ensure that its activities, including those man-
aged through KICs, shall be subject to continuous and systematic
monitoring and periodic independent evaluation, to ensure both
the highest quality of outcome, scientific excellence and the most
efficient use of resources. The outcomes of the evaluations shall
be made public.

Contributions may include contributions in kind.

3.
The modalities for accessing funding from the EIT shall be
defined in the financial rules of the EIT referred to in Article 21(1).

(1) OJ 17, 6.10.1958, p. 385/58. Regulation as last amended by Regula-

tion (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(2) OJ L 314, 7.12.1994, p. 1. Regulation as last amended by Regulation

(EC) No 1645/2003 (OJ L 245, 29.9.2003, p. 13).

By June 2011 and every five years after the entry into force
2.
of a new financial framework, the Commission shall provide for
an evaluation of the EIT. This shall be based on an independent
external evaluation and shall examine how the EIT fulfils its mis-
sion. It shall cover all activities of the EIT and the KICs and shall
assess the added value of the EIT, the impact, effectiveness, sus-
tainability, efficiency and relevance of the activities pursued and
their relationship and/or complementarity with existing national
and Community policies, to support higher education, research
and innovation. It shall take into account the views of stakehold-
ers, at both European and national level.

L 97/8

EN

Official Journal of the European Union

9.4.2008

The Commission shall forward the results of the evaluation,
3.
together with its own opinion and, where appropriate, any pro-
posals to amend this Regulation, to the European Parliament, the
Council, the European Economic and Social Committee and the
Committee of the Regions. The Governing Board shall take due
account of the findings of evaluations in the programmes and
operations of the EIT.

(b)

the modalities for cooperation between the Governing Board
and the KICs;

(c) modalities of the funding of the KICs.

4.
After the adoption of the first SIA in accordance with
Article 17(4), the Governing Board may select and designate addi-
tional KICs pursuant to the provisions of Articles 6 and 7.

Article 17

SIA

1.
By 30 June 2011 at the latest and every seven years there-
after, the EIT shall prepare a seven-year draft SIA and submit it to
the Commission.

2.
The SIA shall define long-term priority fields for the EIT and
shall include an assessment of its socioeconomic impact and its
capacity to generate the best innovation added-value. The SIA
shall take into account the results of the monitoring and evalua-
tion of the EIT as referred to in Article 16.

Article 19

Budgetary commitments

The financial envelope for the implementation of this Regulation
during the period from 1 January 2008 to 31 December 2013 is
set at EUR 308,7 million. The annual appropriations shall be
authorised by the budgetary authority within the limits of the
financial framework.

Article 20

Preparation and adoption of the annual budget

3.
The SIA shall include an estimate of financial needs and
sources in view of the future operation, long-term development
and funding of the EIT. It shall also contain an indicative financial
plan covering the period of the financial framework.

1.
The expenditure of the EIT shall include the staff, adminis-
trative, infrastructure and operational expenses. Administrative
expenditure shall be kept to a minimum.

4.
Acting on a proposal from the Commission, the SIA shall
be adopted by the European Parliament and the Council in accor-
dance with Article 157(3) of the Treaty.

Article 18

Initial phase

1. Within 12 months after its creation, the Governing Board
shall submit the draft of the first rolling triennial work pro-
gramme, referred to in Article 15(a), to the European Parliament,
the Council and the Commission. The European Parliament, the
Council and the Commission may each address an opinion to the
Governing Board on any subject covered in draft within three
months of the day on which they received it. Where such opin-
ions are addressed to it, the Governing Board shall reply within a
period of three months, indicating any adjustments in the priori-
ties and planned activities.

2. Within a period of 18 months from the date of creation of
the Governing Board, the EIT shall select and designate two or
three KICs in accordance with the criteria and procedures set out
in Article 7.

3.
The Commission shall submit the proposal for the first SIA,
on the basis of the draft provided by the EIT, to the European Par-
liament and the Council before the end of 2011.

In addition to the content of a SIA in accordance with Article 17,
the first SIA shall include:

2.

The financial year shall correspond to the calendar year.

3.
The Director shall draw up an estimate of the revenue and
expenditure of the EIT for the following financial year and shall
forward it to the Governing Board.

4.

Revenue and expenditure shall be in balance.

5.
The Governing Board shall adopt the draft estimate, accom-
panied by a draft establishment plan, and the preliminary rolling
triennial work programme and forward them by 31 March to the
Commission.

6.
On the basis of the estimate, the Commission shall enter in
the preliminary draft general budget of the European Union the
estimates it deems necessary for the amount of the subsidy to be
charged to the general budget.

The budgetary authority shall authorise the appropriations

7.
for the subsidy to the EIT.

8.
The Governing Board shall adopt the EIT budget, which
shall become final following the final adoption of the general bud-
get of the European Union. Where appropriate, it shall be adjusted
accordingly.

9.
The Governing Board shall, as soon as possible, notify the
budgetary authority of its intention to implement any project
which may have significant financial implications for the funding
of the EIT budget, in particular any projects relating to property
such as the rental or purchase of buildings. It shall inform the
Commission thereof.

(a) detailed specifications and terms of reference concerning the

operation of the EIT;

Any substantial modification of the budget shall follow the

10.
same procedure.

9.4.2008

EN

Official Journal of the European Union

L 97/9

Article 21

Implementation and control of the budget

1.
The EIT shall adopt its financial rules in accordance with
Article 185(1) of Regulation (EC, Euratom) No 1605/2002. These
may not depart from Regulation (EC, Euratom) No 2343/2002
except where the EIT’s specific operating needs so require and
with the Commission’s prior consent. Due account shall be given
to the need for adequate operational flexibility in order to enable
the EIT to achieve its objectives and attract and retain private sec-
tor partners.

2.

The Director shall implement the budget of the EIT.

The EIT shall accede to the Interinstitutional Agreement of
2.
25 May 1999 between the European Parliament, the Council of
the European Union and the Commission of the European Com-
munities concerning internal investigations by the European Anti-
fraud Office (OLAF) (2). The Governing Board shall formalise this
accession and adopt the necessary measures to help OLAF carry
out internal investigations.

3.
All decisions adopted and contracts concluded by the EIT
shall provide explicitly that OLAF and the Court of Auditors may
carry out on-the-spot inspections of the documents of all contrac-
tors and sub-contractors which have received Community funds,
including at the premises of the final beneficiaries.

The accounts of the EIT shall be consolidated with the Com-

3.
mission’s accounts.

The provisions set out in paragraphs 1, 2 and 3 shall apply,

4.
mutatis mutandis, to the EIT Foundation.

4.
Upon a recommendation from the Council, the European
Parliament shall, before 30 April of the year n + 2, give a dis-
charge for the year n to the Director in respect of the implemen-
tation of the EIT budget and to the Governing Board in respect to
the EIT Foundation.

Article 22

Protection of the financial interests of the Community

1. With a view to combating fraud, corruption and other ille-
gal acts, Regulation (EC) No 1073/1999 of the European Parlia-
ment and of
the Council of 25 May 1999 concerning
investigations conducted by the European Anti-Fraud Office
(OLAF) (1) shall apply to the EIT in its entirety.

Article 23

Statutes

The Statutes of the EIT, as set out in the Annex, are hereby
adopted.

Article 24

Entry into force

This Regulation shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg, 11 March 2008.

For the European Parliament
The President
H.-G. PÖTTERING

For the Council
The President
J. LENARČIČ

(1) OJ L 136, 31.5.1999, p. 1.

(2) OJ L 136, 31.5.1999, p. 15.

L 97/10

EN

Official Journal of the European Union

9.4.2008

ANNEX

Statutes of the European Institute of Innovation and Technology

Article 1

Composition of the Governing Board

1.
The Governing Board shall consist both of appointed members pro-
viding a balance between those with experience in business, higher edu-
cation and research (hereinafter referred to as appointed members) and
members elected by and from among the higher education, research and
innovation, technical and administrative staff, students and doctoral can-
didates of the European Institute of Innovation and Technology (EIT) and
the Knowledge and Innovation Communities (KICs) (hereinafter referred
to as representative members).

As a transitional provision, the initial Governing Board shall consist exclu-
sively of appointed members until elections for representative members
can be held, after the first KIC has been established.

2.
There shall be 18 appointed members. They shall have a six-year
non-renewable term of office. They shall be appointed by the Commis-
sion, in accordance with a transparent procedure. The Commission shall
inform the European Parliament and the Council about the selection pro-
cess and the final appointment of those members of the Governing Board.

The appointed members of the initial Governing Board shall be appointed
on the basis of a list of potential candidates proposed by an ad-hoc Iden-
tification Committee, which shall be composed of four independent high
level experts appointed by the Commission. The subsequent appointed
members shall be appointed on the basis of a list of potential candidates
proposed by the Governing Board.

6.
The conditions and modalities for election and replacement of the
representative members shall be approved by the Governing Board on the
basis of a proposal from the Director before the first KIC is in operation.
This mechanism shall ensure an appropriate representation of the diver-
sity and shall take into account the evolution of the EIT and the KICs.

7.
In the event that a member of the Governing Board is unable to
complete his term of office, a substitute member shall be appointed or
elected by the same procedure as the incapacitated member in order to
complete the latter’s term of office.

Article 2

Responsibilities of the Governing Board

The Governing Board members shall act in the interests of the EIT,
1.
safeguarding its goals and mission, identity and coherence, in an indepen-
dent way.

2.

The Governing Board shall, in particular:

(a)

define the EIT strategy as enshrined in the Strategic Innovation
Agenda (SIA), the triennial rolling work programme, its budget, its
annual accounts and balance sheet and its annual activity report on
the basis of a proposal from the Director;

(b)

specify the priority fields in which to establish the KICs;

(c)

provide a contribution in view of the preparation of the SIA;

The Commission shall have regard to the balance between higher
3.
education, research, innovation and business experience as well as to gen-
der balance and an appreciation of the higher education, research and
innovation environments across the Union.

(d) draw up detailed specifications and terms of references on the opera-
tion of the EIT in the framework of the SIA, including criteria and
procedures for the financing, monitoring and evaluating of the activi-
ties of the KICs;

4.
One third of the appointed members shall be replaced every two
years. An appointed member who has served for a period of less than four
years shall be eligible for reappointment, subject to an overall limit of six
years in office.

(e)

select and designate a partnership as a KIC or withdraw the designa-
tion if necessary;

(f)

ensure continuing evaluation of the activities of KICs;

During a transitional period, 12 appointed members of the initial Gov-
erning Board shall be chosen by lot to serve for a four-year term of office.
At the end of the initial four-year period, six of the 12 newly appointed
members shall be chosen by lot to serve for a four-year term of office. The
Chairperson of the Governing Board is not part of this transitional
process.

5.
There shall be four representative members. They shall have a three-
year term of office, renewable once. Their term of office shall cease if they
leave the EIT or a KIC. They shall be replaced through the same election
process for the remainder of the term of office.

(g)

adopt its rules of procedure, including those for the selection of the
KICs, those for the Executive Committee, as well as the specific finan-
cial rules of the EIT;

(h) define, with the Commission’s agreement, appropriate honoraria for
members of the Governing Board and of the Executive Committee;
these honoraria shall be benchmarked against similar provision in
the Member States;

(i)

adopt a procedure for choosing the Executive Committee and the
Director;

9.4.2008

EN

Official Journal of the European Union

L 97/11

(j)

appoint and if necessary dismiss the Director, and exercise disciplin-
ary authority over him/her;

Article 4

The Executive Committee

(k)

appoint the Accounting Officer, the members of the Executive Com-
mittee and the members of the Internal Auditing Function;

1.
The Executive Committee shall consist of five persons including the
Chairperson of the Governing Board who will also chair the Executive
Committee.

(l)

establish where appropriate advisory groups which may have a
defined duration;

The four members other than the Chairperson shall be chosen by the Gov-
erning Board from among the Governing Board’s appointed members.

(m) promote the EIT globally, so as to raise its attractiveness and make it
a world-class body for excellence in higher education, research and
innovation;

The Executive Committee shall meet on a regular basis as convened

2.
by its Chairperson or on the request of the Director.

(n)

adopt a code of good conduct regarding conflicts of interest;

The Executive Committee shall take its decisions by simple majority

3.
of all its members.

(o) define principles and guidelines for the management of intellectual

property rights;

4.

The Executive Committee shall:

(a)

prepare the meetings of the Governing Board;

(p)

set up an Internal Auditing Function in accordance with Commis-
sion Regulation (EC, Euratom) No 2343/2002;

(b) oversee the implementation of the SIA and rolling triennial work

programme;

(q) be empowered to establish a Foundation (hereinafter referred to as
the EIT Foundation) with the specific objective of promoting and
supporting the activities of the EIT;

(c)

oversee the selection procedure for KICs;

(d)

take any decisions delegated to it by the Governing Board.

(r)

(s)

ensure complementarity and synergy between EIT activities and
other Community programmes;

decide on EIT’s language regime, taking into account the existing
principles on multilingualism and the practical requirements of its
operations.

The Governing Board may delegate specific tasks to the Executive

3.
Committee.

Article 5

The Director

1.
The Director shall be a person with expertise and high reputation in
the areas where the EIT operates. The Director shall be appointed by the
Governing Board for a term of office of four years. The Governing Board
may extend that term of office once by four years when it considers that
the interests of the EIT are best served by so doing.

4.
The Governing Board shall elect its Chairperson from among the
appointed members. The term of office of the Chairperson shall be three
years, renewable once.

The Director shall be responsible for the day-to-day management of
2.
the EIT and be its legal representative. The Director shall be accountable
to the Governing Board and report to it on an ongoing basis on the devel-
opment of the EIT activities.

Article 3

Functioning of the Governing Board

1. Without prejudice to paragraph 2, the Governing Board shall adopt
decisions by simple majority of all its members.

However, decisions under Article 2(2)(a), (b), (c), (d), (i) and (s), and (4)
shall require a majority of two thirds of all its members.

3.

The Director shall in particular:

(a)

support the Governing Board and the Executive Committee in their
work and provide the secretariat for their meetings;

(b) prepare a draft SIA, a draft rolling triennial work programme, the
annual report and the annual budget for submission to the Govern-
ing Board through the Executive Committee;

(c)

administer the selection process for KICs and ensure that the various
stages of that process are carried out in a transparent and objective
manner;

The representative members may not vote on decisions under

2.
Article 2(2)(e), (g), (i), (j), (k), (q) and (s).

(d) organise and manage the activities of the EIT;

3.
The Governing Board shall meet in ordinary session at least three
times a year and in extraordinary session when convened by its Chairper-
son or on request of at least one third of its members.

(e)

ensure the implementation of effective monitoring and evaluation
procedures relating to the performance of the EIT in accordance with
Article 16 of the Regulation;

L 97/12

EN

Official Journal of the European Union

9.4.2008

(f)

be responsible for administrative and financial matters, including the
implementation of the EIT budget. In this the Director shall take due
account of advice received from the Internal Auditing Function;

The Governing Board shall adopt provisions enabling seconded experts
from participating States or other employers to work at the EIT and defin-
ing their rights and responsibilities.

(g)

be responsible for all staff matters;

(h)

submit the draft annual accounts and balance sheet to the Internal
Auditing Function, and subsequently to the Governing Board,
through the Executive Committee;

ensure that the obligations of the EIT with regard to the contracts
and agreements it concludes are met;

(i)

(j)

3.
The EIT shall exercise, with regard to its staff, the powers which are
devolved to the authority authorised to conclude the contracts with the
staff members.

4.
A member of staff may be required to make good, in whole or in
part, any damage suffered by the EIT as a result of serious misconduct on
his/her part in the course of or in connection with the performance of
his/her duties.

provide the Executive Committee and the Governing Board with all
information necessary for the performance of their functions.

Principles for the evaluation and monitoring of KICs

Article 8

Article 6

Preparation of establishment of the support structure

The EIT shall organise continuous monitoring and periodic independent
evaluations of the outcomes and results of each KIC. These evaluations
shall be based on good administrative practice and result-oriented param-
eters and avoid unnecessary formal and procedural aspects.

For a transitional period, the Commission shall provide the necessary sup-
port towards the establishment of the EIT structure. For that purpose, until
such time as the first appointed members of the Governing Board are
appointed, an official appointed by the Commission shall be the EIT legal
representative and be responsible for staff, administrative and financial
matters, including the implementation of the EIT budget. Thereafter, the
Governing Board shall designate, according to a transparent procedure, a
person who shall fulfil these functions or extend the mandate of the offi-
cial appointed by the Commission, until such time as the Director takes
up his/her duties following his/her appointment by the Governing Board,
in accordance with Article 5. The Governing Board shall launch the pro-
cedure for choosing the Director of the EIT without delay.

Article 7

Staff of the EIT

Article 9

Duration, continuation and termination of a KIC

1.
Subject to the outcomes of periodic evaluations and to the specifici-
ties of particular fields, a KIC shall normally have a time-frame of seven
to 15 years.

The Governing Board may decide to extend the operation of a KIC
2.
beyond the period initially set if this is the most appropriate way to
achieve the objective of the EIT.

3.
In the event that evaluations of a KIC show inadequate results, the
Governing Board shall take appropriate measures including reduction,
modification or withdrawal of its financial support or termination of the
agreement.

The staff of the EIT shall consist of personnel employed directly by
1.
the EIT under fixed term contracts. The conditions of employment of
other servants of the European Communities shall apply to the Director
and the Staff of the EIT.

Experts may be seconded to the EIT for a limited duration by par-

2.
ticipating States or other employers.

Article 10

Winding up of the EIT

In the event of winding up of the EIT, its liquidation shall intervene under
the supervision of the Commission in conformity with the laws appli-
cable. The agreements with the KICs and the act establishing the EIT Foun-
dation shall lay down the appropriate provisions in such situation.