GREEN PAPER From Challenges to Opportunities: Towards a Common Strategic Framework for EU Research and Innovation funding
Date: 2011-02-09
Institutions: European Commission
Subjects: EU financing, budget estimate, development policy, economic development, growth point, innovation, research and development, research policy, sustainable development

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EUROPEAN COMMISSION 

Brussels, 9.2.2011 
COM(2011) 48 final 

GREEN PAPER 

From Challenges to Opportunities: Towards a Common Strategic Framework for EU 
Research and Innovation funding 

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GREEN PAPER 

From Challenges to Opportunities: Towards a Common Strategic Framework for EU 
Research and Innovation funding 

1. 

PURPOSE 

This Green Paper launches a public debate on the key issues to be taken into account for 
future EU research and innovation funding programmes. These programmes will be part 
of  the  Commission's  proposals  for  the  next  Multi-annual  Financial  Framework  (MFF)  to  be 
presented in June 2011. Specific proposals for funding programmes are due to be adopted by 
the end of 2011. The research, business, government and  civil  society  communities  and 
citizens are called upon to engage in this important debate. 

Delivering  on  the  widely  supported  Europe  20201  objectives  of  smart,  sustainable  and 
inclusive growth depends on research and innovation as key drivers of social and economic 
prosperity and of environmental sustainability. This is why the European Union has set itself, 
in  the  context  of  the  Europe  2020  strategy,  the  objective  to  increase  spending  on  R&D  to 
reach 3 % GDP by 2020. The Innovation Union flagship initiative2 advocates a strategic and 
integrated  approach  to  research  and  innovation.  This  sets  the  framework  and  objectives  to 
which future EU research and innovation funding should contribute, based on the provisions 
of the Treaties3. 

The  Council4  called  for  future  EU  funding  programmes  to  focus  more  on  Europe  2020 
priorities,  address  societal  challenges  and  key  technologies,  facilitate  collaborative  and 
industry-driven research, streamline the instruments, radically simplify access, reduce time to 
market and further strengthen excellence.  

The Budget Review5 put forward key principles which should underpin the future EU budget: 
focussing  on  instruments  with  proven  European  added  value,  becoming  more  results-driven 
and leveraging other public and private sources of funding. The Budget Review proposed that 
the  full  range  of  EU  instruments  for  research  and  innovation  work  together  in  a  Common 
Strategic Framework. At its meeting on 4 February 2011, the European Council discussed 
innovation  and  supported  the  concept  of  the  Common  Strategic  Framework  to  improve  the 
efficiency  of  research  and  innovation  funding  at  national  and  EU  levels.  This  Green  Paper 
identifies key questions on how to achieve these ambitious objectives. 

While this Green Paper focuses on research and innovation, there are important links to other 
EU  programmes,  as  identified  in  the  Budget  Review,  and  notably  with  the  future  Cohesion 
policy Funds and Education programmes. 

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'Europe 2020: A European strategy for smart, sustainable and inclusive growth' - COM(2010) 2020. 
'Europe 2020 Flagship Initiative Innovation Union' - COM(2010) 546. 
Treaty on the Functioning of the European Union, Titles XVII 'Industry' and Title XIX 'Research and 
Technological Development and Space'; Euratom Treaty, Title II, Chapter 1 'Promotion of research'. 
Council conclusions on Europe 2020 flagship initiative: Innovation Union. 26.11.2010. 
'The EU Budget Review' - COM(2010) 700. 

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EU research and innovation funding and initiatives in the current programming period 
(2007-2013) 

•  The Seventh Framework Programme6 (FP7) with its budget of 53.3 billion euro supports 
research,  technological  development  and  demonstration  activities  across  the  EU.  Its 
activities are implemented under four Specific Programmes: Cooperation, Ideas, People 
and  Capacities;  it  also  supports  research  in  nuclear  energy  (Euratom)  and  the  Joint 
Research Centre (JRC)7. 

•  The Competitiveness and Innovation Framework Programme8 (CIP) has a budget of 3.6 
billion euro and aims to encourage the competitiveness of European industry, with SMEs 
as its main target. It promotes access to finance and supports the development of better 
innovation support services and policies. It funds trans-national business and innovation 
support  services.  It  addresses  clusters,  public  procurement  and  non-technological 
barriers to innovation. It helps developing the information society by stimulating take-up 
and  use  of  ICT  and  promotes  the  increased  use  of  renewable  energies  and  energy 
efficiency. 

•  The European Institute of Innovation and Technology9 (EIT) is an autonomous EU body 
bringing together the higher education, research and business sectors to stimulate world-
leading 
Innovation 
Communities  (KICs)  it  strengthens  links  across  the  knowledge  triangle.  The  EIT's 
flexibility aims at making it attractive to the business sector. A contribution of 309 million 
euro was provided to the EIT from the EU budget. 

integrated  Knowledge  and 

innovation.  Through 

its  highly 

•  Through the Cohesion policy10, about 86 billion euro (almost 25% of the total Structural 
Funds budget) is allocated to enhancing the capacity of regional economies to change and 
innovate.  This  investment  focuses  on  four  key  elements:  R&D  and  innovation, 
entrepreneurship, ICT and human capital development. 

2. 

EU RESEARCH AND INNOVATION: FROM CHALLENGES TO OPPORTUNITIES  

Europe and the world are faced with unprecedented challenges requiring innovative solutions. 
Returning to growth and higher levels of employment, combating climate change and moving 
towards  a  low-carbon  society  require  urgent  and  coordinated  action.  The  impact  of 
demographic  developments  is  increasing  and  our  natural  resources  need  to  be  used  more 
wisely. Our societies face security challenges which are growing in scale and sophistication. 
Challenges such as our ageing population or our dependence on fossil fuel do, however, also 
provide powerful opportunities to develop innovative products and services, creating growth 
and jobs in Europe. 

Europe also needs to meet the challenge of retaining and reinforcing its competitive position 
in the face of globalisation. The emerging economies are moving from cost competition and 

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http://ec.europa.eu/research/fp7/index_en.cfm  
The JRC is a Commission service providing scientific and technical support for the development and 
implementation of EU policies. 
http://ec.europa.eu/cip/  
http://eit.europa.eu/  
http://ec.europa.eu/regional_policy/themes/research/index_en.htm  

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imitation towards strategies based on innovation. Other countries are investing more than ever 
to  safeguard  their  future.  On  the  other  hand,  rising  living  standards  in  these  countries  open 
new  markets  for  European  products  and  services  and  their  growing  capabilities  create  new 
opportunities for collaboration. 

We need to grasp these opportunities, build on our strengths and act swiftly and decisively to 
build  our  future,  enhance  the  welfare  of  our  citizens  and  secure  the  competitiveness  of  our 
businesses.  Research  and  innovation  are  key  drivers  of  this  process,  yet  Europe  is  often 
outperformed by its competitors in these domains11. 

Europe  needs  to  make  a  step  change  in  its  research  and  innovation  performance.  As  the 
Innovation  Union  pointed  out,  this requires research and innovation  to  be  better  linked.  We 
should  break  away  from  traditional  compartmentalised  approaches  and  focus  more  on 
challenges and outcomes to be achieved, linking our research and innovation funding closer to 
our policy objectives. Developing a simplified set of instruments and rules is equally crucial, 
while leaving room for flexibility where it is needed. 

At a time of severely constrained public budgets, the most needs to be made out of every euro. 
Public research and innovation funding in Europe is primarily organised at the national level. 
Despite some progress, national and regional governments still largely work according to their 
separate  strategies.  This  leads  to  costly  duplication  and  fragmentation.  EU  level  actions 
provide  the  opportunity  to  generate  greater  efficiencies  and  impact.  This  could  build  on  the 
current  joint  efforts  between  Member  States,  industry  and  the  EU,  as  for  instance  in  the 
Strategic  Energy  Technologies  (SET)-Plan12,  the  ICT  Joint  Technology  Initiatives  (JTIs)13 
and the upcoming Strategic Transport Technology Plan. 

EU  wide  programmes  are  also  critical  for  closing  our  gaps  with  international  competitors. 
Europe's  underinvestment  in  research  and  innovation,  particularly  by  the  private  sector,  is  a 
major  weakness.  EU  programmes  should  leverage  private  investment  and  make  Europe  a 
more attractive investment location.  

EU  programmes  are  needed  to  generate  a  higher  number  of  world  class  scientific 
breakthroughs  as  they  help  generate  excellence  through  European  wide  competition.  An 
integration  of  policies  and  EU  funding  from  research  to  market  (as  in  the  European 
Innovation Partnerships) will make Europe better at turning knowledge into innovation. The 
provision  of  services  to  support  innovation  processes  beyond  technological  innovation  will 
help seizing market opportunities for innovative solutions. 

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EU-27 R&D intensity in 2009 was 2.01 % GDP, compared to 2.77 % in US (2008) and 3.44 % in JP 
(2007).  Further  information  is  available  in  the  Innovation  Union  Scoreboard  2010,  available  at 
http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovation-
scoreboard/index_en.htm 
'A European Strategic Energy Technology Plan (SET-Plan)' - COM(2007) 723 - and 'Investing in the 
development of low carbon technologies (SET-Plan)' - COM(2009) 519. 
As evidenced for instance in the interim evaluation of the ENIAC and ARTEMIS JTIs - COM(2010) 
752. 

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3. 

LESSONS FROM CURRENT EU RESEARCH AND INNOVATION PROGRAMMES 

The landscape of EU research and innovation programmes has developed over recent decades 
and now constitutes a significant share of the EU budget14. 

The  FP7  interim  evaluation15  confirmed  its  vital  role  in  building  and  sustaining  European 
networks,  including  the  positive  role  played  by  the  Marie  Curie  and  research  infrastructure 
actions and the success of novel instruments such as the European Research Council (ERC) 
and  the  Risk  Sharing  Finance  Facility  (RSFF).  It  also  confirmed  the  unique  contribution  of 
FP7  in  funding  cross-border  collaborative  research.  It  called  for  better  linkage  between 
research  and  innovation  and  for  a  clearer  focus  on  excellence,  competitiveness  and  societal 
objectives. 

The  interim  evaluation  of  the  CIP16  confirmed  its  highly  relevant  objectives  for  EU-level 
intervention. It highlighted the important role of the financial instruments in support of SMEs, 
the  Enterprise  Europe  Network,  the  eco-innovation  market  replication  projects  and  the 
demand-driven  pilots  for ICT  innovation. It also pointed to the need for further interlinking 
with other EU programmes, including the Cohesion policy Funds. 

The EIT, through its first KICs, is addressing societal challenges (climate change, energy and 
ICT)  and  pioneering  new  innovation  governance  models.  The  EIT  is  due  to  present  its 
Strategic Innovation Agenda by mid-2011, through which it plans to expand its activities as a 
showcase for innovation in Europe and map out its future activities.  

However,  the  various  evaluations  have  also  identified  a  number  of  shortcomings  and 
deficiencies, in particular the lack of a whole chain approach to research and innovation, the 
complexity of instruments, over-bureaucratic rules and procedures and a lack of transparency. 
Improvements for future programmes should focus on: 

–  Clarifying  objectives  and  how  they  are  translated  into  the  supported  activities,  while 

maintaining flexibility to respond to emerging policy needs. 

–  Reducing complexity. Over time, EU research and innovation programmes have expanded 
the  set  of  instruments  leaving  an  impression  of  catering  to  too  many  objectives  and 
spreading  funding  too  thinly.  A  lack  of  coordination  between  EU  and  Member  State 
funding  adds  to  the  complexity  and  leaves  a  potential  for  overlap  and  duplication,  for 
instance as regards State Aid measures to support SMEs or to provide risk capital. 

–  Increasing added value and leverage and avoiding duplication and fragmentation. EU 
research  and  innovation  funding  should  provide  more  added  value,  increase  its  leverage 
effect  on  other  public  and  private  resources  and  be  used  more  effectively  to  support  the 
strategic  alignment  and  pooling  of  national  and  regional  funds  to  avoid  duplication  and 
achieve scope and critical mass. 

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7.41 % of the EU Budget will be devoted to research and innovation in 2013 
FP7 interim evaluation available at http://ec.europa.eu/research/evaluations/index_en.cfm?pg=fp7 
CIP interim evaluation available at  
http://ec.europa.eu/cip/files/docs/interim_evaluation_report_march2010_en.pdf 

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–  Simplifying participation by lowering administrative burdens, reducing time to grant and 
time to payment and achieving a better balance between cost and trust based approaches. 
The approach used in the CIP could serve as an example. 

–  Broadening  participation  in  EU  programmes.  While  there  is  important  SME 
participation  in  the  CIP,  the  FP7  interim  evaluation  highlighted  the  need  to  further 
stimulate industry and SME involvement. It also pointed at the need to boost participation 
of female researchers and participants from newer Member States. A stronger involvement 
of third countries would offer opportunities to capture the benefits of knowledge produced 
outside the EU. 

–  Increasing  the  competitiveness  and  societal  impact  from  EU  support.  This  would 
require better  uptake and use of results by companies, investors,  public authorities, other 
researchers and policy makers. It also involves supporting broader innovations (including 
non-technological  and  social  innovation)  which  are  not  the  result  of  research  activities. 
Better  communication  of  our  objectives  and  the  relevance  of  our  actions  to  a  wider 
audience is also needed. The ultimate users of innovations (be they citizens, businesses or 
the public sector) should be involved much earlier in our actions to accelerate and broaden 
the  exploitation  of  results  and  to  encourage  greater  public  acceptance  in  sensitive  fields 
such as security or nanotechnology. 

4. 

TOWARDS  A  COMMON  STRATEGIC  FRAMEWORK  FOR  EU  RESEARCH  AND 
INNOVATION FUNDING 

In line with the priorities of the Europe 2020 strategy and the provisions of the Treaties, the 
Common Strategic Framework will focus on addressing societal challenges, encouraging the 
competitiveness  of  Europe's  industries  and  the  excellence  of  its  scientific  and  technological 
base. 

4.1.  Working together to deliver on Europe 2020 

At EU level, various programmes support research and innovation, covering activities across 
the  innovation  cycle,  yet  often  operating  independently  of  each  other.  The  Budget  Review 
identified  a  way  forward  in  this  respect  through  the  development  of  a  Common  Strategic 
Framework.  This  would  cover  all  relevant  EU  research  and  innovation  funding  currently 
provided through FP7 and CIP and EU innovation initiatives such as the EIT on the basis of 
coherent goals and shared strategic objectives.  

The  Common  Strategic  Framework  offers  large  potential  for  making  EU  funding  more 
attractive and easy to access for participants. It would allow the development of a single entry 
point  with  common  IT  tools17  or  a  one  stop  shop  for  providing  advice  and  support  to 
participants.  Furthermore,  it  would  enable  the  development  of  a  simpler  and  more  efficient 
structure and a streamlined set of funding instruments covering the full innovation chain in a 
seamless manner.  

The  Common  Strategic  Framework  also  offers  clear  possibilities  for  administrative 
simplification  through  the  development  of  a  more  standardised  set  of  rules  covering  all 

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Building on the development of the FP7 Participant Portal: 
http://ec.europa.eu/research/participants/portal/appmanager/participants/portal 

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participants  in  EU  research  and  innovation  programmes.  These  rules  should  seek 
commonalities between the different types of activities whenever possible. This should build 
on  ongoing  progress  towards  simplification18,  yet  consider  additional  measures  such  as  a 
wider  use  of  lump  sums  or  the  general  acceptance  of  beneficiaries'  own  accounting 
practices19. 

Allowing for flexibility will be necessary to cater for the diversity of funding needed to cover 
the  full  innovation  cycle  or  for  requirements  linked  to  specific  conditions.  Flexibility  and 
speed of delivery are also essential to attract business stakeholders (in particular SMEs). This 
may justify distinctive mechanisms and implementing rules as, for example, in the case of the 
EIT.  

EU  programmes  operate  in  an  environment  in  which  most  public  funding  for  research  and 
innovation  is  administered  by  Member  States.  Yet  still  too  often  this  fails  to  take  proper 
account  of  the  trans-national  nature  of  research  and  innovation,  leaving  synergies  with  the 
programmes of other Member States or those of the EU largely unexploited. 

Experiences with pooling Member State resources (through the Article 185 Initiatives, ERA-
Nets  and  the  first  steps  towards  Joint  Programming  Initiatives)  have  demonstrated  the 
potential impact and efficiencies offered by leveraging other public sources of funding. Their 
effectiveness  does,  however,  depend  on  strong  commitments,  also  in  financial  terms,  from 
national and regional public authorities. 

An  important  role  needs  to  be  played  by  the  future  Cohesion  policy,  which  serves  to  build 
research  and  innovation  capabilities  at  the  regional  level  through  smart  specialisation 
strategies,  yet  within  the  context  of  the  EU's  broader  policy  objectives.  The  Commission 
Communication  on 
to  reinforced  strategic 
programming,  increased  concentration  of  resources  and  greater  use  of  conditionality  and 
incentives  to  enable  a  stronger  impact  on  Europe  2020  priorities  including  research  and 
innovation.  The  Common  Strategic  Framework  for  EU  research  and  innovation  funding 
should  therefore  build  strong  complementarities  with  the  future  Common  Strategic 
Framework for cohesion policy. 

the  future  of  Cohesion  policy20  points 

In  addition,  Rural  Development  funding  currently  provides  for  a  broad  range  of  measures 
fostering  innovation  in  agriculture.  The  Communication  'The  CAP  towards  2020:  meeting 
food, natural resources and territorial challenges of the future'21 points to innovation as one of 
the guiding themes of rural development besides environment and climate change. 

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'Simplifying  the  implementation  of  the  research  Framework  Programmes'  -  COM(2010)  187  and 
Commission Decision C(2011) 174 of 24 January 2011 
The Commission has proposed a review of the Financial Regulation - COM(2010) 815 - that allows for 
more  radical  simplification  in  the  next  financial  framework,  including  an  extended  use  of  lumps, 
reimbursement based on accounting practices of the beneficiary and an 'ideal house' for public-private 
partnerships.  
'Conclusions  of  the  fifth  report  on  economic,  social  and  territorial  cohesion:  the  future  of  cohesion 
policy' - COM (2010) 642. 
COM(2010) 672 

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Questions: 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

How  should  the  Common  Strategic  Framework  make  EU  research  and  innovation 
funding  more  attractive  and  easy  to  access  for  participants?  What  is  needed  in 
addition to a single entry point with common IT tools, a one stop shop for support, a 
streamlined  set  of  funding  instruments  covering  the  full  innovation  chain  and 
further steps towards administrative simplification? 

How  should  EU  funding  best  cover  the  full  innovation  cycle  from  research  to 
market uptake? 

What are the characteristics of EU funding that maximise the benefit of acting at the 
EU  level?  Should  there  be  a  strong  emphasis  on  leveraging  other  sources  of 
funding? 

How  should  EU  research  and  innovation  funding  best  be  used  to  pool  Member 
States  resources?  How  should  Joint  Programming  Initiatives  between  groups  of 
Member States be supported? 

What should be the balance between smaller, targeted projects and larger, strategic 
ones? 

How  could  the  Commission  ensure  the  balance  between  a  unique  set  of  rules 
allowing  for  radical  simplification  and  the  necessity  to  keep  a  certain  degree  of 
flexibility and diversity to achieve objectives of different instruments, and respond 
to the needs of different beneficiaries, in particular SMEs? 

What should be the measures of success for EU research and innovation funding? 
Which performance indicators could be used? 

How  should  EU  research  and  innovation  funding  relate  to  regional  and  national 
funding?  How  should  this  funding  complement  funds  from  the  future  Cohesion 
policy,  designed  to  help  the  less  developed  regions  of  the  EU,  and  the  rural 
development programmes? 

4.2. 

Tackling societal challenges 

Europe 2020 and its flagship initiatives formulated ambitious policy objectives in areas such 
as  climate  change,  energy  security,  demographic  ageing  or  resource  efficiency.  The 
Innovation  Union  called  for  linking  future  EU  funding  programmes  more  closely  to  these 
objectives  by  putting  a  stronger  focus  on  tackling  societal  challenges.  However,  careful 
consideration  is  needed  to  identify  those  challenges  where  EU  level  interventions  can  truly 
make a difference, while avoiding overly prescriptive scientific and technological choices. 

Current EU funding programmes have put considerable effort in tackling societal challenges, 
predominately through a thematic technology push. Bringing researchers from across Europe 
together in collaborative networks has been at the heart of this approach and will continue to 
be  vital  in  sustaining  a  European  research  fabric.  Experience  has  shown,  however,  the 
limitations  of  this  approach  in  achieving  the  necessary  flexibility,  creativity  and  cross-
disciplinary research needed. 

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The  Innovation  Union  introduced  the  concept  of  European  Innovation  Partnerships  to  bring 
together  supply  and  demand  side  measures  in  addressing  societal  challenges.  They  have  an 
important  role  to  play  in  coordinating  efforts  and  focusing  activities  across  the  innovation 
cycle.  The  strategic  approach  of  the  SET-plan  with  its  clear  priorities,  well-defined 
governance structures and progress assessment function can serve as an example here. 

Questions: 

9. 

10. 

11. 

12. 

13. 

How  should  a  stronger  focus  on  societal  challenges  affect  the  balance  between 
curiosity-driven research and agenda-driven activities?  

Should there be more room for bottom-up activities? 

How  should  EU  research  and  innovation  funding  best  support  policy  making  and 
forward-looking activities? 

How  should  the  role  of  the  Commission's  Joint  Research  Centre  be  improved  in 
supporting policy making and addressing societal challenges? 

How  could  EU  research  and  innovation  activities  attract  greater  interest  and 
involvement of citizens and civil society? 

4.3. 

Strengthening competitiveness 

Europe  needs  to  step  up  its  performance  in  creating  impact  from  research  and  innovation 
funding.  Obstacles  remain  in  transferring  research  outcomes  from  the  laboratory  through  to 
the  development,  commercialisation  and  application  phases.  As  indicated  in  the  Innovation 
Union,  this  requires  an  essential  role  for  industry  in  setting  priorities  and  through  public 
private  partnerships.  It  also  involves  broadening  support  across  the  full  innovation  cycle 
(including  proof  of  concept,  testing,  piloting  and  demonstration),  including  covering  issues 
such  as  post-project  follow-up,  pre-normative  research  for  standard  setting,  support  to 
patenting and to non-technological innovation. 

Securing  a  strong  position  in  key  enabling  technologies  such  as  ICT,  nanotechnology, 
advanced materials, manufacturing, space technology or biotechnology is of vital importance 
to  Europe's  competitiveness  and  enables  the  development  of  innovative  goods  and  services 
needed for addressing societal challenges. 

FP7  introduced  novel  approaches  to  strengthen  industry  participation.  The  European 
Technology Platforms (ETPs) helped define industry relevant priorities. The Joint Technology 
Initiatives  (JTIs)  put  industry  in  the  driving  seat  through  establishing  formal  public  private 
partnerships.  The  European  Economic  Recovery  Plan  introduced  more  informal  public-
private  partnerships  (PPPs)  in  key  sectors.  Experience  shows  that  their  success  depends  on 
strong commitments from the stakeholders involved, and simple and efficient governance and 
implementation structures. 

Within the framework of its Strategic Innovation Agenda, the EIT will continue to strengthen 
its  business-driven  approach  through  a  focus  on  generating  results  and  impact  but  also  on 
leveraging substantial funds from the private sector. In the context of the SET-plan, European 
Industrial  Initiatives were launched to allow the public and private sector to jointly develop 
technology roadmaps. The CIP aims to strengthen the competitiveness of Europe's industry, 
with a particular focus on SMEs. It takes into account the fact that innovation requires many 

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competences and activities other than research, which are non-technological in nature, such as 
design,  creativity,  standard  setting,  exploitation  and  new  combinations  of  existing 
technologies,  new  business  models,  user  involvement  or  capturing  the  many  and  diverse 
possibilities offered by social innovation. 

Through their flexibility and agility, SMEs play a pivotal role in developing novel products 
and services. Outstanding and fast growing SMEs have the potential to transform the structure 
of Europe's economy by growing into tomorrow's multinational companies. The CIP has been 
successful in reaching SMEs (100,000 SMEs received loan guarantees, 70 % of beneficiaries 
of eco-innovation market replication projects are SMEs) and although particular attention has 
been  paid  to  increasing  SME  involvement  throughout  FP7,  SMEs  are  still  finding  it 
challenging to participate. A strengthened approach to SMEs could learn from the experience 
gained  with  the  current  SME  actions,  take  into  account  the innovation  and  growth  needs  of 
different  types  of  SMEs  and  the  fact  that  the  needs  of  many  SMEs  are  best  served  through 
support provided at the regional level, including through the Cohesion policy Funds. 

Open, light and fast implementation schemes would enable SMEs and other stakeholders from 
industry  and  academia  to  explore  new  ideas  and  opportunities  as  they  emerge,  in  a  flexible 
way, hereby opening new avenues for innovation. This could for example build on the current 
use  of  open  calls  and  simplified  application  procedures  in  the  Future  and  Emerging 
Technologies  (FET)  actions  in  the  FP7  ICT  Theme  as  well  as  on  the  CIP  eco-innovation 
market replication projects. 

Intellectual  property  rights  governing  EU  research  and  innovation  funding  are  decisive  for 
efficient  exploitation  and  technology  transfer,  while  at  the  same  time  they  need  to  ensure 
access  to  and  rapid  dissemination  of  scientific  results.  They  are  also  of  relevance  for 
international cooperation in areas of strategic interest. 

The low level of private finance for research and innovation is a major bottleneck in Europe. 
The FP7 Risk Sharing Finance Facility and CIP financial instruments have demonstrated how 
the  EU  budget  in  partnership  with  the  European  Investment  Bank  Group  can  succeed  in 
overcoming  market  gaps  in  this  area.  Building  on  this  experience,  future  EU  research  and 
innovation programmes should make full use of financial instruments (through the EU Equity 
and  Risk  Sharing  Platform  mechanisms  proposed  in  the  Budget  Review)  to  support  the 
commercialisation of research results, the growth of innovative businesses and investments in 
major infrastructures. 

New approaches could also be considered, particularly those stimulating the demand side and 
aiming  to  involve  public  and  private  end  users  earlier  and  more  closely  in  the  innovation 
process22. The Innovation Union calls for unleashing the public sector's purchasing power to 
spur  innovation  through  public  procurement  including  pre-commercial  procurement23.  This 
could build on pilot actions in the CIP and FP7. The US has a long standing tradition in this24, 
while in the EU this opportunity is left too largely unexploited. 

22 

23 

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recommendations 

recently  published  by 

See  policy 
http://ec.europa.eu/research/erab/pdf/erab-2nd-final-report_en.pdf 
The  Commission  adopted  on  27  January  2011  a  Green  paper  on  the  modernisation  of  EU  public 
procurement  policy  'Towards  a  more  efficient  European  Procurement  Market'  (COM(2011)15), 
consulting  on  whether  public  procurement  rules  should  be  modified  to  allow  other  policy  objectives 
such as promotion of innovation. 
See e.g. the Small Business Innovation Research initiative (http://www.sbir.gov) 

the  European  Research  Area  Board, 

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Similarly, inducement prizes incentivise researchers to achieve stretching targets through the 
prospect of obtaining a financial award. They have a long history as a tool for policy makers, 
but have virtually not been used within EU programmes. 

Questions: 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

How  should  EU  funding  best  take  account  of  the  broad  nature  of  innovation, 
including non technological innovation, eco-innovation and social innovation? 

How should industrial participation in EU research and innovation programmes be 
strengthened? How should Joint Technology Initiatives (such as those launched in 
the  current  Framework  Programme)  or  different  forms  of 
'public-private 
partnerships'  be  supported?  What  should  be  the  role  of  European  Technology 
Platforms? 

How  and  what  types  of  Small  and  Medium-sized  Enterprises  (SME)  should  be 
supported  at  EU  level;  how  should  this  complement  national  and  regional  level 
schemes?  What  kind  of  measures  should  be  taken  to  decisively  facilitate  the 
participation of SMEs in EU research and innovation programmes? 

How  should  open,  light  and  fast  implementation  schemes  (e.g.  building  on  the 
current  FET  actions  and  CIP  eco-innovation  market  replication  projects)  be 
designed  to  allow  flexible  exploration  and  commercialisation  of  novel  ideas,  in 
particular by SMEs? 

How  should  EU  level  financial  instruments  (equity  and  debt  based)  be  used  more 
extensively? 

Should  new  approaches  to  supporting  research  and  innovation  be  introduced,  in 
particular  through  public  procurement,  including  through  rules  on  pre-commercial 
procurement, and/or inducement prizes? 

How  should  intellectual  property  rules  governing  EU  funding  strike  the  right 
balance  between  competitiveness  aspects  and  the  need  for  access  to  and 
dissemination of scientific results?  

4.4. 

Strengthening Europe's science base and the European Research Area  

Europe's  science  base  is  among  the  most  productive  in  the  world,  yet  it  does  not  contain 
sufficient  pockets  of  world  class  excellence  where  ground-breaking  research  results  are 
generated which are able to drive structural change. 

The main responsibility for building a competitive public science base lies with the Member 
States.  EU  support  can  clearly  add  value  as  it  has  in  the  past  through  various  initiatives 
contributing  to  the  construction  of  the  European  Research  Area  (ERA).  It  is  essential  to 
consider  how  funding  provided  through  the  Common  Strategic  Framework  can  be  used  to 
speed up progress towards a genuinely unified ERA. 

EN 

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The  setting  up  of  the  ERC  was  a  major  step  forward  in  raising  the  excellence  of  Europe's 
science base25. A strengthening of its role could involve both the weight it occupies and the 
instruments it uses. Important lessons must be drawn from the experience of those regions and 
countries  which  have  managed  to  nurture  the  world's  most  excellent  public  research 
institutions,  through  concentration  of  funding  and  a  combination  of  project  grants  and 
institutional support schemes. 

In the long term, world class excellence can only thrive in a system in which all researchers 
across the EU are provided with the means to develop into excellence and eventually compete 
for the top spots. This requires Member States to pursue ambitious modernisation agendas for 
their public research base and sustain public funding. EU funding, also through the Cohesion 
policy Funds, should assist to build up excellence where and as appropriate. 

A major achievement in training and transfer of knowledge are the EU Marie Curie actions, 
which have boosted  cross-border  mobility and research  collaboration  by  many  thousands  of 
researchers.  Marie  Curie  actions  have  also  played  an  important  role  in  equipping  the  next 
generation  of  researchers  with  innovative  skills,  in  particular  through  industry-academia 
exchanges. 

Through  the  actions  of  the  research  infrastructures  programme  and  building  on  the  work  of 
the European Strategy Forum for Research Infrastructures (ESFRI), a strong impetus has been 
given to the planning, preparation and construction of large scale research infrastructures, and 
to  ensuring  access  to  existing  infrastructures.  In  this  context,  the  further  deployment  of 
e-Infrastructures is important to allow remote and virtual access to research facilities and to 
scientific information. 

The approach to international cooperation has evolved considerably since the launch of FP7. 
The  EU's  funding  programmes  are  amongst  the  most  open  in  the  world,  but  this  openness 
should be reciprocated. This concerns not only access to funding, but also market access and 
IPR  protection.  The  work  of  the  Strategy  Forum  for  International  Cooperation  (SFIC)  has 
strengthened  the  strategic  approach  to  international  cooperation  and  the  complementarity 
between the activities of the Member States and those of the Union. For future programmes, 
consideration  is  needed  on  a  more  differentiated  approach  according  to  the  specificities  of 
different  types  of  third  countries  and  also  to  striking  the  right  balance  between  the  goals  of 
strengthening Europe's competitiveness and solving global challenges. 

Funding measures to support ERA have over the past years been complemented with a range 
of non-funding policy initiatives, such as the five ERA initiatives launched in the wake of the 
ERA  Green  Paper26  or  actions  aimed  at  stimulating  a  stronger  participation  of  women  in 
science. The Innovation Union stated the ambition to put the necessary measures in place for 
achieving ERA by 2014, including through legislation. A careful reflection is needed on how 
funding  measures  can  assist  in  this  respect  and  how  they  can  be  made  more  efficient.  This 
requires  better  articulation,  complementarities  and  synergies  between  funding  and  non-
funding measures. 

25 

26 

This  complements  other  schemes  aimed  at  raising  scientific  excellence  such  as  the  FET  flagship 
initiative: http://cordis.europa.eu/fp7/ict/programme/fet/flagship/  
'The European Research Area: New Perspectives' - COM(2007) 161. 

EN 

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Questions: 

21. 

22. 

23. 

24. 

25. 

26. 

27. 

How  should  the  role  of  the  European  Research  Council  be  strengthened  in 
supporting world class excellence? 

How should EU support assist Member States in building up excellence? 

How  should  the  role  of  Marie  Curie  Actions  be  strengthened  in  promoting 
researcher mobility and developing attractive careers? 

What actions should be taken at EU level to further strengthen the role of women in 
science and innovation? 

How  should  research  infrastructures  (including  EU-wide  e-Infrastructures)  be 
supported at EU level? 

How  should  international  cooperation  with  non-EU  countries  be  supported  e.g.  in 
terms  of  priority  areas  of  strategic  interest,  instruments,  reciprocity  (including  on 
IPR aspects) or cooperation with Member States? 

Which key issues and obstacles concerning the ERA should EU funding instruments 
seek  to  overcome,  and  which  should  be  addressed  by  other  (e.g.  legislative) 
measures? 

5. 

PUBLIC DEBATE AND FURTHER STEPS 

The Commission believes that the issues and questions raised above are the key aspects to be 
considered  in  further  developing  a  common  strategic  framework  for  EU  research  and 
innovation funding and its related instruments. 

Member  States,  the  Parliament,  and  other  countries  are  invited  to  promote  the  debate  with 
their stakeholders. To support the debate on these questions, a variety of social media will be 
used, including a public consultation website (http://ec.europa.eu/research/innovation-union).  

The  Commission  asks  organisations  who  wish  to  submit  comments  in  the  context  of  public 
consultations to provide the Commission and the public at large with information about whom 
and what they represent. If  an organisation decides not to provide this information, it is the 
Commission's  stated  policy  to  list  the  contribution  as  part  of  the  individual  contributions. 
(Consultation  Standards,  see  COM(2002)  704,  and  Communication  on  ETI  Follow-up,  see 
COM(2007) 127 of 21.3.2007)  

The consultation will close on 20 May 2011. The broad debate on this Green Paper will be 
complemented  by  targeted  consultations,  such  as  on  the  ERA  framework  and  the  EIT's 
strategic innovation agenda. It will also draw on the results of the public consultation on the 
future of the CIP27. 

On 10 June 2011, an event will be organised to wrap up the public consultation and discuss 
the results with the stakeholder community. The Commission plans to put forward its formal 
legislative  proposals  for  a  Common  Strategic  Framework  for  EU  research  and  innovation 

27 

Information available at http://ec.europa.eu/cip/public_consultation/index_en.htm 

EN 

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funding  by  the  end  of  2011.  These  proposals  will  be  accompanied  by  ex-ante  impact 
assessments, providing the necessary evidence base for the proposed options. 

The  Commission  believes  that  research  and  innovation  are  central  to  people's  future 
livelihoods, and thus require better public understanding and debate. It will therefore pursue a 
broad  communication  strategy  to  accompany  this  public  consultation  and  the  subsequent 
inter-institutional  debate  and  ultimately  the  implementation  of  the  next  EU  funding 
programmes. 

This  should  show  to  the  public  at  large  how  EU  funding  matters  to  them,  making  use  of 
audiovisual  and  written  media,  organising  public  events,  and  exploiting  to  the  full  the 
possibilities offered by new social media.  

EN 

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