Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing Horizon 2020 - The Framework Programme for Research and Innovation (2014-2020)
Date: 2011-11-30
Institutions: European Commission
Subjects: EU financing, EU research policy, Framework Programme for Research and Development, competitiveness, innovation, research and development, scientific cooperation, small and medium-sized enterprises, technical cooperation

EUROPEAN COMMISSION 

Brussels, 30.11.2011 
COM(2011) 809 final 

2011/0401 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing Horizon 2020 - The Framework Programme for Research and Innovation 
(2014-2020) 

(Text with EEA relevance) 

{SEC(2011) 1427-Volume 1} 
{SEC(2011) 1428-Volume 1} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  set  of  proposals  for  "Horizon  2020",  drawn  up  fully  in  line  with  the  Commission 
Communication  'A  Budget  for  Europe  2020'1,  wholly  supports  the  Europe  2020  strategy, 
which  identified  research  and  innovation  as  central  to  achieving  the  objectives  of  smart, 
sustainable and inclusive growth. The set consists of the proposals for:  

(1) 

a  Framework  Programme  for  Horizon  2020  (Treaty  on  the  Functioning  of  the 

European Union – 'TFEU'),  

(2) 

(3) 

(4) 

a single set of Rules for Participation and Dissemination (TFEU),  

a single specific programme to implement Horizon 2020 (TFEU), as well as  

a single proposal for the parts of Horizon 2020 corresponding to the Euratom Treaty.  

The overall political narrative and background to these legislative proposals is provided by a 
Commission Communication adopted together with them, which addresses a number of major 
cross-cutting  elements  such  as  simplification  and  how  the  approach  to  innovation  has  been 
strengthened.  

Horizon  2020  contributes  directly  to  tackling  the  major  societal  challenges  identified  in 
Europe  2020  and  its  flagship  initiatives.  It  will  contribute  equally  to  creating  industrial 
leadership  in  Europe.  It  will  also  increase  excellence  in  the  science  base,  essential  for  the 
sustainability and long term prosperity and wellbeing of Europe. To achieve these aims, the 
proposals include a full range of support that is integrated across the research and innovation 
cycle.  Horizon  2020  therefore  brings  together  and  strengthens  activities  currently  funded 
the 
under 
Competitiveness  and  Innovation  Framework  Programme,  and  the  European  Institute  of 
Innovation  and  Technology.  In  this  way,  the  proposals  are  also  designed  to  realise  a 
substantial simplification for participants. 

the  7th  Framework  Programme  for  research, 

innovation  parts  of 

the 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The preparation of the four proposals took full account of the responses to an extensive public 
consultation based on a Green Paper, "From challenges to opportunities: towards a common 
strategic  framework  for  EU  research  and  innovation  funding",  COM(2011)48.  Views  were 
expressed  by  the  European  Council,  Member  States  and  a  wide  range  of  stakeholders  from 
industry, academia and civil society. 

The  proposals  also  rely  on  two  in-depth  impact  assessments,  drawing  on  stakeholder 
consultations, internal and external evaluations, and contributions from international experts. 
The assessments found that the Horizon 2020 option would bring more clarity of focus, best 
achieve  the  necessary  critical  mass  of  effort  at  programme  and  project  level,  and  lead  to 

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greatest  impact  on  the  policy  objectives  and  downstream  economic,  competitiveness,  and 
social  benefits,  while  at  the  same  time  helping  to  simplify  matters  by  e.g.  easing  the 
administrative  burden  for  participants,  streamlining  the  applicable  rules  and  procedures, 
ensuring consistency between instruments and pointing to a new risk/trust balance. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1 

Legal base 

The  proposal  integrates  research  and  innovation  activities  in  a  seamless  way  in  order  to 
achieve the policy objectives.  

As  such,  Horizon  2020  will  be  based  on  the  TFEU  Titles  "Industry"  and  "Research  and 
technological  development  and  space"  (Articles  173  and  182).  The  related  Rules  for 
participation and dissemination will be based on the same TFEU Titles (Articles 173, 183 and 
188). The "Industry" basis in both cases will relate predominantly to the European Institute of 
Innovation  and  Technology  (EIT),  which  will  be  funded  by  a  financial  contribution  from 
Horizon 2020. The EIT will not appear at the specific programme level. 

It  is  recalled  that  innovation  activities  have  been  explicitly  included  in  various  Framework 
Programmes  based  on  the  Research  Title  of  the  Treaty  on  the  Functioning  of  the  European 
Union  and  that  the  current  Framework  Programmes  also  includes  a  range  of  innovation 
activities. As a consequence, the specific programme that will implement Horizon 2020 will 
be  based  on  the  TFEU  Title  "Research  and  technological  development  and  space"  (Article 
182) as the activities foreseen in them will fall under those covered by this Title.  

The proposal for the Euratom research and training programme contributing to Horizon 2020 
is based on Article 7 of the Euratom Treaty.  

3.2 

Subsidiarity and proportionality principles 

The proposals have been designed to maximise Union added value and impact, focusing on 
objectives  and  activities  that  cannot  be  efficiently  realised  by  Member  States  acting  alone. 
Union  level  intervention  can  strengthen  the  overall  research  and  innovation  framework  and 
coordinate  Member  States'  research  efforts  thereby  avoiding  duplication,  retaining  critical 
mass  in  key  areas  and  ensuring  public  financing  is  used  in  an  optimal  way.  Union  level 
intervention enables  continent-wide  competition  to select  the best proposals, thereby raising 
levels of excellence and providing visibility for leading research and innovation. The Union 
level  is  also  best  placed  to  support  trans-national  mobility,  thereby  improving  training  and 
career development for researchers. A Union level  programme  is  more  able to take on high 
risk  and  long-term  R&D,  thereby  sharing  the  risk  and  generating  a  breadth  of  scope  and 
economies  of  scale  that  could  not  otherwise  be  achieved.  Union  level  intervention  can 
leverage  additional  public  and  private  investments  in  research  and  innovation;  contribute  to 
the European Research Area whereby knowledge, researchers and technology circulate freely; 
and accelerate the commercialisation and diffusion of innovations across the Single Market. 
Union level programmes are also needed to support policy making as well as the objectives 
set by a range of policies. Full evidence is presented in the accompanying impact assessments. 

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4. 

BUDGETARY IMPLICATION 

The budget of all proposals is presented in current prices. The legislative financial statement 
attached  to  this  proposal  sets  out  the  budgetary,  human  and  administrative  resource 
implications.  The  Commission  may  use,  on  the  basis  of  a  cost-benefit  analysis,  existing 
executive  agencies  for  the  implementation  of  Horizon  2020,  as  provided  for  in  Council 
Regulation  (EC)  No  58/2003  laying  down  the  statute  for  executive  agencies  to  be  entrusted 
with certain tasks in the management of Union programmes.  

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2011/0401 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing Horizon 2020 - The Framework Programme for Research and Innovation 
(2014-2020) 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  and  in 
particular Articles 173(3) and 182(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee2,  

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

The Union has the objective of strengthening its scientific and technological bases by 
achieving  a  European  Research  Area  ("ERA")  in  which  researchers,  scientific 
knowledge  and  technology  circulate  freely,  and  encouraging  the  Union  to  become 
more  competitive,  including  in  its  industry.  To  pursue  those  objectives  the  Union 
should  carry  out  activities  to  implement  research,  technological  development  and 
demonstration,  promote  international  cooperation,  disseminate  and  optimise  results 
and stimulate training and mobility. 

The  Union  also  has  an  objective  to  ensure  that  the  conditions  necessary  for  the 
competitiveness of the Union's industry exist. For this purpose, action should be aimed 
at fostering the better exploitation of the industrial potential of policies of innovation, 
research and technological development. 

(3) 

The  Union  is  committed  to  achieving  the  Europe  2020  strategy4,  which  has  set  the 
objectives of smart, sustainable and inclusive growth, highlighting the role of research 

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and innovation as key drivers of social and economic prosperity and of environmental 
sustainability  and  setting  itself  the  goal  to  increase  spending  on  Research  and 
Development  to  reach  3  %  of  gross  domestic  product  (GDP)  by  2020  while 
developing  an  innovation  intensity  indicator.  In  this  context,  the  Innovation  Union 
flagship  initiative  sets  out  a  strategic  and  integrated  approach  to  research  and 
innovation, setting the framework and objectives to which future Union research and 
innovation funding should contribute. Research and innovation are also key factors for 
other  Europe  2020  flagship  initiatives,  notably  on  resource  efficient  Europe,  an 
industrial policy for the globalisation era, and a digital agenda for Europe. Moreover, 
for  achieving  the  Europe  2020  objectives  relating  to  research  and  innovation, 
Cohesion  policy  has  a  key  role  to  play  through  building  capacity  and  providing  a 
stairway to excellence. 

At its meeting of 4 February 2011, the European Council supported the concept of the 
Common Strategic Framework for Union Research and Innovation funding to improve 
the  efficiency  of  research  and  innovation  funding  at  national  and  Union  levels  and 
called  on  the  Union  to  rapidly  address  remaining  obstacles  to  attracting  talent  and 
investment in order to complete the ERA by 2014 and achieve a genuine single market 
for knowledge, research and innovation. 

The European Parliament has called for a radical simplification of Union research and 
innovation  funding  in  its  Resolution  of  11  November  20105,  has  highlighted  the 
importance  of  the  Innovation  Union  to  transform  Europe  for  post-crisis  world,  in  its 
resolution  of  12  May  20116,  has  drawn  attention  to  important  lessons  to  be  learned 
following  the  interim  evaluation  of  the  Seventh  Framework  Programme  in  its 
resolution  of  8  June  20117  and  has  supported  the  concept  of  a  common  strategic 
framework  for  research  and  innovation  funding  in  its  resolution  of  27  September 
20118.  

The  Council  of  the  European  Union  called  on  26  November  2010  for  future  Union 
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  importance  of  a  coherent  strategic  approach  was  also  underlined  in  opinions 
delivered by the European Research Area Committee on 3 June 20119, the Committee 
of Regions on 30 June 201110, and the European Economic and Social Committee on 
13 July 201111. 

The  Union  Budget  Review  adopted  by  the  Commission  on  19  October  2010  put 
forward  key  principles  which  should  underpin  the  future  Union  budget,  namely 
focussing  on  instruments  with  proven  Union  added  value,  becoming  more  results-

P7 TA(2011)0401 
P7 TA(2011)0236 
P7 TA(2011)0256 
P7 TA(2011)0401 
ERAC 1210/11 
CdR 67/2011 
CESE 1163/2011 

(4) 

(5) 

(6) 

(7) 

(8) 

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(9) 

(10) 

driven and leveraging other public and private sources of funding and it proposed to 
bring  the  full  range  of  Union  instruments  for  research  and  innovation  together  in  a 
Common Strategic Framework.  

The Commission Green Paper 'From Challenges to Opportunities: Towards a Common 
Strategic  Framework  for  EU  Research  and  Innovation  funding'12  identified  key 
questions  on  how  to  achieve  those  ambitious  objectives  and  launched  a  broad 
consultation, in the course of which stakeholders and Union institutions largely agreed 
with the ideas presented therein. 

In  the  Communication  'A  Budget  for  Europe  2020'13,  the  Commission  proposed  to 
address with a single Common Strategic Framework for Research and Innovation the 
areas covered in the period 2007-2013 under the Seventh Framework Programme for 
Research  and  the  innovation  part  of  the  Competitiveness  and  Innovation  Framework 
Programme, as well as the European Institute of Innovation and Technology (EIT) in 
order  to  serve  the  Europe  2020  Strategy  target  of  raising  spending  on  Research  and 
Development to 3 % of GDP by 2020. In that Communication, the Commission also 
committed  to  mainstream  climate  change  into  Union  spending  programmes  and  to 
direct at least 20 % of the Union budget to climate-related objectives. Climate action 
and  resource  efficiency  are  mutually  reinforcing  objectives  for  achieving  sustainable 
development.  The  specific  objectives  relating  to  both  should  be  complemented 
through the other specific objectives of Horizon 2020. As a result it is expected that at 
least  60%  of  the  overall  Horizon  2020  budget  should  be  related  to  sustainable 
development. It is also expected that climate-related expenditure  should  exceed 35% 
of the budget, including mutually compatible measures improving resource efficiency. 
The  Commission  should  provide  information  on  the  scale  and  results  of  support  to 
climate change objectives. Climate-related expenditure under Horizon 2020 should be 
tracked in accordance with the methodology stated in that Communicaiton. 

(11)  Horizon  2020  -  the  Framework  Programme  for  Research  and  Innovation  in  the 
European  Union  (hereinafter  'Horizon  2020'),  focuses  on  three  priorities,  namely 
generating excellent science in order to strengthen the Union's world-class excellence 
in  science,  fostering  industrial  leadership  to  support  business,  including  small  and 
medium-sized  enterprises  (SME)  and  innovation  and  tackling  societal  challenges,  in 
order  to  respond  directly  to  the  challenges  identified  in  the  Europe  2020  strategy  by 
supporting  activities  covering  the  entire  spectrum  from  research  to  market.  Horizon 
2020  should  support  all  stages  in  the  innovation  chain,  especially  activities  closer  to 
the  market  including  innovative  financial  instruments,  as  well  as  non-technological 
and  social  innovation,  and  aims  to  satisfy  the  research  needs  of  a  broad  spectrum  of 
Union  policies  by  placing  emphasis  on  the  widest  possible  use  and  dissemination  of 
knowledge generated by the supported activities up to its commercial exploitation. The 
priorities  of  Horizon  2020  should  also  be  supported  through  a  programme  under  the 
Euratom Treaty on nuclear research and training.  

(12)  The  Joint  Research  Centre  (JRC)  should  provide  customer-driven  scientific  and 

technical support to Union policies while flexibly responding to new policy demands. 

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(13) 

In  the  context  of  the  knowledge  triangle  of  research,  education  and  innovation,  the 
Knowledge  and  Innovation  Communities  under  the  European  Institute  of  Innovation 
and  Technology  should  strongly  contribute  to  addressing  the  objectives  of  Horizon 
2020, including the societal challenges, notably by integrating research, education and 
innovation.  In  order  to  ensure  complementarities  across  Horizon  2020  and  the 
adequate  absorption  of  funds,  the  financial  contribution  to  the  European  Institute  of 
Innovation and Technology should be made in two allocations, with the second subject 
to a review. 

(14)  Horizon 2020 should contribute to the aims of the European Innovation Partnerships in 
line with the flagship initiative Innovation Union, bringing together all relevant actors 
across  the  whole  research  and  innovation  chain  in  view  of  streamlining,  simplifying 
and better coordinating instruments and initiatives. 

(15)  Simplification is a central aim of Horizon 2020 which should be fully reflected in its 
design, rules, financial management and implementation. Horizon 2020 should aim to 
attract  the  strong  participation  of  universities,  research  centres,  industry  and 
specifically SMEs and be open to new participants, as it brings together the full range 
of  research  and  innovation  support  in  one  common  strategic  framework,  including  a 
streamlined  set  of  forms  of  support  and  uses  rules  for  participation  with  principles 
applicable  to  all  actions  under  the  programme.  Simpler  funding  rules  should  reduce 
the administrative costs for participation and will contribute to a reduction of financial 
errors.  

(16) 

In  accordance  with  Article  182(1)  TFEU,  the  framework  programme  fixes  the 
maximum overall amount and the detailed rules for Union financial participation in the 
framework programme and the respective shares in each of the activities provided for. 

(17)  This Regulation should lay down, for the entire duration of Horizon 2020, a financial 
envelope  constituting  the  prime  reference,  within  the  meaning  of  point  []  of  the 
Interinstitutional  Agreement  of  XX/201Z  between  the  European  Parliament,  the 
Council  and  the  Commission  on  cooperation  in  budgetary  matters  and  on  sound 
financial  management,  for  the  budgetary  authority  during  the  annual  budgetary 
procedure. 

(18) 

It  is  appropriate  to  ensure  a  correct  closure  of  Horizon  2020  and  its  predecessor 
programmes, in particular regarding the continuation of multi-annual arrangements for 
their management, such as the financing of technical and administrative assistance.  

(19)  The  implementation  of  Horizon  2020  may  give  rise  to  supplementary  programmes 
involving  the  participation  of  certain  Member  States  only,  the  participation  of  the 
Union in programmes undertaken by several Member States, or the setting up of joint 
undertakings or other arrangements within the meaning of Articles 184, 185 and 187 
TFEU.  

(20)  With  the  aim  of  deepening  the  relationship  between  science  and  society  and 
reinforcing  public  confidence  in  science,  Horizon  2020  should  favour  an  informed 
engagement  of  citizens  and  civil  society  on  research  and  innovation  matters  by 
promoting  science  education,  by  making  scientific  knowledge  more  accessible,  by 
developing  responsible  research  and  innovation  agendas  that  meet  citizens'  and  civil 

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society's  concerns  and  expectations  and  by  facilitating  their  participation  in  Horizon 
2020 activities.  

(21)  The implementation of Horizon 2020 should respond to the evolving opportunities and 
needs  from  science  and  technology,  industry,  policies  and  society.  As  such,  the 
agendas  should  be  set  in  close  liaison  with  stakeholders  from  all  sectors  concerned, 
and  sufficient  flexibility  should  be  allowed  for  new  developments.  External  advice 
should  be  sought  on  a  continuous  basis  during  Horizon  2020,  also  making  use  of 
relevant  structures  such  as  European  Technology  Platforms,  Joint  Programming 
Initiatives and the European Innovation Partnerships. 

(22)  Horizon 2020 should contribute to the attractiveness of the research profession in the 
Union. Adequate attention should be paid to the European Charter for Researchers and 
Code  of  Conduct  for  the  Recruitment  of  Researchers14,  together  with  other  relevant 
reference  frameworks  defined  in  the  context  of  the  European  Research  Area,  while 
respecting their voluntary nature.  

(23)  The  activities  developed  under  Horizon  2020  should  aim  at  promoting  equality 
between men  and women in  research and  innovation,  by addressing in particular the 
underlying causes of gender imbalance, by exploiting the full potential of both female 
and  male  researchers,  and  by  integrating  the  gender  dimension  into  the  content  of 
projects  in  order  to  improve  the  quality  of  research  and  stimulate  innovation. 
Activities  should  also  aim  at  the  implementation  of  the  principles  relating  to  the 
equality between women and men as laid down in Articles 2  and 3  of the  Treaty  on 
European Union and Article 8 TFEU. 

(24)  Research  and  innovation  activities  supported  by  Horizon  2020  should  respect 
fundamental  ethical  principles.  The  opinions  of  the  European  Group  on  Ethics  in 
Science  and  New  Technologies  should  be  taken  into  account.  Research  activities 
should  also  take  into  account  Article  13  TFEU  and  reduce  the  use  of  animals  in 
research  and  testing,  with  a  view  ultimately  to  replacing  animal  use.  All  activities 
should be carried out ensuring a high level of human health protection in accordance 
with Article 168 TFEU. 

(25)  The  European  Commission  does  not  explicitly  solicit  the  use  of  human  embryonic 
stem cells. The use of human stem cells, be they adult or embryonic, if any, depends 
on the judgement of the scientists in view of the objectives they want to achieve and is 
subject to stringent Ethics Review. No project involving the use of human embryonic 
stem  cells  should  be  funded  that  does  not  obtain  the  necessary  approvals  from  the 
Member States. No activity should be funded that is forbidden in all Member States. 
No activity should be funded in a Member State where such activity is forbidden. 

(26)  To achieve maximum impact, Horizon 2020 should develop close synergies with other 
Union  programmes  in  areas  such  as  education,  space,  environment,  competitiveness 
and SMEs, the internal security, culture and media and with the Cohesion Policy funds 
and Rural Development Policy, which can specifically help to strengthen national and 
regional  research  and  innovation  capabilities  in  the  context  of  smart  specialisation 
strategies. 

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(27)  SMEs constitute a significant source of innovation and growth in Europe. Therefore a 
in  Commission  Recommendation 
strong  participation  of  SMEs,  as  defined 
2003/361/EC  of  6  May  200315,  is  needed  in  Horizon  2020.  This  should  support  the 
aims of the Small Business Act16.  

(28)  With the aim to achieve the greatest possible impact of Union funding, Horizon 2020 
is  to  develop  closer  synergies,  which  may  also  take  the  form  of  public-public 
partnerships,  with  national  and  regional  programmes  that  support  research  and 
innovation.  

(29)  A  greater  impact  should  also  be  achieved  by  combining  Horizon  2020  and  private 
sector  funds  within  public-private  partnerships  in  key  areas  where  research  and 
innovation  could  contribute  to  Europe's  wider  competitiveness  goals  and  help  tackle 
societal  challenges.  The  public-private  partnerships  in  the  form  of  Joint  Technology 
Initiatives launched under Decision No 1982/2006/EC of the European Parliament and 
of the Council of 18 December 2006 concerning the Seventh Framework programme 
of 
technological  development  and 
demonstration  activities  (2007-13)17  may  be  continued  using  more  fit-for-purpose 
structures. 

the  European  Community 

research, 

for 

(30)  Horizon  2020  should  promote  cooperation  with  third  countries  based  on  common 
interest  and  mutual  benefit.  International  cooperation  in  science,  technology  and 
innovation should be targeted to contribute to achieving the Europe 2020 objectives to 
strengthen  competitiveness,  contribute  to  tackling  societal  challenges  and  support 
Union  external  and  development  policies,  including  by  developing  synergies  with 
external programmes and contributing to the Union's international commitments such 
as the achievement of Millennium Development Goals. 

(31) 

In  order  to  maintain  a  level  playing  field  for  all  undertakings  active  in  the  internal 
market,  funding  provided  by  Horizon  2020  should  be  designed  in  accordance  with 
state aid rules so as to ensure the effectiveness of public spending and prevent market 
distortions  such  as  crowding-out  of  private  funding,  creating  ineffective  market 
structures or preserving inefficient firms. 

(32)  The  need  for  a  new  approach  to  control  and  risk  management  in  Union  research 
funding was recognised by the European Council of 4 February 2011, asking for a new 
balance  between  trust  and  control  and  between  risk-taking  and  risk  avoidance.  The 
European  Parliament,  in  its  Resolution  of  11  November  2010  on  simplifying  the 
implementation of the Research Framework Programmes, called for a pragmatic shift 
towards administrative and financial simplification and states that the management of 
European  research  funding  should  be  more  trust-based  and  risk-tolerant  towards 
participants. The interim evaluation report of the Seventh Framework Programme for 
Research  (2007-2013)  concludes  that  a  more  radical  approach  is  needed  to  attain  a 
quantum leap in simplification, and that the risk-trust balance needs to be redressed. 

(33)  The  financial  interests  of  the  Union  should  be  protected  through  proportionate 
measures  throughout  the  expenditure  cycle,  including  the  prevention,  detection  and 

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investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly 
used and, where appropriate, penalties. A revised control strategy, shifting focus from 
minimisation  of  error  rates  towards  risk-based  control  and  fraud  detection,  should 
reduce the control burden for participants.  

(34) 

It  is  important  to  ensure  sound  financial  management  of  Horizon  2020  and  its 
implementation  in  the  most  effective  and  user-friendly  manner  possible,  while  also 
ensuring legal certainty and the accessibility of the programme to all participants. It is 
necessary to ensure compliance with Regulation (EU) No XXXX/2012 [new financial 
regulation] and with the requirements of simplification and better regulation.  

(35)  Effective  performance  management,  including  evaluation  and  monitoring,  requires 
development of specific performance indicators which can be measured over time; are 
both realistic and reflect the logic of the intervention; and relevant to the appropriate 
hierarchy of objectives and activities. Appropriate coordination mechanisms should be 
put  in  place  between  the  implementation  and  monitoring  of  Horizon  2020,  and  the 
monitoring of progress, achievements and functioning of the ERA.  

in  strengthening 

the  overall  research  and 

(36)  Since  the  objectives  of  Horizon  2020  cannot  be  sufficiently  achieved  by  Member 
innovation  framework  and 
States 
coordinating  efforts  across  the  Union,  and  can  therefore,  by  reason  of  avoiding 
duplication, retaining critical mass in key areas and ensuring public financing is used 
in an optimal way, be better achieved at Union level, the Union may adopt measures, 
in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on 
European Union. In accordance with the principle of proportionality, as set out in that 
Article, Horizon 2020 does not go beyond what is necessary in order to achieve those 
objectives. 

(37)  For  reasons  of  legal  certainty  and  clarity,  Decision  No  1982/2006/EC  should  be 

repealed,  

HAVE ADOPTED THIS REGULATION: 

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TITLE I 
ESTABLISHMENT 

Article 1 
Subject matter  

This  Regulation  establishes  Horizon  2020  -  the  Framework  Programme  for  Research  and 
Innovation  (2014-2020)  ("Horizon  2020")  and  determines  the  framework  governing  Union 
support to research and innovation activities and fostering better exploitation of the industrial 
potential of policies of innovation, research and technological development. 

Article 2 
Definitions 

For the purposes of this Regulation the following definitions apply: 

(a) 

(b) 

(c) 

(d) 

(e) 

'research  and  innovation  activities'  means  the  whole  spectrum  of  activities  of 
research,  technological  development,  demonstration  and  innovation,  including  the 
promotion  of  cooperation  with  third  countries  and  international  organisations, 
dissemination and optimisation of results and stimulation of the training and mobility 
of researchers in the Union; 

'direct  actions'  mean  research  and  innovation  activities  undertaken  by  the 
Commission through its Joint Research Centre; 

'indirect  actions'  mean  research  and  innovation  activities to  which  the  Union 
provides financial support and which are undertaken by participants; 

'public-private  partnership'  means  a  partnership  where  private  sector  partners,  the 
Union  and,  where  appropriate,  other  partners,  commit  to  jointly  support  the 
development  and  implementation  of  a  research  and  innovation  programme  or 
activities ; 

'public-public partnership' means a partnership where public sector bodies or bodies 
with a public service mission at regional, national or international level commit with 
the Union to jointly support the development and implementation of a research and 
innovation programme or activities. 

Article 3 
Establishment of Horizon 2020 

Horizon 2020 is hereby established for the period from 1 January 2014 to 31 December 2020. 

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Article 4 
Union added value 

Horizon 2020 shall play a central role in the delivery of the Europe 2020 strategy for smart, 
sustainable and inclusive growth by providing a common strategic framework for the Union's 
research  and  innovation  funding,  thus  acting  as  a  vehicle  for  leveraging  private  investment, 
creating  new  job  opportunities  and  ensuring  Europe's  long-term  sustainable  growth  and 
competitiveness.  

Article 5 
General objective, priorities and specific objectives  

1. 

Horizon  2020  shall  contribute  to  building  an  economy  based  on  knowledge  and 
innovation  across  the  whole  Union  by  leveraging  sufficient  additional  research, 
development and innovation funding. Thereby, it shall support the implementation of 
the Europe 2020 strategy and other Union policies, as well as the achievement and 
functioning  of  the  European  Research  Area  (ERA).  The  relevant  performance 
indicators are set out in the introduction of Annex I. 

2. 

This general objective shall be pursued through three mutually reinforcing priorities 
dedicated to: 

(a) 

excellent science;  

(b) 

industrial leadership; 

(c) 

societal challenges. 

3 

4. 

5. 

The specific objectives corresponding to each of those three priorities are set out in 
Parts I to III of Annex I, together with the broad lines of the activities.  

The Joint Research Centre shall contribute to the general objective and priorities set 
out  in  paragraphs  1  and  2  by  providing  scientific  and  technical  support  to  Union 
policies. The broad lines of the activities are set out in Part IV of Annex I.  

The  European  Institute  of  Innovation  and  Technology  (EIT)  set  up  by  Regulation 
(EU) No 294/2008 of the European Parliament and of the Council18 shall contribute 
to the general objective and priorities set out in paragraphs 1 and 2 with the specific 
objective  of  integrating  the  knowledge  triangle  of  research,  innovation  and 
education.  The  relevant  performance  indicators  for  the  European  Institute  of 
Innovation and Technology are set out in the introduction of Annex I and the broad 
lines of that specific objective and the activities are set out in Part V of Annex I. 

Within the priorities and broad lines referred to in paragraph 2, account may be taken 
of  new  and  unforeseen  needs  that  arise  during  the  period  of  implementation  of 
Horizon  2020.  This  may  include  responses  to  emerging  opportunities,  crises  and 
threats,  to  needs  relating  to  the  development  of  new  Union  policies,  and  to  the 
piloting of actions foreseen for support under future programmes. 

18 

OJ L 97, 9.4.2008, p. 1. 

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1. 

2. 

3. 

Article 6  
Budget 

The financial envelope for the implementation of Horizon 2020 shall be EUR 87740 
million, of which a maximum of EUR 86198 million shall be allocated to activities 
under Title XIX of the Treaty on the Functioning of the European Union (TFEU).  

The  amount  for  activities  under  Title  XIX  TFEU  shall  be  distributed  among  the 
priorities set out in Article 5(2) as follows: 

(a)  Excellent science, EUR 27818 million; 

(b) 

Industrial leadership, EUR 20280 million; 

(c)  Societal challenges, EUR 35888 million. 

The  maximum  overall  amount  for  the  Union  financial  contribution  from  Horizon 
2020  to  the  non-nuclear  direct  actions  of  the  Joint  Research  Centre  shall  be  EUR 
2212 million. 

The  indicative  breakdown  for  the  specific  objectives  within  the  priorities  and  the 
maximum overall amount of the contribution to the non-nuclear direct actions of the 
Joint Research Centre are set out in Annex II.  

The  European  Institute  of  Innovation  and  Technology  shall  be  financed  through  a 
maximum contribution from Horizon 2020 of EUR 3194 million as set out in Annex 
II. A first allocation of EUR 1542 million shall be provided to the European Institute 
of  Innovation  and  Technology  for  activities  under  Title  XVII  of  the  Treaty  on  the 
Functioning of the European Union. A second allocation of up to EUR 1652 million 
shall  be  provided,  subject  to  the  review  set  out  in  Article  26  (1).  This  additional 
amount  shall  be  provided  on  a  pro-rata  basis,  as  indicated  in  Annex  II,  from  the 
industrial 
amount  for 
technologies"  within  the  priority  on  industrial  leadership  set  out  in  paragraph  2(b) 
and from the amount for the priority on societal challenges set out in 2(c). 

the  specific  objective  "Leadership 

in  enabling  and 

This funding in two multiannual allocations shall cover:  

(a) 

(b) 

in the first allocation, the ongoing developments of the current Knowledge and 
Innovation Communities (hereinafter KICs) and seed money for the launch of 
the second wave of three new KICs 

in  the  second  allocation,  the  ongoing  developments  of  the  KICs  already 
launched  and  the  seed  money  for  the  launch  of  the  third  wave  of  three  new 
KICs 

The second allocation shall be made available following the review set out in Article 
26(1) taking into account in particular:  

(a) 

the agreed timing of the creation of the third wave of KICs;  

(b) 

the programmed financial needs of the existing ones according to their specific 
development; 

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4. 

5. 

(c) 

the contribution of the European Institute of Innovation and Technology and its 
KICs to the Horizon 2020 objectives. 

The  financial  envelope  of  Horizon  2020  may  cover  expenses  pertaining  to 
preparatory,  monitoring,  control,  audit  and  evaluation  activities  which  are  required 
for  the  management  of  Horizon  2020  and  the  achievement  of  its  objectives,  in 
particular studies and meetings of experts, as far as they are related to the objectives 
of  Horizon  2020,  expenses  linked  to  information  technology  networks  focusing  on 
information  processing  and  exchange,  together  with  all  other  technical  and 
administrative assistance expenses incurred by the Commission for the management 
of Horizon 2020.  

Where necessary, appropriations may be entered in the budget beyond 2020 to cover 
technical and administrative assistance expenses, in order to enable the management 
of actions not yet completed by 31 December 2020. 

In order to respond to unforeseen situations or new developments and needs, and to 
take into account the provisions of paragraph 3 of this article, the Commission may, 
following the interim evaluation of Horizon 2020 as referred to in Article 26(1)(a) of 
this  Regulation,  within  the  annual  budgetary  procedure  review  the  amounts  set  out 
for the priorities in paragraph 2 and the indicative breakdown by specific objectives 
within  these  priorities  set  out  in  Annex  II  and  transfer  appropriations  between  the 
priorities  and  specific  objectives  up  to  10  %  of  the  total  initial  allocation  of  each 
priority and up to 10 % of the initial indicative breakdown of each specific objective. 
This does not concern the amount set out for the direct actions of the Joint Research 
Centre in paragraph 2 or the contribution to the European Institute of Innovation and 
Technology set out in paragraph 3.  

Article 7 
Association of third countries 

1 

Horizon 2020 shall be open to the association of: 

(a) 

acceding countries, candidate countries and potential candidates, in accordance 
with  the  general  principles  and  general  terms  and  conditions  for  the 
participation  of  those  countries  in  Union  programmes  established  in  the 
respective  framework  agreements  and  decisions  of  association  councils  or 
similar agreements; 

(b) 

selected third countries that fulfil all of the following criteria:  

(i) 

have a good capacity in science, technology and innovation; 

(ii)  have  a  good  track  record  of  participation  in  Union  research  and 

innovation programmes;  

(iii)  have close economic and geographical links to the Union;  

(iv)  are  European  Free  Trade  Association  (EFTA)  members  or  countries  or 
territories  listed  in  the  Annex  to  Regulation  (EU)  No  XX/2012  of  the 

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European  Parliament  and 
Neighbourhood Instrument19.  

the  Council  establishing  a  European 

2. 

Specific  terms  and  conditions  regarding  the  participation  of  associated  countries  in 
Horizon  2020,  including  the  financial  contribution,  based  on  the  gross  domestic 
product  of  the  associated  country  shall  be  determined  by  international  agreements 
between the Union and the associated countries.  

19 

OJ L [], [], p. [] 

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TITLE II 
IMPLEMENTATION 

CHAPTER I 
 IMPLEMENTATION, MANAGEMENT AND FORMS OF 
SUPPORT 

Article 8 
Implementation by means of a specific programme and the contribution to the European 
Institute of Innovation and Technology 

Horizon  2020  shall  be  implemented  through  a  consolidated  specific  programme  and  a 
financial contribution to the European Institute of Innovation and Technology. 

The specific programme shall set out one Part for each of the three priorities set out in Article 
5(2) and one Part for the non-nuclear direct actions of the Joint Research Centre. 

Article 9 
Management  

1. 

2. 

1. 

2. 

3. 

Horizon  2020  shall  be  implemented  by  the  Commission  in  accordance  with 
Regulation (EU) No XXXX/2012 [New Financial Regulation]. 

The Commission may also entrust part of the implementation of Horizon 2020 to the 
funding bodies referred to in Article [55(1)(b)] of Regulation (EU) No XXXX/2012 
[New Financial Regulation]. 

Article 10 
Forms of Union support 

Horizon  2020  shall  support  indirect  actions  through  one  or  several  of  the  forms  of 
funding provided for by Regulation (EU) No XX/2012 [New Financial Regulation] 
in particular grants, prizes, procurement and financial instruments. 

Horizon  2020  shall  also  support  direct  actions  undertaken  by  the  Joint  Research 
Centre. 

Where  the  Joint  Research  Centre  direct  actions  contribute  to  initiatives  established 
under Article 185 or Article 187 TFEU, this contribution shall not be considered as 
part of the financial contribution allocated to these initiatives. 

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Article 11 
Rules for participation and dissemination of results 

The  rules  for  participation  and  dissemination  of  results  laid  down  in  Regulation  (EU)  No 
XX/2012 [Rules for participation and dissemination] shall apply to indirect actions.  

CHAPTER II 
PROGRAMMING 

SECTION I 
GENERAL PRINCIPLES 

1. 

2. 

1. 

2. 

Article 12 
External advice and societal engagement 

For the implementation of Horizon 2020, account shall be taken of advice and inputs 
provided  by:  advisory  groups  of  independent,  high  level  experts  set  up  by  the 
Commission; dialogue structures created under international science and technology 
agreements; forward looking activities; targeted public consultations; and transparent 
and  interactive  processes  that  ensure  responsible  research  and  innovation  is 
supported. 

Full  account  shall  also  be  taken  of  relevant  aspects  of  the  research  and  innovation 
agendas  established  by  European  Technology  Platforms,  Joint  Programming 
Initiatives and European Innovation Partnerships. 

Article 13 
Cross-cutting actions  

Linkages  and  interfaces  shall  be  implemented  across  and  within  the  priorities  of 
Horizon  2020.  Particular  attention  shall  be  paid  in  this  respect  to  the  development 
and  application  of  key  enabling  and  industrial  technologies,  to  bridging  from 
discovery  to  market  application,  to  cross-disciplinary  research  and  innovation,  to 
social  and  economic  sciences  and  humanities,  to  fostering  the  functioning  and 
achievement of the ERA, to cooperation with third countries, to responsible research 
and innovation including gender, and to enhancing the attractiveness of the research 
profession and to facilitating cross-border and cross-sector mobility of researchers. 

Where  an  indirect  action  is  supported  which  is  of  high  relevance  to  several  of  the 
priorities  set  out  in  Article  5(2)  or  to  several  specific  objectives  within  those 
priorities,  the  financial  amount  for  that  action  may  be  combined  from  the  amounts 
allocated to respectively each priority or specific objective concerned. 

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Article 14 
Evolving nature of science, technology, innovation, markets and society 

Horizon  2020  shall  be  implemented  in  a  manner  ensuring  that  the  priorities  and  actions 
supported are relevant to changing needs and take account of the evolving nature of science, 
technology, 
includes  business, 
organisational and social aspects. 

innovation,  markets  and  society,  where 

innovation 

Article 15 
Gender equality  

Horizon  2020  shall  ensure  the  effective  promotion  of  gender  equality  and  the  gender 
dimension in research and innovation content.  

Article 16 
Ethical principles 

1. 

2. 

3. 

4. 

5. 

All  the  research  and  innovation  activities  carried  out  under  Horizon  2020  shall 
comply  with  ethical  principles  and  relevant  national,  Union  and  international 
legislation, including the Charter of Fundamental Rights of the European Union and 
the European Convention on Human Rights and its Supplementary Protocols.  

Particular  attention  shall  be  paid  to  the  principle  of  proportionality,  the  right  to 
privacy,  the  right  to  the  protection  of  personal  data,  the  right  to  the  physical  and 
mental  integrity of  a person, the right to non-discrimination and the need to ensure 
high levels of human health protection. 

Research  and  innovation  activities  carried  out  under  Horizon  2020  shall  have  an 
exclusive focus on civil applications. 

The following fields of research shall not be financed: 

(a) 

research activity aiming at human cloning for reproductive purposes; 

(b) 

(c) 

research  activity  intended  to  modify  the  genetic  heritage  of  human  beings 
which could make such changes heritable; 

research activities intended to create human embryos solely for the purpose of 
research  or  for  the  purpose  of  stem  cell  procurement,  including  by  means  of 
somatic cell nuclear transfer. 

Research  on  human  stem  cells,  both  adult  and  embryonic,  may  be  financed, 
depending both on the contents of the scientific proposal and the legal framework of 
the Member States involved. No funding shall be granted for research activities that 
are  prohibited  in  all  the  Member  States. No  activity  shall be  funded  in  a  Member 
State where such activity is forbidden. 

The fields of research set out in paragraph 3 may be reviewed within the context of 
the interim evaluation set out in Article 26(1) in the light of scientific advances.  

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Article 17 
Complementarity with other Union programmes 

Horizon 2020 shall be implemented in a way which is complementary to other Union funding 
programmes, including the Structural Funds. 

SECTION II 
SPECIFIC FIELDS OF ACTION 

Article 18 
Small and medium-sized enterprises  

Particular  attention  shall  be  paid  to  ensuring  the  adequate  participation  of,  and 
innovation impact on, small and medium-sized enterprises (SME) in Horizon 2020. 
Quantitative and qualitative assessments of SME participation shall be undertaken as 
part of the evaluation and monitoring arrangements.  

Specific  actions  shall  be  undertaken  within  the  specific  objective  "Leadership  in 
enabling and industrial technologies" set out in Point 1 of Part II of Annex I and each 
of the specific objectives under the priority "Societal challenges" set out in Points 1 
to 6 of Part III of Annex I. These specific actions shall take the form of a dedicated 
SME  instrument  that  is  targeted  at  all  types  of  SMEs  with  an  innovation  potential 
and shall be implemented in a consistent manner and tailored to the needs of SMEs 
as set out under the specific objective "Innovation in SMEs" in Point 3.3.(a) of Part II 
of Annex I. 

The integrated approach set out in paragraphs 1 and 2 is expected to lead to around 
15%  of  the  total  combined  budget  for  the  specific  objective  on  "Leadership  in 
enabling and industrial technologies" and the priority "Societal challenges" going to 
SMEs. 

Article 19 
Public-private partnerships  

Horizon 2020 may be implemented through public-private partnerships where all the 
partners  concerned  commit  to  support  the  development  and  implementation  of 
research  and 
the  Union's 
competitiveness and industrial leadership or to address specific societal challenges.  

innovation  activities  of  strategic 

importance 

to 

1. 

2. 

3. 

1. 

2. 

Involvement of the Union in those partnerships may take one of the following forms:  

(a) 

financial contributions from the Union to joint undertakings established on the 
basis of Article 187 TFEU under the Seventh Framework Programme, subject 
to the amendment of their basic acts; to new public-private partnerships set up 
on  the  basis  of  Article  187  TFEU;  and  to  other  funding  bodies  referred  to  in 
Article [55(1)(b)(v) or (vii)] of Regulation (EU) No XX/2012 [New Financial 
Regulation].  This  form  of  partnerships  shall  only  be  implemented  where  the 
scope of the objectives pursued and the scale of the resources required justify 
it;  

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(b) 

entering a contractual agreement between the partners referred to in paragraph 
1, which specifies the objectives of the partnership, respective commitments of 
the partners, key performance indicators, and outputs to be delivered including 
the identification of research and innovation activities that require support from 
Horizon 2020.  

3. 

Public-private partnerships shall be identified in an open and transparent way based 
on all of the following criteria: 

(a) 

the added value of action at Union level;  

(b) 

(c) 

(d) 

(e) 

the  scale  of  impact  on  industrial  competitiveness,  sustainable  growth  and 
socio-economic issues; 

the  long-term  commitment  from  all  partners  based  on  a  shared  vision  and 
clearly defined objectives; 

the  scale  of  the  resources  involved  and  the  ability  to  leverage  additional 
investments in research and innovation; 

a clear definition of roles for each of the partners and agreed key performance 
indicators over the period chosen. 

Article 20 
Public-public partnerships 

1. 

Horizon  2020  shall  contribute  to  the  strengthening  of  public-public  partnerships 
where  actions  at  regional,  national  or  international  level  are  jointly  implemented 
within the Union.  

Particular  attention  shall  be  paid  to  joint  programming  initiatives  between  Member 
States. 

2. 

Public-public partnerships may be supported either within, or across, the priorities set 
out in Article 5(2), in particular through:  

(a) 

an ERA-NET instrument using grants to support public-public partnerships in 
their  preparation, 
structures,  design, 
establishment  of  networking 
implementation  and  coordination  of  joint  activities  as  well  as  topping  up  of 
individual joint calls and of actions of a transnational nature;  

(b)  Union  participation  in  programmes  undertaken  by  several  Member  States  in 

accordance with Article 185 TFEU.  

For  the  purposes  of  point  (a),  top-up  funding  shall  be  conditional  on  a  significant 
level of prior financial commitments of the participating entities to the joint calls and 
actions. The ERA-NET instrument may include an objective to harmonise rules and 
implementation modalities of the joint calls and actions. It may also be used in order 
to prepare for an initiative pursuant to Article 185 TFEU. 

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For the purposes of point (b) such initiatives shall only be proposed in cases where 
there  is  a  need  for  a  dedicated  implementation  structure  and  where  there  is  a  high 
level  of  commitment  of  the  participating  countries  to  integration  at  scientific, 
management and financial levels. In addition, proposals for initiatives referred to in 
point (b) shall be identified on the basis of all of the following criteria: 

(a) 

(b) 

a  clear  definition  of  the  objective  to  be  pursued  and  its  relevance  to  the 
objectives of Horizon 2020 and broader Union policy objectives; 

clear  financial  commitments  of  the  participating  countries,  including  prior 
commitments  to  pool  national  and/or  regional  investments  for  transnational 
research and innovation; 

(c) 

the added value of action at Union level; 

(d) 

the  critical  mass,  with  regard  to  the  size  and  the  number  of  programmes 
involved,  the  similarity  of  activities  and  the  share  of  relevant  research  they 
cover; 

(e) 

the  efficiency  of  Article  185  TFEU  as  the  most  appropriate  means  for 
achieving the objectives. 

Article 21 
International cooperation with third countries and international organisations 

Entities established in third countries and international organisations shall be eligible 
to  participate  in  indirect  actions  of  Horizon  2020  under  the  conditions  set  out  in 
Regulation  (EU)  XX/XX  [Rules  for  Participation].  International  cooperation  with 
third  countries  and  international  organisations  shall  be  promoted  across  and  within 
Horizon 2020 to achieve, in particular, the following objectives: 

(a) 

strengthening  the  Union’s  excellence  and  attractiveness  in  research  and 
innovation as well as its economic and industrial competitiveness; 

(b) 

tackling effectively global societal challenges;  

(c) 

supporting 
complementing external and development programmes.  

the  Union's  external  and  development  policy  objectives, 

Targeted  actions  with  the  objective  of  promoting  cooperation  with  specific  third 
countries or groups of third countries shall be implemented on the basis of common 
interest  and  mutual  benefit,  taking  into  account  their  scientific  and  technological 
capabilities and market opportunities, and the expected impact.  

Reciprocal  access  to  third  country  programmes  should  be  encouraged.  In  order  to 
maximise impact, coordination and synergies with initiatives of Member States and 
associated countries shall be promoted.  

Cooperation  priorities  shall  take  into  account  developments  in  Union  policy  and 
opportunities for cooperation with third countries, as well as possible deficiencies in 
third country intellectual property systems. 

1. 

2. 

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3. 

In  addition,  horizontal  and  cross-cutting  activities  to  promote  the  strategic 
development of international cooperation shall be implemented under Horizon 2020 
under  the  specific  objective  "Inclusive,  innovative  and  secure  societies"  set  out  in 
Point 6.3.2(d) of Part III of Annex I. 

Article 22 
Information, communication and dissemination 

The  European  Commission  shall  implement  information  and  communication  actions 
concerning Horizon 2020, including communication measures concerning supported projects 
and results. Budget allocated to communication under Horizon 2020 shall also contribute to 
covering  the  corporate  communication  of  the  Union's  political  priorities  as  far  as  they  are 
related to the general objective of this Regulation. 

Activities  to  disseminate  information  and  carry  out  communication  activities  shall  be  an 
integral task under all of the actions supported by Horizon 2020.  

In addition, the following specific actions shall be supported: 

(a) 

(b) 

(c) 

(d) 

(e) 

initiatives  aimed  at  widening  awareness  and  facilitating  access  to  funding  under 
Horizon  2020,  in  particular  for  those  regions  or  types  of  participant  that  are 
underrepresented; 

targeted  assistance  to  projects  and  consortia  to  provide  them  with  access  to  the 
necessary skills to optimise the communication and dissemination of results; 

actions  which  bring  together  results  from  a  range  of  projects,  including  those  that 
may be funded from other sources, to provide user-friendly databases and reports that 
summarise key findings;  

dissemination to policy makers, including standardisation bodies, to promote the use 
of policy relevant results by the appropriate bodies at international, Union, national 
and regional level;  

initiatives  to  foster  dialogue  and  debate  on  scientific,  technological  and  innovation 
related  issues  with  the  public,  and  to  take  advantage  of  social  media  and  other 
innovative technologies and methodologies; 

CHAPTER III 
CONTROL 

Article 23 
Control and audit 

1. 

The control system set up for the implementation of this Regulation shall be designed 
so as to provide reasonable assurance of achieving adequate management of the risks 
relating  to  the  effectiveness  and  efficiency  of  the  operations  as  well  as  the  legality 

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2. 

3. 

1. 

2. 

3. 

4. 

and  regularity  of  the  underlying  transactions,  taking  into  account  the  multi-annual 
character of programmes as well as the nature of the payments concerned. 

The  control  system  shall  ensure  an  appropriate  balance  between  trust  and  control, 
taking into account administrative and other costs of controls at all levels, so that the 
objectives of Horizon 2020 can be achieved and the most excellent researchers and 
the most innovative enterprises can be attracted to it. 

As part  of the control system,  the audit strategy for expenditure on indirect  actions 
under Horizon 2020 shall be based on the financial audit of a representative sample 
of expenditure across the whole framework programme. This representative sample 
shall be complemented by a selection based on an assessment of the risks related to 
expenditure. 

Audits of expenditure on indirect actions under Horizon 2020 shall be carried out in 
a  coherent  manner  in  accordance  with  the  principles  of  economy,  efficiency  and 
effectiveness in order to minimize the audit burden of the participants. 

Article 24 
Protection of the financial interests of the Union  

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Regulation are implemented, the financial interests of the Union 
are protected by the application of preventive measures against fraud, corruption and 
any other illegal activities, by effective checks and, if irregularities are detected, by 
the  recovery  of  the  amounts  wrongly  paid  and,  where  appropriate,  by  effective, 
proportionate and deterrent penalties. 

The  Commission  or  its  representatives  and  the  Court  of  Auditors  shall  have  the 
power  of  audit,  on  the  basis  of  documents  and  on-the-spot  checks  and  inspections, 
over  all  grant  beneficiaries,  contractors,  subcontractors  and  other  third  parties  who 
have received Union funds under Horizon 2020. 

Without prejudice to paragraph 3, audits by the Commission may be carried out up to 
four years after the final payment. 

The  European  Anti-Fraud  Office  (OLAF)  may  carry  out  on-the-spot  checks  and 
inspections on economic operators concerned directly or indirectly by such funding 
in  accordance  with  the  procedures  laid down  in  Council  Regulation  (Euratom,  EC) 
No 2185/9620 with a view to establishing whether there has been fraud, corruption or 
any other illegal activity affecting the financial interests of the Union in connection 
with a grant agreement or grant decision or a contract concerning Union funding. 

Without  prejudice  to  paragraphs  1,  2  and  3,  cooperation  agreements  with  third 
countries  and  international  organisations  and  grant  agreements  and  grant  decisions 
and  contracts  resulting  from  the  implementation  of  this  Regulation  shall  expressly 
empower  the  Commission,  the  Court  of  Auditors  and  the  OLAF  to  conduct  such 
audits, on-the-spot checks and inspections. 

20 

OJ L 292, 15.11.1996, p. 2. 

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CHAPTER IV 
MONITORING AND EVALUATION 

Article 25 
Monitoring 

1. 

The  Commission  shall  annually  monitor  the  implementation  of  Horizon  2020,  its 
specific  programme  and  the  activities  of  the  European  Institute  of  Innovation  and 
Technology.  This  shall  include  information  on  cross-cutting  topics  such  as 
sustainability  and  climate  change,  including  information  on  the  amount  of  climate 
related expenditure. 

2. 

The Commission shall report and disseminate the results of that monitoring. 

Article 26 
Evaluation 

1. 

Evaluations  shall  be  carried  out  in  a  sufficiently  timely  manner  to  feed  into  the 
decision-making process. 

(a)  Not later than end 2017, the Commission shall carry out, with the assistance of 
independent  experts,  a  review  of  the  European  Institute  of  Innovation  and 
Technology.  The  second  allocation  of  funds  to  the  European  Institute  of 
Innovation  and  Technology  as  set  out  in  Article  6(3)  shall  be  made  available 
following  this  review.  The  review  shall  assess  the  progress  of  the  European 
Institute of Innovation and Technology against all of the following: 

(i) 

the level of consumption of the first allocation of funds set out in Article 
6(3),  differentiating  between  the  amount  of  money  used  for  the 
development of the first wave of KICs and the effect of the seed money 
for  the  second  phase,  and  the  ability  of  the  European  Institute  of 
Innovation  and  Technology  to  attract  funds  from  the  partners  in  the 
Knowledge and Innovation Communities and from the private sector, as 
set out in Regulation XX/2012 [revised EIT Regulation];  

(ii) 

the  agreed  timing  for  the  creation  of  the  third  wave  of  Knowledge  and 
Innovation Communities and the programmed financial needs of existing 
ones according to their specific development; and 

(iii) 

the contribution of the European Institute of Innovation and Technologies 
and  the  Knowledge  and  Innovation  Communities  to  the  priority  on 
societal challenges and the specific objective on "leadership in enabling 
and industrial technologies" of the programme Horizon 2020. 

(b)  Not later than end 2017, and taking into account the ex-post evaluation of the 
Seventh  Framework  Programme  to  be  completed  by  the  end  of  2015  and  the 
review  of  the  European  Institute  of  Innovation  and  Technology,  the 
Commission  shall  carry  out,  with  the  assistance  of  independent  experts,  an 

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interim  evaluation  of  Horizon  2020,  its  specific  programme,  including  the 
European  Research  Council,  and  the  activities  of  the  European  Institute  of 
Innovation  and  Technology,  on  the  achievements  (at  the  level  of  results  and 
progress  towards  impacts)  of  the  objectives  of  Horizon  2020  and  continued 
relevance of all the measures, the efficiency and use of resources, the scope for 
further simplification, and Union added value. That evaluation shall also take 
into  consideration  aspects  relating  to  access  to  funding  opportunities  for 
participants  in  all  regions,  for  SMEs  and  for  promoting  gender  balance.  That 
evaluation shall additionally take into account the contribution of the measures 
to the Union priorities of smart, sustainable and inclusive growth and results on 
the long-term impact of the predecessor measures.  

(c)  Not later than end 2023, the Commission shall carry out, with the assistance of 
independent  experts,  an  ex-post  evaluation  of  Horizon  2020,  its  specific 
programme  and  the  activities  of  the  European  Institute  of  Innovation  and 
Technology. This shall cover the rationale, implementation and achievements, 
as well as the longer-term impacts and sustainability of the measures, to feed 
into  a  decision  on  a  possible  renewal,  modification  or  suspension  of  a 
subsequent measure. 

The performance indicators for the general objectives and for the European Institute 
of  Innovation  and  Technology,  as  set  out  in  the  introduction  of  Annex  I  to  this 
Regulation, and for the specific objectives as established in the specific programme, 
including  relevant  baselines,  shall  provide  the  minimum  basis  for  assessing  the 
extent to which the objectives of Horizon 2020 have been achieved.  

Member States shall provide the Commission with data and information necessary to 
permit the monitoring and evaluation of the measures concerned. 

The Commission shall communicate the conclusions of those evaluations of Horizon 
2020, accompanied by its observations, to the European Parliament, the Council, the 
European Economic and Social Committee and the Committee of the Regions. 

2. 

3. 

4. 

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TITLE III 

FINAL PROVISIONS 

Article 27 
Repeal and transitional provisions 

1. 

2. 

3. 

Decision No 1982/2006/EC is repealed with effect from 1 January 2014.  

However,  actions  initiated  under  Decision  No  1982/2006/EC  and  financial 
obligations  related  to  those  actions  shall  continue  to  be  governed  by  that  Decision 
until their completion. 

The  financial  allocation  referred  to  in  Article  6  may  also  cover  the  technical  and 
administrative  assistance  expenses  necessary  to  ensure  the  transition  between  this 
programme and the measures adopted under Decision No 1982/2006/EC. 

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

Article 28 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX I 
Broad lines of the specific objectives and activities 

Horizon  2020  has  the  general  objective  to  build  an  economy  based  on  knowledge  and 
innovation  across  the  whole  Union,  while  contributing  to  sustainable  development.  It  will 
support  the  Europe  2020  strategy  and  other  Union  policies  as  well  as  the  achievement  and 
functioning of the European Research Area.  

The performance indicators for assessing progress against this general objective are: 

– 

– 

the Europe 2020 R&D target (3 % of GDP); 

the Europe 2020 innovation headline indicator. 

This  general  objective  shall  be  pursued  through  three  distinct,  yet  mutually  reinforcing, 
priorities, each containing a set of specific objectives. They will be implemented in a seamless 
manner  in  order  to  foster  interactions  between  the  different  specific  objectives,  avoid  any 
duplication of effort and reinforce their combined impact. 

The Joint Research Centre shall contribute to the general objective and priorities of Horizon 
2020 with the specific objective of providing customer-driven scientific and technical support 
to Union policies. 

The  European  Institute  of  Innovation  and  Technology  (EIT)  shall  contribute  to  the  general 
objective  and  priorities  of  Horizon  2020  with  the  specific  objective  of  integrating  the 
knowledge  triangle  of  research,  innovation  and  education.  The  indicators  for  assessing  the 
performance of the EIT are: 

– 

– 

organisations  from  universities,  business  and  research  integrated  in  the  Knowledge 
and Innovation Communities; 

collaboration inside the knowledge triangle leading to the development of innovative 
products and processes. 

This  Annex  sets  out  the  broad  lines  of  those  specific  objectives  and  activities  referred  to  in 
Article 5(2), (3) and (4). 

PART I. PRIORITY 'EXCELLENT SCIENCE' 

This  Part  aims  to  reinforce  and  extend  the  excellence  of  the  Union’s  science  base  and  to 
consolidate the European Research Area in order to make the Union’s research and innovation 
system more competitive on a global scale. It consists of four specific objectives: 

(a) 

(b) 

The European Research Council (ERC) shall provide attractive and flexible funding 
to  enable  talented  and  creative  individual  researchers  and  their  teams  to  pursue  the 
most  promising  avenues  at  the  frontier  of  science,  on  the  basis  of  Union-wide 
competition. 

Future  and  emerging  technologies  shall  support  collaborative  research  in  order  to 
extend  Europe’s  capacity  for  advanced  and  paradigm-changing  innovation.  It  shall 
foster scientific collaboration across disciplines on radically new, high-risk ideas and 

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accelerate  development  of  the  most  promising  emerging  areas  of  science  and 
technology  as  well  as  the  Union  wide  structuring  of  the  corresponding  scientific 
communities. 

(c) 

(d) 

Marie Curie actions shall provide excellent and innovative research training as well 
as attractive career and knowledge-exchange opportunities through cross-border and 
cross-sector  mobility  of  researchers  to  best  prepare  them  to  face  current  and  future 
societal challenges. 

Research infrastructure shall develop European research infrastructure for 2020 and 
beyond,  foster  their  innovation  potential  and  human  capital,  and  complement  this 
with the related Union policy and international cooperation. 

Each  of  these  has  been  proven  to  have  high  Union  added  value.  Together,  they  form  a 
powerful  and  balanced  set  of  activities  which,  in  concert  with  activities  at  national  and 
regional  levels,  span  the  breadth  of  Europe’s  needs  regarding  advanced  science  and 
technology. Bringing them together in a single programme will enable them to operate with 
greater coherence, in a rationalised, simplified and more focused way, while maintaining the 
continuity which is vital to sustain their effectiveness. 

The activities are inherently forward-looking, building skills in the long term, focusing on the 
next generation of science, technology, researchers and innovations and providing support for 
emerging  talent  from  across  the  whole  of  the  Union  and  associated  countries,  as  well  as 
worldwide. In view of their science-driven nature and largely ‘bottom-up’, investigator-driven 
funding  arrangements,  the  European  scientific  community  will  play  a  strong  role  in 
determining the avenues of research followed under the programme. 

PART II. PRIORITY 'INDUSTRIAL LEADERSHIP'  

This  Part  aims  to  speed  up  development  of  the  technologies  and  innovations  that  will 
underpin  tomorrow’s  businesses  and  help  innovative  European  SMEs  to  grow  into  world-
leading companies. It consists of three specific objectives: 

(a) 

(b) 

Leadership  in  enabling  and  industrial  technologies  shall  provide  dedicated  support 
for  research,  development  and  demonstration  on  ICT,  nanotechnology,  advanced 
materials,  biotechnology,  advanced  manufacturing  and  processing  and  space. 
Emphasis  will  be  placed  on  interactions  and  convergence  across  and  between  the 
different technologies. 

Access to risk finance shall aim to overcome deficits in the availability of debt and 
equity  finance for R&D and innovation-driven companies and projects at all stages 
of  development.  Together  with  the  equity  instrument  of  the  Programme  for  the 
Competitiveness  of  Enterprises  and  SMEs,  it  shall  support  the  development  of 
Union-level venture capital. 

(c) 

Innovation in SMEs shall stimulate all forms of innovation in SMEs, targeting those 
with the potential to grow and internationalise across the single market and beyond. 

The activities shall follow a business-driven agenda. The budgets for the specific objectives 
‘Access  to  risk  finance’  and  ‘Innovation  in  SMEs’  will  follow  a  demand-driven,  bottom-up 
logic, without predetermined priorities. These shall be complemented by the use of financial 

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instruments and a dedicated SME instrument following a policy driven logic within the Part 
on  'Societal  challenges'  and  the  specific  objective  ‘Leadership  in  enabling  and  industrial 
technologies’.  

Horizon 2020 will take an integrated approach to the participation of SMEs, which could lead 
to around 15 % of the total combined budgets for all specific objectives on societal challenges 
and the specific objective 'Leadership in enabling and industrial technologies' being devoted 
to SMEs. 

The  specific  objective  ‘Leadership  in  enabling  and  industrial  technologies’  shall  follow  a 
technology-driven  approach  to  develop  enabling  technologies  that  can  be  used  in  multiple 
areas, industries and services. Applications of these technologies to meet societal challenges 
shall be supported together with the Societal challenges. 

PART III. PRIORITY 'SOCIETAL CHALLENGES' 

This  Part  responds  directly  to  the  policy  priorities  and  societal  challenges  identified  in  the 
Europe  2020  strategy  and  aiming  to  stimulate  the  critical  mass  of  research  and  innovation 
efforts  needed  to  achieve  Union's  policy  goals.  Funding  shall  be  focused  on  the  following 
specific objectives: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

Health, demographic change and well-being; 

Food  security,  sustainable  agriculture,  marine  and  maritime  research,  and  the  bio-
economy; 

Secure, clean and efficient energy; 

Smart, green and integrated transport; 

Climate action, resource efficiency and raw materials;  

Inclusive, innovative and secure societies. 

All the activities shall take a challenge-based approach, focusing on policy priorities without 
predetermining the precise choice of technologies or solutions that should be developed. The 
emphasis  shall  be  on  bringing  together  a  critical  mass  of  resources  and  knowledge  across 
different fields, technologies and scientific disciplines in order to address the challenges. The 
activities shall cover the full cycle from research to market, with a new focus on innovation-
related activities, such as piloting, demonstration, test-beds, support for public procurement, 
design, end-user driven innovation, social innovation and market take-up of innovations. 

Social  sciences  and  humanities  shall  be  an  integral  part  of  the  activities  to  address  all  the 
challenges. In addition, the underpinning development of these disciplines shall be supported 
under  the  specific  objective  ‘Inclusive,  innovative  and  secure  societies’.  Support  will  also 
focus on providing a strong evidence base for policy making at international, Union, national 
and regional levels. Given the global nature of many of the challenges, strategic cooperation 
with  third  countries  shall  be  an  integral  part  of  each  challenge.  In  addition,  cross-cutting 
support for international cooperation shall be provided under the specific objective ‘Inclusive, 
innovative and secure societies’. 

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The specific objective ‘Inclusive, innovative and secure societies’ also includes an activity to 
close the research and innovation divide with specific measures to unlock excellence in less 
developed regions of the Union. 

The Joint Research Centre’s activities shall be an integral part of Horizon 2020, in order to 
provide robust, evidence-based support for Union policies. This shall be driven by customer 
needs, complemented by forward-looking activities. 

The  EIT  shall  play  a  major  role  by  bringing  together  excellent  research,  education  and 
innovation thus integrating the knowledge triangle. The EIT shall do so primarily through the 
Knowledge and Innovation Communities (KICs). In addition it shall ensure that experiences 
are shared beyond the KICs through targeted dissemination and knowledge sharing measures, 
thereby promoting a faster uptake of innovation models across the Union. 

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PART I 
EXCELLENT SCIENCE  

1. 

EUROPEAN RESEARCH COUNCIL (ERC) 

1.1 

Specific objective 

The  specific  objective  is  to  reinforce  the  excellence,  dynamism  and  creativity  of 
European research. 

Europe has set out its ambition to move to a new economic model based on smart, sustainable 
and  inclusive  growth.  This  type  of  transformation  will  need  more  than  incremental 
improvements to current technologies. It will require much higher capacity for science-based 
innovation  fuelled  by  radical  new  knowledge,  allowing  Europe  to  take  a  leading  role  in 
creating  the  technological  paradigm  shifts  which  will  be  the  key  drivers  of  productivity 
growth, competitiveness, wealth and social progress in the future. Such paradigm shifts have 
historically tended to originate from the public-sector science base before going on to lay the 
foundations for whole new industries and sectors. 

World-leading  innovation  is  closely  associated  with  excellent  science.  Once  the  undisputed 
leader, Europe has fallen behind in the race to produce the very best cutting-edge science and 
has  played  a  secondary  role  to  the  United  States  of  America  in  the  major  post-war 
technological  advances.  Although  the  Union  remains  the  largest  producer  of  scientific 
publications in the world, the United States of America produces twice as many of the most 
influential papers (the top 1 % by citation count). Similarly, international university rankings 
show  that  US  universities  dominate  the  top  places.  And  70 %  of  the  world’s  Nobel  Prize 
winners are based in the USA. 

One  part  of  the  challenge  is  that,  while  Europe  and  the  United  States  of  America  invest 
similar amounts in their public-sector science bases, the Union has nearly three times as many 
public-sector  researchers,  resulting  in  significantly  lower  investment  per  researcher. 
Moreover, US funding is more selective about allocating resources to the leading researchers. 
This  helps  to  explain  why  the  Union’s  public-sector  researchers  are,  on  average,  less 
productive and, altogether, make less combined scientific impact than their far less numerous 
US counterparts. 

Another major part of the challenge is that in many European countries the public sector still 
does not offer sufficiently attractive conditions for the best researchers. It can take many years 
before talented young researchers are able to become independent scientists in their own right. 
This leads to a dramatic waste of Europe’s research potential by  delaying the emergence of 
the next generation of researchers, who bring new ideas and energy, and by enticing excellent 
researchers starting their career to seek advancement elsewhere. 

Furthermore,  these  factors  compound  Europe’s  relative  unattractiveness  in  the  global 
competition  for  scientific  talent.  The  ability  of  the  US  system  to  offer  more  resources  per 
researcher and better career prospects explains how it continues to attract the best researchers 
from across the world, including tens of thousands from the Union. 

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1.2 

Rationale and Union added value 

The ERC was created  to  provide Europe’s best researchers, both women  and  men,  with  the 
resources  they  need  to  allow  them  to  compete  better  at  global  level,  by  funding  individual 
teams  on  the  basis  of  pan-European  competition.  It  operates  autonomously:  an  independent 
Scientific  Council  made  up  of  scientists,  engineers  and  scholars  of  the  highest  repute  and 
expertise establishes the overall scientific strategy and has full authority over decisions on the 
type  of  research  to  be  funded.  These  are  essential  features  of  the  ERC,  guaranteeing  the 
effectiveness of its scientific programme, the quality of its operations and peer-review process 
and its credibility in the scientific community. 

Operating across Europe on a competitive basis, the ERC is able to draw on a wider pool of 
talents and ideas than would be possible for any national scheme. The best researchers and the 
best ideas compete against each other. Applicants know they have to perform at the highest 
level,  the  reward  being  flexible  funding  on  a  level  playing  field,  irrespective  of  local 
bottlenecks or the availability of national funding. 

Frontier research funded by the ERC is thereby expected to have a substantial direct impact in 
the  form  of  advances  at  the  frontiers  of  knowledge,  opening  the  way  to  new  and  often 
unexpected scientific and technological results and new areas for research which, ultimately, 
can generate the radically new ideas which will drive innovation and business inventiveness 
and  tackle  societal  challenges.  This  combination  of  excellent  individual  scientists  with 
innovative ideas underpins every stage of the innovation chain. 

Beyond this, the ERC has a significant structural impact by generating a powerful stimulus for 
driving  up  the  quality  of  the  European  research  system  as  a  whole,  over  and  above  the 
researchers and projects which the ERC funds directly. ERC-funded projects and researchers 
set a clear and inspirational target for frontier research in Europe, raise its profile and make it 
more  attractive  for  the  best  researchers  at  global  level.  The  prestige  of  hosting  ERC  grant-
holders  and  the  accompanying  ‘stamp  of  excellence’  are  intensifying  competition  between 
Europe’s universities and other research organisations to offer the most attractive conditions 
for top researchers. And the ability of national systems and individual research institutions to 
attract  and  host  ERC  grant-winners  sets  a  benchmark  allowing  them  to  assess  their  relative 
strengths and weaknesses and reform their policies and practices accordingly. ERC funding is 
therefore in addition to ongoing efforts at Union, national and regional levels to reform, build 
capacity and unlock the full potential and attractiveness of the European research system. 

1.3 

Broad lines of the activities 

The  fundamental  activity  of  the  ERC  shall  be  to  provide  attractive  long-term  funding  to 
support  excellent  investigators  and  their  research  teams  to  pursue  ground-breaking,  high-
gain/high-risk research. 

ERC funding shall be awarded in accordance with the following well-established principles. 
Scientific excellence shall be the sole criterion on which ERC grants are awarded. The ERC 
shall operate  on a ‘bottom-up’  basis without predetermined  priorities. The ERC grants shall 
be  open  to  individual  teams  of  researchers  of  any  age  and  from  any  country  in  the  world, 
working in Europe. And the ERC shall aim to foster healthy competition across Europe. 

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The ERC shall give particular priority to assisting excellent starting researchers to make the 
transition to independence by providing adequate support at the critical stage when they are 
setting up or consolidating their own research team or programme. 

The  ERC  shall  also  give  support,  as  necessary,  to  emerging  new  ways  of  working  in  the 
scientific world with the potential to create breakthrough results and facilitates exploration of 
the commercial and social innovation potential of the research which it funds. 

By  2020,  the  ERC  therefore  shall  aim  to  demonstrate:  that  the  best  researchers  are 
participating  in  the  ERC’s  competitions,  that  ERC  funding  has  led  directly  to  scientific 
publications of the highest quality and to the commercialisation and application of innovative 
technologies  and  ideas  and  that  the  ERC  has  contributed  significantly  to  making  Europe  a 
more attractive environment for the world’s best scientists. In particular, the ERC shall target 
a  measurable  improvement  in  the  Union’s  share  of  the  world’s  top  1 %  most  highly  cited 
publications.  In  addition  it  shall  aim  at  a  substantial  increase  in  the  number  of  excellent 
researchers  from  outside  Europe  whom  it  funds  and  specific  improvements  in  institutional 
practices and national policies to support top researchers. 

The ERC’s Scientific Council shall continuously monitor the ERC’s operations and consider 
how best to achieve its objectives by means of grant schemes that emphasise clarity, stability 
and  simplicity,  both  for  applicants  and  in  their  implementation  and  management,  and,  as 
necessary, to respond to emerging needs. It shall endeavour to sustain and further refine the 
ERC’s  world-class  peer-review  system  which  is  based  on  transparent,  fair  and  impartial 
treatment of proposals so that it can identify ground-breaking scientific excellence and talent 
regardless  of  a  researcher’s  gender,  nationality  or  age.  Finally,  the  ERC  shall  continue 
conducting  its  own  strategic  studies  to  prepare  for  and  support  its  activities,  maintain  close 
contacts with the scientific community and other stakeholders and look to make its activities 
complement research conducted at other levels. 

2. 

FUTURE AND EMERGING TECHNOLOGIES (FET) 

2.1. 

Specific objective 

The specific objective is to foster radically new technologies by exploring novel and high-
risk  ideas  building  on  scientific  foundations.  By  providing  flexible  support  to  goal-
oriented and interdisciplinary collaborative research on various scales and by adopting 
innovative research practices, the aim is to identify and seize opportunities of long-term 
benefit for citizens, the economy and society. 

FET  shall  promote  research  beyond  what  is  known,  accepted  or  widely  adopted  and  shall 
foster  novel  and  visionary  thinking  to  open  promising  paths  towards  powerful  new 
technologies,  some  of  which  could  develop  into  leading  technological  and  intellectual 
paradigms  for  the  decades  ahead.  FET  shall  foster  efforts  to  pursue  small-scale  research 
opportunities  across  all  areas,  including  emerging  themes  and  grand  scientific  and 
that  require  federation  and  collaboration  between 
technological  (S&T)  challenges 
programmes  across  Europe  and  beyond.  This  approach  shall  be  driven  by  excellence  and 
extends  to  exploring  pre-competitive  ideas  for  shaping  the  future  of  technology,  enabling 
society to benefit from multi-disciplinary research collaboration that needs to be engaged at 
European level by making the link between research driven by science and research driven by 
societal challenges or by industrial competitiveness. 

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2.2. 

Rationale and Union Added Value 

Radical breakthroughs with a transformative impact increasingly rely on intense collaboration 
across  disciplines  in  science  and  technology  (for  instance,  information  and  communication, 
biology,  chemistry,  earth  system  sciences,  material  sciences,  neuro-  and  cognitive  sciences, 
social  sciences  or  economics)  and  with  the  arts  and  humanities.  This  requires  not  only 
excellence in science and technology but also new attitudes and novel interactions between a 
broad range of players in research. 

While some ideas can be developed on a small scale, others may be so challenging that they 
require a large federated effort over a substantial period of time. Major economies worldwide 
have recognised this, and there is growing global competition to identify and pursue emerging 
technological  opportunities  at  the  frontier  of  science  which  can  generate  a  considerable 
impact on innovation and benefits for society. To be effective, these types of activity need to 
be  built  up  quickly  to  a  large  scale,  by  federating  across  programmes  at  European,  national 
and regional levels around common goals to build critical mass, foster synergies and obtain 
optimum leveraging effects. 

The  FET  programme  shall  address  the  entire  spectrum  of  science-driven  innovation:  from 
bottom-up,  small-scale  early  explorations  of  embryonic  and  fragile  ideas  to  building  new 
research  and  innovation  communities  around  transformative  emerging  research  areas  and 
large  and  federated  research  initiatives  built  around  a  research  agenda  aiming  to  achieve 
ambitious and visionary goals. These three levels of engagement each have their own specific 
value, while being complementary and synergistic. For example, small-scale explorations can 
reveal  needs  for  developing  new  themes  that  can  lead  to  large-scale  action  based  on 
roadmaps.  They  involve  a  wide  range  of  research  players,  including  young  researchers  and 
research-intensive SMEs, and stakeholder communities (civil society, policymakers, industry 
and  public  researchers),  clustered  around  research  agendas  as  they  take  shape,  mature  and 
diversify. 

2.3. 

Broad lines of activities 

While  the  FET  programme  aims  to  be  visionary,  transformative  and  unconventional,  its 
activities shall follow different logics, from completely open to varying degrees of structuring 
of topics, communities and funding. 

The activities shall give firmer shape to different logics for action, on the appropriate scale, 
identifying  and  seizing  opportunities  of  long-term  benefit  for  citizens,  the  economy  and 
society: 

(a) 

By  fostering  novel  ideas  ('FET  Open'),  FET  shall  support  embryonic  science  and 
technology research exploring new foundations for radically new future technologies 
by  challenging  current  paradigms  and  venturing  into  unknown  areas.  A  bottom-up 
selection process widely open to any research ideas shall build up a diverse portfolio 
of  targeted  projects.  Early  detection  of  promising  new  areas,  developments  and 
trends, along with attracting new and high-potential research and innovation players, 
will be key. 

(b) 

By nurturing emerging themes and communities ('FET Proactive'), FET shall address 
a number of promising exploratory research themes with the potential to generate a 

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critical  mass  of  inter-related  projects  that,  together,  make  up  a  broad  and  multi-
faceted exploration of the themes and build a European pool of knowledge. 

(c) 

By  pursuing  grand  interdisciplinary  S&T  challenges  ('FET  Flagships'),  FET  shall 
support ambitious large-scale, science-driven research aiming to achieve a scientific 
breakthrough.  Such  activities  will  benefit  from  the  alignment  of  European  and 
national agendas. The scientific advance should provide a strong and broad basis for 
future technological innovation and economic application in a variety of areas, plus 
novel benefits for society. 

The  right  mix  of  openness  and  varying  degrees  of  structuring  of  topics,  communities  and 
funding shall be defined for each activity in order to address optimally the objectives pursued. 

3. 

MARIE CURIE ACTIONS 

3.1. 

Specific objective 

The specific objective is to ensure optimum development and dynamic use of Europe’s 
intellectual capital in order to generate new skills and innovation and, thus, to realise its 
full potential across all sectors and regions. 

Well-trained, dynamic and creative researchers are the vital raw material for the best science 
and the most productive research-based innovation. 

Although  Europe  hosts  a  large  and  diversified  pool  of  skilled  human  resources  for  research 
and innovation, this needs to be constantly replenished, improved and adapted to the rapidly 
evolving  needs  of  the  labour  market.  Today  only  46 %  of  this  pool  works  in  the  business 
sector, which is much lower than in Europe’s main economic competitors, e.g. 69 % in China, 
73 %  in  Japan  and  80 %  in  the  United  States.  In  addition,  demographic  factors  mean  that  a 
disproportionate number of researchers will reach retirement age in the next few years. This, 
combined with the need for many more high-quality research jobs as the research intensity of 
the  European  economy  increases,  will  be  one  of  the  main  challenges  facing  European 
education, research and innovation systems in the years ahead. 

The  necessary  reform  must  start  at  the  first  stages  of  the  researchers’  careers,  during  their 
doctoral  studies  or  comparable  post-graduate  training.  Europe  must  develop  state-of-the-art, 
innovative  training  schemes,  consistent  with  the  highly  competitive  and  increasingly  inter-
disciplinary  requirements  of  research  and  innovation.  Strong  involvement  of  businesses, 
including SMEs and other socio-economic actors, will be needed to equip researchers with the 
innovation skills demanded by the jobs of tomorrow. It will also be important to enhance the 
mobility of these researchers, as it currently remains at too modest a level: in 2008, only 7 % 
of European doctoral candidates were trained in another Member State, whereas the target is 
20 % by 2030. 

This reform must continue through every stage of researchers’ careers. It is vital to increase 
the  mobility  of  researchers  at  all  levels,  including  mid-career  mobility,  not  only  between 
countries  but also between the public  and  private sectors. This creates  a  strong stimulus for 
learning and developing new skills. It is also a key factor in cooperation between academics, 
research  centres  and  industry  across  countries.  The  human  factor  is  the  backbone  of 
sustainable cooperation which is the key driver for an innovative and creative Europe able to 
face  challenges  to  society,  and  key  to  overcoming  fragmentation  of  national  policies. 

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Collaborating and sharing knowledge, via individual mobility at all stages of a career and via 
exchanges of highly skilled research and innovation staff, are essential for Europe to re-take 
the path to sustainable growth and to tackle societal challenges. 

If Europe is to match its competitors in research and innovation, it must entice more young 
women and men to embark on research careers and provide highly attractive opportunities and 
environments  for  research  and  innovation.  The  most  talented  individuals,  from  Europe  and 
elsewhere, should see Europe as a pre-eminent place to work. Gender equality, high-quality 
and  reliable  employment  and  working  conditions  plus  recognition  are  crucial  aspects  that 
must be secured in a consistent way across the whole of Europe. 

3.2. 

Rationale and Union added value 

Neither  Union  funding  alone  nor  Member  States  individually  will  be  able  to  address  this 
challenge.  Although  Member  States  have  introduced  reforms  to  improve  their  tertiary 
education  institutions  and  modernise  their  training  systems,  progress  is  still  uneven  across 
Europe,  with  big  differences  between  countries.  Overall,  scientific  and  technological 
cooperation  between  the  public  and  private  sectors  generally  remains  weak  in  Europe.  The 
same  applies  to  gender  equality  and  to  the  efforts  to  attract  students  and  researchers  from 
outside the ERA. Currently around 20 % of the doctoral candidates in the Union are citizens 
of third countries, whereas about 35 % in the United States of America come from abroad. To 
speed  up  this  change,  a  strategic  approach  that  goes  beyond  national  borders  is  required  at 
Union level. Union funding is crucial to create incentives for and encourage the indispensable 
structural reforms. 

The European Marie Curie actions have made remarkable progress to promote mobility, both 
transnational  and  intersectoral,  and  to  open  research  careers  at  European  and  international 
levels,  with  excellent  employment  and  working  conditions  following  the  European 
Researchers Charter and Code. There is no equivalent in Member States as far as their scale 
and  scope,  funding,  international  character,  generation  and  transfer  of  knowledge  are 
concerned.  They  have  strengthened  the  resources  of  those  institutions  able  to  attract 
researchers internationally and thereby encouraged the spread of centres of excellence around 
the  Union.  They  have  served  as  a  role  model  with  a  pronounced  structuring  effect  by 
spreading their best practices at national level. The bottom-up approach taken by Marie Curie 
actions has also allowed a large majority of those institutions to train and upgrade the skills of 
a new generation of researchers able to tackle societal challenges. 

Further  development  of  the  Marie  Curie  actions  will  make  a  significant  contribution  to 
development  of  the  European  Research  Area.  With  their  Europe-wide  competitive  funding 
structure, Marie Curie actions will encourage new, creative and innovative types of training 
such as industrial doctorates, involving education, research and innovation players who will 
have to compete globally for a reputation of excellence. By providing Union funding for the 
best  research  and  training  programmes  following  the  Principles  for  Innovative  Doctoral 
Training in Europe, they will also promote wider dissemination and take-up, moving towards 
more structured doctoral training. 

Marie Curie grants will also be extended to the temporary mobility of experienced researchers 
and engineers from public institutions to the private sector or vice versa, thereby encouraging 
and supporting universities, research centres and businesses to cooperate with one another on 
a European and international scale. With the aid of their well-established, transparent and fair 
evaluation  system,  Marie  Curie  actions  will  identify  excellent  talents  in  research  and 

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innovation in an international competition which gives prestige and therefore motivation for 
researchers to advance their career in Europe. 

The societal challenges to be addressed by highly skilled researchers and innovation staff are 
not  just  Europe’s  problem.  These  are  international  challenges  of  colossal  complexity  and 
magnitude.  The  best  researchers  in  Europe  and  the  world  need  to  work  together  across 
countries, sectors and disciplines. Marie Curie actions will play a key role in this respect by 
supporting  staff  exchanges  that  will  foster  collaborative  thinking  via  the  international  and 
intersectoral knowledge-sharing that is so crucial for open innovation. 

Extension of the co-funding mechanism of the Marie Curie actions will be crucial to expand 
Europe’s  pool  of  talents.  The  numerical  and  structural  impact  of  Union  action  will  be 
increased  by  leveraging  regional,  national,  international  and  private  funding  to  create  new 
programmes and to open existing ones to international and intersectoral training, mobility and 
career  development.  Such  a  mechanism  will  forge  stronger  links  between  research  and 
education efforts at national and Union levels. 

All  the  activities  under  this  challenge  will  contribute  to  creating  a  whole  new  mindset  in 
Europe  that  is  crucial  for  creativity  and  innovation.  Marie  Curie  funding  measures  will 
strengthen pooling of resources in Europe and thereby lead to improvements in coordination 
and  governance  of  researchers’  training,  mobility  and  career  development.  They  will 
contribute to the policy goals outlined in the Innovation Union, Youth on the Move and the 
Agenda  for  New  Skills  and  Jobs  and  will  be  vital  to  turn  the  European  Research  Area  into 
reality. 

3.3. 

Broad lines of the activities 

(a) 

Fostering new skills by means of excellent initial training of researchers 

The goal is to train a new generation of creative and innovative researchers, able to convert 
knowledge and ideas into products and services for economic and social benefit in the Union. 

Key activities shall be to provide excellent and innovative training to early-stage researchers 
at  post-graduate  level  via  interdisciplinary  projects  or  doctoral  programmes  involving 
universities,  research  institutions,  businesses,  SMEs  and  other  socio-economic  groups  from 
different countries. This will improve career prospects for young post-graduate researchers in 
both the public and private sectors. 

(b) 

Nurturing excellence by means of cross-border and cross-sector mobility 

The goal is to enhance the creative and innovative potential of experienced researchers at all 
career levels by creating opportunities for cross-border and cross-sector mobility.  

Key activities shall be to encourage experienced researchers to broaden or deepen their skills 
by  means  of  mobility  by  opening  attractive  career  opportunities  in  universities,  research 
institutions, businesses, SMEs and other socio-economic groups all over Europe and beyond. 
Opportunities to restart a research career after a break shall also be supported. 

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(c) 

Stimulating innovation by means of cross-fertilisation of knowledge 

The goal is to reinforce international cross-border and cross-sector collaboration in research 
and  innovation  by  means  of  exchanges  of  research  and  innovation  personnel  in  order  to  be 
able to face global challenges better. 

Key  activities  shall  be  to  support  short-term  exchanges  of  research  and  innovation  staff 
among a partnership of universities, research institutions, businesses, SMEs and other socio-
economic groups, both within Europe and worldwide. This will include fostering cooperation 
with third countries. 

(d) 

Increasing the structural impact by co-funding the activities 

The goal is, by leveraging additional funds, to increase the numerical and structural impact of 
Marie Curie actions and to foster excellence at national level in researchers’ training, mobility 
and career development. 

Key  activities  shall  be,  with  the  aid  of  a  co-funding  mechanism,  to  encourage  regional, 
national and international organisations to create new programmes and to open existing ones 
to international and intersectoral training, mobility and career development. This will increase 
the quality of research training in Europe at all career stages, including at doctoral level, will 
foster  free  circulation  of  researchers  and  scientific  knowledge  in  Europe,  will  promote 
attractive research careers by offering open recruitment and attractive working conditions and 
will  support  research  and  innovation  cooperation  between  universities,  research  institutions 
and enterprises and cooperation with third countries and international organisations. 

(e) 

Specific support and policy action 

The goals are to monitor progress, identify gaps in the Marie Curie Actions and to increase 
their  impact.  In  this  context,  indicators  shall  be  developed  and  data  related  to  researchers’ 
mobility, skills and careers analysed, seeking synergies and close coordination with the policy 
support  actions  on  researchers,  their  employers  and  funders  carried  out  under  the  specific 
objective ' Inclusive, innovative and secure societies'. The activity shall further aim at raising 
awareness  of  the  importance  and  attractiveness  of  a  research  career  and  at  disseminating 
research and innovation results emanating from work supported by Marie Curie actions. 

4. 

RESEARCH INFRASTRUCTURES 

4.1 

Specific objective 

The  specific  objective  is  to  endow  Europe  with  world-class  research  infrastructures 
which  are  accessible  to  all  researchers  in  Europe  and  beyond  and  fully  exploit  their 
potential for scientific advance and innovation. 

Research  infrastructures  are  key  determinants  of  Europe’s  competitiveness  across  the  full 
breadth  of  scientific  domains  and  essential  to  science-based  innovation.  In  many  fields 
research is impossible without access to supercomputers, radiation sources for new materials, 
clean rooms for nanotechnologies, databases for genomics and social sciences, observatories 
for Earth sciences, broadband networks for transferring data, etc. Research infrastructures are 
necessary  to  carry  out  the  research  needed  to  address  grand  societal  challenges  —  energy, 
climate  change,  bio-economy  and  lifelong  health  and  wellbeing  for  all.  They  propel 

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collaboration across borders and disciplines and create a seamless and open European space 
for  online  research.  They  promote  mobility  of  people  and  ideas,  bring  together  the  best 
scientists  from  across  Europe  and  the  world  and  enhance  scientific  education.  They  drive 
excellence within the European research and innovation communities and can be outstanding 
showcases of science for society at large. 

Europe  must  establish  an  adequate,  stable  base  for  building,  maintaining  and  operating 
research infrastructures if its research is to remain world-class. This requires substantial and 
effective  cooperation  between  Union,  national  and  regional  funders  for  which  strong  links 
with the cohesion policy will be pursued to ensure synergies and a coherent approach.  

This  specific  objective  addresses  a  core  commitment  of  the  Innovation  Union  flagship 
initiative,  which  highlights  the  crucial  role  played  by  world-class  research  infrastructures  in 
making ground-breaking research and innovation possible. The initiative stresses the need to 
pool  resources  across  Europe,  and  in  some  cases  globally,  in  order  to  build  and  operate 
research infrastructures. Equally, the Digital Agenda for Europe flagship initiative emphasises 
the need to reinforce Europe’s e-infrastructures and the importance of developing innovation 
clusters to build Europe’s innovative advantage. 

4.2. 

Rationale and Union added value 

State-of-the-art research infrastructures are becoming increasingly complex and costly, often 
requiring  integration  of  different  equipment,  services  and  data  sources  and  extensive 
transnational collaboration. No single country has enough resources to support all the research 
infrastructures  it  needs.  The  European  approach  to  research  infrastructures  has  made 
remarkable  progress 
the  ESFRI  roadmap  for 
infrastructures21,  integrating  and  opening  national  research  facilities  and  developing  e-
infrastructures  underpinning  a  digital  European  Research  Area.  The  networks  of  research 
infrastructures  across  Europe  strengthen  its  human  capital  base  by  providing  world-class 
training  for  a  new  generation  of  researchers  and  engineers  and  promoting  interdisciplinary 
collaboration. 

in  recent  years  with 

implementing 

Further  development  and  wider  use  of  research  infrastructures  at  Union  level  will  make  a 
significant  contribution  to  development  of  the  European  Research  Area.  While  the  role  of 
Member  States  remains  central  in  developing  and  financing  research  infrastructures,  the 
Union  plays  an  important  part  in  supporting  infrastructure  at  Union  level,  fostering  the 
emergence  of  new  facilities,  opening  up  broad  access 
to  national  and  European 
infrastructures,  and  making  sure  that  regional,  national,  European  and  international  policies 
are  consistent  and  effective.  It  is  not  only  necessary  to  avoid  duplication  of  effort  and  to 
coordinate and rationalise use of the facilities, but also to pool resources so that the Union can 
also acquire and operate research infrastructures at world level. 

The efficiencies of scale and scope achieved by a European approach to construction, use and 
management  of  research  infrastructures,  including  e-infrastructures,  will  make  a  significant 
contribution to boosting Europe’s research and innovation potential. 

21 

ESFRI Strategy Report on Research Infrastructure — Roadmap 2010. 

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4.3. 

Broad lines of the activities 

The  activities  shall  aim  at  developing  the  European  research  infrastructures  for  2020  and 
beyond,  fostering  their  innovation  potential  and  human  capital  and  reinforcing  European 
research infrastructure policy. 

(a) 

Developing the European research infrastructures for 2020 and beyond 

The aims shall be to ensure the implementation and operation of the ESFRI and other world-
class  research  infrastructures,  including  the  development  of  regional  partner  facilities; 
integration  of  and  access  to  national  research  infrastructures;  and  the  development, 
deployment and operation of e-infrastructures. 

(b) 

Fostering the innovation potential of research infrastructures and their human capital 

The aims shall be to encourage research infrastructures to act as early adopters of technology, 
to  promote  R&D  partnerships  with  industry,  to  facilitate  industrial  use  of  research 
infrastructures  and  to  stimulate  the  creation  of  innovation  clusters.  This  activity  shall  also 
support training and/or exchanges of staff managing and operating research infrastructures. 

(c) 

Reinforcing European research infrastructure policy and international cooperation 

The aim shall be to support partnerships between relevant policymakers and funding bodies, 
mapping  and  monitoring  tools  for  decision-making  and  also  international  cooperation 
activities. 

The second and third activities shall be pursued by their own specific action and, whenever 
appropriate, as part of the first activity. 

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PART II 
INDUSTRIAL LEADERSHIP  

1. 

LEADERSHIP IN ENABLING AND INDUSTRIAL TECHNOLOGIES 

The specific objective is to maintain and build global leadership in enabling technologies 
and  space  research  and  innovation,  which  underpin  competitiveness  across  a  range  of 
existing and emerging industries and sectors. 

The  global  business  environment  is  changing  rapidly  and  the  Europe  2020  goals  for  smart, 
sustainable and inclusive growth  present  challenges  and  opportunities to  European industry. 
Europe needs to accelerate innovation, transforming the knowledge generated to underpin and 
enhance existing products, services and markets; and to create new ones. Innovation should be 
exploited  in  the  widest  sense,  going  beyond  technology  to  include  business,  organisational 
and social aspects.  

To stay at the forefront of global competition with a strong technological base and industrial 
capabilities, increased strategic investments in research, development, validation and piloting 
are  required  in  Information  and  Communication  Technologies  (ICT);  Nanotechnologies; 
Advanced Materials; Biotechnology; Advanced Manufacturing and Processing; and Space. 

The successful mastering and deployment of enabling technologies by European industry is a 
key  factor  in  strengthening  Europe's  productivity  and  innovation  capacity  and  ensuring 
Europe  has  an  advanced,  sustainable  and  competitive  economy,  global  leadership  in  hi-tech 
application sectors and the ability to develop effective solutions for societal challenges. The 
pervasive  nature  of  such  activities  can  spur  further  progress  through  complementary 
inventions and applications, ensuring a higher return on investment in these technologies than 
in any other field. 

These  activities  will  contribute  to  the  objectives  of  the  Europe  2020  Flagship  initiatives  on 
Innovation Union, Resource Efficient Europe, An industrial policy for the globalisation era, 
and A Digital Agenda for Europe as well as Union space policy objectives.  

Complementarities with other activities in Horizon 2020 

The  activities  under  'Leadership  in  Enabling  and  Industrial  Technologies'  will  be  primarily 
based on research and innovation agendas defined by industry and business, together with the 
research community and have a strong focus on leveraging private sector investment.  

The  integration  of  enabling  technologies  in  solutions  for  the  societal  challenges  shall  be 
supported together with the relevant challenges. Applications of enabling technologies that do 
not fall under the societal challenges, but are important for reinforcing the competitiveness of 
European  industry,  shall  be  supported  under  'Leadership  in  Enabling  and  Industrial 
Technologies'. 

A common approach 

The  approach  shall  include  both  agenda-driven  activities  and  more  open  areas  to  promote 
innovative projects and breakthrough solutions. Emphasis shall be on R&D, large-scale pilots 

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and demonstration activities, test beds and living labs, prototyping and product validation in 
pilot  lines.  Activities  shall  be  designed  to  boost  industrial  competitiveness  by  stimulating 
industry, and in particular SMEs, to make more research and innovation investment. 

An integrated approach to Key Enabling Technologies 

A major component of 'Leadership in Enabling and Industrial Technologies' are Key Enabling 
Technologies  (KETs),  defined  as  micro-  and  nanoelectronics,  photonics,  nanotechnology, 
biotechnology,  advanced  materials  and  advanced  manufacturing  systems22.  These  multi-
disciplinary,  knowledge  and  capital-intensive  technologies  cut  across  many  diverse  sectors 
providing the basis for significant competitive advantage for European industry. An integrated 
approach,  promoting  the  combination,  convergence  and  cross-fertilisation  effect  of  KETs  in 
different innovation cycles and value chains can deliver promising research results and open 
the  way  to  new  industrial  technologies,  products,  services  and  novel  applications  (e.g.  in 
space, transport, environment, health etc.). The numerous interactions of KETs and enabling 
technologies  will  therefore  be  exploited  in  a  flexible  manner,  as  an  important  source  of 
innovation. This will complement support for research and innovation in KETs that may be 
provided  by  national  or  regional  authorities  under  the  Cohesion  Policy  Funds  within  the 
framework of smart specialisation strategies. 

For all the enabling and industrial technologies, including the KETs, a major aim will be to 
foster  interactions  between  the  technologies,  and  with  the  applications  under  the  societal 
challenges. This shall be fully taken into account in developing and implementing the agendas 
and  priorities.  It  requires  that  stakeholders  representing  the  different  perspectives  are  fully 
involved  in  priority  setting  and  implementation.  In  certain  cases,  it  will  also  require  actions 
that are jointly funded by the enabling and industrial technologies, and by the relevant societal 
challenges. This will include joint funding for public-private partnerships that aim to develop 
technologies and apply them to address societal challenges. 

ICT  plays  an  important  role  as  it  embraces  some  of  the  KETs  and  provides  the  key  basic 
infrastructures,  technologies  and  systems  for  vital  economic  and  social  processes  and  new 
private  and  public  products  and  services.  European  industry  needs  to  remain  at  the  cutting 
edge  of  technological  developments  in  ICT,  where  many  technologies  are  entering  a  new 
disruptive phase, opening up new opportunities. 

Space is a rapidly growing sector which delivers information vital to many areas of modern 
society, meeting its fundamental demands, addresses universal scientific questions, and serves 
to  secure  the  Union's  position  as  a  major  player  on  the  international  stage.  Space  research 
underpins  all  activities  undertaken  in  space,  but  is  currently  fragmented  in  national 
programmes  run  by  a  subset  of  Union  member  states.  Union  level  coordination  and 
investment in space research are required (cf. Article 189 TFEU) to maintain the competitive 
edge, to safeguard Union space infrastructure such as Galileo and to sustain a future role for 
the Union in space. In addition, innovative downstream services and applications using space 
derived information represent an important source of growth and job creation. 

22 

COM(2009)512 

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Partnering and added value  

Europe can achieve critical mass through partnering, clusters and networks, standardisation, 
promoting cooperation between different scientific and technological  disciplines and sectors 
with similar research and development needs, leading to breakthroughs, new technologies and 
innovative solutions.  

The  development  and  implementation  of  research  and  innovation  agendas  through  public–
private  partnerships,  the  building  of  effective  industry-academia  links,  the  leveraging  of 
additional  investments,  the  access  to  risk  finance,  standardisation  and  the  support  to  pre-
commercial  procurement  and  the  procurement  of  innovative  products  and  services  are  all 
aspects that are essential in addressing competitiveness.  

In this regard, strong links with the EIT are also needed to breed entrepreneurial top talents 
and to speed up innovation by bringing together people from different countries, disciplines 
and organisations. 

Union  level  collaboration  can  also  support  trade  opportunities  through  the  development  of 
European or international standards for new emerging products and services and technologies. 
Activities  in  support  of  standardisation  and  interoperability,  safety  and  pre-regulatory 
activities will be promoted. 

1.1. 

Information and Communication Technologies (ICT) 

1.1.1. 

Specific objective for ICT 

In line with the Digital Agenda for Europe23, the specific objective of ICT research and 
innovation (R&I) is to enable Europe to develop and exploit the opportunities brought 
by ICT progress for the benefits of its citizens, businesses and scientific communities. 

As the world's largest economy and representing the largest share of the world's ICT market, 
today at more than EUR 2600 billion, Europe can have legitimate ambitions for its businesses, 
governments, research and development centres and universities to lead developments in ICT, 
to grow new business, and to invest more in ICT innovations.  

By 2020, Europe's ICT sector should supply at least the equivalent of its share of the global 
ICT market, today at about one third. Europe should also grow innovative businesses in ICT 
so that one third of all business expenditure in ICT R&D, today at more than EUR 35 billion 
per year, is invested by companies created within the last two decades. This would require a 
considerable  increase  in  public  investments  in  ICT  R&D  in  ways  that  leverage  private 
spending, towards the goal of doubling investments in the next decade, and significantly more 
European poles of world-class excellence in ICT. 

To master increasingly complex and multidisciplinary technology and business chains in ICT, 
partnering, risk-sharing and mobilisation of critical mass across the Union are needed. Union 
level action helps industry address a single market perspective and achieve economies of scale 
and  scope.  Collaboration  around  common,  open  technology  platforms  with  spill-over  and 
leverage  effects  allow  a  wide  range  of  stakeholders  to  benefit  from  new  developments  and 
apply  further  innovations.  Federating  and  partnering  at  Union  level  also  enables  consensus 

23 

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building,  establishes  a  visible  focal  point  for  international  partners,  and  leads  to  the 
development of Union- and world-wide standards and interoperable solutions. 

1.1.2.  Rationale and Union added value 

ICT  underpins  innovation  and  competitiveness  across  a  broad  range  of  private  and  public 
markets and sectors, and enables scientific progress in all disciplines. Over the next decade, 
the  transformative  impact  of  digital  technologies,  ICT  components,  infrastructures  and 
services will be increasingly visible in all areas of life. Unlimited computing, communication 
and  data  storage  resources  will  be  available  to  every  citizen  on  the  globe.  Vast  amounts  of 
information  and  data  will  be  generated  by  sensors,  machines  and  information-enhanced 
products, making action at a distance a commonplace, enabling global deployment of business 
processes  and  sustainable  production  sites  and  bringing  a  wide  range  of  services  and 
applications.  Many  critical  commercial  and  public  services  and  all  key  processes  of 
knowledge  production  in  science,  learning,  business  and  the  public  sector  will  be  provided 
through  ICT.  ICT  will  provide  the  critical  infrastructure  for  production  and  business 
processes, communication and transactions. ICT will also be indispensable in contributing to 
key societal challenges , as well as societal processes such as community formation, consumer 
behaviour, and public governance, for example by means of social media. 

The Union support to ICT research and innovation is a significant component to prepare the 
next generation technologies and applications as it makes up a large part of total spending on 
collaborative,  mid-to-high  risk  R&I  in  Europe.  Public  investment  in  ICT  research  and 
innovation at Union level has been and remains essential to mobilise the critical mass leading 
to breakthroughs and to a wider uptake and better use of innovative solutions, products and 
services.  It  continues  to  play  a  central  role  in  developing  open  platforms  and  technologies 
applicable across the Union, in testing and piloting innovations in real pan-European settings 
and  in  optimising  resources  when  addressing  Union  competitiveness  and  tackling  common 
societal challenges. Union support to ICT research and innovation is also enabling high-tech 
SMEs  to  grow  and  capitalise  on  the  size  of  Union-wide  markets.  It  is  strengthening 
collaboration  and  excellence  amongst  Union  scientists  and  engineers,  reinforcing  synergies 
with and between national budgets, and acting as a focal point for collaboration with partners 
outside Europe. 

Successive  evaluations  of  ICT  activities  in  the  Union's  Framework  Programme  for  research 
and innovation have shown that focused ICT research and innovation investment undertaken 
at  Union  level  has  been  instrumental  in  building  industrial  leadership  in  areas  like  mobile 
communications, safety-critical ICT systems, and to address challenges like energy-efficiency 
or  demographic  change.  Union  investments  in  ICT  research  infrastructures  have  provided 
European researchers with the world's best research networking and computing facilities. 

1.1.3.  Broad lines of the activities 

A number of activity lines shall target ICT industrial and technological leadership challenges 
and cover generic ICT research and innovation agendas, including notably: 

(a) 

A  new  generation  of  components  and  systems:  Engineering  of  advanced  and  smart 
embedded components and systems; 

(b) 

Next generation computing: Advanced computing systems and technologies;  

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(c) 

(d) 

(e) 

(f) 

Future Internet: Infrastructures, technologies and services;  

Content  technologies  and  information  management:  ICT  for  digital  content  and 
creativity;  

Advanced interfaces and robots: Robotics and smart spaces; 

Micro-  and  nanoelectronics  and  photonics:  Key  enabling  technologies  related  to 
micro- and nanoelectronics and to photonics.  

These  six  major  activity  lines  are  expected  to  cover  the  full  range  of  needs.  These  would 
include industrial leadership in generic ICT-based solutions, products and services needed to 
tackle  major  societal  challenges  as  well  as  application-driven  ICT  research  and  innovation 
agendas which will be supported together with the relevant societal challenge.  

These six activity lines shall also include ICT specific research infrastructures such as living 
labs  for  large-scale  experimentation,  and  infrastructures  for  underlying  key  enabling 
technologies  and  their  integration  in  advanced  products  and  innovative  smart  systems, 
including  equipment,  tools,  support  services,  clean  rooms  and  access  to  foundries  for 
prototyping.  

1.2. 

Nanotechnologies 

1.2.1. 

Specific objective for nanotechnologies 

The  specific  objective  of  nanotechnologies  research  and  innovation  is  to  secure  Union 
leadership 
in 
nanotechnologies  and  their  uptake  in  high  added-value,  competitive  products  and 
services across a range of applications and sectors.  

in  this  high  growth  global  market,  by  stimulating 

investment 

By  2020,  nanotechnologies  will  be  mainstreamed,  that  is  seamlessly  integrated  with  most 
technologies  and  applications,  driven  by  consumer  benefits,  quality  of  life,  sustainable 
development and the strong industrial potential for achieving previously unavailable solutions 
for productivity and resource efficiency. 

Europe  must  also  set  the  global  benchmark  on  safe  and  responsible  nanotechnology 
deployment and governance ensuring both high societal and industrial returns. 

Products  using  nanotechnologies  represent  a  world  market  which  Europe  cannot  afford  to 
ignore.  Market  estimates  of  the  value  of  products  incorporating  nanotechnology  as  the  key 
component reach EUR 700 billion by 2015 and EUR 2 trillion by 2020, with a corresponding 
2  and  6  million  jobs  respectively.  Europe's  nanotechnology  companies  should  exploit  this 
double  digit  market  growth  and  be  capable  of  capturing  a  market  share  at  least  equal  to 
Europe's share of global research funding (i.e. a quarter) by 2020.  

1.2.2.  Rationale and Union added value 

Nanotechnologies  are  a  spectrum  of  evolving  technologies  with  proven  potential,  having 
revolutionary impact in for example materials, ICT, life sciences and healthcare and consumer 
goods once the research is translated into breakthrough products and production processes.  

Nanotechnologies  have  a  critical  role  to  play  in  addressing  the  challenges  identified  by  the 
Europe 2020 strategy for smart, sustainable and inclusive growth. The successful deployment 

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of these key enabling technologies will contribute to the competitiveness of Union industry by 
enabling novel  and improved  products or more efficient processes and provide responses to 
future challenges.  

The global research funding for nanotechnologies has doubled from around EUR 6.5 billion 
in 2004 to around EUR 12.5 billion in 2008, with the Union accounting for about a quarter of 
this 
in  nanosciences  and 
nanotechnologies with a projection of some 4000 companies in the Union by 2015.  

total.  The  Union  has 

recognised 

leadership 

research 

Europe now needs to secure and build on its position in the global market by promoting wide 
scale cooperation in and across many different value chains and between different industrial 
sectors to realise the process scale-up of these technologies into viable commercial products. 
The  issues  of  risk  assessment  and  management  as  well  as  responsible  governance  are 
emerging  as  determining  factors  of  future  impact  of  nanotechnologies  on  society  and  the 
economy.  

Thus,  the  focus  of  activities  shall  be  on  the  widespread  and  responsible  application  of 
nanotechnologies  into  the  economy,  to  enable  benefits  with  high  societal  and  industrial 
impact.  To  ensure  the  potential  opportunities,  including  setting-up  new  companies  and 
generating new jobs, research should provide the necessary tools to allow for standardisation 
and regulation to be correctly implemented.  

1.2.3.  Broad lines of the activities 

(a) 

Developing next generation nanomaterials, nanodevices and nanosystems 

Aiming  at  fundamentally  new  products  enabling  sustainable  solutions  in  a  wide  range  of 
sectors. 

(b) 

Ensuring the safe development and application of nanotechnologies 

Advancing scientific knowledge of the potential impact of nanotechnologies and nanosystems 
on  health  or  on  the  environment,  and  providing  tools  for  risk  assessment  and  management 
along the entire life cycle. 

(c) 

Developing the societal dimension of nanotechnology 

Focusing on governance of nanotechnology for societal benefit. 

(d) 

Efficient synthesis and manufacturing of nanomaterials, components and systems 

Focusing on new operations, smart integration of new and existing processes, as well as up-
scaling  to  achieve  mass  production  of  products  and  multi-purpose  plants  that  ensures  the 
efficient transfer of knowledge into industrial innovation. 

(e) 

Developing capacity-enhancing techniques, measuring methods and equipment 

Focusing  on  the  underpinning  technologies  supporting  the  development  and  market 
introduction of complex nanomaterials and nanosystems.  

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1.3. 

Advanced materials 

1.3.1. 

Specific objective for advanced materials 

The  specific  objective  of  advanced  materials  research  and  innovation  is  to  develop 
materials  with  new  functionalities  and  improved  in-service  performance,  for  more 
competitive products that minimise the impact on the environment and the consumption 
of resources. 

Materials  are  at  the  core  of  industrial  innovation  and  are  key  enablers.  Advanced  materials 
with  higher  knowledge  content,  new  functionalities  and  improved  performance  are 
indispensable  for  industrial  competitiveness  and  sustainable  development  across  a  range  of 
applications and sectors  

1.3.2.  Rationale and Union added value 

New advanced materials are needed in developing better performing and sustainable products 
and  processes.  Such  materials  are  a  part  of  the  solution  to  our  industrial  and  societal 
challenges, offering better performance in their use, lower resource and energy requirements, 
and sustainability at the end-of-life of the products. 

Application-driven development often involves the design of totally new materials, with the 
ability to deliver planned in-service performances. Such materials are an important element in 
the supply chain of high value manufacturing. They are also the basis for progress in cross-
cutting technology areas (for example biosciences, electronics and photonics), and in virtually 
all  market  sectors.  The  materials  themselves  represent  a  key  step  in  increasing  the  value  of 
products  and  their  performance.  The  estimated  value  and  impact  of  advanced  materials  is 
significant, with an annual growth rate of about 6 % and expected market size of the order of 
EUR 100 billion by 2015.  

Materials  shall  be  conceived  according  to  a  full  life-cycle  approach,  from  the  supply  of 
available materials  to  end  of  life (cradle to cradle), with innovative  approaches to minimise 
the resources required for their transformation. Continuous use, recycling or secondary end-
of-life utilisation of the materials shall also be covered as well as related societal innovation. 

To  accelerate  progress,  a  multidisciplinary  and  convergent  approach  shall  be  fostered, 
involving chemistry, physics, engineering sciences, theoretical and computational modelling, 
biological sciences and increasingly creative industrial design.  

Novel  green  innovation  alliances  and  industrial  symbiosis  shall  be  fostered  allowing 
industries to diversify, expand their business models, re-using their waste as a basis for new 
productions, e.g. CO2 as carbon base for fine chemicals and alternative fuels. 

1.3.3.  Broad lines of the activities 

(a) 

Cross-cutting and enabling materials technologies 

Research  on  functional  materials,  multifunctional  materials  and  structural  materials,  for 
innovation in all industrial sectors.  

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(b) 

Materials development and transformation 

Research  and  development  to  ensure  efficient  and  sustainable  scale  up  to  enable  industrial 
manufacturing of future products  

(c) 

Management of materials components 

Research and development for new and innovative techniques and systems.  

(d) 

Materials for a sustainable and low-carbon industry 

Developing  new  products  and  applications,  and  consumer  behaviour  that  reduce  energy 
demand, and facilitate low-carbon production.  

(e) 

Materials for creative industries 

Applying  design  and  the  development  of  converging  technologies  to  create  new  business 
opportunities, including the preservation of materials with historical or cultural value. 

(f) 

Metrology, characterisation, standardisation and quality control  

Promoting  technologies  such  as  characterisation,  non-destructive  evaluation  and  predictive 
modelling of performance for progress in materials science and engineering.  

(g) 

Optimisation of the use of materials 

Research  and  development  to  investigate  alternatives  to  the  use  of  materials  and  innovative 
business model approaches.  

1.4. 

Biotechnology 

1.4.1. 

Specific objective for biotechnology 

The  specific  objective  of  biotechnology  research  and  innovation  is  to  develop 
competitive,  sustainable  and 
industrial  products  and  processes  and 
contribute  as  an  innovation  driver  in  a  number  of  European  sectors  like  agriculture, 
food, chemical and health.  

innovative 

A  strong  scientific,  technological  and  innovation  base  in  biotechnology,  will  support 
European industries securing leadership in this key enabling technology. This position will be 
further  strengthened  by  integrating  the  safety  assessment  and  management  aspects  of  the 
overall risks in the deployment of biotechnology. 

1.4.2.  Rationale and Union added value 

Powered by the expansion of the knowledge of living systems, biotechnology is set to deliver 
a stream of new applications and to strengthen the Union's industrial base and its innovation 
capacity.  Examples  of  the  rising  importance  of  biotechnology  are  in  industrial  applications 
including bio-chemicals, of which the market share is estimated to increase by up to 12 %-20 
%  of  chemical  production  by  2015.  A  number  of  the  so-called  twelve  rules  of  Green 
Chemistry are also addressed by biotechnology, due to the selectivity and efficiency of bio-
systems. The possible economic burdens for Union enterprises can be reduced by harnessing 

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the  potential  of  biotechnology  processes  and  bio-based  products  to  reduce  CO2  emissions, 
estimated  to  range  from  between  1  to  2.5  billion  tons  CO2  equivalent  per  year  by  2030.In 
Europe's  biopharmaceutical  sector,  already  some  20  %  of  the  current  medicines  are  derived 
from  biotechnology,  with  up  to  50  %  of  new  medicines.  Biotechnology  also  opens  new 
avenues  for  exploiting  the  huge  potential  of  marine  resources  for  producing  innovative 
industrial,  health  and  environmental  applications.  The  emerging  sector  of  marine  (blue) 
biotechnology has been predicted to grow by 10 % a year.  

Other key sources of innovation are at the interface between biotechnology and other enabling 
and converging technologies, in particular nanotechnologies and ICT, with applications such 
as sensing and diagnosing. 

1.4.3.  Broad lines of the activities 

(a) 

Boosting cutting-edge biotechnologies as a future innovation driver  

Development  of  emerging  technology  areas  such  as  synthetic  biology,  bioinformatics  and 
systems biology, which hold great promise for completely novel applications. 

(b) 

Biotechnology-based industrial processes 

Developing  industrial  biotechnology  for  competitive  industrial  products  and  processes  (e.g. 
chemical,  health,  mining,  energy,  pulp  and  paper,  textile,  starch,  food  processing)  and  its 
environmental dimension. 

(c) 

Innovative and competitive platform technologies 

Development of platform technologies (e.g. genomics, meta-genomics, proteomics, molecular 
tools)  to  enhance  leadership  and  competitive  advantage  in  a  wide  number  of  economic 
sectors. 

1.5. 

Advanced manufacturing and processing 

1.5.1. 

Specific objective 

The  specific  objective  of  advanced  manufacturing  and  processing  research  and 
innovation  is  to  transform  today's  industrial  forms  of  production  towards  more 
knowledge 
trans-sectoral  manufacturing  and  processing 
technologies, resulting in more innovative products, processes and services. 

intensive,  sustainable, 

1.5.2.  Rationale and Union added value 

The  manufacturing  sector  is  of  high  importance  to  the  European  economy,  contributing  to 
around 17 % of GDP and accounting for some 22 million jobs in the Union in 2007. With the 
lowering of economic barriers to trade and the enabling effect of communications technology, 
manufacturing is subject to strong competition and has been gravitating to countries of lowest 
overall  cost.  Due  to  high  wages,  the  European  approach  to  manufacturing  therefore  has  to 
change radically to remain globally competitive and Horizon 2020 can help bring together all 
the relevant stakeholders to achieve this.  

Europe  needs  to  continue  to  invest  at  an  Union  level  to  maintain  European  leadership  and 
competence in manufacturing technologies and make the transition to high-value, knowledge-

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intensive goods, creating the conditions and assets for sustainable, production and provision 
of  lifetime  service  around  a  manufactured  product.  Resource  intensive  manufacturing  and 
process  industries  need  to  further  mobilise  resources  and  knowledge  at  Union  level  and 
continue to invest in research, development and innovation to enable further progress towards 
a competitive low carbon economy and to comply with the agreed Union wide reductions in 
greenhouse gas emissions by 2050 for industrial sectors24. 

With  strong  Union  policies,  Europe  would  grow  its  existing  industries  and  nurture  the 
emerging industries of the future. The estimated value and impact of the sector of advanced 
manufacturing systems is significant, with an expected market size  around EUR  150 billion 
by 2015 and compound annual growth rate of about 5 %.  

It  is  crucial  to  retain  knowledge  and  competence  in  order  to  keep  manufacturing  and 
processing capacity in Europe. The emphasis of the research and innovation activities shall be 
on sustainable manufacturing and processing, introducing the necessary technical innovation 
and customer-orientation to produce high knowledge content products and services with low 
material and energy consumption. Europe also  needs to transfer these enabling technologies 
and knowledge to other productive sectors, such as construction, which is a major source of 
greenhouse  gases  (GHG)  with  building  activities  accounting  for  around  40  %  of  all  energy 
consumption  in  Europe,  giving  rise  to  36  %  of  the  CO2  emissions.  The  construction  sector, 
generating  10  %  of  GDP  and  providing  some  16  million  jobs  in  Europe  in  3  million 
enterprises, of which 95 % are SMEs, needs to adopt innovative materials and manufacturing 
approaches to mitigate its environmental impact. 

1.5.3.  Broad lines of the activities 

(a) 

Technologies for Factories of the Future 

Promoting sustainable industrial growth by facilitating a strategic shift in Europe from cost-
based manufacturing to an approach based on the creation of high added value.  

(b) 

Technologies enabling Energy-efficient buildings 

Reducing  energy  consumption  and  CO2  emissions  by  the  development  and  deployment  of 
sustainable construction technologies.  

(c) 

Sustainable and low-carbon technologies in energy-intensive process industries 

Increasing  the  competitiveness  of  process  industries,  by  drastically  improving  resource  and 
energy  efficiencies  and  reducing  the  environmental  impact  of  such  industrial  activities 
through the whole value chain, promoting the adoption of low-carbon technologies.  

(d) 

New sustainable business models 

Deriving  concepts  and  methodologies  for  adaptive,  'knowledge-based'  business  models  in 
customised approaches.  

24 

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1.6. 

Space 

1.6.1. 

Specific objective for space 

The  specific  objective  of  space  research  and  innovation  is  to  foster  a  competitive  and 
innovative  space  industry  and  research  community  to  develop  and  exploit  space 
infrastructure to meet future Union policy and societal needs. 

Strengthening the European space sector by boosting space research and innovation is vital to 
maintain and safeguard Europe's capability of access to and operations in space in support of 
Union policies, international strategic interests and competitiveness amongst established and 
emerging space faring nations. 

1.6.2.  Rationale and Union added value 

Space is an important, but frequently invisible enabler of diverse services and products crucial 
to modern day society, such as navigation, communication, weather forecasts, and geographic 
information. Policy formulation and implementation at European, national and regional levels 
increasingly depend on space-derived information. The global space sector is rapidly growing 
and expanding into new regions (e.g. China, South America). European industry is at present 
a  considerable  exporter  of  first  class  satellites  for  commercial  and  scientific  purposes. 
Increasing global competition is challenging Europe’s position in this area. Thus Europe has 
an interest in ensuring that its industry continues to thrive in this fiercely competitive market 
In  addition,  data  from  European  science  satellites  have  resulted  in  some  of  the  most 
significant scientific breakthroughs in the last decades in Earth sciences and astronomy. With 
this  unique  capacity,  the  European  space  sector  has  a  critical  role  to  play  in  addressing  the 
challenges identified by Europe 2020. 

Research,  technology  development  and  innovation  underpin  capacities  in  space  which  are 
vital  to  European  society.  While  the  United  States of America spends around 25 % of their 
space  budget  on  R&D,  the  Union  spends  less  than  10  %.  Moreover,  space  research  in  the 
Union  is  fragmented  in  the  national  programmes  of  a  few  Member  States.  To  maintain  the 
technological and competitive edge Union level action is needed to coordinate space research, 
to promote the participation of researchers from all Member States, and to lower the barriers 
for  collaborative  space  research  projects  across  national  borders.  This  needs  to  be  done  in 
coordination  with  the  European  Space  Agency,  which  has  successfully  managed  industrial 
satellite development and deep space missions on an intergovernmental basis with a subset of 
the  Member  States  since  1975.  In  addition,  the  information  provided  by  European  satellites 
will  offer  an  increasing  potential  for  further  development  of  innovative  satellite-based 
downstream services. This is a typical activity sector for SMEs and should be supported by 
research  and  innovation  measures  in  order  to  reap  the  full  benefits  of  this  opportunity,  and 
especially  of  the  considerable  investments  made  on  the  two  Union  flagships  Galileo  and 
GMES. 

Space naturally transcends terrestrial boundaries, providing a unique vantage point of global 
dimension,  thus  giving  rise  to  large  scale  projects  which  (e.g.  International  Space  Station, 
Space  Situational  Awareness)  are  carried  out  in  international  co-operation.  To  play  a 
significant  role  in  such  international  space  activities  in  the  next  decades,  both  a  common 
European  space  policy  and  European  level  space  research  and  innovation  activities  are 
indispensible. 

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Space  research  and  innovation  under  Horizon  2020  aligns  with  the  Union  space  policy 
priorities  as  they  continue  to  be  defined  by  the  Union  Space  Councils  and  the  European 
Commission25.  

1.6.3.  Broad lines of the activities  

(a) 

Enabling  European  competitiveness,  non-dependence  and 
European space sector 

innovation  of 

the 

This entails safeguarding and developing a competitive and entrepreneurial space industry in 
combination  with  a  world-class  space  research  community  to  maintain  European  leadership 
and  non-dependence  in  space  technology,  to  foster  innovation  in  the  space  sector,  and  to 
enable space-based terrestrial innovation, for example by using remote sensing and navigation 
data.  

(b) 

Enabling advances in space technologies 

This aims at developing advanced space technologies and operational concepts from idea to 
demonstration in space, including navigation and remote sensing, as well as the protection of 
space  assets  from  threats  such  as  debris  and  solar  flares.  To  develop  and  apply  advanced 
space technologies requires the continuous education and training of highly skilled engineers 
and scientists. 

(c) 

Enabling exploitation of space data 

A  considerably  increased  exploitation  of  data  from  European  satellites  can  be  achieved  if  a 
concerted  effort  is  made  to  coordinate  and  organise  the  processing,  validation  and 
standardisation of space data. Innovations in data handling and dissemination can also ensure 
a  higher  return  on  investment  of  space  infrastructure,  and  contribute  to  tackling  societal 
challenges,  in  particular  if  coordinated  in  a  global  effort  such  as  through  Global  Earth 
Observation  System  of  Systems,  the  European  satellite  navigation  programme  Galileo  or 
IPCC for climate change issues. 

(d) 

Enabling European research in support of international space partnerships  

Space  undertakings  have  a  fundamentally  global  character.  This  is  particularly  clear  for 
activities  such  as  Space  Situational  Awareness  (SSA),  and  many  space  science  and 
exploration projects. The development of cutting edge space technology is increasingly taking 
place within such international partnerships. Ensuring access to these constitutes an important 
success factor for European researchers and industry. 

25 

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2. 

ACCESS TO RISK FINANCE 

2.1. 

Specific objective 

The specific objective is to help remedy market deficiencies in accessing risk finance for 
research and innovation. 

The investment situation in the research and innovation (R&I) domain is dire, particularly for 
innovative  SMEs  and  mid-caps  with  a  high  potential  for  growth.  There  are  several  major 
market gaps  in  the  provision of  finance, as the innovations required to achieve policy goals 
are proving too risky, typically, for the market to bear. 

A  facility  for  debt  ('Debt  facility')  and  a  facility  for  equity  ('Equity  facility')  will  help 
overcome  such  problems  by  improving  the  financing  and  risk  profiles  of  the  R&I  activities 
concerned. This, in turn, will ease access by firms and other beneficiaries to loans, guarantees 
and other forms of risk finance; promote early-stage investment and the development of new 
venture  capital  funds;  improve  knowledge  transfer  and  the  market  in  intellectual  property; 
attract  funds  to  the  venture  capital  market;  and,  overall,  help  catalyse  the  passage  from  the 
conception,  development  and  demonstration  of  new  products  and  services  to  their 
commercialisation. 

The overall effect will be to increase the willingness of the private sector to invest in R&I and 
hence contribute to reaching a key Europe 2020 target: 3 % of Union GDP invested in R&D 
by  the  end  of  the  decade.  The  use  of  financial  instruments  will  also  help  achieve  the  R&I 
objectives  of  all  sectors  and  policy  areas  crucial  for  tackling  societal  challenges  (such  as 
climate change, energy and resource efficiency, global food security, healthcare provision and 
an  ageing  population),  for  enhancing  competitiveness,  and  for  supporting  sustainable, 
inclusive growth and the provision of environmental and other public goods. 

2.2. 

Rationale and Union added value 

A  Union-level  Debt  facility  for  R&I  is  needed  to  increase  the  likelihood  that  loans  and 
guarantees  are  made  and  R&I  policy  objectives  achieved.  The  current  gap  in  the  market 
between  the  demand  for  and  supply  of  loans  and  guarantees  for  risky  R&I  investments, 
addressed  by  the  current  Risk-Sharing  Finance  Facility  (RSFF),  is  likely  to  persist,  with 
commercial banks remaining largely absent from higher-risk lending. Demand for RSFF loan 
finance  has  been  high  since  the  launch  of  the  facility  in  mid-2007:  in  its  first  phase  (2007-
2010),  its  take-up  exceeded  initial  expectations  by  more  than  50  %  in  terms  of  active  loan 
approvals (EUR 7.6 billion versus a forecast EUR 5 billion). 

Furthermore,  banks  typically  lack  the  ability  to  value  knowledge  assets,  such  as  intellectual 
property,  and  therefore  are  often  unwilling  to  invest  in  knowledge-based  companies.  The 
consequence is that many established innovative companies — both large and small — cannot 
obtain loans for higher-risk R&I activities. 

These  market  gaps  stem,  at  root,  from  uncertainties,  information  asymmetries  and  the  high 
costs of attempting to address these issues: recently established firms have too short a track 
record  to  satisfy  potential  lenders,  even  established  firms  often  cannot  provide  enough 
information, and at the start of an R&I investment, it is not at all certain whether the efforts 
undertaken will actually result in a successful innovation. 

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Additionally,  enterprises  at  the  concept  development  stage  or  working  in  emerging  areas 
typically lack sufficient collateral. Another disincentive is that even if R&I activities give rise 
to a commercial product or process, it is not at all certain that the company that has made the 
effort will be able to exclusively appropriate the benefits deriving from it. 

In  terms  of  Union  added  value,  the  Debt  facility  will  help  remedy  market  deficiencies  that 
prevent the private sector from investing in R&I at an optimum level. Its implementation will 
enable  the  pooling  of  a  critical  mass  of  resources  from  the  Union  budget  and,  on  a  risk-
sharing  basis,  from  the  financial  institution(s)  entrusted  with  its  implementation.  It  will 
stimulate  firms  to  invest  more  of  their  own  money  in  R&I  than  they  would  otherwise  have 
done. In addition, the Debt facility will help organisations, both public and private, to reduce 
the  risks  of  undertaking  the  pre-commercial  procurement  or  procurement  of  innovative 
products and services. 

A  Union-level  Equity  facility  for  R&I  is  needed  to  help  improve  the  availability  of  equity 
finance  for  early  and  growth-stage  investments  and  to  boost  the  development  of  the  Union 
venture  capital  market.  During  the  technology  transfer  and  start-up  phase,  new  companies 
face  a  'valley  of  death'  where  public  research  grants  stop  and  it  is  not  possible  to  attract 
private finance. Public support aiming to leverage private seed and start-up funds to fill this 
gap  is  currently  too  fragmented  and  intermittent,  or  its  management  lacks  the  necessary 
expertise.  Furthermore,  most  venture  capital  funds  in  Europe  are  too  small  to  support  the 
continued growth of innovative companies and do not have the critical mass to specialise and 
operate transnationally. 

The  consequences  are  serious.  Before  the  financial  crisis,  the  amount  invested  in  SMEs  by 
European venture capital funds was about EUR 7 billion a year, while figures for 2009 and 
2010 were within the EUR 3-4 billion range. Reduced funding for venture capital has affected 
the number of start-ups targeted by venture capital funds: in 2007, some 3 000 SMEs received 
venture capital funding, compared to only around 2 500 in 2010. 

In terms of Union added value, the Equity facility for R&I will complement national schemes 
that cannot cater for cross-border investments in R&I. The early-stage deals will also have a 
demonstration  effect  that  can  benefit  public  and  private  investors  across  Europe.  For  the 
growth  phase,  only  at  European  level  is  it  possible  to  achieve  the  necessary  scale  and  the 
strong  participation  of  private  investors  that  are  essential  to  the  functioning  of  a  self-
sustaining venture capital market. 

The Debt and Equity facilities, supported by a set of accompanying measures, will support 
the  achievement  of  Horizon  2020's  policy  objectives.  To  this  end,  they  will  be  dedicated  to 
consolidating  and  raising  the  quality  of  Europe's  science  base;  promoting  research  and 
innovation with a business-driven agenda; and addressing societal challenges, with a focus on 
activities such as piloting, demonstration, test-beds and market uptake. 

In addition, they will help tackle the R&I objectives  of other  programmes and policy areas, 
such as the Common Agricultural Policy, climate action (transition to a low-carbon economy 
and adaptation to climate change), and the Common Fisheries Policy. Complementarities with 
national and regional financial instruments will be developed in the context of the Common 
Strategic Framework for Cohesion Policy, where an increased role for financial instruments is 
foreseen. 

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Their  design  takes  account  of  the  need  to  address  the  specific  market  deficiencies, 
characteristics  (such  as  degree  of  dynamism  and  rate  of  company  creation)  and  financing 
requirements of these and other areas. Budgetary allocations between the instruments may be 
adapted during the course of Horizon 2020 in response to changing economic conditions. 

The Equity facility and the SME window of the Debt facility will be implemented as part of 
two EU Financial Instruments that provide equity and debt to support SMEs' R&I and growth, 
in  conjunction  with  the  equity  and  debt  facilities  under 
the 
Competitiveness of Enterprises and SMEs. 

the  Programme  for 

2.3. 

Broad lines of the activities 

(a) 

The  Debt  facility  providing  debt  finance  for  R&I:  'Union  loan  &  guarantee  service 
for research and innovation' 

The goal is to improve access to debt financing — loans, guarantees, counter-guarantees and 
other  forms  of  debt  and  risk  finance  —  for  public  and  private  entities  and  public-private 
partnerships engaged in research and innovation activities requiring risky investments in order 
to  come  to  fruition.  The  focus  shall  be  on  supporting  research  and  innovation  with  a  high 
potential for excellence. 

The target final beneficiaries shall potentially be legal entities of all sizes that can borrow and 
repay  money  and,  in  particular,  SMEs  with  the  potential  to  carry  out  innovation  and  grow 
rapidly; mid-caps and large firms; universities and research institutes; research infrastructures 
and  innovation  infrastructures;  public-private  partnerships;  and  special-purpose  vehicles  or 
projects. 

The funding of the Debt facility shall have two main components: 

(1)  Demand-driven,  providing  loans  and  guarantees  on  a  first-come,  first-served 
basis, with specific support for beneficiaries such as SMEs and mid-caps. This 
component  shall  respond  to  the  steady  and  continuing  growth  seen  in  the 
volume  of  RSFF  lending,  which  is  demand-led.  Under  the  SME  window, 
activities  shall  be  supported  that  aim  to  improve  access  to  finance  for  SMEs 
and other entities that are R&D- and/or innovation-driven. 

(2)  Targeted,  focusing  on  policies  and  key  sectors  crucial  for  tackling  societal 
challenges,  enhancing  competitiveness,  supporting  sustainable,  low-carbon, 
inclusive  growth,  and  providing  environmental  and  other  public  goods.  This 
component  shall  help  the  Union  address  research  and  innovation  aspects  of 
sectoral policy objectives. 

(b) 

The Equity facility providing equity finance for R&I: 'Union Equity Instruments for 
research and innovation' 

The  goal  is  to  contribute  to  overcoming  the  deficiencies  of  the  European  venture  capital 
market and provide equity and quasi-equity to cover the development and financing needs of 
innovating enterprises from the seed stage through to growth and expansion. The focus shall 
be on supporting the objectives of Horizon 2020 and related policies. 

The  target  final  beneficiaries  shall  be  potentially  enterprises  of  all  sizes  undertaking  or 
embarking on innovation activities, with a particular focus on innovative SMEs and mid-caps.  

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The Equity facility will focus on  early-stage venture capital funds providing  venture capital 
and quasi-equity (including mezzanine capital) to individual portfolio enterprises. The facility 
will also have the possibility to make expansion and growth-stage investments in conjunction 
with  the  Equity  Facility  for  Growth  under  the  Programme  for  the  Competitiveness  of 
Enterprises and SMEs, to ensure a continuum of support during the start up and development 
of companies. 

The  equity  facility,  which  will  be  primarily  demand-driven,  shall  use  a  portfolio  approach, 
where  venture  capital  funds  and  other  comparable  intermediaries  select  the  firms  to  be 
invested in.  

Earmarking may be applied to help achieve particular policy goals, building on the positive 
experience  in  the  Competitiveness  and  Innovation  Framework  Programme  with  earmarking 
for eco-innovation. 

The start-up window, supporting the seed and early stages, shall enable equity investments 
in,  amongst  others,  knowledge-transfer  organisations,  seed  capital  funds,  cross-border  seed 
funds,  business  angel  co-investment  vehicles,  intellectual  property  assets,  platforms  for  the 
exchange and trading of intellectual property rights, and early-stage venture capital funds. 

The growth window shall make expansion and growth-stage investments in conjunction with 
the Equity Facility for Growth under the Programme for the Competitiveness of Enterprises 
and SMEs, including investments in funds-of-funds operating across borders and investing in 
venture  capital  funds,  most  of  which  will  have  a  thematic  focus  that  supports  the  goals  of 
Europe 2020. 

3. 

INNOVATION IN SMALL AND MEDIUM-SIZED ENTERPRISES 

3.1 

Specific objective 

The  specific  objective  is  to  stimulate  growth  by  means  of  increasing  the  levels  of 
innovation in SMEs, covering their different innovation needs over the whole innovation 
cycle  for  all  types  of  innovation,  thereby  creating  more  fast-growing,  internationally 
active SMEs. 

Considering the central role of SMEs in Europe’s economy, research and innovation in SMEs 
will  play  a  crucial  role  in  increasing  competitiveness,  boosting  economic  growth  and  job 
creation and thus in achieving the objectives of Europe 2020 and notably its flagship initiative 
Innovation Union.  

However,  SMEs  have  –  despite  their  important  economic  and  employment  share  and 
significant innovation potential – size-related problems to become more innovative and more 
competitive.  Although  Europe  produces  a  similar  number  of  start-up  companies  than  the 
United  States  of  America,  European  SMEs  are  finding  it  much  harder  to  grow  into  large 
companies  than  their  US  counterparts.  The  internationalised  business  environment  with 
increasingly  interlinked  value  chains  puts  further  pressure  on  them.  SMEs  need  to  enhance 
their innovation capacity. They need to generate, take up and commercialise new knowledge 
and  business  ideas  faster  and  to  a  greater  extent  to  compete  successfully  on  fast  evolving 
global  markets.  The  challenge  is  to  stimulate  more  innovation  in  SMEs,  thereby  enhancing 
their competitiveness and growth. 

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The proposed actions aim to complement national and regional business innovation policies 
and programmes, to foster cooperation between SMEs and other innovation-relevant actors, to 
bridge  the  gap  between  research/development  and  successful  market  uptake,  to  provide  a 
more business innovation friendly environment, including demand-side measures, and support 
taking  into  account  the  changing  nature  of  innovation  processes,  new  technologies,  markets 
and business models.  

Strong  links  with  industry-specific  Union  policies,  notably  the  Programme  for  the 
Competitiveness of Enterprises and SMEs and Cohesion Policy funds, will be established to 
ensure synergies and a coherent approach. 

3.2. 

Rationale and Union added value 

SMEs are key drivers of innovation thanks to their ability to quickly and efficiently transform 
new ideas in successful businesses. They serve as important conduits of knowledge spill-over 
bringing research results to the market. The last twenty years have shown that entire sectors 
have  been  renewed  and  new  industries  created  driven  by  innovative  SMEs.  Fast  growing 
enterprises are crucial for the development of emerging industries and for the acceleration of 
the  structural  changes  that  Europe  needs  to  become  a  knowledge  based  and  low  carbon 
economy with sustained growth and high quality jobs. 

SMEs  can  be  found  in  all  sectors  of  the  economy.  They  form  a  more  important  part  of  the 
European economy than of other regions such as the United States of America. All types of 
SMEs  can  innovate.  They  need  to  be  encouraged  and  supported  to  invest  in  research  and 
innovation.  In  doing  so  they  should  be  able  to  draw  on  the  full  innovative  potential  of  the 
internal market and the ERA so as to create new business opportunities in Europe and beyond 
and to contribute to find solutions to key societal challenges.  

Participation  in  Union  research  and  innovation  strengthens  the  R&D  and  technology 
capability  of  SMEs,  increases  their  capacity  to  generate,  absorb  and  use  new  knowledge, 
enhances the economic exploitation of new solutions, boosts innovation in products, services 
and business models, promotes business activities in larger markets and internationalises the 
knowledge  networks  of  SMEs.  SMEs  that  have  a  good  innovation  management  in  place, 
thereby often relying on external expertise and skills, outperform others.  

Cross-border collaborations  are an important element in the innovation strategy of SMEs to 
overcome some of their size-related problems, such as access to technological and scientific 
competences and new markets. They contribute to turn ideas into profit and company growth 
and in return to increase private investment in research and innovation. 

Regional  and  national  programmes  for  research  and  innovation,  often  backed  by  European 
cohesion  policy,  play  an  essential  role  in  promoting  SMEs.  In  particular,  Cohesion  Policy 
funds have a key role to play through building capacity and providing a stairway to excellence 
for SMEs in order to develop excellent projects that may compete for funding under Horizon 
2020.  Nevertheless,  only  a  few  national  and  regional  programmes  provide  funding  for 
transnational  research  and  innovation  activities  carried  out  by  SMEs,  the  Union-wide 
diffusion and uptake of innovative solutions or cross-border innovation support services. The 
challenge is to provide SMEs with thematically open support to realise international projects 
in line with companies’ innovation strategies. Actions at Union level are therefore necessary 
to  complement  activities  undertaken  at  national  and  regional  level,  to  enhance  their  impact 
and to open up the research and innovation support systems.  

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3.3. 

Broad lines of the activities 

(a) 

Mainstreaming SME support 

SMEs shall be supported across Horizon 2020. For this purpose a dedicated SME instrument 
shall  provide  staged  and  seamless  support  covering  the  whole  innovation  cycle.  The  SME 
instrument  shall  be  targeted  at  all  types  of  innovative  SMEs  showing  a  strong  ambition  to 
develop, grow and internationalise. It shall be provided for all types of innovation, including 
service, non-technological and social innovations. The aim is to develop and capitalise on the 
innovation potential of SMEs by filling the gap in funding for early stage high risk research 
and  innovation,  stimulating  innovations  and  increasing  private-sector  commercialisation  of 
research results.  

All  of  the  specific  objectives  on  societal  challenges  and  on  leadership  in  enabling  and 
industrial technologies will apply the dedicated SME instrument and will allocate an amount 
for this.  

(b) 

Support for research intensive SMEs  

The  goal  is  to  promote  market-oriented  innovation  of  R&D  performing  SMEs.  A  specific 
action  shall  target  research  intensive  SMEs  in  high-technology  sectors  that  show  the 
capability to commercially exploit the project results. 

(c) 

Enhancing the innovation capacity of SMEs  

Activities assisting the implementation and complementing the SME specific measures across 
Horizon 2020 shall be supported, notably to enhance the innovation capacity of SMEs.  

(d) 

Supporting market-driven innovation  

Supporting market-driven innovation to improve the framework conditions for innovation and 
tackling the specific barriers preventing, in particular, the growth of innovative SMEs. 

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PART III 
SOCIETAL CHALLENGES 

1. 

HEALTH, DEMOGRAPHIC CHANGE AND WELLBEING 

1.1. 

Specific objective 

The specific objective is to improve the lifelong health and wellbeing of all. 

Lifelong  health  and  wellbeing  for  all,  high-quality  and  economically  sustainable  health  and 
care systems, and opportunities for new jobs and growth are the aims of support to research 
and  innovation  in  response  to  this  challenge  and  will  make  a  major  contribution  to  Europe 
2020.  

The cost of Union health and social care systems is rising with care and prevention measures 
in all ages increasingly expensive, the number of Europeans aged over 65 expected to nearly 
double from 85 million in 2008 to 151 million by 2060, and those over 80 to rise from 22 to 
61  million  in  the  same  period.  Reducing  or  containing  these  costs  such  that  they  do  not 
become unsustainable depends in part on ensuring the lifelong health and wellbeing of all and 
therefore on the effective prevention, treatment and management of disease and disability. 

Chronic conditions such as cardiovascular disease (CVD), cancer, diabetes, neurological and 
mental health disorders, overweight and obesity and various functional limitations are major 
causes  of  disability,  ill-health  and  premature  death,  and  present  considerable  social  and 
economic costs.  

In the Union, CVD annually accounts for more than 2 million deaths and costs the economy 
more than EUR 192 billion while cancer accounts for a quarter of all deaths and is the number 
one  cause  of  death  in  people  aged  45-64.  Over  27  million  people  in  the  Union  suffer  from 
diabetes  and  the  total  cost  of  brain  disorders  (including,  but  not  limited  to  those  affecting 
mental  health)  has  been  estimated  at  EUR  800  billion.  Environmental,  life-style  and  socio-
economic factors are relevant in several of these conditions with up to one third of the global 
disease burden estimated to be related to these. 

Infectious  diseases  (e.g.  HIV/AIDS,  tuberculosis  and  malaria),  are  a  global  concern, 
accounting for 41 % of the 1.5 billion disability adjusted life years worldwide, with 8 % of 
these  in  Europe.  Emerging  epidemics  and  the  threat  of  increasing  anti-microbial  resistance 
must also be prepared for. 

Meanwhile, drug and vaccine development processes are becoming more expensive and less 
effective.  Persistent  health  inequalities  must  be  addressed,  and  access  to  effective  and 
competent health systems must be ensured for all Europeans. 

1.2. 

Rationale and Union added value 

Disease  and  disability  are  not  stopped  by  national  borders.  An  appropriate  European  level 
research  and  innovation  response  can  and  should  make  a  crucial  contribution  to  addressing 
these challenges, deliver better health and wellbeing for all, and position Europe as a leader in 
the rapidly expanding global markets for health and wellbeing innovations.  

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The response depends on excellence in research to improve our fundamental understanding of 
health, disease, disability, development and ageing (including of life expectancy), and on the 
seamless and widespread translation of the resulting and existing knowledge into innovative, 
scalable  and  effective  products,  strategies,  interventions  and  services.  Furthermore,  the 
pertinence of these challenges across Europe and in many cases, globally, demands a response 
characterised  by  long  term  and  coordinated  support  for  co-operation  between  excellent, 
multidisciplinary and multi-sector teams. 

Similarly, the complexity of the challenge and the interdependency of its components demand 
a European level response. Many approaches, tools and technologies have applicability across 
many of the research and innovation areas of this challenge and are best supported at Union 
level. These include the development of long term cohorts and the conduct of clinical trials, 
the  clinical  use  of  "-omics"  or  the  development  of  ICT  and  their  applications  in  healthcare 
practice, notably e-health. The requirements of specific populations are also best addressed in 
an  integrated  manner,  for  example  in  the  development  of  stratified  and/or  personalised 
medicine, in the treatment of rare diseases, and in providing assisted and independent living 
solutions.  

To maximise the impact of Union level actions, support will be provided to the full spectrum 
of research and innovation activities. From basic research through translation of knowledge to 
large  trials  and  demonstration  actions,  mobilising  private  investment;  to  public  and  pre-
commercial  procurement  for  new  products,  services,  scalable  solutions,  which  are  when 
necessary, interoperable and supported by defined standards and/or common guidelines. This 
co-ordinated, European effort will contribute to the ongoing development of the ERA. It will 
also interface, as and when appropriate, with activities developed in the context of the Health 
for  Growth  Programme  and  the  European  Innovation  Partnership  on  Active  and  Health 
Ageing. 

1.3. 

Broad lines of the activities 

Effective health promotion, supported by a robust evidence base, prevents disease, improves 
wellbeing and is cost effective. Health promotion and disease prevention also depend on an 
understanding of the determinants of health, on effective preventive tools, such as vaccines, 
on  effective  health  and  disease  surveillance  and  preparedness,  and  on  effective  screening 
programmes. 

Successful  efforts  to  prevent,  manage,  treat  and  cure  disease,  disability  and  reduced 
functionality  are  underpinned  by  the  fundamental  understanding  of  their  determinants  and 
causes,  processes  and  impacts,  as  well  as  factors  underlying  good  health  and  wellbeing. 
Effective sharing of data and the linkage of these data with large scale cohort studies is also 
essential,  as  is  the  translation  of  research  findings  into  the  clinic,  in  particular  through  the 
conduct of clinical trials.  

An  increasing  disease  and  disability  burden  in  the  context  of  an  aging  population  places 
further demands on health and care sectors. If effective health and care is to be maintained for 
all  ages,  efforts  are  required  to  improve  decision  making  in  prevention  and  treatment 
provision,  to  identify  and  support  the  dissemination  of  best  practice  in  the  health  and  care 
sectors,  and  to  support  integrated  care  and  the  wide  uptake  of  technological,  organisational 
and social innovations empowering in particular older persons as well as disabled persons to 
remain  active  and  independent.  Doing  so  will  contribute  to  increasing,  and  lengthening  the 
duration of their physical, social, and mental well-being. 

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All of these activities shall be undertaken in such a way as to provide support throughout the 
research  and  innovation  cycle,  strengthening  the  competitiveness  of  the  European  based 
industries and development of new market opportunities. 

Specific  activities  shall  include:  understanding  the  determinants  of  health  (including 
environmental  and  climate  related  factors),  improving  health  promotion  and  disease 
prevention;  understanding  disease  and  improving  diagnosis;  developing  effective  screening 
programmes  and  improving  the  assessment  of  disease  susceptibility;  improving  surveillance 
and  preparedness;  developing  better  preventive  vaccines;  using  in-silico  medicine  for 
improving  disease  management  and  prediction;  treating  disease;  transferring  knowledge  to 
clinical  practice  and  scalable  innovation  actions;  better  use  of  health  data;  active  ageing, 
independent  and  assisted  living;  individual  empowerment  for  self-management  of  health; 
promotion  of  integrated  care;  improving  scientific  tools  and  methods  to  support  policy 
making  and  regulatory  needs;  and  optimising  the  efficiency  and  effectiveness  of  healthcare 
systems  and  reducing  inequalities  by  evidence  based  decision  making  and  dissemination  of 
best practice, and innovative technologies and approaches.  

2. 

FOOD  SECURITY,  SUSTAINABLE  AGRICULTURE,  MARINE  AND  MARITIME  RESEARCH 
AND THE BIO-ECONOMY 

2.1 

Specific objective 

The  specific  objective  is  to  secure  sufficient  supplies  of  safe  and  high  quality  food  and 
other  bio-based  products,  by  developing  productive  and  resource-efficient  primary 
production systems, fostering related ecosystem services, along side competitive and low 
carbon supply chains. This will accelerate the transition to a sustainable European bio-
economy. 

Over the coming decades, Europe will be challenged by increased competition for limited and 
finite natural resources, by the effects of climate change, in particular on primary production 
systems  (agriculture,  forestry,  fisheries  and  aquaculture)  and  by  the  need  to  provide  a 
sustainable, safe and secure food supply for the European and an increasing global population. 
A  70  %  increase  of  the  world  food  supply  is  estimated  to  be  required  to  feed  the  9  billion 
global population by 2050. Agriculture accounts for about 10 % of Union greenhouse gases 
emissions, and while declining in Europe, global emissions from agriculture are projected to 
increase up to 20 % by 2030. Furthermore, Europe will need to ensure sufficient supplies of 
raw  materials,  energy  and  industrial  products,  under  conditions  of  decreasing  fossil  carbon 
resources (oil and liquid gas production expected to decrease by about 60 % by 2050), while 
maintaining its competitiveness. Bio-waste (estimated at up to 138 million tonnes per year in 
the Union, of which up to 40 % is land-filled) represents a huge problem and cost, despite its 
high potential added value. For example, an estimated 30 % of all food produced in developed 
countries is discarded. Major changes are needed to reduce this amount by 50 % in the Union 
by 203026. In addition, national borders are irrelevant in the spread of animal and plant pests 
and diseases, including zoonotic diseases, and food borne pathogens. While effective national 
prevention measures are needed, action at Union level is essential for ultimate control and the 
effective  running  of  the  single  market.  The  challenge  is  complex,  affects  a  broad  range  of 
interconnected sectors and requires a plurality of approaches.  

26 

COM (2011)0112  

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More  and  more  biological  resources  are  needed  to  satisfy  market  demand  for  a  secure  and 
healthy food supply, bio-materials, biofuels and bio-based products, ranging from consumer 
products to bulk chemicals. However the capacities of the terrestrial and aquatic ecosystems 
required for their production are limited, while there are competing claims for their utilisation, 
and  often  not  optimally  managed,  as  shown  for  example  by  a  severe  decline  in  soil  carbon 
content  and  fertility.  There  is  under-utilised  scope  for  fostering  ecosystem  services  from 
farmland, forests, marine and fresh waters by integrating agronomic and environmental goals 
into sustainable production. 

The  potential  of  biological  resources  and  ecosystems  could  be  used  in  a  much  more 
sustainable,  efficient  and  integrated  manner.  For  examples,  the  potential  of  biomass  from 
forests  and  waste  streams  from  agricultural,  aquatic,  industrial,  and  also  municipal  origins 
could be better harnessed  

In  essence,  a  transition  is  needed  towards  an  optimal  and  renewable  use  of  biological 
resources  and  towards  sustainable  primary  production  and  processing  systems  that  can 
produce  more  food  and  other  bio-based  products  with  minimised  inputs,  environmental 
impact and greenhouse gas emissions, enhanced ecosystem services, zero-waste and adequate 
societal value. A critical effort of interconnected research and innovation is a key element for 
this to happen, in Europe and beyond. 

2.2 

Rationale and Union added value  

Agriculture, forestry and fisheries together with the bio-based industries are the major sectors 
underpinning the bio-economy. This latter represents a large and growing market estimated to 
be  worth  over  EUR  2  trillion,  providing  20  million  jobs  and  accounting  for  9  %  of  total 
employment in the Union in 2009. Investments in research and innovation under this societal 
challenge will enable Europe to take leadership in the concerned markets and will play a role 
in  achieving  the  goals  of  the  Europe  2020  strategy  and  its  Innovation  Union  and  Resource 
Efficient Europe flagship initiatives. 

A  fully  functional  European  bio-economy  –  encompassing  the  sustainable  production  of 
renewable resources from land and aquatic environments and their conversion into food, bio-
based  products  and  bioenergy  as  well  as  the  related  public  goods  -  will  generate  high 
European  added  value.  Managed  in  a  sustainable  manner,  it  can  reduce  the  environmental 
footprint  of  primary  production  and  the  supply  chain  as  a  whole.  It  can  increase  their 
competitiveness  and  provide  jobs  and  business  opportunities  for  rural  and  coastal 
development.  The  food  security,  sustainable  agriculture,  and  overall  bio-economy  –  related 
challenges are of a European and global nature. Actions at Union level are essential to bring 
together  clusters  to  achieve  the  necessary  breadth  and  critical  mass  to  complement  efforts 
made  by  a  single  or  groups  of  Member  States.  A  multi-actor  approach  will  ensure  the 
necessary  cross-fertilising  interactions  between  researcher,  businesses,  farmers/producers, 
advisors and end-users. The Union level is also necessary to ensure coherence in addressing 
this challenge across sectors and with strong links to relevant Union policies. Coordination of 
research  and  innovation  at  Union  level  will  stimulate  and  help  to  accelerate  the  required 
changes across the Union. 

Research  and  innovation  will  interface  with  a  wide  spectrum  of  Union  policies  and  related 
targets,  including  the  Common  Agriculture  Policy  (in  particular  the  Rural  Development 
'Agricultural  Productivity  and 
Policy)  and 
Sustainability',  the  Common  Fisheries  Policy,  the  Integrated  Maritime  Policy,  the  European 

Innovation  Partnership 

the  European 

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Climate  Change  Programme,  the  Water  Framework  Directive,  the  Marine  Strategy 
Framework Directive, the Forestry Action Plan, the Soil Thematic Strategy, the Union's 2020 
Biodiversity  Strategy,  the  Strategic  Energy  Technology  Plan,  the  Union's  innovation  and 
industrial  policies,  external  and  development  aid  policies,  plant  health  strategies,  animal 
health  and  welfare  strategies  and  regulatory  frameworks  to  protect  the  environment,  health 
and safety, to promote resource efficiency and climate action, and to reduce waste. A better 
integration of research and innovation into related Union policies will significantly improve 
their European added value, provide leverage effects, increase societal relevance and help to 
further develop sustainable land, seas and oceans management and bio-economy markets. 

For  the  purpose  of  supporting  Union  policies  related  to  the  bio-economy  and  to  facilitate 
governance and monitoring of research and innovation, socio-economic research and forward 
looking  activities  will  be  performed  in  relation  to  the  bio-economy  strategy,  including 
development  of  indicators,  data  bases,  models,  foresight  and  forecast,  impact  assessment  of 
initiatives on the economy, society and the environment.  

Challenge-driven actions focusing on social and economic benefits and the modernisation of 
the bio-economy associated sectors and markets shall be supported through multi-disciplinary 
research,  driving  innovation  and  leading  to  the  development  of  new  practices,  products  and 
processes.  It  shall  also  pursue  a  broad  approach  to  innovation  ranging  from  technological, 
non-technological,  organisational,  economic  and  social  innovation  to  for  instance  novel 
business models, branding and services.  

2.3 

(a) 

Broad lines of activities 

Sustainable agriculture and forestry 

The  aim  is  to  supply  sufficient  food,  feed,  biomass  and  other  raw-materials,  while 
safeguarding natural resources and enhancing ecosystems services, including coping with and 
mitigating  climate  change.  The  activities  shall  focus  on  more  sustainable  and  productive 
agriculture and forestry systems which are both resource-efficient (including low-carbon) and 
resilient,  while  at  the  same  time  developing  of  services,  concepts  and  policies  for  thriving 
rural livelihoods.  

(b) 

Sustainable and competitive agri-food sector for a safe and healthy diet  

The aim is to meet the requirements of citizens for safe, healthy and affordable food, and to 
make  food  and  feed  processing  and  distribution  more  sustainable  and  the  food  sector  more 
competitive. The activities shall focus on healthy and safe foods for all, informed consumer 
choices, and competitive food processing methods that use less resources and produce less by-
products, waste and green-house gases. 

(c) 

Unlocking the potential of aquatic living resources 

The  aim  is  to  sustainably  exploit  aquatic  living  resources  to  maximise  social  and  economic 
benefits/returns  from  Europe's  oceans  and  seas.  The  activities  shall  focus  on  an  optimal 
contribution to secure food supplies by developing sustainable and environmentally friendly 
fisheries and competitive European aquaculture in the context of the global economy and on 
boosting marine innovation through biotechnology to fuel smart "blue" growth. 

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(d) 

Sustainable and competitive bio-based industries  

The  aim  is  the  promotion  of  low  carbon,  resource  efficient,  sustainable  and  competitive 
European  bio-based  industries.  The  activities  shall  focus  on  fostering  the  bio-economy  by 
transforming  conventional  industrial  processes  and  products  into  bio-based  resource  and 
energy  efficient  ones,  the  development  of  integrated  biorefineries,  utilising  biomass  from 
primary production, biowaste and bio-based industry by-products, and opening new markets 
through  supporting  standardisation,  regulatory  and  demonstration/field  trial  activities  and 
others, while taking into account the implication of the bio-economy on land use and land use 
changes. 

3. 

SECURE, CLEAN AND EFFICIENT ENERGY  

3.1. 

Specific objective 

The specific objective is to make the transition to a reliable, sustainable and competitive 
energy system, in the face of increasingly scarce resources, increasing energy needs and 
climate change.  

The Union intends to reduce greenhouse gas emissions by 20 % below 1990 levels by 2020, 
with a further reduction to 80-95 % by 2050. In addition, renewables should cover 20 % of 
final  energy  consumption  in  2020  coupled  with  a  20  %  energy  efficiency  target.  Achieving 
these objectives will require an overhaul of the energy system combining low carbon profile, 
energy  security  and  affordability,  while  at  the  same  time  reinforcing  Europe's  economic 
competitiveness. Europe is currently far from this overall goal. 80 % of the European energy 
system still relies on fossil fuels, and the sector produces 80 % of all the Union's greenhouse 
gas emissions. Every year 2.5 % of the Union's Gross Domestic Product (GDP) is spent on 
energy imports and this is likely to increase. This trend would lead to total dependence on oil 
and gas imports by 2050. Faced with volatile energy prices on the world market, coupled with 
concerns  over  security  of  supply,  European  industries  and  consumers  are  spending  an 
increasing share of their income on energy.  

The  roadmap  to  a  competitive  low-carbon  economy  in  205027  shows  that  the  targeted 
reductions in greenhouse gas emissions will have to be met largely within the territory of the 
Union. This would entail reducing CO2 emissions by over 90 % by 2050 in the power sector, 
by over 80 % in industry, by at least 60 % in transport and by about 90 % in the residential 
sector and services.  

To  achieve  these  reductions,  significant  investments  need  to  be  made  in  research, 
development,  demonstration  and  market  roll-out  of  efficient,  safe  and  reliable  low-carbon 
energy  technologies  and  services.  These  must  go  hand  in  hand  with  non-technological 
solutions  on  both  the  supply  and  demand  sides.  All  this  must  be  part  of  an  integrated  low-
carbon policy, including mastering key enabling technologies, in particular ICT solutions and 
advanced  manufacturing,  processing  and  materials.  The  goal  is  to  produce  efficient  energy 
technologies and services that can be taken up widely on European and international markets 
and to establish intelligent demand-side management based on an open and transparent energy 
trade market and intelligent energy efficiency management systems. 

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3.2. 

Rationale and Union added value 

New technologies and solutions must compete on cost and reliability against highly optimised 
energy systems with well-established incumbents and technologies. Research and innovation 
are  critical  to  make  these  new,  cleaner,  low-carbon,  more  efficient  energy  sources 
commercially  attractive  on  the  scale  needed.  Neither  industry  alone,  nor  Member  States 
individually, are able to bear the costs and risks, for which the main drivers (transition to a 
low carbon economy, providing affordable and secure energy) are outside the market.  

Speeding  up  this  development  will  require  a  strategic  approach  at  Union  level,  spanning 
energy  supply,  demand  and  use  in  buildings,  services,  transport  and  industrial  value  chains. 
This  will  entail  aligning  resources  across  the  Union,  including  cohesion  policy  funds,  in 
particular  through  the  national  and  regional  strategies  for  smart  specialisation,  emission 
trading  schemes  (ETS),  public  procurement  and  other  financing  mechanisms.  It  will  also 
require  regulatory  and  deployment  policies  for  renewables  and  energy  efficiency,  tailored 
technical assistance and capacity-building to remove non-technological barriers. 

The  Strategic  Energy  Technology  Plan  (SET  Plan)  offers  such  a  strategic  approach.  It 
provides  a  long  term  agenda  to  address  the  key  innovation  bottlenecks  that  energy 
technologies  are  facing  at  the  frontier  research  and  R&D/proof-of-concept  stages  and  at  the 
demonstration stage when companies seek capital to finance large, first-of-a-kind projects and 
to open the market deployment process.  

The  resources  required  to  implement  the  SET  Plan  in  full  have  been  estimated  at  EUR  8 
billion  per  year  over  the  next  10  years28.  This  is  well  beyond  the  capacity  of  individual 
Member  States  or  research  and  industrial  stakeholders  alone.  Investments  in  research  and 
innovation at Union level are needed, combined with mobilisation of efforts across Europe in 
the  form  of  joint  implementation  and  risk  and  capacity  sharing.  Union  funding  of  energy 
research and innovation shall therefore complement Member States' activities by focusing on 
activities  with  clear  Union  added  value,  in  particular  those  with  high  potential  to  leverage 
national  resources.  Action  at  Union  level  shall  also  support  high-risk,  high-cost,  long-term 
programmes beyond the reach of individual Member States, pool efforts to reduce investment 
risks  in  large-scale  activities  such  as  industrial  demonstration  and  develop  Europe-wide, 
interoperable energy solutions.  

Implementation  of  the  SET-Plan  as  the  research  and  innovation  pillar  of  European  energy 
policy  will  reinforce  the  Union's  security  of  supply  and  the  transition  to  a  low-carbon 
economy, help to link research and innovation programmes with trans-European and regional 
investments  in  energy  infrastructure  and  increase  the  willingness  of  investors  to  release 
capital for projects with long lead-times and significant technology and market risks. It will 
create opportunities for innovation for small and large companies and help them become or 
remain competitive at world level, where opportunities for energy technologies are large and 
increasing.  

On the international scene, the action taken at Union level provides a 'critical mass' to attract 
interest  from  other  technology  leaders  and  foster  international  partnerships  to  achieve  the 
Union's objectives. It will make it easier for international partners to interact with the Union 
to build common action where there is mutual benefit and interest. 

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The  activities  under  this  challenge  will  therefore  form  the  technological  backbone  of 
European  energy  and  climate  policy.  They  will  also  contribute  to  achieving  the  Innovation 
Union in the field of energy and the policy goals outlined in 'Resource Efficient Europe', 'An 
Industrial Policy for the Globalisation Era' and 'A Digital Agenda for Europe'.  

Research and innovation activities on nuclear fission and fusion energy are carried out in the 
EURATOM part of Horizon 2020.  

3.3. 

Broad lines of the activities 

(a) 

Reducing energy consumption and carbon footprint by smart and sustainable use 

Activities  shall  focus  on  research  and  full-scale  testing  of  new  concepts,  non-technological 
solutions,  more  efficient,  socially  acceptable  and  affordable  technology  components  and 
systems  with  in-built  intelligence,  to  allow  real-time  energy  management  for  near-zero-
emission buildings, renewable heating and cooling, highly efficient industries and mass take-
up of energy efficiency solutions by companies, individuals, communities and cities.  

(b) 

Low-cost, low-carbon electricity supply 

Activities shall focus  on  research, development and full scale demonstration -  of innovative 
renewables  and  carbon  capture  and  storage  technologies  offering  larger  scale,  lower  cost, 
environmentally  safe  technologies  with  higher  conversion  efficiency  and  higher  availability 
for different market and operating environments.  

(c) 

Alternative fuels and mobile energy sources 

Activities shall focus on research, development and full scale demonstration of technologies 
and  value  chains  to  make  bio-energy  more  competitive  and  sustainable,  to  reduce  time  to 
market for hydrogen and fuel cells and to bring new options showing long-term potential to 
maturity. 

(d) 

A single, smart European electricity grid 

Activities  shall  focus  on  research,  development  and  full  scale  demonstration  of  new  grid 
technologies,  including  storage,  systems  and  market  designs  to  plan,  monitor,  control  and 
safely  operate  interoperable  networks  in  an  open,  decarbonised,  climate  resilient  and 
competitive market, under normal and emergency conditions. 

(e) 

New knowledge and technologies  

Activities  shall  focus  on  multi-disciplinary  research  for  energy  technologies  (including 
visionary  actions)  and  joint  implementation  of  pan-European  research  programmes  and 
world-class facilities. 

(f) 

Robust decision making and public engagement 

Activities  shall  focus  on  the  development  of  tools,  methods  and  models  for  a  robust  and 
transparent  policy  support,  including  activities  on  public  acceptance  and  engagement,  user 
involvement and sustainability.  

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(g) 

Market uptake of energy innovation 

Activities  shall  focus  on  applied  innovation  to  facilitate  the  market  uptake  of  energy 
technologies  and  services,  to  address  non-technological  barriers  and  to  accelerate  the  cost 
effective implementation of the Union's energy policies. 

4. 

SMART, GREEN AND INTEGRATED TRANSPORT 

4.1 

Specific objective 

The  specific  objective  is  to  achieve  a  European  transport  system  that  is  resource-
efficient,  environmentally-friendly,  safe  and  seamless  for  the  benefit  of  citizens,  the 
economy and society. 

Europe  must  reconcile  the  growing  mobility  needs  of  its  citizens  with  the  imperatives  of 
economic  performance  and  the  requirements  of  a  low-carbon  society  and  climate  resilient 
economy.  Despite  its  growth,  the  transport  sector  must  achieve  a  substantial  reduction  in 
greenhouse gases and other adverse environmental impacts, and must break its dependency on 
oil, while maintaining high levels of efficiency and mobility. 

Sustainable mobility can only be achieved through a radical change in the transport system, 
inspired  by  breakthroughs  in  transport  research,  far-reaching  innovation,  and  a  coherent, 
Europe-wide implementation of greener, safer and smarter transport solutions.  

Research  and  innovation  must  bring  about  focussed  and  timely  advances  that  will  help 
achieve  key  Union  policy  objectives,  while  boosting  economic  competitiveness,  supporting 
the transition to a climate-resilient and low-carbon economy, and maintaining global market 
leadership. 

Although  the  necessary  investments  in  research,  innovation  and  deployment  will  be 
significant, failing to improve the sustainability of transport will result in unacceptably high 
societal, ecological, and economic costs in the long term. 

4.2 

Rationale and Union added value 

Transport is a major driver of Europe's economic competitiveness and growth. It ensures the 
mobility of people and goods necessary for an integrated European single market and an open 
and  inclusive  society.  It  represents  one  of  Europe's  greatest  assets  in  terms  of  industrial 
capability  and  quality  of  service,  playing  a  leading  role  in  many  world  markets.  Transport 
industry and transport equipment manufacturing together represent 6.3 % of the Union's GDP. 
At the same time, the European transport industry faces increasingly fierce competition from 
other parts of the world. Breakthrough technologies will be required to secure Europe's future 
competitive edge and to mitigate the drawbacks of our current transport system. 

The transport sector is a major contributor to greenhouse gases and generates up to a quarter 
of  all  emissions.  Transport  is  96  %  dependent  on  fossil  fuels.  Meanwhile,  congestion  is  an 
increasing  problem;  systems  are  not  yet  sufficiently  smart;  alternatives  for  shifting  between 
different modes of transport are not always attractive; road fatalities remain dramatically high 
at 34 000 per year in the Union; citizens and businesses expect a transport system that is safe 
and secure. The urban context poses specific challenges to the sustainability of transport.  

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Within a few decades the expected growth rates of transport would drive European traffic into 
a gridlock and make its economic costs and societal impact unbearable. Passenger-kilometres 
are  predicted  to  double  over  the  next  40  years  and  grow  twice  as  fast  for  air  travel.  CO2 
emissions  would  grow  35  %  by  2050.  Congestion  costs  would  increase  by  about  50  %,  to 
nearly  EUR  200  billion  annually.  The  external  costs  of  accidents  would  increase  by  about 
EUR 60 billion compared to 2005.  

Business-as-usual  is  therefore  not  an  option.  Research  and  innovation,  driven  by  policy 
objectives  and  focused  on  the  key  challenges,  shall  contribute  substantially  to  achieve  the 
Union's targets of limiting global temperature increase to 2ºC, cutting 60 % of CO2 emissions 
from transport, drastically reduce congestion and accident costs, and virtually eradicating road 
deaths by 2050. 

The problems of pollution, congestion, safety and security are common throughout the Union 
and  call  for  collaborative  Europe-wide  responses.  Accelerating  the  development  and 
deployment  of  new  technologies  and  innovative  solutions  for  vehicles,  infrastructures  and 
transport management will be key to achieve a cleaner and more efficient transport system in 
the Union; to deliver the results necessary to mitigate climate change and improve resource 
efficiency;  to  maintain  European  leadership  on  the  world  markets  for  transport  related 
products  and  services.  These  objectives  cannot  be  achieved  through  fragmented  national 
efforts alone. 

Union  level  funding  of  transport  research  and  innovation  will  complement  Member  States’ 
activities  by  focussing  on  activities  with  a  clear  European  added-value.  This  means  that 
emphasis  will  be  placed  on  priority  areas  that  match  European  policy  objectives;  where  a 
critical mass of effort is necessary; where Europe-wide, interoperable transport solutions need 
to be pursued; or where pooling efforts trans-nationally can reduce research investment risks, 
pioneer common standards and shorten time-to-market of research results. 

Research and innovation activities shall include a wide range of initiatives that cover the full 
innovation  chain.  Several  activities  are  specifically  intended  to  help  bring  results  to  the 
market: a programmatic approach to research and innovation, demonstration projects, market 
take-up  actions  and  support  for  standardisation,  regulation  and  innovative  procurement 
strategies  all  serve  this  goal.  In  addition,  using  stakeholders'  engagement  and  expertise  will 
help bridge the gap between research results and their deployment in the transport sector. 

Investing  in  research  and  innovation  for  a  greener,  smarter  and  more  integrated  transport 
system  will  make  an  important  contribution  to  the  Europe  2020  goals  of  smart,  sustainable 
and  inclusive  growth  and  the  objectives  of  the  Innovation  Union  flagship  initiative.  The 
activities will support the implementation of the White Paper on Transport aiming at a Single 
European Transport Area. They will also contribute to the policy goals outlined in the flagship 
initiatives on 'Resource Efficient Europe', 'An Industrial Policy for the Globalisation Era' and 
'A Digital Agenda for Europe'.  

4.3. 

Broad lines of the activities 

(a) 

Resource efficient transport that respects the environment 

The  aim  is  to  minimise  transport's  impact  on  climate  and  the  environment  by  improving  its 
efficiency in the use of natural resources, and by reducing its dependence on fossil fuels.  

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The focus of activities shall be to reduce resource consumption and greenhouse gas emissions 
and  improve  vehicle  efficiency,  to  accelerate  the  development  and  deployment  of  a  new 
generation  of  electric  and  other  low  or  zero  emission  vehicles,  including  through 
breakthroughs in engines, batteries and infrastructure; to explore and exploit the potential of 
alternative  fuels  and  innovative  and  more  efficient  propulsion  systems,  including  fuel 
infrastructure; to optimise the use of infrastructures, by means of intelligent transport systems 
and  smart  equipment;  and  to  increase  the  use  of  demand  management  and  public  and  non-
motorised transport, particularly in urban areas.  

(b) 

Better mobility, less congestion, more safety and security 

The aim is to reconcile the growing mobility needs with improved transport fluidity, through 
innovative solutions for seamless, inclusive, safe, secure and robust transport systems. 

The  focus  of  activities  shall  be  to  reduce  congestion,  improve  accessibility  and  match  user 
needs by promoting integrated door-to-door transport and logistics; to enhance inter-modality 
and  the  deployment  of  smart  planning  and  management  solutions;  and  to  drastically  reduce 
the occurrence of accidents and the impact of security threats. 

(c) 

Global leadership for the European transport industry 

The  aim  is  to  reinforce  the  competitiveness  and  performance  of  European  transport 
manufacturing industries and related services. 

The focus of activities shall be to develop the next generation of innovative transport means 
and to prepare the ground for the following one, by working on novel concepts and designs, 
smart  control  systems  and  interoperable  standards,  efficient  production  processes,  shorter 
development times and reduced lifecycle costs. 

(d) 

Socio-economic research and forward looking activities for policy making  

The aim is to support improved policy making which is necessary to promote innovation and 
meet the challenges raised by transport and the societal needs related to it. 

The  focus  of  activities  shall  be  to  improve  the  understanding  of  transport  related  socio-
economic  trends  and  prospects,  and  provide  policy  makers  with  evidence-based  data  and 
analyses. 

5. 

CLIMATE ACTION, RESOURCE EFFICIENCY AND RAW MATERIALS  

5.1. 

Specific objective 

The  specific  objective  is  to  achieve  a  resource  efficient  and  climate  change  resilient 
economy  and  a  sustainable  supply  of  raw  materials,  in  order  to  meet  the  needs  of  a 
growing global population within the sustainable limits of the planet's natural resources. 
Activities  will  contribute  to  increasing  European  competitiveness  and  improving  well 
being, whilst assuring environmental integrity and sustainability, keeping average global 
warming below 2 °C and enabling ecosystems and society to adapt to climate change. 

During  the  20th century,  the  world  increased  both  its  fossil  fuel  use  and  the  extraction  of 
material resources by of the order of a factor of ten. This era of seemingly plentiful and cheap 

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resources is coming to an end. Raw materials, water, air, biodiversity and terrestrial, aquatic 
and  marine  ecosystems  are  all  under  pressure.  Many  of  the  world’s  major  ecosystems  are 
being degraded, with up to 60 % of the services that they provide being used unsustainably. In 
the Union, some 16 tonnes of materials are used per person each year, of which 6 tonnes are 
wasted,  with  half  going  to  landfill.  The  global  demand  for  resources  continues  to  increase 
with the growing population and rising aspirations, in particular of middle income earners in 
emerging  economies.  There  needs  to  be  an  absolute  decoupling  of  economic  growth  from 
resource use. 

The  average  temperature  of  the  Earth's  surface  has  increased  by  about  0.8°C  over  the  past 
100 years and  is  projected to increase  by between 1.8 to 4°C by the end of the 21st century 
(relative  to  the  1980-1999  average)29.  The  likely  impacts  on  natural  and  human  systems 
associated  with  these  changes  will  challenge  the  planet  and  its  ability  to  adapt,  as  well  as 
threatening future economic development and the well being of humanity. 

The  growing  impacts  from  climate  change  and  environmental  problems,  such  as  ocean 
acidification,  ice  melting  in  the  Arctic,  land  degradation  and  use,  water  shortages,  chemical 
pollution  and  biodiversity  loss,  indicate  that  the  planet  is  approaching  its  sustainability 
boundaries. For example, without improvements in efficiency, water demand is projected to 
overshoot  supply  by  40  %  in  20 years  time.  Forests  are  disappearing  at  an  alarmingly  high 
rate of 5 million hectares per year. Interactions between resources can cause systemic risks – 
with the depletion of one resource generating an irreversible tipping point for other resources 
and ecosystems. Based on current trends, the equivalent of more than two planet Earths will 
be needed by 2050 to support the growing global population. 

The  sustainable  supply  and  resource  efficient  management  of  raw  materials,  including  their 
exploration,  extraction,  processing,  re-use,  recycling  and  substitution,  is  essential  for  the 
functioning of modern societies and their economies. European sectors, such as construction, 
chemicals,  automotive,  aerospace,  machinery  and  equipment,  which  provide  a  total  added 
value of some EUR 1.3 trillion and employment for approximately 30 million people, heavily 
depend  on  access  to  raw  materials.  However,  the  supply  of  raw  materials  to  the  Union  is 
coming under increasing pressure. Furthermore, the Union is highly dependent on imports of 
strategically important raw materials, which are being affected at an alarming rate by market 
distortions.  Moreover,  the  Union  still  has  valuable  mineral  deposits,  whose  exploration  and 
extraction  is  limited  by  a  lack  of  adequate  technologies  and  hampered  by  increased  global 
competition.  Given  the  importance  of  raw  materials  for  European  competitiveness,  the 
economy and for their application in innovative products, the sustainable supply and resource 
efficient management of raw materials is a vital priority for the Union. 

The  ability  of  the  economy  to  adapt  and  become  more  climate  change  resilient,  resource 
efficient and at the same time remain competitive depends on high levels of eco-innovation, 
of both a societal and technological nature. With the global market for eco-innovation worth 
around EUR 1 trillion per annum and expected to triple by 2030, eco-innovation represents a 
major opportunity to boost competitiveness and job creation in European economies.  

5.2. 

Rationale and Union added value 

Meeting Union and international targets for greenhouse gas emissions and concentrations and 
coping  with  climate  change  impacts  requires  the  development  and  deployment  of  cost-

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effective  technologies,  and  mitigation  and  adaptation  measures.  Union  and  global  policy 
frameworks  must  ensure  that  ecosystems  and  biodiversity  are  protected,  valued  and 
appropriately restored in order to preserve their ability to provide resources and services in the 
future.  Research  and  innovation  can  help  secure  reliable  and  sustainable  access  to  raw 
materials and ensure a significant reduction in resource use and wastage.  
The focus of Union actions shall therefore be on supporting key Union objectives and policies 
including: the Europe 2020 strategy; the Innovation Union; Resource-Efficient Europe and the 
corresponding Roadmap; the Roadmap for moving to a competitive low carbon economy in 
205030;  Adapting  to  climate  change:  Towards  a  European  framework  for  action31;  the  Raw 
Materials  Initiative32;  the  Union's  Sustainable  Development  Strategy33;  an  Integrated 
Maritime  Policy  for  the  Union34;  the  Marine  Strategy  Framework  Directive35;  the  Eco-
innovation Action Plan and the Digital Agenda for Europe36. These actions shall reinforce the 
ability  of  society  to  become  more  resilient  to  environmental  and  climate  change  and  ensure 
the availability of raw materials. 

Given the transnational and global nature of the climate and the environment, their scale and 
complexity, and the international dimension of the raw materials supply chain, activities have 
to  be  carried  out  at  the  Union  level  and  beyond.  The  multi-disciplinary  character  of  the 
necessary  research  requires  pooling  complementary  knowledge  and  resources  in  order  to 
effectively  tackle  this  challenge.  Reducing  resource  use  and  environmental  impacts,  whilst 
increasing competitiveness, will require a decisive societal and technological transition to an 
economy  based  on  a  sustainable  relationship  between  nature  and  human  well-being. 
Coordinated research and innovation activities will improve the understanding and forecasting 
of  climate  and  environmental  change  in  a  systemic  and  cross-sectoral  perspective,  reduce 
uncertainties,  identify  and  assess  vulnerabilities,  risks,  costs  and  opportunities,  as  well  as 
expand  the  range  and  improve  the  effectiveness  of  societal  and  policy  responses  and 
solutions.  Actions  will  also  seek  to  empower  actors  at  all  levels  of  society  to  actively 
participate in this process. 

Addressing  the  availability  of  raw  materials  calls  for  co-ordinated  research  and  innovation 
efforts  across  many  disciplines  and  sectors  to  help  provide  safe,  economically  feasible, 
environmentally  sound  and  socially  acceptable  solutions  along  the  entire  value  chain 
(exploration,  extraction,  processing,  re-use,  recycling  and  substitution).  Innovation  in  these 
fields will provide opportunities for growth and jobs, as well as innovative options involving 
science,  technology,  the  economy,  policy  and  governance.  For  this  reason,  a  European 
Innovation Partnership on Raw Materials is being prepared. 

Eco-innovation  will  provide  valuable  new  opportunities  for  growth  and  jobs.  Solutions 
developed  through  Union  level  action  will  counter  key  threats  to  industrial  competitiveness 
and enable rapid uptake and replication across the Single Market and beyond. This will enable 
the  transition  towards  a  green  economy  that  takes  into  account  the  sustainable  use  of 
resources. Partners for this approach will include: International, European and national policy 
makers;  international  and  Member  State  research  and  innovation  programmes;  European 
business and industry; the European Environment Agency and national environment agencies; 

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COM(2007) 575 final 
DIRECTIVE 2008/56/EC 
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and other relevant stakeholders. In addition to bilateral and regional cooperation, Union level 
actions  will  also  support  relevant  international  efforts  and  initiatives,  including  the 
Intergovernmental  Panel  on  Climate  Change  (IPCC),  the  Intergovernmental  Platform  on 
Biodiversity and Ecosystem Services (IPBES) and the Group on Earth Observations (GEO). 

5.3. 

Broad lines of the activities 

(a) 

Fighting and adapting to climate change 

The  aim  is  to  develop  and  assess  innovative,  cost-effective  and  sustainable  adaptation  and 
mitigation measures, targeting both CO2 and non-CO2 greenhouse gases, and underlining both 
technological  and  non-technological  green  solutions,  through  the  generation  of  evidence  for 
informed,  early  and  effective  action  and  the  networking  of  the  required  competences. 
Activities shall focus on: improving the understanding of climate change and the provision of 
reliable climate projections; assessing impacts, vulnerabilities and developing innovative cost-
effective adaptation and risk prevention measures; supporting mitigation policies. 

(b) 

Sustainably managing natural resources and ecosystems 

The  aim  is  to  provide  knowledge  for  the  management  of  natural  resources  that  achieves  a 
sustainable  balance  between  limited  resources  and  the  needs  of  society  and  the  economy. 
Activities shall focus on: furthering our understanding of the functioning of ecosystems, their 
interactions  with  social  systems  and  their  role  in  sustaining  the  economy  and  human  well-
being;  and  providing  knowledge  and  tools  for  effective  decision  making  and  public 
engagement. 

(c) 

Ensuring the sustainable supply of non-energy and non-agricultural raw materials 

The aim is to improve the knowledge base on raw materials and develop innovative solutions 
for  the  cost-effective  and  environmentally  friendly  exploration,  extraction,  processing, 
recycling and recovery of raw materials and for their substitution by economically attractive 
alternatives  with  a  lower  environmental  impact.  Activities  shall  focus  on:  improving  the 
knowledge base on the availability of raw materials; promoting the sustainable supply and use 
of  raw  materials;  finding  alternatives  for  critical  raw  materials;  and  improving  societal 
awareness and skills on raw materials. 

(d) 

Enabling the transition towards a green economy through eco-innovation 

The aim is to foster all forms of eco-innovation that enable the transition to a green economy. 
Activities shall focus on: strengthening eco-innovative technologies, processes, services and 
products  and  boosting  their  market  uptake  and  replication,  with  special  attention  for  SMEs; 
supporting  innovative  policies  and  societal  changes;  measuring  and  assessing  progress 
towards a green economy; and fostering resource efficiency through digital systems. 

(e) 

Developing  comprehensive  and  sustained  global  environmental  observation  and 
information systems  

The aim is to ensure  the  delivery  of the long-term data and information required to address 
this challenge. Activities shall focus on the capabilities, technologies and data infrastructures 

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for  earth  observation  and  monitoring  that  can  continuously  provide  timely  and  accurate 
information,  forecasts  and  projections.  Free,  open  and  unrestricted  access  to  interoperable 
data and information will be encouraged. 

6. 

INCLUSIVE, INNOVATIVE AND SECURE SOCIETIES 

6.1. 

Specific objective 

The specific objective is to foster inclusive, innovative and secure European societies in a 
context of unprecedented transformations and growing global interdependencies. 

Europe  is  confronted  with  major  socio-economic  challenges  which  significantly  affect  its 
future  -  such  as  growing  economic  and  cultural  interdependencies,  ageing,  social  exclusion 
and poverty, inequalities and migration flows, closing the digital divide, fostering a culture of 
innovation  and  creativity  in  society  and  enterprises,  as  well  ensuring  security  and  freedom, 
trust  in  democratic  institutions  and  between  citizens  within  and  across  borders.  These 
challenges are enormous and they call for a common European approach.  

First,  significant  inequalities  persist  in  the  Union  both  across  countries  and  within  them.  In 
2010 the Human Development Index, an aggregate measure of progress in health, education 
and  income,  scores  the  Union's  Member  States  between  0,743  and  0,895,  thus  reflecting 
considerable  divergences  between  countries.  Significant  gender  inequalities  also  persist:  for 
instance, the gender pay gap in the Union remains at 17.8 % in favour of men37. One in every 
six Union citizens today (around 80 million people) is at risk of poverty. Over the past two 
decades  the  poverty  of  young  adults  and  families  with  children  has  risen.  The  youth 
unemployment rate is above 20 %. 150 million Europeans (some 25 %) have never used the 
internet  and  may  never  get  sufficient  digital  literacy.  Political  apathy  and  polarisation  in 
elections has also risen, reflecting citizen's faltering  trust  in current  political systems. These 
figures suggest that some social groups and communities are persistently left out of social and 
economic development and/or democratic politics. 

Second, Europe's productivity and economic growth rates have been relatively decreasing for 
four  decades.  Furthermore,  its  share  of  the  global  knowledge  production  and  its  innovation 
performance  lead  compared  to  key  emerging  economies  such  as  Brazil  and  China  are 
declining  fast.  Although  Europe  has  a  strong  research  base,  it  needs  to  make  this  base  a 
powerful asset for innovative goods and services. Whereas it is well-known that Europe needs 
to  invest  more  in  science  and  innovation,  it  will  also  have  to  coordinate  these  investments 
much  more  smartly  than  in  the  past:  more  than  95  %  of  national  R&D  budgets  is  spent 
without any coordination across the Union, a formidable potential waste of resources at a time 
of  shrinking  funding  possibilities.  Furthermore,  the  innovation  capacities  of  the  Member 
States,  despite  some  recent  convergence,  remain  very  different,  with  large  gaps  between 
'innovation leaders' and 'modest innovators'38. 

Third,  many  forms  of  insecurity,  whether  crime,  violence,  terrorism,  cyber  attacks,  privacy 
abuses  and  other  forms  of  social  and  economic  disorders  increasingly  affect  citizens. 
According  to  estimates,  there  is  likely  to  be  up  to  75  million  direct  victims  of  crime  every 

37 
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year in Europe39. The direct cost of crime, terrorism, illegal activities, violence and disasters 
in Europe has been estimated at at least EUR 650 billion (about 5 % of the Union's GDP) in 
2010. A vivid example of the consequences of terrorism is the attack against the Twin Towers 
in Manhattan on 11 September 2001. Thousands of lives were lost and it is estimated that this 
event caused losses in US productivity amounting to US$ 35 billion, US$ 47 billion in total 
output and a rise in unemployment by almost 1 % in the following quarter. Citizens, firms and 
institutions  are  increasingly  involved  in  digital  interactions  and  transactions  in  social, 
financial and commercial areas of life but the development of Internet has also led to cyber 
crime  worth  billion  of  Euros  each  year  and  breaches  of  privacy  affecting  individual  or 
associations across the continent. The development of insecurity in everyday life and because 
of unexpected situations is likely to affect the citizens' trust not only in institutions but also in 
each other.  

These  challenges  must  be  tackled  together  and  in  innovative  ways  because  they  interact  in 
complex and often unexpected ways. Innovation may lead to weakening inclusiveness, as can 
be  seen,  for  instance,  in  the  phenomena  of  digital  divide  or  labour  market  segmentation. 
Social innovation, social trust and security are sometimes difficult to reconcile in policies, for 
instance  in  socially  depressed  areas  in  large  cities  in  Europe.  Besides,  the  conjunction  of 
innovation  and  citizens'  evolving  demands  also  lead  policymakers  and  economic  and  social 
actors  to  find  new  answers  that  ignore  established  boundaries  between  sectors,  activities, 
goods or services. Phenomena such as the growth of Internet, of the financial systems, of the 
ageing economy and of the ecological society abundantly show how it is necessary to think 
and respond to these issues across their dimensions of inclusiveness, innovation and security 
at the same time. 

The  in-built  complexity  of  these  challenges  and  the  evolutions  of  demands  thus  make  it 
essential to develop innovative research and new smart technologies, processes and methods, 
social  innovation  mechanisms,  coordinated  actions  and  policies  that  will  anticipate  or 
influence  major  evolutions  for  Europe.  It  calls  for  understanding  the  underlying  trends  and 
impacts  at  play  in  these  challenges  and  rediscovering  or  reinventing  successful  forms  of 
solidarity,  coordination  and  creativity  that  make  Europe  a  distinctive  model  of  inclusive, 
innovative and secure societies compared to other world regions. It requires a more strategic 
approach to cooperation with third countries. Finally, as security policies should interact with 
different  social  policies,  enhancing  the  societal  dimension  of  security  research  will  be  an 
important aspect of this challenge. 

6.2. 

Rationale and Union added value 

These  challenges  ignore  national  borders  and  thus  call  for  more  complex  comparative 
analyses  of  mobility  (of  people,  goods,  services  and  capital  but  also  of  competences  and 
knowledge) and forms of institutional cooperation, intercultural interactions and international 
cooperation.  If  they  are  not  better  understood  and  anticipated,  forces  of  globalisation  also 
push European countries to compete with each other rather than cooperate, thus accentuating 
differences in Europe rather than commonalities and a right balance between cooperation and 
competition. Addressing such critical socio-economic challenges only at national level carries 
the danger of inefficient use of resources, externalisation of problems to other European and 
non-European  countries  and  the  accentuation  of  social,  economic  and  political  tensions  that 

39 

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may directly affect the aims of the European Treaty regarding its values, in particular Title I 
of the Treaty on European Union. 

In order to build inclusive, innovative and secure societies, Europe requires a response which 
implies to develop new knowledge, technologies and capabilities as well as the identification 
of policy options. Such endeavour will help Europe tackle its challenges not only internally 
but  also  as  a  global  player  on  the  international  scene.  This,  in  turn,  will  also  help  Member 
States benefit from experiences elsewhere and allow them to better define their own specific 
actions corresponding to their respective contexts.  

Fostering new modes of cooperation between countries within the Union and worldwide, as 
well as across relevant research and innovation communities, will therefore be a central task 
under  this  challenge.  Engaging  citizens  and  industry,  supporting  social  and  technological 
innovation  processes,  encouraging  smart  and  participatory  public  administration,  as  well  as 
promoting  evidence  based  policymaking  will  be  systematically  pursued  in  order  to  enhance 
the relevance of all these activities for policymakers, social and economic actors and citizens. 
In  this  regard,  research  and  innovation  will  be  a  precondition  for  the  competitiveness  of 
European  industries  and  services,  in  particular  in  the  areas  of  security,  digital  development 
and privacy protection. 

Union  funding  under  this  challenge  will  thus  support  the  development,  implementation  and 
adaptation  of  key  Union  policies,  notably  Europe  2020  priorities  for  smart,  sustainable  and 
inclusive growth, the Common Foreign and Security Policy and the Union's Internal Security 
Strategy, including policies on disaster prevention and response. Coordination with the Joint 
Research Centre direct actions will be pursued. 

6.3. 

Broad lines of activities 

6.3.1. 

Inclusive societies 

The  aim  is  to  enhance  solidarity  as  well  as  social,  economic  and  political  inclusion  and 
positive  inter-cultural  dynamics  in  Europe  and  with  international  partners,  through  cutting-
edge  science  and  interdisciplinarity,  technological  advances  and  organisational  innovations. 
Humanities research can play an important role here. Research shall support policymakers in 
designing  policies  that  combat  poverty  and  prevent  the  development  of  various  forms  of 
divisions, discriminations and inequalities in European societies, such as gender inequalities 
or digital or innovation divides, and with other world regions. It shall in particular feed into 
the  implementation  and  the  adaptation  of  the  Europe  2020  strategy  and  the  broad  external 
action of the Union. Specific measures shall be taken to unlock excellence in less developed 
regions, thereby widening participation in Horizon 2020. 

The focus of activities shall be to: 

(a) 

(b) 

(c) 

(d) 

promote smart, sustainable and inclusive growth;  

build resilient and inclusive societies in Europe;  

strengthen Europe's role as a global actor;  

close the research and innovation divide in Europe. 

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6.3.2. 

Innovative societies  

The aim is to foster the development of innovative societies and policies in Europe through 
the  engagement  of  citizens,  enterprises  and  users  in  research  and  innovation  and  the 
promotion  of  coordinated  research  and  innovation  policies  in  the  context  of  globalisation. 
Particular support will be provided for the development of the ERA and the development of 
framework conditions for innovation. 

The focus of activities shall be to: 

(a) 

(b) 

(c) 

(d) 

strengthen the evidence base and support for the Innovation Union and ERA; 

explore new forms of innovation, including social innovation and creativity; 

ensure societal engagement in research and innovation;  

promote coherent and effective cooperation with third countries. 

6.3.3. 

Secure societies 

The  aim  is  to  support  Union  policies  for  internal  and  external  security  and  to  ensure  cyber 
security, trust and privacy in the Digital Single Market, whilst at the same time improving the 
competitiveness  of  the  Union's  security,  ICT  and  service  industries.  This  will  be  done  by 
developing  innovative  technologies  and  solutions  that  address  security  gaps  and  lead  to  the 
prevention  of  security  threats.  These  mission-oriented  actions  will  integrate  the  demands  of 
different  end-users  (citizens,  businesses,  and  administrations,  including  national  and 
international  authorities,  civil  protections,  law  enforcement,  border  guards,  etc.)  in  order  to 
take  into  account  the  evolution  of  security  threats  and  privacy  protection  and  the  necessary 
societal aspects. 

The focus of activities shall be to: 

(a) 

(b) 

(c) 

(d) 

(e) 

fight crime and terrorism; 

strengthen security through border management; 

provide cyber security; 

increase Europe's resilience to crises and disasters; 

ensure  privacy  and  freedom  in  the  Internet  and  enhance  the  societal  dimension  of 
security. 

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PART IV 
Non-Nuclear Direct Actions of the Joint Research Centre (JRC) 

1. 

SPECIFIC OBJECTIVE 

The  specific  objective  is  to  provide  customer-driven  scientific  and  technical  support  to 
Union policies, while flexibly responding to new policy demands. 

2. 

RATIONALE AND UNION ADDED VALUE 

The Union has defined an ambitious policy agenda to 2020 which addresses a set of complex 
and interlinked challenges, such as sustainable management of resources and competitiveness. 
In  order  to  successfully  tackle  these  challenges,  robust  scientific  evidence  is  needed  which 
cuts across different scientific disciplines and allows the sound assessment of policy options. 
The  JRC,  further  strengthening  its  role  as  the  science  service  for  Union  policy  making  will 
provide  the  required  scientific  and  technical  support  throughout  all  stages  of  the  policy-
making cycle, from conception to implementation and assessment. To this aim it will focus its 
research  clearly  on  Union  policy  priorities  while  enhancing  cross-cutting  competences.  The 
JRC's  independence  of  special  interests,  whether  private  or  national,  combined  with  its 
scientific-technical  reference  role  enable  it  to  facilitate  the  necessary  consensus  building 
between stakeholders and policy makers. Member States and Union citizens' benefit from the 
research  of  the  JRC,  most  visibly  in  areas  such  as  health  and  consumer  protection, 
environment, safety and security, and management of crises and disasters.  

The JRC is an integral part of the ERA and will continue to actively support its functioning 
through  close  collaboration  with  peers  and  stakeholders,  opening  access  to  its  facilities  and 
through  the  training  of  researchers.  This  will  also  promote  the  integration  of  new  Member 
States  and  Associated  Countries;  for  these,  the  JRC  will  continue  to  provide  dedicated 
training  courses  on  the  scientific-technical  basis  of  the  body  of  Union  law.  The  JRC  will 
establish  coordination  links  with  relevant  other  Horizon  2020  specific  objectives.  As  a 
complement to its direct actions and for the purpose of further integration and networking in 
the  ERA,  the  JRC  may  also  participate  in  Horizon  2020  indirect  actions  and  co-ordination 
instruments in areas where it has the relevant expertise to produce added value.  

3. 

BROAD LINES OF ACTIVITIES 

The JRC activities in Horizon 2020 will focus on the Union policy priorities and the societal 
challenges addressed by them; they are aligned with Europe 2020 and its main objectives of 
smart, sustainable and inclusive growth, Security and Citizenship, and Global Europe. 

The JRC's key competence areas will be energy, transport, environment and climate change, 
information  and 
food  security,  health  and  consumer  protection, 
agriculture  and 
communication technologies, reference materials, and  safety and security (including nuclear 
in the Euratom programme). 

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These  competence  areas  will  be  significantly  enhanced  with  capacities  to  address  the  full 
policy cycle and to assess policy options. This includes strengthening capacities in  

(a) 

(b) 

(c) 

(d) 

(e) 

anticipation  and  foresight  -  pro-active  strategic  intelligence  on  trends  and  events  in 
science, technology and society and their possible implications for public policy.  

economics  -  for  an  integrated  service  covering  both  the  scientific-technical  and  the 
macro-economic aspects.  

modelling - focussing on sustainability and economics and making the Commission 
less dependent on outside suppliers for vital scenario analysis.  

policy analysis - to allow cross-sectoral investigation of policy options.  

impact assessment - providing scientific evidence to support policy options.  

The JRC shall continue to pursue excellence in research as the basis for credible and robust 
scientific-technical policy support. To that aim, it will strengthen collaboration with European 
and  international  partners,  i.a.  by  participation  in  indirect  actions.  It  will  also  carry  out 
exploratory  research  and  build  up  competences  in  emerging,  policy-relevant  areas  on  a 
selective basis.  

The JRC shall focus on:  

3.1 

Excellent science 

Carry  out  research  to  enhance  the  scientific  evidence  base  for  policy  making  and  examine 
emerging  fields  of  science  and  technology,  including  through  an  exploratory  research 
programme. 

3.2 

Industrial leadership  

Contribute  to  European  competitiveness  through  support  to  the  standardisation  process  and 
standards  with  pre-normative 
reference  materials  and 
measurements,  and  harmonization  of  methodologies  in  five  focal  areas  (energy;  transport; 
Digital  Agenda;  security  and  safety;  consumer  protection).  Carry  out  safety  assessments  of 
new technologies in areas such as energy and transport and health and consumer protection. 
Contribute  to  facilitating  the  use,  standardisation  and  validation  of  space  technologies  and 
data, in particular to tackle the societal challenges. 

research,  development  of 

3.3 

(a) 

Societal challenges 

Health, demographic change and wellbeing 

Contribute  to  health  and  consumer  protection  through  scientific  and  technical 
support  in  areas  such  as  food,  feed,  consumer  products;  environment  and  health; 
health-related diagnostic and screening practices; and nutrition and diets. 

(b) 

Food  security,  sustainable  agriculture,  marine  and  maritime  research  and  the  bio-
economy 

Support  the  development,  implementation  and  monitoring  of  European  agriculture 
and fisheries policies, including food safety and security and the development of a 

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bio- economy through e.g. crop production forecasts, technical and socio-economic 
analyses and modelling. 

(c) 

Secure, clean and efficient energy 

Support the 20/20/20 climate and energy targets with research on technological and 
economic  aspects  of  energy  supply,  efficiency, 
technologies, 
energy/electricity transmission networks. 

low-carbon 

(d) 

Smart, green and integrated transport 

Support the Union's policy for the sustainable, safe and secure mobility of persons 
and goods with laboratory studies, modelling and monitoring approaches, including 
low  carbon  technologies  for  transport,  such  as  electrification,  clean  and  efficient 
vehicles and alternative fuels, and smart mobility systems. 

(e) 

Climate action, resource efficiency and raw materials 

Investigate the cross-sectoral challenges of the sustainable management of natural 
resources through monitoring of key environmental  variables and  the development 
of an integrated modelling framework for sustainability assessment.  

Support  resource  efficiency,  emission  reductions  and  sustainable  supply  of  raw 
materials through the integrated social, environmental and economic assessments of 
clean production processes, technologies, and products and services.  

Support  Union  development  policy  goals  with  research  to  help  ensure  adequate 
supplies of essential resources focussing on monitoring environmental and resource 
parameters, food safety and security related analyses, and knowledge transfer. 

(f) 

Inclusive, innovative and secure Societies 

Contribute to and monitor the implementation of the Innovation Union with macro-
economic  analyses  of  the  drivers  and  barriers  of  research  and  innovation,  and 
development of methodologies, scoreboards and of indicators.  

Support the European Research Area (ERA) by monitoring the functioning of the 
ERA  and  analysing  drivers  of  and  barriers  to  some  of  its  key  elements;  and  by 
research  networking,  training,  opening  JRC  facilities  and  databases  to  users  in 
Member States and Candidate and Associated Countries. 

Contribute  to  the  key  goals  of  the  Digital  Agenda  by  qualitative  and  quantitative 
analyses of economic and social aspects (Digital  Economy,  Digital  Society,  Digital 
Living).  

Support  internal  safety  and  security  through  the  identification  and  assessment  of 
the vulnerability of critical infrastructures as vital components of societal functions; 
and  through  the  operational  performance  assessment  of  technologies  related  to  the 
digital  identity;  Address  global  security  challenges  including  emerging  or  hybrid 
threats  through  the  development  of  advanced  tools  for  information  mining  and 
analysis as well as for crisis management 

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Enhance  the  Union  capacity  for  managing  natural  and  man-made  disasters  by 
strengthening the monitoring of infrastructures and the development of global multi-
hazard  early  warning  and  risk  management  information  systems,  making  use  of 
satellite-based earth observation frameworks.  

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PART V 
The European Institute of Innovation and Technology (EIT) 

1. 

SPECIFIC OBJECTIVE 

The specific objective is to integrate the knowledge triangle of research, innovation and 
education  and  thus  to  reinforce  the  Union's  innovation  capacity  and  address  societal 
challenges.  

Europe is facing a number of structural weaknesses when it comes to innovation capacity and 
the ability to deliver new services, products and processes. Among the main issues at hand are 
Europe's  relatively  poor  record  in  talent  attraction  and  retention;  the  underutilisation  of 
existing  research  strengths  in  terms  of  creating  economic  or  social  value;  low  levels  of 
entrepreneurial  activity;  a  scale  of  resources  in  poles  of  excellence  which  is  insufficient  to 
compete globally; and an excessive number of barriers to collaboration within the knowledge 
triangle of higher education, research and business on a European level.  

2. 

RATIONALE AND UNION ADDED VALUE 

If  Europe  is  to  compete  on  an  international  scale,  these  structural  weaknesses  need  to  be 
overcome.  The  elements  identified  above  are  common  across  Member  States  and  affect  the 
Union's innovation capacity as a whole.  

The EIT will address these issues by promoting structural changes in the European innovation 
landscape.  It  will  do  so  by  fostering  the  integration  of  higher  education,  research  and 
innovation  of  the  highest  standards,  thereby  creating  new  environments  conducive  to 
innovation, and by promoting and supporting a new generation of entrepreneurial people. In 
doing  so,  the  EIT  will  contribute  fully  to  the  objectives  of  Europe  2020  and  notably  the 
Innovation Union and Youth on the Move flagship initiatives.  

Integrating education and entrepreneurship with research and innovation 

The  specific  feature  of  the  EIT  is  to  integrate  education  and  entrepreneurship  with  research 
and innovation as links in a single innovation chain across the Union and beyond. 

Business logic and a results-oriented approach 

The  EIT,  via  its  KICs,  operates  in  line  with  business  logic.  Strong  leadership  is  a  pre-
requisite: each KIC is driven by a CEO. KIC partners are represented by single legal entities 
to  allow  more  streamlined  decision-making.  KICs  must  produce  annual  business  plans, 
including an ambitious portfolio of activities from education to business creation, with clear 
targets  and  deliverables,  looking  for  both  market  and  societal  impact.  The  current  rules 
concerning  participation,  evaluation  and  monitoring  of  KICs  allow  fast-track,  business-like 
decisions. 

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Overcoming fragmentation with the aid of long-term integrated partnerships 

The EIT KICs are highly integrated ventures, bringing together partners from industry, higher 
education,  research  and  technology  institutes,  renowned  for  their  excellence.  KICs  allow 
world-class partners to unite in new, cross-border configurations, optimise existing resources 
and  open  up  access  to  new  business  opportunities  via  new  value  chains,  addressing  higher-
risk, larger-scale challenges. 

Nurturing Europe’s main innovation asset: its highly talented people  

Talent  is  a  key  ingredient  of  innovation.  The  EIT  nurtures  people  and  interactions  between 
them, by putting students, researchers and entrepreneurs at the centre of its innovation model. 
The EIT will provide an entrepreneurial and creative culture and cross-disciplinary education 
to  talented  people,  via  EIT-labelled  Masters  and  PhD  degrees,  intended  to  emerge  as  an 
internationally  recognised  brand  of  excellence.  In  doing  so,  the  EIT  strongly  promotes 
mobility within the knowledge triangle.  

3. 

BROAD LINES OF THE ACTIVITIES 

The  EIT  shall  operate  mainly,  but  not  exclusively,  via  the  Knowledge  and  Innovation 
Communities (KICs) in areas of societal challenges that are of utmost relevance to Europe’s 
common  future.  While  the  KICs  have  a  large  degree  of  autonomy  in  defining  their  own 
strategies and activities, there are a number of innovative features common to all KICs. The 
EIT  will  moreover  enhance  its  impact  by  making  the  experiences  from  the  KICs  available 
across the Union and by actively fostering a new culture of knowledge sharing.  

(a) 

Transferring  and  applying  higher  education,  research  and  innovation  activities  for 
new business creation 

The  EIT  shall  aim  to  unleash  the  innovative  potential  of  people  and  capitalise  on 
their ideas, irrespective of their place in the innovation chain. Thereby, the EIT will 
also  help  to  address  the  ‘European  paradox’  that  excellent  existing  research  is  far 
from being harnessed to the full. In doing so, the EIT shall help to bring ideas to the 
market.  Chiefly  via  its  KICs  and  its  focus  on  fostering  entrepreneurial  mindsets,  it 
will create new business opportunities in the form of both start-ups and spin-offs but 
also within existing industry.  

(b) 

Cutting-edge  and  innovation-driven  research  in  areas  of  key  economic  and  societal 
interest 

The  EIT’s  strategy  and  activities  shall  be  driven  by  a  focus  on  societal  challenges 
that  are  of  utmost  relevance  to  the  future,  such  as  climate  change  or  sustainable 
energy. By addressing key societal challenges in a comprehensive way, the EIT will 
promote inter- and multi-disciplinary approaches and help focus the research efforts 
of the partners in the KICs. 

(c) 

Development of talented, skilled and entrepreneurial people with the aid of education 
and training  

The  EIT  shall  fully  integrate  education  and  training  at  all  stages  of  careers  and 
develop new and innovative curricula to reflect the need for new profiles engendered 

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by complex societal and economic challenges. To this end, the EIT will play a key 
role in encouraging recognition of new degrees and diplomas in Member States. 

The  EIT  will  also  play  a  substantial  role  in  fine-tuning  the  concept  of 
‘entrepreneurship’ via its educational programmes, which promote entrepreneurship 
in a knowledge-intensive context, building on innovative research and contributing to 
solutions of high societal relevance.  

(d) 

Dissemination of best practice and systemic knowledge-sharing 

The  EIT  shall  aim  to  pioneer  new  approaches  in  innovation  and  to  develop  a 
common innovation and knowledge-transfer culture, among other things by sharing 
the diverse experience of its KICs via various dissemination mechanisms, such as a 
stakeholder platform and a fellowship scheme.  

(e) 

International dimension 

The EIT acts conscientious of the global context it operates in and shall help to forge 
links  with  key  international  partners.  By  scaling  up  centres  of  excellence  via  the 
KICs  and  by  fostering  new  educational  opportunities,  it  will  aim  to  make  Europe 
more attractive for talent from abroad. 

(f) 

Enhancing European wide impact via an innovative funding model 

The  EIT  will  make  a  strong  contribution  to  the  objectives  set  in  Horizon  2020,  in 
particular by addressing societal challenges in a way complementing other initiatives 
in  these  areas.  It  will  test  out  new  and  simplified  approaches  to  funding  and 
governance  and  thereby  play  a  pioneering  role  within  the  European  innovation 
landscape. Its approach to funding will be firmly based on a strong leverage effect, 
mobilising  both  public  and  private  funds.  Moreover,  it  will  employ  entirely  new 
vehicles for targeted support to individual activities through the EIT Foundation. 

(g) 

Linking regional development to European opportunities 

Via  the  KICs  and  their  co-location  centres  –  nodes  of  excellence,  brining  together 
higher  education,  research and business partners in a given geographical location – 
the  EIT  will  also  be  linked  to  regional  policy.  In  particular,  it  shall  ensure  a  better 
connection  between  higher  education  institutions  and  regional  innovation  and 
growth,  in  the  context  of  regional  and  national  smart  specialisation  strategies.  In 
doing so, it will contribute to the objectives of the Union’s Cohesion Policy. 

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Annex II 
Breakdown of the budget 

The indicative breakdown for Horizon 2020 is as follows (in EUR million): 

I 

Excellent science, of which: 

The European Research Council 

Future and Emerging Technologies 

Marie Curie actions on skills, training and career development 

6503 

European research infrastructures (including eInfrastructures) 

2802 

II 

Industrial leadership, of which: 

20280 

Leadership in enabling and industrial technologies* 

15580 of which 500 for EIT 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

Access to risk finance** 

Innovation in SMEs 

III 

Societal challenges, of which 

27818 

15008 

3505 

4000 

700 

35888 

1. 

2. 

3. 

4. 

5. 

6. 

Health, demographic change and wellbeing; 

9077 of which 292 for EIT 

Food  security,  sustainable  agriculture,  marine  and  maritime 
research and the bio- economy; 

4694 of which 150 for EIT 

Secure, clean and efficient energy 

6537 of which 210 for EIT 

Smart, green and integrated transport 

7690 of which 247 for EIT 

Climate action, resource efficiency and raw materials  

3573 of which 115 for EIT 

Inclusive, innovative and secure societies 

4317 of which 138 for EIT 

European Institute of Innovation and Technology (EIT)  

1542 + 1652*** 

Non-nuclear direct actions of the Joint Research Centre 

2212 

TOTAL 87740 

*Including  EUR  8975  million  for  Information  and  Communication  Technologies  (ICT)  of  which  EUR  1795 
million  for  photonics  and  micro-and  nanoelectronics,  EUR  4293  million  for  nanotechnologies,  advanced 
materials  and  advanced  manufacturing  and  processing,  EUR  575  million  for  biotechnology  and  EUR  1737 
million for space. As a result, EUR 6663 million will be available to support Key Enabling Technologies. 

**  Around  EUR  1131  million  of  this  amount  may  go  towards  the  implementation  of  Strategic  Energy 
Technology Plan (SET Plan) projects. Around one third of this may go to SMEs. 

***  The  total  amount  will  be  made  available  through  allocations  as  foreseen  in  Article  6(3).  The  second 
allocation of EUR 1652 million shall be made available pro-rata from the budgets of the Societal challenges and 
Leadership  in  enabling  and  industrial  technologies,  on  an  indicative  basis  and  subject  to  the  review  set  out  in 
Article 26(1)  

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Horizon 2020 – The Framework Programme for Research and Innovation (2014-2020)  

1.2. 

Policy area(s) concerned in the ABM/ABB structure40  

- 08 - Research and Innovation 

- 09 - Information Society and Media 

- 02 - Enterprise and Industry 

- 05 - Agriculture 

- 32 - Energy 

- 06 - Mobility and Transport 

- 15 - Education and Culture 

- 07 - Environment and climate action 

- 10 - Joint Research Centre 

1.3. 

Nature of the proposal/initiative  

(cid:58) The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action41  

(cid:133) The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

Horizon  2020  –  The  Framework  Programme  for  Research  and  Innovation  (2014-2020) 
(‘Horizon 2020’) will contribute to the Europe 2020 strategy, including the completion of 
the European Research Area, by stimulating smart, sustainable and inclusive growth: 

- Smart growth – develop an economy based on knowledge and innovation (implementing 
the Innovation Union flagship initiative). 

40 
41 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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-  Sustainable  growth  –  promote  a  more  resource  efficient,  greener  and  more  competitive 
economy. 

- Inclusive growth – foster a high-employment economy delivering economic, social and 
territorial cohesion. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

- Part I: Priority 'Excellent Science' 

- Part II: Priority 'Industrial Leadership' 

- Part III: Priority 'Societal Challenges' 

- Part IV: Non-nuclear direct actions of the Joint Research Centre  

-  Part  V:  'Integrating  the  knowledge  triangle'  (European  Institute  of  Innovation  and 
Technology) 

ABM/ABB activity(ies) concerned 

- 08 - Research and Innovation 

- 09 - Information Society and Media 

- 02 - Enterprise and Industry 

- 05 - Agriculture 

- 32 - Energy 

- 06 - Mobility and Transport 

- 15 - Education and Culture 

- 07 - Environment and climate action  

- 10 - Joint Research Centre 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

It is estimated that by 2030 Horizon 2020 is expected to generate an extra 0.92 per cent of 
GDP, 1.37 per cent of exports, -0.15 per cent of imports, and 0.40 per cent of employment.  

For  more  information,  please  read  the  Commission  Staff  Working  Paper  on  the  impact 
assessment of Horizon 2020 (‘IA’) accompanying this legislative proposal.  

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

The  following  table  specifies  for  the  general  and  specific  objectives  of  Horizon  2020  a 
limited number of key indicators for assessing results and impacts. 

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Additional  –  including  newly  developed  –  indicators  will  be  used  to  capture  the  various 
types of results and impacts for the different specific activities. 

General objective: 

Contribute  to  the  objectives  of  the  Europe  2020  strategy  and  to  the  completion  of  the 
European Research Area 

- The Europe 2020 R&D target (3 % of GDP) 

Current: 

2.01 % of GDP (EU-27, 2009) 

Target: 

3 % of GDP (2020) 

- The Europe 2020 innovation headline indicator 

Current: 

New approach 

Target: 

Substantial weight of fast-growing innovative enterprises in the economy 

Part I: Priority 'Excellent Science' 

Specific Objectives 

* European Research Council 

-Share  of  publications  from  ERC  funded  projects  which  are  among  the  top  1  %  highly 
cited 

Current: 

0.8 % (EU publications from 2004 to 2006, cited until 2008) 

Target: 

1.6 % (ERC publications 2014 - 2020) 

-Number  of  institutional  policy  and  national/regional  policy  measures  inspired  by  ERC 
funding 

Current: 

20 (estimate 2007 – 2013) 

Target: 

100 (2014 – 2020) 

* Future and Emerging Technologies 

-Publications in peer-reviewed high impact journals 

Current: 

New approach 

Target: 

25 publications per 10 Million € funding (2014 - 2020)  

- Patent applications in Future and Emerging Technologies  

Current: 

New approach 

Target: 

1 patent application per 10 Million € funding (2014 – 2020) 

* Marie Curie actions on skills, training and career development 

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-Cross-sector and cross-country circulation of researchers, including PhD candidates 

Current: 

50.000, around 20 % PhD candidates (2007 - 2013) 

Target: 

65.000, around 40 % PhD candidates (2014 - 2020) 

* European research infrastructures (including eInfrastructures) 

-Research  infrastructures  which  are  made  accessible  to  all  researchers  in  Europe  and 
beyond through Union support 

Current: 

650 (2012) 

Target: 

1000(2020) 

Part II: Priority 'Industrial Leadership' 

Specific Objectives 

*Leadership in enabling and industrial technologies (ICT, Nanotechnologies, Advanced 
Materials, Biotechnologies, Advanced manufacturing and Space) 

- Patent applications obtained in the different enabling and industrial technologies  

Current: 

New approach 

Target: 

3 patent applications per 10 Million € funding (2014 – 2020) 

-Access to risk finance 

- Total investments mobilised via debt financing and Venture Capital investments 

Current: 

New approach 

Target: 
(2014 - 2020) 

EUR  100  million  total  investment  per  EUR  10  million  Union  contribution 

* Innovation in SMEs 

- Share of participating SMEs introducing innovations new to the company or the market 
(covering the period of the project plus three years) 

Current: 

New approach 

Target: 

50 % 

Part III: Priority 'Societal Challenges' 

Specific Objectives 

For  each  of  the  challenges,  progress  shall  be  assessed  against  the  contribution  to  the 
following specific objectives which are detailed in Annex I of Horizon 2020 together with 
descriptions of the substantive advancement needed for the achievement of the challenges 
and policy relevant indicators: 

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-Improve the lifelong health and wellbeing of all. 

-Secure sufficient supplies of safe and high quality food and other bio-based products, by 
developing  productive  and  resource-efficient  primary  production  systems,  fostering 
ecosystem services, alongside competitive and low carbon supply chains.  

-Make the transition to a reliable, sustainable and competitive energy system, in the face of 
increasingly scarce resources, increasing energy needs and climate change.  

-Achieve a European transport system that is resource-efficient, environmentally-friendly, 
safe and seamless for the benefit of citizens, the economy and society. 

-Achieve  a  resource  efficient  and  climate  change  resilient  economy  and  a  sustainable 
supply of raw materials, in order to meet the needs of a growing global population within 
the sustainable limits of the planet's natural resources.  

-Foster inclusive, innovative and secure European societies in a context of unprecedented 
transformations and growing global interdependencies. 

Additional performance indicators are: 

-  Publications  in  peer-reviewed  high  impact  journals  in  the  area  of  the  different  Societal 
Challenges 

Current: 
figure) 

New approach (For FP7(2007-2010), 8149 publications in total - preliminary 

Target: 

On average, 20 publications per 10 Million € funding (2014 – 2020) 

- Patent applications in the area of the different Societal Challenges  

Current: 

153 (FP7 Cooperation Programme 2007-10, preliminary figures) 

Target: 

On average, 2 patent applications per 10 Million € funding (2014 – 2020) 

- Number of Union pieces of legislation referring to activities supported in the area of the 
different Societal Challenges 

Current: 

New approach 

Target: 

On average, 1 per 10 Million € funding (2014 - 2020) 

Part IV: Non-nuclear direct actions of the Joint Research Centre  

Provide customer-driven scientific and technical support to Union policies  

- Number of occurrences of tangible specific impacts on European policies resulting from 
technical and scientific policy support provided by the Joint Research Centre 

Current: 

175 (2010) 

Target: 

230 (2020) 

- Number of peer reviewed publications  

Current: 

430 (2010) 

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Target: 

500 (2020) 

Part  V:  'Integrating  the  knowledge  triangle'  (European  Institute  of  Innovation  and 
Technology) 

-  Organisations  from  universities,  business  and  research  integrated  in  Knowledge  and 
Innovation Communities ('KICs') 

Current: 

New approach 

Target: 

540 (2020) 

-  Collaboration  inside  the  knowledge  triangle  leading  to  the  development  of  innovative 
products and processes 

Current: 

New approach 

Target: 
6000 innovations in existing businesses developed by KIC students/researchers/professors 

600  start-ups  and  spin-offs  created  by  KICs  students/researchers/professors; 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

-Improve  the  contribution  of  research  and  innovation  to  the  resolution  of  key  societal 
challenges.  

-Boost  Europe’s  industrial  competitiveness  through  promoting  technological  leadership 
and getting good ideas to market. 

-Strengthen Europe’s science base. 

-Achieve  the  European  Research  Area  and  increase  its  effectiveness  (cross-cutting 
objectives).  

For  more  information,  please  read  the  Commission  Staff  Working  Paper  on  the  impact 
assessment of Horizon 2020 (‘IA’) accompanying this legislative proposal. 

1.5.2.  Added value of EU involvement 

There is a clear case for public intervention to tackle the problems outlined in 1.5.1 above. 
Markets alone will not deliver European leadership in the new techno-economic paradigm. 
Large-scale public intervention through both supply and demand measures will be needed 
to overcome the market failures associated with systemic shifts in basic technologies. 

However,  Member  States  acting  alone  will  not  be  able  to  make  the  required  public 
intervention.  Their  investment  in  research  and  innovation  is  comparatively  low,  is 
fragmented  and  suffers  from  inefficiencies  -  a  crucial  obstacle  when  it  comes  to 
technological paradigm shifts. It is difficult for Member States on their own to accelerate 
technology development over a sufficiently broad portfolio of technologies, or to tackle the 
lack of transnational coordination. 

As highlighted in the proposal for the next Multi-annual Financial Framework, the Union 
is  well  positioned  to  add  value  by  delivering  the  large-scale  investment  in  "blue  sky" 
frontier  research,  in  targeted  applied  R&D,  and  in  the  associated  education,  training  and 

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infrastructures which will help to strengthen our performance in thematically focused R&D 
and enabling technologies; by supporting companies' efforts to exploit research results and 
to  turn  them  into  marketable  products,  processes  and  services;  and  by  stimulating  the 
uptake of these innovations. A series of cross-border actions - concerning the coordination 
of  national  research  funding,  Union-wide  competition  for  research  funding,  researcher 
mobility  and training,  coordination of research infrastructures, transnational collaborative 
research  and  innovation,  and  innovation  support  -  are  most  efficiently  and  effectively 
organised  at  European  level.  Ex-post  evaluation  evidence  has  convincingly  demonstrated 
that Union research and innovation programmes support research and other activities that 
are of great strategic importance for participants, and that in the absence of Union support 
would  simply  not  take  place.  In  other  words,  there  are  no  substitutes  for  Union  level 
support. 

Evidence  also  demonstrates  the  European  added  value  of  policy  support  actions,  which 
derives  from  bringing  together  knowledge  and  experience  from  different  contexts, 
supporting  cross-country  comparisons  of  innovation  policy  tools  and  experiences,  and 
providing the opportunity to identify, promote and test best practices from over the widest 
possible area. 

The  direct  actions  of  the  Joint  Research  Centre  (‘JRC’)  provide  European  added  value 
because  of  their  unique  European  dimension.  These  benefits  range  from  responding  to 
Commission’s need to have in-house access to scientific evidence independent of national 
and  private  interests  to  direct  benefits  to  the  Union  citizens  through  contributions  to 
policies which lead to improved economic, environmental and social conditions.  

For  more  information,  please  read  the  Commission  Staff  Working  Paper  on  the  impact 
assessment of Horizon 2020 (‘IA’) accompanying this legislative proposal. 

1.5.3.  Lessons learned from similar experiences in the past 

The programme builds on the experience accumulated from past Framework Programmes 
for Research and Technological Demonstration (FP), the Competitiveness and Innovation 
Programme (CIP), and the European Institute of Technology and Innovation (EIT).  

Over a period spanning several decades, Union programmes have: 

- succeeded in involving Europe's best researchers and institutes,  

- produced large-scale structuring effects, scientific, technological and innovation impacts, 
micro-economic  benefits,  and  downstream  macro-economic,  social  and  environmental 
impacts for all Member States.  

Together with the success, there are important lessons to be learned from the past: 

- Research, innovation and education should be addressed in a more coordinated manner; 

-  Research  results  better  disseminated  and  valorised  into  new  products,  processes  and 
services; 

- The intervention logic should be more focused, concrete, detailed and transparent; 

- Programme access should be improved and participation increased from start-ups, SMEs, 
industry, less performing Member States and extra-Union countries; 

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- Monitoring and evaluation of the programme need to be strengthened. 

The recommendations for direct actions in recent evaluation reports note i.a. that the JRC 
can 

- promote stronger integration in the production of knowledge in the Union;  

- introduce impact analyses and cost-benefit studies of specific work;  

-  enhance  cooperation  with  industry  in  order  to  strengthen  effects  for  the  benefit  of  the 
competitiveness of the European economy. 

For  more  information,  please  read  the  Commission  Staff  Working  Paper  on  the  impact 
assessment of Horizon 2020 (‘IA’) accompanying this legislative proposal. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

In  the  context  of  the  achievement  of  the  Europe  2020  objectives,  synergies  will  be 
established  and  developed  with  the  other  Union  programmes  like  the  Common  Strategic 
Framework  for  Economic,  Social  and  Territorial  Cohesion  and  with  the  Competitiveness 
and SMEs Programme. 

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1.6. 

Duration and financial impact  

(cid:58) Proposal/initiative of limited duration  

–  (cid:58)  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

–  (cid:58)  Financial impact from 2014 to 2026  

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) envisaged42  

(cid:58) Centralised direct management by the Commission  

(cid:58) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:58)  executive agencies  

–  (cid:58)  bodies set up by the Communities43  

–  (cid:58)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of 
the  Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the 
meaning of Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:58)  Joint  management  with  international  organisations,  including  the  European  Space 
Agency 

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

Comments:  

The Commission intends to use a variety of management modes to implement this activity 
building  on  the  management  modes  used  under  the  current  financial  perspectives.  These 
management modes include centralised management and joint management.  

Management  will  be  through  the  services  of  the  Commission,  through  the  existing 
Executive  Agencies  of  the  Commission  renewing  and  extending  their  mandates  in  a 
balanced  manner  and  through  other  externalised  bodies  such  as  entities  created  under 
Articles  187  (e.g.  Joint  Undertakings  with  renewed  mandates  after  assessment  and  new 
ones  to  be  set  up  in  the  context  of  implementing  e.g.  the  'Societal  Challenges'  part),  185 

42 

43 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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(programmes  undertaken  jointly  by  several  member  states,  where  national  public-sector 
bodies/bodies with public-service mission will play a role) of the Lisbon Treaty as well as 
through the European Institute of Innovation and Technology and financial instruments.  

Activities  already  externalised  under  the  current  financial  perspective  (e.g.  Frontier 
Research,  Marie  Curie  Actions,  SME  actions,  Knowledge  and  Innovation  Communities), 
which  will  be  continued  under  Horizon  2020,  will  be  implemented  keeping  the  current 
form  of  externalisation.  This  may  entail  deepening  the  specialisation  and  simplifying 
management  of  the  respective  externalised  bodies  and  brining  them  to  a  comparable 
operational size.  

Externalisation  of  further  activities  of  Horizon  2020,  in  particular  through  recourse  to 
existing  Executive  Agencies  of  the  Commission,  is  foreseen  as  long  as  it  is  compatible 
with  keeping  core  policy  competences  within  Commission  services.  The  externalisation 
means retained to implement these activities will be selected on the basis of their proven 
effectiveness  and  efficiency.  At  the  same  time,  the  staff  assigned  to  the  Executive 
Agencies of the Commission will have to increase in proportion to the part of the budget 
corresponding  to  the  externalised  activities  and  taking  into  account  the  commitment  on 
staffing made by the Commission (A Budget for Europe 2020, COM(2011)500). 

Where higher leverages can be achieved, the European Space Agency may be involved in 
the implementation of space-related activities of Horizon 2020. 

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2. 

MANAGEMENT MEASURES  

Simplification 

Horizon  2020  must  attract  the  most  excellent  researchers  and  the  most  innovative 
European  enterprises.  This  can  only  be  reached  by  a  programme  with  the  least 
possible  administrative  burden  for  participants  and  by  appropriate  funding 
conditions. Simplification in Horizon 2020 will therefore target three overarching 
goals:  to  reduce  the  administrative  costs  of  the  participants;  to  accelerate  all 
processes of proposal and grant management and to decrease the financial error rate. 
Moreover, simplification of research and innovation funding will also result from the 
revision  of  the  Financial  Regulation  (e.g.  no  interest  bearing  accounts  for  pre-
financing, eligible VAT, limitation of extrapolation of systematic errors). 

Simplification in Horizon 2020 will be achieved along several dimensions.  

Structural simplification is provided through 

-Integration of all research and innovation related funding instruments (EIT, CIP, FP) 
into the Horizon 2020 Framework Programme and its Specific Programme; 

-One single Specific Programme implementing Horizon 2020; 

-One single set of participation rules covering all components of Horizon 2020. 

Major  simplification  of  funding  rules  will  make  the  preparation  of  proposals  and 
the management of projects easier. At the same time, they will reduce the number of 
financial errors. The following approach is proposed: 

Main funding model for grants: 

-Simplified  reimbursement  of  real  direct  costs,  with  a  broader  acceptance  of 
beneficiaries’ usual accounting, including the eligibility of certain taxes and charges; 

-The  possibility  of  using  unit  personnel  costs  (average  personnel  costs)  for 
beneficiaries  for  which  this  is  their  usual  accounting  method,  and  for  SME  owners 
without a salary; 

-Simplification  of  time-recording  by  providing  a  clear  and  simple  set  of  minimum 
conditions,  in  particular  abolition  of  time-recording  obligations  for  staff  working 
exclusively on a Union project; 

-One single reimbursement rate for all participants instead of 3 different rates by type 
of participant; 

-One single flat rate covering indirect costs, instead of 4 methods to calculate indirect 
costs, as a general rule; 

-Continuation  of  the  system  of  unit  costs  and  flat  rates  for  mobility  and  training 
actions (Marie Curie); 

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Output-based funding with lump sums for whole projects in specific areas. 

A revised control strategy, as described in section 2.2.2, achieving a new balance 
between  trust  and  control  will  further  reduce  the  administrative  burden  for 
participants.  

Beyond  the  simpler  rules  and  controls,  all  procedures  and  processes  for  project 
implementation  will  be  rationalised.  This  includes  the  detailed  provisions  on  the 
content and shape of proposals, the processes for turning proposals into projects, the 
requirements for reporting and monitoring, as well as the related guidance documents 
and  support  services.  A  major  contribution  to  reduced  administrative  costs  for 
participation will come from a single user-friendly IT platform, based on the Union’s 
Seventh Framework Programme for R&D (2007-2013) (‘FP7’) Participant Portal. 

2.1.  Monitoring and reporting rules  

A  new  system  will  be  developed  for  the  evaluation  and  monitoring  of  the  indirect 
actions  of  Horizon  2020.  It  will  be  based  on  a  comprehensive,  well-timed  and 
harmonised strategy, with a strong focus on throughput, output, results and impacts. 
It  will  be  supported  by  an  appropriate  data  archive,  experts,  a  dedicated  research 
activity, and increased cooperation with Member States and Associated States, and it 
will be valorised through appropriate dissemination and reporting. For direct actions, 
the  JRC  will  continue  to  improve  its  monitoring  by  further  adjusting  its  indicators 
measuring output and impact. 

The  system  will  include  information  concerning  cross-cutting  topics  such  as 
sustainability and climate change. Climate related expenditure will be calculated in 
accordance with the tracking system based on Rio markers. 

2.2.  Management and control system  

A 2 % error limit was adopted as chief indicator in the area of legality and regularity 
concerning  the  area  of  research  grants.  However,  this  has  caused  a  number  of 
unexpected or undesirable side-effects. There has been a strong feeling, amongst the 
beneficiaries as well as amongst the legislative authority, that the control burden has 
become  too  great.  This  runs  the  risk  of  lowering  the  attractiveness  of  the  Union's 
Research programme, and so negatively affecting Union research and innovation. 

The  European  Council  of  February  4th  2011  concluded  that  ‘it  is  crucial  that  EU 
instruments aimed at fostering R&D&I be simplified in order to facilitate their take-
up by the best scientists and the most innovative companies, in particular by agreeing 
between  the  relevant  institutions  a  new  balance  between  trust  and  control  and 
between risk taking and risk avoidance’ (see EUCO 2/1/11 REV1, Brussels 8 March 
2011). 

in 

its  Resolution  of  11  November  2010 
The  European  Parliament, 
(P7_TA(2010)0401) on simplifying the implementation of the Research Framework 
Programmes  explicitly  supports  a  higher  risk  of  errors  for  research  funding  and 
"expresses its concern that the current system  and  the  practice  of  FP7  management 
are  excessively  control-oriented,  thus  leading  to  waste  of  resources,  lower 
participation  and  less  attractive  research  landscapes;  notes  with  concern  that  the 

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current  management  system  of  ‘zero  risk  tolerance’  seems  to  avoid,  rather  than  to 
manage, risks".  

The  sharp  increase  in  the  number  of  audits  and  the  subsequent  extrapolation  of 
results has also provoked a wave of complaints from the world of research (e.g. the 
Trust Researchers initiative44, with over 13,800 signatures so far). 

There is therefore an acceptance among stakeholders and Institutions that the current 
approach  needs  to  be  reviewed.  There  are  other  objectives  and  interests,  especially 
the  success  of  the  Research  policy,  international  competitiveness  and  scientific 
excellence, which should also be considered. At the same time, there is a clear need 
to manage the budget in an efficient and effective manner, and to prevent fraud and 
waste. These are the challenges for the Horizon 2020 programme. 

It remains the ultimate objective of the Commission to achieve a residual error rate 
of less than 2% of total expenditure over the lifetime of the programme, and to that 
end,  it  has  introduced  a  number  of  simplification  measures.  However,  other 
objectives  such  as  the  attractiveness  and  the  success  of  the  EU  research  policy, 
international  competitiveness,  scientific  excellent  and  in  particular  the  costs  of 
controls (see point 2.2.2) need to be considered. 

Taking  these  elements  in  balance,  it  is  proposed  that  the  Directorates  General 
charged with the implementation of the research and innovation budget will establish 
a  cost-effective  internal  control  system  that  will  give  reasonable  assurance  that  the 
risk of error over the course of the multiannual expenditure period is, on an annual 
basis, within a range of 2-5 %, with the ultimate aim to achieve a residual level of 
error as close as possible to 2 % at the closure of the multi-annual programmes, once 
the financial impact of all audits, correction and recovery measures have been taken 
into account. 

2.2.1. 

Internal control framework  

The internal control framework for grants is built on: 

-the implementation of the Commission's Internal Control Standards; 

-procedures  for  selecting  the  best  projects  and  translating  them  into  legal 
instruments; 

- project and contract management throughout the lifetime of every project; 

-ex-ante checks on 100% of claims, including receipt of audit certificates and ex-ante 
certification of cost methodologies;  

- ex post audits on a sample of claims; 

- and scientific evaluation of project results.  

44 

http://www.trust-researchers.eu/ 

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For direct actions, financial circuits include ex-ante checks for procurement and ex-
post controls. Risks are assessed annually and progress in the execution of work and 
the consumption of resources is monitored regularly, based on defined objectives and 
indicators. 

2.2.2.  Costs and benefits of the controls  

The cost of the internal control system for the Directorates General charged with the 
implementation of the research and innovation budget is estimated at €267m per year 
(based on the 2009 Tolerable Risk of Error exercise). It has also led to a considerable 
burden on beneficiaries and Commission services.  

43 % of the total costs of control of the Commission services (not including the costs 
of the beneficiary) are borne at the stage of project management, 18 % on selection 
of proposals, and 16 % on negotiation of contracts (16 %). Ex post audits and their 
resulting implementation amounted to 23 % (€61m) of the total. 

However,  this  considerable  control  effort  has  not  managed  to  fully  achieve  its 
objective.  The  estimated  "residual"  error  rate  for  FP6,  after  taking  account  of  all 
recoveries and corrections that have been or will be implemented, remains over 2 %. 
The current rate of error from audits of FP7 carried out by the Directorate  General 
Research and Innovation is around 5 %, and although this will be reduced due to the 
effects  of  the  audits,  and  is  somewhat  biased  because  it  is  concentrated  on 
beneficiaries not previously audited, it is unlikely whether the 2 % residual error will 
be  attained.  The  rate  of  error  identified  by  the  European  Court  of  Auditors  is  in  a 
similar range.  

2.2.3.  Expected level of risk of non-compliance  

The starting point is the status quo, based on audits carried out in FP7 so far. This 
preliminary  representative  error  rate  is  close  to  5  %  (for  the  Directorate  General 
Research and Innovation). The majority of errors detected arise because the present 
system of research funding is based on the reimbursement of the actual costs of the 
research  project  declared  by  the  participant.  This  leads  to  considerable  complexity 
regarding the assessment of eligible costs. 

An analysis of error rates has been carried out for the FP7 audits so far performed in 
the Directorate General Research and Innovation shows that:  

-Around  27%  by  number,  and  35%  by  amount,  relate  to  errors  in  the  charging  of 
personnel costs. Regular problems identified are charging average or budgeted costs 
(rather  than  actual  costs),  failure  to  keep  adequate  records  of  time  spent  on  the 
programme, charging of ineligible items. 

-Around  40%  by  number,  and  37%  by  value,  relate  to  other  direct  costs  (not 
personnel). Regular errors identified are the inclusion of VAT, lack of a clear link to 
the project, failure to provide invoices or proof of payment and incorrect calculation 
of  depreciation  charging  the  full  cost  of  equipment  rather  than  the  depreciated 
amount, subcontracting without prior authorization, or without respecting the rules of 
value for money, etc. 

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-Around 33% by number, and 28% by amount, relate to errors in indirect costs. The 
same risks apply as for personnel costs, with the additional risk of an inaccurate or 
unfair allocation of overheads to Union projects. 

In a number of cases the indirect costs are a flat rate percentage of direct costs, and 
so the error in indirect costs is proportional to the error in direct costs. 

the  consultation  of  stakeholders  and 

Horizon 2020 introduces a significant number of important simplification measures 
(see  point  2  above)  that  will  lower  the  error  rate  in  all  the  categories  of  error. 
However, 
institutions  on  further 
simplification,  and  the  Horizon  2020  impact  assessment,  clearly  indicate  that  the 
continuation  of  a  funding  model  based  on  the  reimbursement  of  actual  costs  is  the 
favoured option. A systematic resort to output based funding, flat rates or lump sums 
appears  premature  at  this  stage  as  such  a  system  has  not  been  tested  in  previous 
programmes.  Retaining  a  system  based  on  the  reimbursement  of  actual  costs  does 
however mean that errors will continue to occur. 

the 

An analysis of errors identified during audits of FP7 suggests that around 25-35 % of 
them would be avoided by the simplification measures proposed. The error rate can 
then be expected to fall by 1.5 %, i.e. from close to 5 % to around 3.5 %, a figure that 
is referred to in the Commission Communication striking the right balance between 
the administrative costs of control and the risk of error. 

The Commission considers therefore that, for research spending under Horizon 2020, 
a  risk  of  error,  on  an  annual  basis,  within  a  range  between  2-5  %  is  a  realistic 
objective  taking  into  account  the  costs  of  controls,  the  simplification  measures 
proposed to reduce the complexity of rules and the related inherent risk associated to 
the reimbursement of costs of the research project. The ultimate aim for the residual 
level of error at the closure of the programmes after the financial impact of all audits, 
correction and recovery measures will have been taken into account is to achieve a 
level as close as possible to 2 %. 

The ex-post audit strategy for expenditure under Horizon 2020 takes account of this 
target.  It  will  be  based  on  the  financial  audit  of  a  single  representative  sample  of 
expenditure  across  the  whole  programme,  complemented  by  a  sample  compiled  on 
the basis of risk considerations.  

The overall number of ex-post audits will be limited to that strictly necessary to the 
achievement  of  this  target  and  the  strategy.  The  governance  of  the  ex-post  audit 
activities will ensure that the audit burden on participants is minimized. As a guide, 
the Commission considers that a maximum of 7 % of participants in Horizon 2020 
would be subject to audit over the whole programming period. Past experience shows 
that the expenditure subject to audit would be considerably higher.  

The ex-post audit strategy regarding legality and regularity will be complemented by 
reinforced scientific evaluation and the anti-fraud strategy (see point 2.3 below). 

This scenario is based on the assumption that the measures of simplification are not 
subject to substantial modifications in the decision making process. 

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Note: this section only concerns the process of grant management, for administrative 
and operational expenditure implemented through public procurement processes the 
2% ceiling will apply as tolerable risk of error.  

2.3.  Measures to prevent fraud and irregularities  

The  Directorates  General  charged  with  the  implementation  of  the  research  and 
innovation  budget  are  determined  to  fight  against  fraud  at  all  stages  of  the  grant 
management  process.  They  have  developed,  and  are  implementing,  anti-fraud 
strategies,  including  an  enhanced  use  of  intelligence,  especially  using  advanced  IT 
tools,  and  training  and  information  for  staff.  Sanctions  have  been  developed  to 
provide  deterrents  to  fraud,  as  well  as  appropriate  penalties  if  they  are  identified. 
These  efforts  will  continue.  The  proposals  for  Horizon  2020  have  been  subject  to 
fraud  proofing  and  an  assessment  of  their  impact.  Overall  the  measures  proposed 
should  have  a  positive  impact  on  the  fight  against  fraud,  especially  the  greater 
emphasis on risk based audit and reinforced scientific evaluation and control. 

It should be underlined that detected fraud has been very low in proportion to total 
expenditure, nevertheless the Directorates General charged with the implementation 
of the research budget remain committed to combat it.  

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Regulation are implemented, the financial interests of the Union 
are protected by the application of preventive measures against fraud, corruption and 
any other illegal activities, by effective checks and, if irregularities are detected, by 
the  recovery  of  the  amounts  wrongly  paid  and,  where  appropriate,  by  effective, 
proportionate and deterrent penalties. 

The  Commission  or  its  representatives  and  the  Court  of  Auditors  shall  have  the 
power  of  audit,  on  the  basis  of  documents  and  on-the-spot,  over  all  grant 
beneficiaries,  contractors  and  subcontractors  who  have  received  Union  funds  under 
the Programme. 

The  European  Anti-fraud  Office  (OLAF)  may  carry  out  on-the-spot  checks  and 
inspections on economic operators concerned directly or indirectly by such funding 
in  accordance  with  the  procedures  laid  down  in  Regulation  (Euratom,  EC) 
No 2185/96 with a view to establishing whether there has been fraud, corruption or 
any other illegal activity affecting the financial interests of the Union in connection 
with a grant agreement or grant decision or a contract concerning Union funding. 

Without  prejudice  to  the  paragraphs  above,  cooperation  agreements  with  third 
countries  and  international  organisations  and  grant  agreements  and  grant  decisions 
and  contracts  resulting  from  the  implementation  of  this  Regulation  shall  expressly 
empower the Commission, the Court of Auditors and OLAF to conduct such audits, 
on-the-spot checks and inspections.  

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

Heading of 
multiannual 
financial 
framework 

•  Existing expenditure budget lines (Not applicable) 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

Diff./non-
diff 
(45) 

from 
46
EFTA
countries 

from 
candidate 
47
countries

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

[XX.YY.YY.YY] 

Diff./non-
diff. 

YES/N
O 

YES/N
O 

YES/N
O 

YES/NO 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditu
re 

Contribution  

Heading of 
multiannual 
financial 
framework  Number  

[Heading 1 - Smart and Inclusive Growth] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 
18(1)(aa) of 
the Financial 
Regulation  

Administrative Expenditures  

Indirect Research:  

XX 01 05 01 Expenditure related to Research 
Staff 

XX 01 05 02 External staff for Research 

XX 01 05 03 Other  management expenditure 
for Research 

Direct Research: 

NDA 

YES 

YES 

YES 

YES 

10  01  05  01  Expenditure  related  to  Research 
Staff 

10 01 05 02 External staff for Research 

10  01  05  03  Other  management  expenditure 
for Research 

10  01  05  04  Other  expenditure  for  major 
research infrastructures48 

45 
46 
47 

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

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Operational Expenditures 

XX 02 01 01 Horizontal Actions 

Excellent science  

08 02 02 01 European Research Council 

15  02  02  00  Marie  Curie  actions  on  skills, 
training and career development 

02 

08 
Infrastructures (including eInfrastructures) 

02  European  Research 

02 

02 

09 
Infrastructures (including eInfrastructures) 

01  European  Research 

02 

DA 

YES 

YES 

YES 

YES 

08  02  02  03  Future  and  Emerging 
Technologies 

09  02  02  02  Future  and  Emerging 
Technologies 

Industrial leadership  

08  02  03  01  Leadership  in  enabling  and 
industrial technologies 

09  02  03  00  Leadership  in  enabling  and 
industrial technologies 

02  02  02  01  Leadership  in  enabling  and 
industrial technologies 

08 02 03 02 Access to risk finance 

02 02 02 02 Access to risk finance 

08 02 03 03 Innovation in SMEs 

02 02 02 03 Innovation in SMEs 

Societal challenges 

08 02 04 01 Health, demographic change and 
wellbeing 

08  02  04  02  Food  security,  sustainable 
agriculture, marine and maritime research and 
the bio-economy 

05  02  01  00  Food  security,  sustainable 
agriculture, marine and maritime research and 
the bio-economy 

08 02 04 03 Secure, clean and efficient energy 

32 02 02 00 Secure, clean and efficient energy 

08  02  04  04  Smart,  green  and  integrated 

48 

The JRC requests a new budget line for infrastructure investments. Most of the JRC facilities date from the 
60's and 70's and are not state of the art anymore. As a consequence, new facilities and the upgrading of the 
existing infrastructure are necessary to carry out the JRC multi-annual work-programme in compliance with 
EU  safety  and  security  standards  as  well  as  with  the  EU/20/20/20  environmental  objectives.  The  JRC  has 
established its "Infrastructure Development plan 2014 – 2020"; identifying the investment needs till 2020 for 
all JRC sites that are reflected in the new budget line proposed. 

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transport 

06  02  02  00  Smart,  green  and  integrated 
transport 

08  02  04  05  Climate  action,  resource 
efficiency and raw materials 

07  02  02  00  Climate  action,  resource 
efficiency and raw materials 

02  02  03  01  Climate  action,  resource 
efficiency and raw materials 

08  02  04  06  Inclusive,  innovative  and  secure 
societies 

02  02  03  02  Inclusive,  innovative  and  secure 
societies 

09  02  04  00  Inclusive,  innovative  and  secure 
societies 

15 02 03 00 European Institute for innovation 
and Technology 

10 02 01 00 Non-nuclear direct actions of the 
Joint Research Centre 

EN 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial framework:  

Number 

[Heading 1 - Smart and Inclusive Growth]] 

EUR million (to 3 decimal places) 

DGs: Research and Innovation / 
Information Society and Media/ 
Education and Culture/ Enterprise 
and Industry/ Energy/ Mobility and 
Transport/ Agriculture and Rural 
Development/ JRC direct research/ 
Environment 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

≥2021 

TOTAL 

(cid:121) Operational appropriations  

Horizontal actions 

XX 02 01 01 

Commitments 

Payments 

Commitments 

08 02 02 01 
European 
Research Council  Payments 
08 02 02 02 
European 
Research 
Infrastructures 
(including 
eInfrastructures) 

Payments 

Commitments 

(1a) 

(2a) 

(1b) 

(2b) 

(1c) 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

1640,417 

1753,575 

1879,819 

2009,349 

2144,525 

2284,826 

2427,130 

14139,641 

204,154 

1055,485 

1335,717 

1661,563 

1868,955 

2063,161 

2199,449 

3751,158 

14139,641 

199,794 

211,723 

225,177 

238,964 

253,364 

268,311 

283,451 

1680,784 

(2c) 

24,865 

128,015 

161,107 

199,448 

223,066 

244,699 

259,212 

440,372 

1680,784 

08 02 02 
03Future and 

EN 

Commitments 

(1d) 

283,318 

300,310 

320,217 

469,448 

606,917 

642,722 

678,989 

3301,921 

106 

EN 

 
  
 
 
 
 
 
 
 
Emerging 
Technologies** 

09 02 02 02 
Future and 
Emerging 
Technologies** 

08 02 03 01 
Leadership in 
enabling and 
industrial 
technologies 

08 02 03 02 
Access to risk 
finance** 

02 02 02 02 
Access to risk 
finance** 

08 02 03 03 
Innovation in 
SMEs** 

02 02 02 03 
Innovation in 
SMEs** 

08 02 04 01 
Health, 
demographic 
change and 
wellbeing 

08 02 04 02 Food 
security, 

Payments 

(2d) 

48,847 

251,487 

316,496 

391,819 

438,217 

480,715 

509,225 

865,115 

3301,921 

Commitments 

(1e) 

545,193 

577,744 

614,457 

652,078 

691,372 

732,159 

773,472 

4586,474 

Payments 

(2e) 

67,851 

349,323 

439,624 

544,249 

608,697 

667,728 

707,329 

1201,673 

4586,474 

Commitments 

(1f) 

447,955 

474,700 

504,865 

535,776 

568,062 

601,574 

635,520 

3768,450 

Payments 

(2f) 

447,955 

474,700 

504,865 

535,776 

568,062 

601,574 

635,520 

0 

3768,450 

Commitments 

(1g) 

78,373 

83,053 

88,330 

93,738 

99,387 

105,250 

111,189 

659,320 

Payments 

(2g) 

9,754 

50,216 

63,197 

78,238 

87,502 

95,988 

101,681 

172,744 

659,320 

Commitments 

(1h) 

1030,952 

1051,848 

1073,128 

950,146 

1398,959 

1481,491 

1565,088 

8551,612 

Payments 

(2h) 

126,578 

651,675 

820,134 

1015,317 

1135,546 

1245,671 

1319,549 

2237,142 

8551,612 

Commitments 

(1i) 

525,695 

557,082 

592,481 

628,757 

666,645 

705,974 

745,810 

4422,444 

EN 

107 

EN 

 
  
 
 
 
 
 
 
sustainable 
agriculture, 
marine and 
maritime 
research and the 
bio-economy** 

05 02 01 00 Food 
security, 
sustainable 
agriculture, 
marine and 
maritime 
research and the 
bio-economy** 

08 02 04 03 
Secure, clean and 
efficient 
energy** 

32 02 02 00 
Secure, clean and 
efficient 
energy** 

08 02 04 04 
Smart, green and 
integrated 
transport** 

06 02 02 00 
Smart, green and 
integrated 
transport** 

Payments 

(2i) 

65,424 

336,830 

423,901 

524,785 

586,927 

643,848 

682,032 

1158,697 

4422,444 

Commitments 

(1j) 

732,073 

775,781 

825,079 

875,596 

928,359 

983,126 

1038,601 

6158,614 

Payments 

(2j) 

91,108 

469,063 

590,317 

730,805 

817,344 

896,610 

949,786 

1613,580 

6158,614 

Commitments 

(1k) 

861,218 

912,637 

970,631 

1030,059 

1092,129 

1156,559 

1221,820 

7245,052 

Payments 

(2k) 

107,180 

551,811 

694,454 

859,727 

961,532 

1054,781 

1117,337 

1898,231 

7245,052 

EN 

108 

EN 

 
  
 
 
08 02 04 05 
Climate action, 
resource 
efficiency and 
raw materials** 

02 02 03 01 
Climate action, 
resource 
efficiency and 
raw materials ** 

07 02 02 00 
Climate action, 
resource 
efficiency and 
raw materials ** 

08 02 04 06 
Inclusive, 
innovative and 
secure 
societies** 

09 02 04 00 
Inclusive, 
innovative and 
secure 
societies** 

02 02 03 02 
Inclusive, 
innovative and 
secure 
societies** 
09 02 02 01 

Commitments 

(1l) 

400,096 

423,983 

450,925 

478,534 

507,370 

537,302 

567,620 

3365,830 

Payments 

(2l) 

49,793 

256,354 

322,622 

399,403 

446,698 

490,019 

519,081 

881,860 

3365,830 

Commitments 

(1m) 

483,533 

512,402 

544,963 

578,329 

613,179 

649,353 

685,994 

4067,754 

Payments 

(2m) 

60,177 

309,815 

389,903 

482,696 

539,855 

592,210 

627,332 

1065,767 

4067,754 

Commitments 

(1n) 

113,951 

120,755 

128,428 

136,291 

144,504 

153,029 

161,664 

958,622 

EN 

109 

EN 

 
  
 
 
 
European 
Research 
Infrastructures 
(including 
eInfrastructures) 
09 02 03 00 
Leadership in 
enabling and 
industrial 
technologies 

02 02 02 01 
Leadership in 
enabling and 
industrial 
technologies 

15 02 02 00 
Marie Curie 
actions on skills, 
training and 
career 
development 
15 02 03 00 
European 
Institute for 
innovation and 
Technology * 

10 02 01 00 Non-
nuclear direct 
actions of the 
Joint Research 
Center 

Payments 

(2n) 

14,181 

73,012 

91,886 

113,754 

127,224 

139,562 

147,839 

251,163 

958,622 

Commitments 

(1o) 

1005,176 

1065,189 

1132,878 

1202,241 

1274,686 

1349,886 

1426,056 

8456,112 

Payments 

(2o) 

125,096 

644,049 

810,537 

1003,436 

1122,258 

1231,095 

1304,108 

2215,533 

8456,112 

Commitments 

(1p) 

194,477 

206,088 

219,184 

232,604 

246,620 

261,169 

275,907 

1636,048 

Payments 

(2p) 

24,203 

124,608 

156,819 

194,140 

217,129 

238,186 

252,313 

428,651 

1636,048 

Commitments 

(1q) 

728,274 

771,756 

820,798 

871,052 

923,542 

978,025 

1033,212 

6126,659 

Payments 

(2q) 

90,635 

466,629 

587,254 

727,013 

813,103 

891,958 

944,858 

1605,208 

6126,659 

Commitments 

(1r) 

267,498 

324,047 

389,375 

472,279 

[497,465]* 

[554,83]* 

[599,78]* 

1453,199 

Payments 

(2r) 

232,723 

281,921 

338,756 

410,883 

188,916 + 
[243,863]* 

[482,704]* 

[521,806]* 

[403,684]* 

1453,199 

Commitments 

(1s) 

32,459 

33,108 

33,771 

34,445 

35,134 

35,838 

36,554 

241,311 

Payments 

(2s) 

12,325 

27,672 

31,582 

33,891 

34,568 

35,261 

35,965 

30,048 

241,311 

* An additional amount of EUR 1652,057 million shall be made available for the years 2018-2020 pro-rata from the budgets of the Societal challenges 
and Leadership in enabling and industrial technologies, on an indicative basis and subject to the review set out in Article 26(1). 

EN 

110 

EN 

 
  
 
 
 
 
 
** The repartition between DGs is not determined at this stage.  

(cid:121) TOTAL operational 
appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative 
nature financed from the envelope for specific 
programmes  

XX 01 05 01 Expenditure related to Research 
Staff* 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

≥2021 

TOTAL 

9570,455 

10155,782  10814,513  11489,691  12194,753  12926,590 

13668,077 

1802,849  6502,665  8079,171  9906,943 

10785,6 

11613,07 

12312,62 

80819,860 
19816,94  80819,860 

(4) 

(5) 

(6) 

(6a) 

226,187 

230,711 

235,325 

240,031 

244,832 

249,729 

254,723 

1681,538 

XX 01 05 02 External staff for Research* 

(6b) 

169,252 

232,572 

258,456 

289,571 

316,454 

341,909 

376,531 

1984,745 

XX  01  05  03  Other  management  expenditure 
for Research* 

10  01  05  01  Expenditure  related  to  Research 
Staff 

(6c) 

138,404 

162,149 

172,823 

185,361 

196,450 

207,073 

220,939 

1283,199 

(6d) 

151,686 

156,996 

162,490 

168,178 

174,064 

180,156 

186,461 

1180,031 

10 01 0,5 02 External staff for Research 

(6e) 

34,280 

35,052 

35,840 

36,647 

37,471 

38,314 

39,176 

10  01  05  03  Other  management  expenditure 
for Research 

10  01  05  04  Other  expenditure  for  major 
research infrastructures 

(6f) 

65,312 

66,618 

67,950 

69,309 

70,695 

72,109 

73,551 

(6g) 

6,551 

6,682 

6,816 

6,952 

7,091 

7,233 

7,378 

256,781 

485,545 

48,703 

(cid:121) TOTAL administrative appropriations  

6 

791,672 

890,780 

939,700 

996,049 

1047,057 

1096,523 

1158,759 

6920,542 

TOTAL appropriations  
under HEADING 1 
of the multiannual financial 
framework 

Commitments 

Payments 

=4+ 
6 

=5+ 
6 

10362,127  11046,561  11754,214  12485,739  13241,811  14023,113 

14826,837 

87740,402 

2383,229 

7221,855 

8818,966 

10664,002  11835,992  12920,485 

13694,775 

20201,100  87740,402 

* These figures are based on an almost full use of the authorised maximum administrative expenditures foreseen in the legal base. They are presented for 
illustrative purposes in terms of the numbers of personnel that could be employed with these amounts. 

EN 

111 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Payments 

=5+ 6 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

EN 

112 

EN 

 
  
Heading of multiannual financial framework:  

5 

" Administrative expenditure " 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration of 
the impact (see point 1.6)  

TOTAL 

EUR million (to 3 decimal places) 

DG: <…….> 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total commitments  
= Total payments) 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year  
2019 

Year  
2020 

Year ≥2021 

TOTAL 

Commitments 

10362,127  11046,561  11754,214  12485,739  13241,811  14023,113  14826,837 

87740,402 

EUR million (to 3 decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 

of the multiannual financial framework   Payments 

2383,229 

7221,855 

8818,966 

10664,002  11835,992  12920,485  13694,775  20201,100  87740,402 

EN 

113 

EN 

 
  
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations  

–  (cid:59)  The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to 3 decimal places)/ current prices 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

OUTPUTS 

Year 
2018 

Year  
2019 

Year  
2020 

TOTAL 

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total  
cost 

r
e
b
m
u
n

l
a
t
o
T

s
t
u
p
t
u
o

f
o

2965,755 

3158,119 

3374,440 

3725,105 

4072,852 

4326,913 

4584,446 

26207,628 

Indicate 
objectives 
and 
outputs  

Type of 
output49 

Average 
cost  
of the 
output 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

(cid:216) 

SPECIFIC OBJECTIVE No 150 
Excellent science 

- Output 

- Output 

- Output 

Sub-total for specific 
objective N°1 Excellent 
science 

SPECIFIC OBJECTIVE No 2 
Industrial leadership 

- Output 

49 
50 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…" 

EN 

114 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Sub-total for specific 
objective N°2 Industrial 
leadership 

SPECIFIC OBJECTIVE No 3 
Societal challenges 

- Output 

Sub-total for specific 
objective N°3 Societal 
challenges 

SPECIFIC OBJECTIVE No 4 
Non-nuclear direct actions of 
the Joint Research Centre 

- Output 

Sub-total for specific 
objective N°4 Non-nuclear 
direct actions of the Joint 
Research Centre 

SPECIFIC OBJECTIVE No 5 
"Integrating the knowledge 
triangle" (European Institute of 
Innovation and Technology)  

- Output 

Sub-total for specific 
objective N°5 "Integrating 
the knowledge triangle" 
(European Institute of 
Innovation and Technology)  

2271,175 

2406,774 

2559,714 

2716,437 

2880,127 

3050,036 

3222,143 

19106,407 

4033,565 

4233,731 

4457,207 

4541,423 

5206,640 

5513,803 

5824,934 

33811,304 

32,459 

33,108 

33,771 

34,445 

35,134 

35,838 

36,554 

241,311 

267,5 

324,050 

389,380 

472,280 

[497,46] 

[554,832] 

[599,777] 

1453,199 

TOTAL COST 

9570,455 

10155,782 

10814,513 

11489,691 

12194,753 

12926,590 

13668,077 

80819,860 

EN 

115 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  (cid:59)  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
2014 51 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 552 
of the multiannual 
financial framework  

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Human resources*  

581,406 

655,330 

692,112 

734,426 

772,821 

810,108 

856,892 

5103,095 

Other expenditure  
of an administrative 
nature* 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

210,266 

235,449 

247,589 

261,622 

274,237 

286,415 

301,868 

1817,447 

791,672 

890,779 

939,701 

996,048 

1047,058 

1096,523 

1158,760 

6920,545 

TOTAL** 

791,672 

890,779 

939,701 

996,048 

1047,058 

1096,523 

1158,760 

6920,545

* These figures are based on an almost full use of the authorised maximum administrative expenditures 
foreseen  in  the  legal  base.  They  are  presented  for  illustrative  purposes  in  terms  of  the  numbers  of 
personnel that could be employed with these amounts. 

** These figures might be adjusted as a result of the envisaged externalisation procedure.  

51 
52 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

116 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources  

–  (cid:59)  The  proposal/initiative  requires  the  use  of  Commission  human  resources,  as 

explained below: 

Estimate expressed in full amounts (or at most to one decimal place) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

XX 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research)** 

10 01 05 01 (Direct research) 

100 

100 

100 

100 

100 

100 

100 

1681 

1390 

1681 

1390 

1681 

1390 

1681 

1390 

1681 

1390 

1681 

1390 

1681 

1390 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)53 

XX 01 02 01 (CA, INT, SNE from the "global 
envelope") 

XX 01 02 02 (CA, INT, JED, LA and SNE in the 
delegations) 

XX 01 04 yy 54 

- at Headquarters55 

- in delegations  

XX 01 05 02 (CA, INT, SNE - Indirect research)* 

10 01 05 02 (CA, INT, SNE - Direct research) 

867 

593 

867 

593 

867 

593 

867 

593 

867 

593 

867 

593 

867 

593 

Other budget lines (specify) 

TOTAL 

4631 

4631 

4631 

4631 

4631 

4631 

4631 

* The above figures will be adjusted in accordance with the results of the envisaged externalisation process. 

**  The  workload  corresponding  to  the  implementation  of  EIT  and  Innovation  is  estimated  at  some  100 
establishment plan posts for the Commission. 

XX is the policy area or budget title concerned. 

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

53 

54 
55 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts 
in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European 
Fisheries Fund (EFF). 

EN 

117 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

The  total  number  of  officials  and  temporary  agents  will  be  used  to  contribute  to  the 
objectives of Horizon  2020 during  all  the  process,  from  the  preparation  of  the Work 
Programme  to  the  final  dissemination  of  results  during  2014-2020.  These  human 
resources include all the needs in the various management modes as indicated in point 
1.7 of the LFS 

The  total  number  of  external  personnel  will  assist  officials  and  temporary  agents 
to contribute  to  the  objectives  of  Horizon  2020  during  all  the  process,  from  the 
preparation of the Work Programme to the final dissemination of results during 2014-
2020. These human resources include all the needs in the various management modes 
as indicated in point 1.7 of the LFS 

3.2.4.  Compatibility with the current multiannual financial framework  

–  (cid:59)  Proposal/initiative is compatible the current multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Not applicable 

. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision of the 

multiannual financial framework56. 

Not applicable 

. 

3.2.5.  Third-party contributions  

–  The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed * 

Third countries associated to the programme 

pm 

* Bilateral Association Agreements are not fixed yet and that is why they will be added at a later 
stage. 

56 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

118 

   EN 

 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  (cid:133)  Proposal/initiative has no financial impact on revenue. 

–  (cid:59)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:59) 

on own resources  

on miscellaneous revenue  

Budget revenue line: 

Appropriations 
available for the 
ongoing budget 
year 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative57* 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Item 6011 

Item 6012 

Item 6013 

Item 6031 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

* Bilateral Association Agreements are not fixed yet and that is why they will be added at 
a later stage. 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

02 03 01 Appropriations accruing from contributions form third parties 

05 03 01 Appropriations accruing from contributions from third parties 

06 03 01 Appropriations accruing from contributions form third parties 

07 03 01 Appropriations accruing from contributions form third parties 

08 04 01 Appropriations accruing from contributions form third parties 

09 03 01 Appropriations accruing from contributions form third parties 

10 02 02 Appropriations accruing from contributions form third parties 

15 03 01 Appropriations accruing from contributions form third parties 

32 03 01 Appropriations accruing form contributions from third parties 

Specify the method for calculating the impact on revenue. 

Certain  associated  states  may  contribute  to  a  supplementary  funding  of  the  framework 
programme through association agreements. The method of calculation will be agreed in 
these  Association  Agreements  and  is  not  necessarily  the  same  in  all  agreements.  Mostly 
the calculations are based on the GDP of the Associated State compared to the GDP of the 
Member States whilst applying this percentage to the overall budget voted.  

57 

As  regards  traditional  own  resources  (customs  duties,  sugar  levies),  the  amounts  indicated  must  be  net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

119 

   EN