COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Horizon 2020 - The Framework Programme for Research and Innovation
Date: 2011-11-30
Institutions: European Commission
Subjects: EU research policy, Framework Programme for Research and Development, innovation, research and development, scientific cooperation, small and medium-sized enterprises, technical cooperation

EUROPEAN COMMISSION 

Brussels, 30.11.2011 
COM(2011) 808 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Horizon 2020 - The Framework Programme for Research and Innovation 

(Text with EEA relevance) 

{SEC(2011) 1427 final} 
{SEC(2011) 1428 final} 

 
 
 
 
  
 
 
 
 
1. 

A CHANGED CONTEXT  

Since  the  launch  of  the  Seventh  Framework  Programme  (FP7),  the  economic  context  has 
changed dramatically. A recession triggered by the 2008 financial crisis led to the adoption of 
stimulus  packages  to  kick-start  the  economy.  While  slowly  recovering  from  the  downturn, 
Europe is now faced with a public debt crisis and fears of a new recession. Public authorities 
across Europe need to act decisively to cope with this changed context. The key challenge is 
to stabilise the financial and economic system in the short term while also taking measures to 
create the economic opportunities of tomorrow.  

Fiscal consolidation and structural reform are necessary but not sufficient to secure Europe’s 
global competitiveness. Smart investment, notably in research and innovation, is vital in order 
to  maintain  high  standards  of  living  while  dealing  with  pressing  societal  challenges  such  as 
climate change, an ageing population, or the move towards a more resource-efficient society.  

Research and innovation help deliver jobs, prosperity, quality of life and global public goods. 
They  generate  the  scientific  and  technological  breakthroughs  needed  to  tackle  the  urgent 
challenges  society  faces.  Investment  in  this  area  also  leads  to  businesses  opportunities  by 
creating  innovative  products  and  services.  Although  the  Union  is  a  global  leader  in  many 
technologies,  it  faces  increasing  competition  from  traditional  competitors  and  emerging 
economies alike and must therefore improve its innovation performance.  

Research and innovation have therefore been placed at the centre of the Europe 2020 strategy1 
to  promote  smart,  sustainable  and  inclusive  growth.  This  includes  the  headline  objective  of 
increasing  spending  on  R&D  to  3%  of  GDP  by  2020.  The  Innovation  Union2  flagship 
initiative  provides  a  comprehensive  set  of  actions  for  stepping  up  research  and  innovation 
performance. Within this policy context, the Commission's proposals for the post-2013 Union 
Budget3  reflect  its  ambition  to  invest  in  Europe's  future,  ensuring  that  every  euro  provides 
maximum benefit to European citizens. 

2. 

HORIZON 2020: A BREAK FROM THE PAST 

The name of the Union's new funding programme for research and innovation – Horizon 2020 
– reflects the ambition to deliver ideas, growth and jobs for the future. Horizon 2020 will be a 
key  tool  in  implementing  the  Innovation  Union  flagship  initiative,  in  delivering  on  the 
commitments  made  therein  and  in  responding  to  the  conclusions  of  the  4  February  2011 
European  Council  and  to  the  European  Parliament's  Resolution  of  12  May  2011  on  the 
Innovation Union4.  

Horizon  2020  brings  together  all  existing  Union  research  and  innovation  funding,  including 
the  Framework  Programme  for  Research, 
the 
Competitiveness  and  Innovation  Framework  Programme  and  the  European  Institute  of 

innovation  related  activities  of 

the 

1 
2 
3 
4 

COM(2010) 2020  
COM(2010) 546  
COM(2011) 500 
P7 TA(2011)0236 

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Innovation and Technology (EIT)5. This approach is widely recognised by stakeholders as the 
way forward6 and has also been supported by the European Parliament in its Resolution of 27 
September 20117, the European Economic and Social Committee8 and the European Research 
Area Committee9. 

The set of proposals for Horizon 2020 consists of:  

• 

• 

• 

• 

a  proposal  for  Horizon  202010,  laying  down  the  general  objectives,  rationale  and 
Union added value, the financial envelope and provisions on control, monitoring and 
evaluation; 

a  proposal  for  a  single  specific  programme  to  implement  Horizon  202011,  laying 
down  the  implementation  modalities  and  the  content  in  terms  of  the  broad  lines  of 
activities; 

a  proposal  for  a  single  set  of  Rules  for  Participation  and  Dissemination12,  laying 
down the modes of funding and reimbursement of costs, conditions for participation, 
selection  and  award  criteria  and  the  rules  on  ownership,  exploitation  and 
dissemination of results; and 

a  separate  proposal  for  the  part  of  Horizon  2020  corresponding  to  the  Euratom 
Treaty13. 

impact  assessments14. 
These  proposals  are  accompanied  by 
Complementary  to  this  package,  there  is  also  a  separate  proposal  for  a  revision  of  the  EIT 
Regulation.  

the  necessary  ex-ante 

Key novelties: 

Horizon  2020  has  a  number  of  new  features  that  make  it  fit  for  purpose  to  promote  growth 
and tackle societal challenges. These include: 

• 

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8 
9 
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11 

12 

13 

14 

Major simplification through a simpler programme architecture, a single set of rules, 
less  red  tape  through  an  easy  to  use  cost  reimbursement  model,  a  single  point  of 

Activities in the field of nuclear energy are an integral part of Horizon 2020, yet they are subject to a 
separate  proposal  under  the  Euratom  Treaty.  Funding  for  ITER  will  be  outside  the  EU  Budget  and 
subject to a supplementary programme.  
http://ec.europa.eu/research/horizon2020/pdf/consultation-conference/summary_analysis.pdf 
P7 TA(2011)0401  
CESE 1163/2011 
ERAC 1210/11  
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  Horizon  2020  –  The 
Framework Programme for Research and innovation (2014-2020), COM(2011) 809 
Proposal  for  a  Council  Decision  establishing  the  Specific  Programme  implementing  Horizon  2020  – 
The Framework Programme for Research and Innovation (2014-2020), COM(2011) 811 
Proposal for a Regulation of the European Parliament and of the Council laying down the rules for the 
participation  and  dissemination  in  'Horizon  2020  –  The  Framework  Programme  for  Research  and 
Innovation (2014-2020)', COM(2011) 810 
Proposal for a Council Regulation on the Research and Training Programme of the European Atomic 
Energy  Community  (2014-2018)  complementing  Horizon  2020  –  The  Framework  Programme  for 
Research and Innovation, COM(2011) 812 
SEC(2011) 1427 and SEC(2011) 1428 

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access  for  participants,  less  paperwork  in  preparing  proposals,  fewer  controls  and 
audits, with the overall aim to reduce the average time to grant by 100 days;  

An inclusive approach open to new participants, including those with ideas outside of 
the  mainstream,  ensuring  that  excellent  researchers  and  innovators  from  across 
Europe and beyond can and do participate; 

The  integration  of  research  and  innovation  by  providing  seamless  and  coherent 
funding from idea to market; 

More  support  for  innovation  and  activities  close  to  the  market,  leading  to  a  direct 
economic stimulus; 

A  strong  focus  on  creating  business  opportunities  out  of  our  response  to  the  major 
concerns common to people in Europe and beyond, i.e. ‘societal challenges’; 

More  possibilities  for  new  entrants  and  young,  promising  scientists  to  put  forward 
their ideas and obtain funding. 

• 

• 

• 

• 

• 

3. 

FOCUSING RESOURCES ON KEY PRIORITIES 

Horizon 2020 will focus resources on three distinct, yet mutually reinforcing, priorities, where 
there is clear Union added value. These priorities correspond to those of Europe 2020 and the 
Innovation Union.  

(1) 

Excellent  Science.  This  will  raise  the  level  of  excellence  in  Europe's  science  base 
and  ensure  a  steady  stream  of  world-class  research  to  secure  Europe's  long-term 
competitiveness. It will support the best ideas, develop talent within Europe, provide 
researchers  with  access  to  priority  research  infrastructure,  and  make  Europe  an 
attractive location for the world's best researchers.  

This will: 

• 

• 

• 

• 

support the most talented and creative individuals and their teams to carry out 
frontier  research  of  the  highest  quality  by  building  on  the  success  of  the 
European Research Council; 

fund  collaborative  research  to  open  up  new  and  promising  fields  of  research 
and innovation through support for Future and Emerging Technologies (FET); 

researchers  with  excellent 

provide 
training  and  career  development 
opportunities  through  the  Marie  Skłodowska-Curie  actions15  ('Marie  Curie 
actions'); 

ensure  Europe  has  world-class  research 
infrastructures) accessible to all researchers in Europe and beyond. 

infrastructures  (including  e-

15 

Through this name, the Commission pays tribute to this outstanding Nobel prize winning scientist and 
the remarkable contribution she made to the advancement of the state of science in Europe.  

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(2) 

Industrial Leadership. This will aim at making Europe a more attractive location to 
invest in research and innovation (including eco-innovation), by promoting activities 
where  businesses  set  the  agenda.  It  will  provide  major  investment  in  key  industrial 
technologies,  maximise  the  growth  potential  of  European  companies  by  providing 
them with adequate levels of finance and help innovative SMEs to grow into world-
leading companies. 

This will: 

• 

• 

• 

build  leadership  in  enabling  and  industrial  technologies,  with  dedicated 
support  for  ICT,  nanotechnologies,  advanced  materials,  biotechnology, 
advanced  manufacturing  and  processing,  and  space,  while  also  providing 
support  for  cross-cutting  actions  to  capture  the  accumulated  benefits  from 
combining several Key Enabling Technologies; 

facilitate access to risk finance; 

provide Union wide support for innovation in SMEs. 

(3) 

Societal Challenges.  This reflects the  policy priorities of  the Europe 2020 strategy 
and  addresses  major  concerns  shared  by  citizens  in  Europe  and  elsewhere.  A 
challenge-based  approach  will  bring  together  resources  and  knowledge  across 
different  fields,  technologies  and  disciplines,  including  social  sciences  and  the 
humanities. This will cover activities  from research to market with a new  focus on 
innovation-related  activities,  such  as  piloting,  demonstration,  test-beds,  and  support 
for public procurement and market uptake. It will include establishing links with the 
activities of the European Innovation Partnerships. 

Funding will be focussed on the following challenges: 

• 

• 

• 

• 

• 

• 

Health, demographic change and wellbeing; 

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.  

Sustainable  development  will  be  an  overarching  objective  of  Horizon  2020.  The  dedicated 
funding  for  climate  action  and  resource  efficiency  will  be  complemented  through  the  other 
specific objectives of Horizon 2020 with the result that at least 60 % of the total Horizon 2020 
budget  will  be  related  to  sustainable  development,  the  vast  majority  of  this  expenditure 
contributing to mutually reinforcing climate and environmental objectives. It is expected that 
around 35% of the Horizon 2020 budget will be climate related expenditure. 

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The  EIT  will  play  an  important  role  by  combining  excellent  research,  education  and 
innovation, thus integrating the knowledge triangle. The EIT will do so primarily through the 
Knowledge and Innovation Communities (KICs). In addition, it will ensure that experiences 
are shared beyond the KICs through targeted dissemination and knowledge sharing measures. 

The  Joint  Research  Centre's  activities  will  be  an  integral  part  of  Horizon  2020,  providing 
robust,  evidence-based  support  to  Union  policies.  This  will  be  driven  by  customer  needs 
complemented by forward-looking activities. 

Nuclear energy research and innovation, to be supported under the Euratom Treaty, will allow 
the Union to develop, in the interest of all its Member States, the most advanced technologies 
for nuclear safety, security, radiation protection and non-proliferation.  

The way in which the Horizon 2020 budget is distributed over its strategic objectives equally 
reflects  how  it  has  been  adapted  to  operate  in  a  changed  context.  The  budget  distribution 
within Horizon 2020: 

• 

• 

• 

• 

is fully aligned with Europe 2020 by implementing Innovation Union, prioritising the 
Digital  Agenda,  inclusiveness,  energy,  resource  efficiency,  industrial  technologies, 
climate action and contributing to the Union's external policies; 

prioritises  spending  with  immediate  impact  on  growth  and  jobs  through  major 
investment  in  risk  finance,  SMEs  and  large  scale  pilots  and  demonstrators  for  key 
technologies; 

continues  to  invest  in  Europe's  future  by  providing  a  major  boost  to  the  European 
Research  Council,  strengthening  research  on  Future  and  Emerging  Technologies 
(FET), increasing the possibilities for training, mobility and career development for 
young talents and giving an important role to the EIT; 

leverages  other  public  and  private  sources  of  funding  to  maximise  its  effect  on 
progressing towards the 3% target. 

Horizon  2020  will  be  a  seven-year  programme  and  there  may  be  significant  shifts  in  the 
broader economic and policy context as the programme progresses. Ensuring Horizon 2020's 
continued relevance will therefore also require to adjust priorities and resources, as and when 
necessary. As such, flexibility clauses have been included in the proposal in this respect.  

The implementation of Horizon 2020 will also take a strategic approach to programming of 
research  and  innovation,  using  joint  actions  and  modes  of  governance  aligning  closely  with 
policy development yet cutting across the boundaries of traditional sectoral policies. This will 
be based on sound evidence, analysis and foresight, with progress measured against a robust 
set of indicators.  

As  regards  the  funding  of  research  activities  involving  human  embryonic  stem  cells,  the 
Horizon 2020 legislative package is fully in line with the approach supported by the European 
Parliament  and  the  Council  upon  their  adoption  of  the  FP7  legislation,  as  set  out  in  the 
Commission's statement of 200616.  

16 

OJ L412 of 30 December 2006 

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4. 

SIMPLIFYING ACCESS AND OPTIMISING MANAGEMENT 

Horizon  2020  must  attract  the  most  excellent  researchers  and  innovative  enterprises.  This 
requires  further  simplification  of  rules  and  procedures  for  participants.  The  FP7  interim 
evaluation  report  concluded  that  major  steps  towards  further  simplification  were  needed, 
through  an  approach  based  on  an  adequate  balance  between  risk  taking  and  trust  in 
participants17. 

Horizon 2020 will build on the impetus given by the Communication on simplification18 and 
the Commission Decision on three measures for simplifying the implementation of FP719 by 
introducing  important  new  features,  as  also  called  for  by  the  European  Parliament  in  its 
Resolution of 11 November 201020.  

Simplification  in  Horizon  2020  will  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.  

Simplification will be achieved along several dimensions: 

• 

Structural simplification is provided through: 

– 

– 

a simpler programme architecture centred on three strategic objectives, making 
it easier for participants to identify where funding opportunities exist; 

a  single  set  of  participation  rules,  on  issues  such  as  eligibility,  evaluation  or 
IPR,  applying  to  all  components  of  Horizon  2020,  with  deviations  only 
possible when justified by specific needs. 

• 

Simpler  funding  rules  that  take  into  account  stakeholders'  preference  for  a 
reimbursement of actual costs, will include:  

– 

– 

– 

– 

a  simpler  reimbursement  of  direct  costs,  with  a  broader  acceptance  of 
beneficiaries' usual accounting practices;  

the  possibility  of  using  unit  personnel  costs  (average  personnel  costs), 
including 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 Horizon 2020 project; 

indirect  costs  covered  by  a  single  flat-rate  applied  to  the  direct  costs  as  a 
general rule – removing a major source of financial errors and complexity; 

17

18 
19 
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EN 

http://ec.europa.eu/research/evaluations/pdf/archive/other_reports_studies_and_documents/fp7

_interim_evaluation_expert_group_report.pdf 
COM(2010)0187 
C(2011) 174 of 24 January 2011 
P7 TA(2011)0401 

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– 

– 

one  single  reimbursement  rate  for  all  participants  and  activities  in  the  same 
project; 

lump  sums,  prizes,  output  based  funding  for  specific  areas  where  this  has 
proved appropriate. 

• 

A revised control strategy will achieve a new balance between trust and control and 
between risk taking and risk avoidance through: 

– 

– 

– 

– 

an extension of the guarantee fund to all actions in Horizon 2020 and ex-ante 
financial capacity checks required only for coordinators; 

a  reduction  of  the  number  of  certificates  on  financial  statements  by  requiring 
only one such certificate per beneficiary at the end of the project; 

a  reduction  of  the  audit  burden  on  participants  through  an  ex-post  control 
strategy with emphasis on risk-based control and fraud detection, a single-audit 
concept and a reduction of the limitation period for ex-post audits from five to 
four years; 

This revised approach should translate into a maximum of 7% of Horizon 2020 
beneficiaries being subject to audit over the whole programming period.  

In parallel, the Commission will continue to streamline, harmonise and accelerate procedures 
and processes linked to programme and project implementation. This will include a renewed 
approach  to  comitology,  with  a  strong  focus  on  involvement  of  programme  committees  in 
discussions  on  strategic  planning  and  on  ensuring  links  to  nationally  funded  activities. 
Moreover  the  Commission  will  build  on  progress  made  in  increasing  the  quality,  efficiency 
and consistency of implementation via a single user-friendly IT platform providing a one-stop 
shop  for  participants  (e-Horizon  2020)  and  through  further  steps  towards  externalising  the 
Union's  research  and  innovation  funding.  In  this  respect,  the  use  of  the  existing  executive 
agencies  will  be  optimised,  including  through  a  possible  redistribution  of  tasks  to  achieve 
greater specialisation.  

Through all of these elements, the Commission deems it possible to reduce the average time 
to grant by 100 days for Horizon 2020 as compared to the current situation. 

Partnership  approaches  on  the  basis  of  Articles  185  and  187  of  the  Treaty  will  also  be 
continued. A more extensive use of financial instruments will also be an important part of the 
externalisation  effort,  building  on  the  debt  and  equity  platforms  currently  being  set  up.  The 
EIT will, through a careful planning of its activities, align its work closely to the priorities of 
Horizon  2020.  By  expanding  the  number  of  KICs  and  taking  up  activities  relating  to 
dissemination and knowledge sharing, it will be able to manage a larger budget than it does 
today.  

5. 

A BROAD AND SEAMLESS APPROACH TO INNOVATION 

The  Innovation  Union  flagship  initiative  highlights  the  need  for  Europe  to  develop  a 
distinctive  approach  to  innovation  built  on  its  unique  set  of  values.  Horizon  2020  takes  a 
broad approach to innovation that is not limited to bringing new products to the market, but 
also  covers  processes,  systems  or  other  approaches,  including  by  recognising  European 

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strengths in design, creativity, services and the importance of social innovation. Funding for 
these activities will be meshed with the support for research and technological development. 

Stronger  support  will  be  given  to  the  market  take-up  of  innovation,  including  by  the  public 
sector. This will include more proof-of-concept, piloting and demonstration. It will involve a 
better  use  of  the  potential  of  research  infrastructures,  as  well  as  setting  technical  standards, 
pre-commercial  procurement  and  strengthened  loan  and  equity  financing.  New  approaches 
such as inducement prizes, that reward the achievement of specific goals, will encourage the 
involvement  of  a  wider  range  of  innovators.  The  European  Innovation  Partnerships  will  be 
tasked with tackling technical, legal and operational barriers to innovation in Europe, hereby 
establishing solid links between supply and demand side measures.  

Major  innovations  often  come  from  unforeseen  breakthroughs  or  the  new  application  of 
existing  or  emerging  technologies.  Horizon  2020  will  allow  Europe's  brightest  and  most 
creative  minds  to  extend  the  frontiers  of  knowledge  by  strengthening  bottom-up  activities 
such  as  the  ERC  and  FET,  the  Marie  Curie  actions  and  the  dedicated  SME  instrument. 
Furthermore, for each of the societal challenges, topic descriptions in calls for proposals will, 
more than in the past, allow plenty of scope for applicants to propose innovative solutions of 
their own choice.  

Horizon  2020  will  promote  exchange  of  ideas  and  perspectives  by  deploying  a  seamless 
approach across all of its constituent parts. The same rules will apply, allowing participants to 
move swiftly between different parts. Bridging actions will be put in place to bring projects 
and results from one part into contact with related projects in other parts. 

Joint  activities  between  the  different  parts  of  Horizon  2020  will  be  needed  in  particular  to 
ensure  a  seamless  connection  between  support  for  the  enabling  and  industrial  technologies 
and  their  applications  to  societal  challenges.  Specific  provisions  have  been  made  to  enable 
this approach and to incentivise cross-cutting actions, including the ability to combine budgets 
in an efficient manner. 

Following  on  from  recommendations  made  by  the  High  Level  Group  on  Key  Enabling 
Technologies  (KETs)21,  'Leadership  in  enabling  and  industrial  technologies'  will  allow 
treating  KET's  as  a  key  priority  of  Horizon  2020,  highlighting  their  importance  for  growth 
and jobs. This includes a dedicated budget of EUR 6663  million for the KETs of photonics, 
micro-  and  nanoelectronics,  nanotechnologies,  advanced  materials,  biotechnology  and 
advanced  manufacturing  and  processing.  As  part  of  this  integrated  approach  to  KETs, 
dedicated  support  will  be  provided  for  activities  exploiting  the  accumulated  benefits  from 
combining  a  number  of  KETs,  in  particular  through  support  for  larger-scale  pilot  line  and 
demonstrator projects.  

6. 

STRENGTHENING THE PARTICIPATION OF SMES 

The Innovation Union flagship initiative includes a commitment to ensure strong participation 
by  SMEs  in  Horizon  2020.  SMEs  have  significant  innovation  potential  and  they  have  the 
agility  to  bring  revolutionary  technological  breakthroughs  and  service  innovation  to  the 
market. Strengthening the approach to SMEs, including enhancing the participation of micro-

21 

http://ec.europa.eu/enterprise/sectors/ict/files/kets/hlg_report_final_en.pdf  

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enterprises, is vital if Horizon 2020 is to help the fast-growing companies of today to become 
the multinationals of tomorrow.  

Horizon  2020  takes  an  integrated  approach  to  SMEs.  Through  this  approach,  it  is  expected 
that around 15% of the total combined budget for all societal challenges and the enabling and 
industrial  technologies  will  go  to  SMEs.  A  number  of  novelties  under  Horizon  2020  will 
encourage the participation of SMEs. 

Simplification will be of particular benefit to SMEs, as they often lack the resources to cope 
with high administrative burdens. This will include setting up a single entry point for SMEs 
wishing  to  participate  in  Horizon  2020.  Equally,  the  strengthened  emphasis  on  innovation 
activities will increase SME participation as these activities are of direct relevance to them.  

These  horizontal  measures  will  be  supplemented  with  SME-specific  actions,  consolidating 
support  that  was  previously  dispersed  over  several  programmes  into  a  streamlined  set  of 
instruments. 

First,  a  new  SME  instrument,  building  on  the  SBIR22  model,  the  principles  of  which  are 
described in 'Innovation in SMEs', will be used consistently across all societal challenges as 
well as for the enabling and industrial technologies. The instrument will allow SMEs to put 
forward  their  most  innovative  ideas  for  addressing  Union-level  challenges.  The  instrument 
will  meet  the  needs  of  all  SMEs  providing  innovative  solutions  to  specific  challenges, 
irrespective  of  whether  these  are  high-tech  and  research-driven  or  social  and  service-driven 
innovations, through the following features: 

– 

– 

Only  SMEs  will  be  allowed  to  apply  for  funding.  They  can  bring  with  them  other 
partners but one of the major novelties of this instrument is that it allows for single 
participant projects; 

Support  will  be  provided  in  different  phases.  A  feasibility  phase  will  allow  an 
assessment  of  project  potential.  A  main  grant  will  allow  the  SME  to  undertake  the 
project,  maintain  ownership  of  IPR  and  outsource  tasks  where  needed.  Follow-up 
support will be provided indirectly through services such as help in accessing venture 
capital, innovation support or public procurement.  

Second, a dedicated activity for research-intensive SMEs is included in 'Innovation in SMEs'. 
This  will  support  the  next  stage  in  the  Eurostars23  scheme  implemented  in  partnership  with 
Member States24. It will be accompanied by measures to build SME innovation capacity, such 
as networking and brokering, and also allow SMEs to ‘spin in’ technology by connecting to 
researchers and innovators across Europe. 

Third, 'Access to risk finance' will have  a  strong SME  focus,  as  called for by  the  European 
Council. For the Debt facility, the SME focus will be strengthened by working with financial 
intermediaries  at  national  and  regional  levels.  The  Equity  facility  will  focus  on  early-stage 
investments, while having the possibility to make expansion and growth-stage investments in 
conjunction  with  the  equity  facility  under  the  Programme  for  the  Competitiveness  of 
Enterprises and SMEs.  

22 
23 
24 

Small Business Innovation Research, http://www.sbir.gov  
http://www.eurostars-eureka.eu/  
http://www.eurekanetwork.org/  

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The Equity facility and the SME-related component 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  Programme  for  the 
Competitiveness of Enterprises and SMEs. 

7. 

INTERNATIONAL COOPERATION 

International  cooperation  with  third  countries  is  necessary  to  address  effectively  many 
specific objectives defined in Horizon 2020. This is the case in particular for all the societal 
challenges  addressed  by  Horizon  2020,  which  need  to  be  tackled  at  the  global  level. 
International  cooperation  is  also  essential  for  frontier  and  basic  research  in  order  to  capture 
the benefits from emerging science and technology opportunities. Promoting the international 
mobility of researchers and innovation staff is crucial for enhancing this global cooperation. 
Activities  at  the  international  level  are  equally  important  to  enhance  the  competitiveness  of 
European  industry  by  promoting  the  take-up  and  trade  of  novel  technologies,  for  instance 
through  the  development  of  worldwide  standards  and  guidelines,  and  by  promoting  the 
acceptance and deployment of European solutions outside Europe.  

The  aim  of  international  cooperation  in  Horizon  2020  will  be  to  strengthen  the  Union's 
excellence and attractiveness in research, to tackle global challenges jointly and to support the 
Union's external policies. The focus of international cooperation in Horizon 2020 will be on 
cooperation with three major country groupings:  

(1) industrialised and emerging economies; 

(2) enlargement and neighbourhood countries; and  

(3) developing countries. 

Where appropriate, Horizon 2020 will promote cooperation at regional or multilateral level. 
International  cooperation  in  research  and  innovation  is  a  key  aspect  of  the  Union’s  global 
commitments  and  has  an  important  role  to  play  in  the  Union’s  partnership  with  developing 
countries, which are often disproportionately affected by global challenges. This cooperation 
will  promote  inclusive  growth  and  progressing  towards  the  achievement  of  the  Millennium 
Development  Goals  and  other  goals  agreed  in  the  framework  of  international  sustainable 
development. 

Horizon  2020  will  continue  with  the  principle  of  general  openness,  while  encouraging 
reciprocal access to third country programmes. In addition, a range of targeted actions will be 
implemented taking a strategic approach to international cooperation on the basis of common 
interest  and  mutual  benefit  and  promoting  coordination  and  synergies  with  Member  States 
activities.  Dedicated  support  measures  to  assist  the  strategic  approach  and  the  process  of 
priority setting are included in the 'Inclusive, innovative and secure societies' challenge. 

8. 

SPREADING EXCELLENCE AND WIDENING PARTICIPATION 

Horizon 2020 will continue to allocate funding on the basis of competitive calls for proposals 
and through independent and merit-based peer review, selecting only the best projects without 
any consideration of geographical distribution.  

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Such  an  approach  does,  however,  need  to  be  complemented  with  measures  to  ensure  that 
Horizon  2020  is  open  to  a  wide  range  of  participants,  including  new  entrants,  and  that 
excellence prevails wherever it exists. Talent therefore needs to be nurtured and supported to 
grow  into  excellence,  enabling  researchers  and  innovators  across  Europe  to  benefit  from 
Horizon 2020's instruments, networks and funding. This will include forging close links with 
activities  in  the  higher  education  sector,  notably  the  Erasmus  For  All  programmes  and  the 
Knowledge Alliances. 

Union  funding  has  assisted  in  building  up  and  spreading  excellence  across  Europe  both 
through  FP7  and  the  Cohesion  policy  funds.  The  'Regions  of  Knowledge'  and  'Research 
Potential'  activities  of  the  FP7  Capacities  specific  programme  have  been  met  with  great 
interest, but evidence suggests that it would be more efficient if similar actions were pursued 
under Cohesion policy25.  

Therefore the Commission  proposes  a  clearer division of labour between Horizon 2020  and 
the Structural Funds, while strengthening interactions. Support for regions in building up their 
research and innovation capacity will be provided through Cohesion policy, which will take 
forward  the  concept  of  smart  specialisation  and  include  measures  to  allow  researchers  and 
innovators across Europe to grow into excellence.  

Complementary measures under Horizon 2020 will aim at widening participation across the 
whole  of  the  programme.  This  will  include  ensuring  better  coordination,  cooperation  and 
information  exchange  between  the  two  Union  funding  programmes.  Support  will  also  be 
given in 'Inclusive, innovative and secure societies' to policy learning and advice with the aim 
to  reform  research  and  innovation  policies.  This  will  also  involve  networking  and  twinning 
schemes enhancing the connections between researchers and innovators in all Member States 
and regions. In this way, the drive for excellence that is a hallmark of Horizon 2020 combined 
with the capacity-building elements of the Structural Funds will allow pockets of excellence 
to emerge and grow in developing regions. These will raise the international attractiveness of 
the regions concerned and act as focal points for their further economic development. In this 
respect,  the  specific  circumstances  of  the  Outermost  Regions  should  also  be  taken  into 
account. 

9. 

COMPLETING THE EUROPEAN RESEARCH AREA 

Completion of the European Research Area (ERA) is urgently needed to avoid costly overlaps 
and  unnecessary  duplication  of  activities.  It  entails  building  a  genuine  single  market  for 
knowledge,  research  and  innovation,  enabling  researchers,  research  institutions  and 
businesses  to  circulate,  compete  and  co-operate  across  borders.  Remaining  gaps  will  be 
addressed through the ERA framework, to be presented by the Commission in 2012. 

Horizon 2020 will strengthen the support given to promoting researchers' careers and mobility 
(including through the Marie Curie actions) and to ensuring the networking and opening up of 
large-scale  research  infrastructures  as  well  as  achieving  an  'online'  ERA  ('Research 
Infrastructures').  In  order  to  contribute  to  the  attractiveness  of  the  research  career,  Horizon 
2020  will  pay  adequate  attention  to  the  European  Charter  for  Researchers  and  Code  of 
Conduct  for  the  Recruitment  of  Researchers,  together  with  other  relevant  reference 

25 

Expert  Group  on 
ftp://ftp.cordis.europa.eu/pub/fp7/docs/seg-final_en.pdf  

synergies  between  FP7,  CIP 

and 

the  Cohesion  Policy  Funds, 

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frameworks  defined  in  the  context  of  the  ERA,  while  respecting  their  voluntary  nature. 
Further steps will be taken towards Open Access, to ensure that research results are available 
to  those  who  need  them.  It  will  also  involve  actions  to  remove  barriers  preventing  women 
from  pursuing  successful  scientific  careers.  The  Commission  is  committed  to  reaching  the 
target  of  40%  female  participation  in  its  advisory  structures  and  it  will  ensure  that  gender 
differences  are  reflected  in  the  content  of  calls  for  proposals,  and  in  evaluation  processes, 
where  appropriate.  Increased  female  participation  will  improve  the  quality  of  research  and 
innovation  while  helping  to  address  the  existing  deficit  of  highly  qualified  and  experienced 
scientists necessary for enhanced European competitiveness and economic growth. 

The  'Inclusive,  innovative  and  secure  societies'  challenge  will  support  policy  coordination 
across  Europe,  providing  a  strong  evidence  base  to  help  Member  States  in  implementing 
adequate policy mixes. As a novel measure, the work programmes will contain information on 
how  coordination  with  national  research  and  innovation  funding  is  ensured,  making  it  an 
element of discussion in the programme committees. 

Horizon  2020  will  support  approaches  aimed  at  pooling  and  leveraging  other  sources  of 
funding  through  a  simplified  ERA-NET  scheme,  providing  support  from  coordination  of 
national programmes up to the co-funding of joint calls for proposals. A clear set of criteria 
for joint programmes under Article 185 and joint undertakings under Article 187 will enable a 
stronger  set  of  initiatives  to  go  forward,  taking  account  of  the  experience  and  evaluations 
under FP7 as well as the revisions to the Financial Regulations.  

Joint Programming Initiatives (JPI) have been an important development in pooling resources 
to  generate  critical  mass  in  addressing  challenges  shared  by  Member  States.  Horizon  2020 
will  aid  JPIs  in  the  development  of  their  Strategic  Research  Agendas.  Where  the  challenge 
addressed by a JPI is in line with the priorities of Horizon 2020, ERA-NET or co-funding may 
be  used  to  provide  further  support.  New  Article  185  initiatives  will  only  be  considered 
provided  there  is  a  clear  commitment  from  the  Member  States  and  when  a  JPI  has 
demonstrated  its  capacity  for  significant  collaboration  and  the  scale  and  scope  needed  to 
support full integration of national programmes.  

Building  on  the  experience  of  the  public  private  partnerships  under  the  European  economic 
recovery plan, there will be greater scope for establishing such partnerships without recourse 
to  new  legislative  procedures.  This  will  allow  such  initiatives  to  be  implemented  in  a 
streamlined manner while ensuring greater clarity of roles and responsibilities. 

10. 

MEETING OUR SHARED AMBITIONS 

Europe's taxpayers have a right to know how their money is invested. Because research and 
innovation  are  vital  to  people's  futures,  it  is  important  to  bring  the  research  and  innovation 
activities  funded  through  Horizon  2020  to  the  attention  of  the  general  public,  showing  in 
particular  the  added  value  of  Union  level  action.  This  will  generate  better  public 
understanding,  engagement  and  debate.  Information  and  communication  measures  will 
therefore be an integral part of Horizon 2020 implementation. 

These measures will also focus on communicating the outcomes of research to policy makers, 
companies, innovators and other researchers, including by promoting Open Access. 

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Meeting our shared ambitions, which are central to Europe 2020 and  the Innovation Union, 
requires ambitious policies. The Commission is convinced that its proposal for Horizon 2020 
and the radical overhaul it entails will enable the Union Budget to play a key role in driving 
the step change in research and innovation performance that Europe needs. Horizon 2020 is 
designed  to  last  until  the  end  of  this  decade.  Its  projects  will  continue  well  into  the  next 
decade  and  the  impact  of  its  funding  should  be  felt  beyond  that.  It  is  therefore  truly  an 
investment for the future.  

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