Debate: Implementation report on the European Innovation Council
Date: MONDAY, 21 NOVEMBER 2022
Speaker: Johannes Hahn
Language: EN

The European Innovation Council is a major novelty of the Union’s innovation policy. It’s key in providing support to high—risk, deep—tech start—ups with a unique mix of grants, equity investments and innovation ecosystem services. The Commission is currently finalising the work programme of the European Innovation Council for 2023, with a budget of over EUR 1.6 billion, it will continue to help identify, develop and scale up breakthrough technologies and game—changing innovations.  The Commission shares the views in the report that the European Innovation Council Fund should be a key player in supporting breakthrough innovation in Europe. I am happy to say after taking yet another step in the required restructuring, and the appointment of an external fund manager in September, the EIC fund is fully operational. It has already taken 35 investment decisions worth around EUR 190 million and many more decisions are expected in the coming weeks. Under the EIC accelerator, offering grants and equity investments, 313 companies have been selected for support since June 2021. The total grant funding to these companies is EUR 680 million and 185 grant agreements have already been signed. Over half of the 313 companies – 184 exactly – are also proposed to receive equity investments ranging from EUR 1.5 million to EUR 15 million each through the EIC fund. The EIC fund is fully engaged to deal with the backlog of equity investments. I would also like to reassure this House that the essential features of the EIC will be fully preserved as the Commission is moving towards indirect management of the EIC fund, as foreseen in the Horizon Europe regulation. I would like to underline that, first, the Commission will continue to steer the direction of investments through the EIC annual work programmes, on which Parliament will continue to be informed in full transparency. Second, the investment decisions of the external fund manager must follow the investment guidelines endorsed by the Commission covering the terms of investment. Under these guidelines, the EIC fund will continue to be fully able to invest alone when the company is not ready for a funding round. The Commission will take a close look at the suggestion made with respect to the work of the Executive Agency EISMEA. Once again, I would like to thank also the rapporteurs for this work, also on behalf of my fellow Commissioner, Mariya Gabriel, and – if you allow, because DG BUDG has been addressed – to say a few words. First, with the experience of a former business person and a Minister of Science and Research, you have all my sympathy for this kind of project, and I believe it’s something extremely important because it is also addressing some, let’s say, of the market failures we unfortunately see in Europe. But it is also uncharted territory for a public administration, at least at the Union level. There are some Member States who are already rather successful on this. But the huge majority of public administration, for them, it’s, so to say, a new territory. This is why, and I can fully understand your impatience, it took us some time to find the right model. May I say, not, unfortunately, but I have to admit, I spent much more time with your colleagues from the Budget Committee, from the Budget Control Committee, from the Court of Auditors and we have tried to anticipate potential concerns in order not to enter into a situation where we are finally blocked or criticised. The whole initiative is, I wouldn’t say at the brink, but there might be questions. Therefore, again, please understand. There have also been some personal issues, but also this has been, I think, cleared. Therefore, I’m very confident that now we are in the rollout phase. Indeed, this instrument should show its capacity, its potential, because if it works, it should be also a role model for many other public administrations in our Member States, because it’s definitely something where the Union for the huge majority of Member States can serve as an excellent, interesting, and let’s say, positive role model, where others should follow. That’s why I think we should have – and we have – a joint interest that this is really a common success story of all of us.