Public-Private Partnerships in Horizon 2020
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1 Public-Private Partnerships in Horizon 2020 "1 ora con l'europa" Enea office, Bruxelles 26 th February 2014 Andrea GENTILI DG Research and
2 Investment in R&D is part of the solution to exit from the economic crises
3 EU business under-invests in R&D compared to other regions
4 Horizon 2020: Key elements A single programme with three pillars: societal challenges, industrial competitiveness and excellence in science More emphasis on innovation More involvement of industry via the industrial deployment of key enabling technologies, and through PPPs - institutional and contractual Simplified access for all stakeholders
5 Horizon 2020 is different A strong challenge-based approach, allowing applicants to have considerable freedom to come up with innovative solutions Emphasis on innovation, with continuing support for R&D (research and innovation actions with 100% funding; innovation actions with 70% funding) Less prescriptive topics, strong emphasis on expected impact A strategic approach, with two-year work programmes Focus areas bring together different technologies, along entire innovation chain Cross-cutting issues mainstreamed (e.g. social sciences, gender, international cooperation) 5
6 Why Public-Private Partnerships in Horizon 2020? To solve problems together with industry To strengthen European industrial leadership To facilitate prioritisation of R&I in line with the Europe 2020 objectives and industry needs To leverage research and innovation elements To strongly commit industry to joint objectives
7 drives competitiveness and benefits from global markets EU share in manufacturing global value chain income has declined by > 23 % since would contribute to reversing this trend. Strong, competitive and longer value chains are key to the EU s competitiveness and job-creation. Partnerships are essential for EU leadership in globally competitive technology sectors and contribute to meeting the EU objective of 20% of GDP coming from manufacturing by Investing 3% of GDP in R&D. Get innovative technologies faster to the market.
8 Experience until now: PPPs in FP7 Joint Technology Initiatives Innovative Medicines Initiative (IMI) Clean Sky Single European Sky ATM Research (SESAR) Fuel Cells and Hydrogen (FCH) Embedded Computing Systems (ARTEMIS) Nanoelectronics (ENIAC) "Contractual" PPPs Factory of the Future (FoF) Energy-efficient Buildings (EeB) Green Cars (GC) Future internet (FI-PPP)
9 Outcome of "contractual" PPPs in FP7 Quick response in defining the strategy via Roadmaps Efficient calls with better success rates and time-to-grant 366 projects supported, with 4409 participations Increased participation of industry (57%) and SMEs (25%) More innovation related activities, including demonstration The full EC contribution of 1.6 billion has been provided, resulting in a combined investment of 2.4 billion
10 EU funding for PPPs in FP7 per country 10
11 Establishment of the contractual PPPs Based on ETPs and taking into account policy documents the Commission identified possible areas for a contractual PPP Stakeholders were invited to prepare a PPP proposal The private sector organised stakeholder consultations, in an open and transparent way, covering the whole value chain The private sector delivered the proposal to the Commission The Commission checked compliance with H2020 criteria for the PPPs (art. 19) with the help of high-level external experts Commission decision to launch the contractual PPP Signing of the Contractual arrangement
12 PPPs in Horizon 2020 Joint Technology Initiatives Innovative Medicines (IMI) Clean Sky Single European Sky ATM Research (SESAR) Fuel Cells and Hydrogen (FCH) Electronic Components and Systems (ECSEL - old ARTEMIS + ENIAC) New: Bio-based Industries (BBI) Contractual PPPs Factory of the Future (FoF) Energy-efficient Buildings (EeB) Green Vehicles (EGVI) Future internet (5G) New: Sustainable Process Industry (SPIRE) Robotics Photonics High Performance Computing
13 How were PPPs selected? Criteria in Horizon 2020 legislation European added value (Horizon 2020, article 19) Importance of impacts Scale and long term nature of industry commitments Openess and transparency Strategic importance For EU international leadership of the technologies For EU policy objectives under Europe 2020 Building on success under FP7 Following evaluations and experience New initiatives (1 JTI and 4 cppps) given policy importance and industry commitment
14 What's new? Major simplification for participants Stronger industrial commitments & higher leverage effect - additional activities financed by industry outside calls More focus on demonstration & deployment links to Structural and Investment Funds More ambitious objectives - contributing directly to EU policy goals sustainable economic growth new added-value jobs efficient use of resources reduced energy use inclusive innovation and benefits for society Improved governance
15 Criteria in Article 19 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) the scale of impact on industrial competitiveness, job creation, sustainable growth and socio-economic issues, including societal challenges; c) the long-term commitment from all partners based on a shared vision and clearly defined objectives; d) the scale of the resources involved and the ability to leverage additional investments in research and innovation; e) a clear definition of roles for each of the partners and agreed key performance indicators over the period chosen.
16 Two types of PPPs in Horizon 2020 Contractual PPPs: budget is only committed on an annual basis through H2020 calls in WPs, prepared on the basis of an industry-developed multi-annual roadmap and a contractual arrangement which specifies an indicative 7 years EU funding, and the commitments of industry to match this and to additional investments outside the PPP calls with high leverage factors, but not legally binding. Joint Technology Initiatives: like the contractual PPPs, but with ring fenced 7 year budget, the JU launching the calls (where derogations to H2020 are possible) and with the additional commitments of industry outside the calls inserted in the legislation. 16
17 22 billion Investment Package Joint Technology Initiatives (under article 187) Industry driven research agenda Fixed budget for 7 years to leverage more industry investment Sector structuring to achieve impact Coverage of longer value chains and interrelated sectors Higher level of SME participation (30%) than in FP7 Links and synergies with Structural and Investment Funds Joint programmes (under article 185) Link to national programmes Leverage effect Industry involvement Cross-border collaboration
18 Partnerships with industry Joint Technology Initiatives (million, ) Public Private Partnerships EU (Horizon 2020) Industry Innovative Medicines Initiative Fuel Cells and Hydrogen > 700 Clean Sky Bio-based Industries Electronic comp. and systems ( Member States) 2 400
19 Contractual Public Private Partnerships in Horizon 2020 Factories of the Future (FoF) 1150 Energy-efficient Buildings (EeB) 600 European Green Vehicles Initiative (EGVI) EU indicative funding (M ) 750 Sustainable Process Industry 900 Advanced 5G network infrastructure for the Future Internet (5G) 700 High Performance Computing (HPC) 700 Robotics 700 Photonics TOTAL: Industry has committed to complement these amounts with private investment in the order of 3 to 10 times the level of public funding in addition to the in-kind contribution in the cppp projects under Horizon 2020.
20 PPPs with industry Industry EU JOINT TECHNOLOGY INITIATIVE (Joint Undertaking) Research agenda driven by industry Common objectives Joint implementation Activities Open for all IMPACT Growth, jobs, targeting social benefits
21 cppps with industry Industry EU cppp Partenership Board Advice from industry based on a roadmap for the definition of the Work Programmes Implementation by EC Co-funded projects Activities Open for all IMPACT Economic growth, job creation, address major societal challenges
22 Contractual arrangement for cppps Main roles in a contractual PPP Private sector partners advise the Commission on R&I priorities for the Horizon 2020 work programmes Implementation via Commission WPs for R&I using Horizon 2020 Rules for Participation and with comitology Content of the document: Scope and Specific Objectives, Activities, investment and outputs, Governance and openness, Specific commitments of each side, Monitoring and Key Performance Indicators, Duration and review The Multi-annual roadmap is an Annex
23 The contractual PPP approach What is the same as in normal Horizon 2020: The financial rules are those of Horizon 2020 Final responsibility for the Work Programme stays with the European Commission and is subject to Comitology Implementation remains with the Commission: selection of proposals, negotiation, review of progress and payments What is different from normal Horizon 2020: Long-term commitment by Commission to support the field Long-term commitment by industry to invest, with a need to demonstrate its fulfilment (monitoring & KPIs) Roadmap-based strategy. Close interaction in the Partnership Board to prepare the content of the calls.
24 Core Key Performance Indicators At PPP implementation level New systems and technologies developed in the relevant sectors Participation and benefits for SMEs Contribution to the reduction of energy use Contribution to the reduction in the use of material resources New high-skilled profiles and new curricula developed Private investment mobilised in relation to the PPP activities Contributions to new standards At project impact level Scale of reduction in energy, material resources and waste Project results taken-up for further investments Trainings for a higher quality workforce Patents and activities leading to standardisation
25 EC budget (in M ) in WP cppp Total Factories of the Future Energy-efficient Buildings 62, ,5 European Green Vehicles Initiative Sustainable Process Industry 116, ,3 5G Future Internet Photonics Robotics High Performance Computing 97, ,4 Total 667, ,2
26
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