Horizon 2020
The European Commission published a proposal for the future of European-level research and innovation funding, moving from the 7th Framework Programme to the newly entitled ‘Horizon 2020’ programme
Full details of the proposal can be found in the Commission communication here.
Leading up to this publication, the CBI and sister European business representations lobbied intensively to see some significant changes to the previous scheme, which our members felt was too complex, overly bureaucratic and not responsive enough to commercial pressures.
With this publication we’re pleased to see a number of changes that indicate Horizon 2020 should constitute a significant improvement from previous EU research and innovation funding. The proposed new package will run for seven years from 2014 and will be worth €80bn, a significant increase from the current value of €55bn , and incorporating a number of changes:
A much simplified structure, bringing together the four Framework Programme themes (Ideas, Cooperation, People and Capacities), the Competitiveness and Innovation Framework Programme (CIP) and the European Institute of Technology (EIT) under a single scheme with three funding headings:
- Excellent Science (€24.6bn) incorporating a significant increase in funding for the European Research Centre (ERC) and with an agenda driven by researchers.
- Industrial Leadership (€17.9bn) including support for strategic investments in technology and support for innovative SMEs and with an agenda driven by industry.
- Societal Challenges (€31.7bn) focusing on innovation in six areas: health, food security, energy, transport, climate change and secure societies. This agenda will be driven by political priorities.
Much reduced and simplified levels of bureaucracy:
- A single set of rules for all projects across the entire of H2020.
- A simple funding rate: 100% of direct costs plus 20% of direct costs to cover all indirect expenditure. The only exception is for close to market work, which will attract 70% for direct costs.
- Simpler rules for grant holders, including acceptance of participant accounting practices and removal of time-sheet requirements for full-time project staff.
- Reduced audit and reporting requirements.
- Reduction in time-to-grant of 100 days.
- Reduction in the number of partners required from six to three.
Increased focus on innovation and commercialisation:
- As noted, an Industrial Leadership programme with an industry-led agenda.
- Support for large-scale piloting and demonstration activities.
- Pre-commercial procurement, inducement prizes and dedicated loans and equity instruments.
The next stage will be negotiation between the European Parliament and the Council of the EU, beginning in March and concluding in late 2013, and we plan to continue to lobby throughout this period to safeguard these improvements, as well as taking forward any further business issues that have not been covered in the proposal.
The task we now face is evaluating whether these proposals ‘fit the bill’ and developing a new position to take forward into these negotiations.
The CBI responded to some of the questions posed in the consultation document in December 2010 Read the full brief (pdf).