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EU unveils giant research funding programme

Published 30 November 2011 - Updated 01 December 2011
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The European Commission presented today (30 November) its €80-billion research funding programme for the decade - Horizon 2020 - with the aim of boosting research, stimulating innovation and simplifying the way scientists and smaller businesses can get funding for EU-backed projects.

The Horizon 2020 programme brings together all EU research and innovation funding under a single scheme running from 2014 to 2020.

It replaces the Seventh Framework Programme for research (FP7), which expires in 2013.

Defending Horizon 2020’s launch in a time of austerity, EU Commissioner for Research, Innovation and Science Máire Geoghegan-Quinn said the programme would serve as a driver for European growth.

A chance for growth

“We need a new vision for European research and innovation in a dramatically changed economic environment," the commissioner said. "Horizon 2020 provides direct stimulus to the economy and secures our science and technology base and industrial competitiveness for the future, promising a smarter, more sustainable and more inclusive society.”

Horizon 2020 is divided into three tranches designed to boost specific causes.

The first aims to establish the EU as a leader of cutting-edge projects using a €24.5-billion budget, including funding for the European Research Council (ERC). The body, whose support for individual academic studies has garnered praise, sees its budget increase by 77%.

A second allocation is targeted at industrial innovation with a budget of €17.9 billion, including €13.7 billion for key technologies.

The third and biggest tranche, worth €31.7 billion, goes to so-called "societal challenges" divided into six themes:

  • 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; and
  • Inclusive, innovative and secure societies.

The remaining €5.9 billion is set aside for the Joint Research Centre – the Commission’s in-house research institution – which works on issues that include the environment, nanotechnology and nuclear safety.

Simplification for smaller businesses

The Commission has sought to considerably simplify funding applications under the new research programme, replacing several existing funding schemes with two. Four existing methods for calculating costs under the various schemes will be replaced with one calculator.

The programme represents a breakthrough for small and medium enterprises under EU projects. A clause within Horizon stipulates that 15% of the second and third tranches described above (worth €8.6 billion) must be allotted to smaller companies.

Funds were previously reserved for pure research, and remained either unclaimed by small firms or reserved for more specialist vehicles, such as research units spun off from university science parks.

Under the new programme, smaller firms will be able to apply for funding for new proposals, fund the research and technological development of such ideas, and receive help bringing them to market.

Tapping into regional funds

Controversially, the new programme will operate in tandem with the EU regional - or 'structural' - funds. Under the proposals, Horizon 2020 will award seals of excellence to universities and research centres once they have demonstrated a level of proficiency up to the highest EU standards.

Such regions, usually found in the newer member states of eastern Europe, will be encouraged to use structural funds to bring their research infrastructure up to scratch to win such seals, which will enable them to attract more funds from Horizon and private investors.

Some eastern member states resist the move, since they believe it could reduce their ability to use the structural funds for infrastructure projects, and also limit their access to Horizon 2020. Officials in the Commission's Research directorate pointed out that under the Horizon proposal, there are special provisions designed to mentor and help such regions to benefit from the programme.

Positions: 

"I particularly welcome the societal challenges giving an emphasis to health, and am also pleased with the proposals to increase the combined efforts of the structural funds and Horizon, but we will still be demanding a bigger budget for research in the Parliament," said MEP Maria da Graça Carvalho (Portugal; European People's Party).

Next steps: 
  • Until end 2012: Horizon 2020 programme to be discussed by the European Parliament and Council in tandem with the general multi-annual financial framework for 2014-2020.
Jeremy Fleming

COMMENTS

  • The EU has missed an opportunity to make its R&D budget reflect current European priorities, in particular by proposing only 6.5 billion for energy R&D (7.5% of overall Horizon 2020 budget) and by making no commitment to fund the SET Plan (this way Europe risks allowing China, South Korea, Japan and the US to take the lead in renewable energy technology development).

    By :
    Vilma Radvilaite
    - Posted on :
    01/12/2011
  • Giant money laundering machine

    By :
    Anonymous
    - Posted on :
    01/12/2011
  • " will award seals of excellence " - brandmarking of slaves in Eastern Europe?

    By :
    Violetta
    - Posted on :
    02/12/2011
  • For the first time, the bio-economy becomes a key priority within the EU framework for research and innovation. This is a clear recognition of its contribution to the overall objectives of Horizon 2020 to boost growth and jobs sustainably at a time Europe needs it most. However, the bio-economy can only deliver on its promises if Horizon 2020 covers the full innovation cycle: from R&D, demonstration, deployment and access to capital, to market take-up. Historically, the EU has always been better at supporting R&D than the next stages of the innovation cycle. The new framework programme should adjust to enable the commercialisation of promising technologies and the realisation of the bio-economy. Achieving this will require not only increased funding, but better coordination and integration of research and innovation policy with other policies.

    Kåre Riis Nielsen, Director Public Affairs, Novozymes

    By :
    Kåre Riis Nielsen
    - Posted on :
    08/12/2011
  • For the first time, the bio-economy becomes a key priority within the EU framework for research and innovation. This is a clear recognition of its contribution to the overall objectives of Horizon 2020 to boost growth and jobs sustainably at a time Europe needs it most. However, the bio-economy can only deliver on its promises if Horizon 2020 covers the full innovation cycle: from R&D, demonstration, deployment and access to capital, to market take-up. Historically, the EU has always been better at supporting R&D than the next stages of the innovation cycle. The new framework programme should adjust to enable the commercialisation of promising technologies and the realisation of the bio-economy. Achieving this will require not only increased funding, but better coordination and integration of research and innovation policy with other policies.

    Kåre Riis Nielsen, Director Public Affairs, Novozymes

    By :
    Kåre Riis Nielsen
    - Posted on :
    08/12/2011
  • For the first time, the bio-economy becomes a key priority within the EU framework for research and innovation. This is a clear recognition of its contribution to the overall objectives of Horizon 2020 to boost growth and jobs sustainably at a time Europe needs it most. However, the bio-economy can only deliver on its promises if Horizon 2020 covers the full innovation cycle: from R&D, demonstration, deployment and access to capital, to market take-up. Historically, the EU has always been better at supporting R&D than the next stages of the innovation cycle. The new framework programme should adjust to enable the commercialisation of promising technologies and the realisation of the bio-economy. Achieving this will require not only increased funding, but better coordination and integration of research and innovation policy with other policies.

    Kåre Riis Nielsen, Director Public Affairs, Novozymes

    By :
    Kåre Riis Nielsen
    - Posted on :
    08/12/2011
Event: Horizon 2020
Background: 

Horizon 2020 is a part of Innovation Union, a Europe 2020 flagship initiative aimed at enhancing global competitiveness. The European Union leads the world in some technologies, but faces increasing competition from traditional powers and emerging economies alike.

The Commission proposal will now be discussed by the Council and the European Parliament, with a view to adoption before the end of 2013.

Horizon 2020 introduces a simplified reimbursement by introducing a single flat rate for indirect costs and only two funding rates - for research and for demonstration activities respectively; a single point of access for participants; less paperwork in preparing proposals; and no unnecessary controls and audits.

One key goal is to reduce the time until funding is received following a grant application by 100 days on average, meaning projects can start more quickly.

The Commission will make efforts to open up the programme to more participants from across Europe by exploring synergies with funds under the EU's structural funds. Horizon 2020 will identify potential centres of excellence in underperforming regions and offer them policy advice and support, while structural funds can be used to upgrade infrastructure and equipment. 

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