helsinki 25 march 2014 how to use european structural funds for dual- use technologies?

Helsinki

25 March 2014

How to use European Structural Funds for Dual-Use Technologies?

Aims of the presentation

► Developing your understanding of the specificities of ESIF, the way they work and the potential opportunities they offer to you as Dual-Use technology stakeholders (public entities, enterprises, public and private research centres, universities…)

► Allowing you to acquire a standard knowledge and the necessary support to develop potential eligible projects

► Presenting you a methodology and guidelines to submit a project

picture

Agenda

Plenary session:

From macro policy to practical implementation

1 EU2020 strategy big picture

2 ESIF: The main instruments for Cohesion policy

3 How to apply a project?

Content

1

EU2020 strategy big picture

picture

Europe 2020 big pictureKey drivers and priorities

EU

2020

3 priorities

5 Objectives

1. Smart Growth2. Sustainable

Growth3. Inclusive Growth

1. Employment2. Innovation3. Climate change

4. Education

5. Poverty/ Social Exclusion

7 flagship initiatives

1. Digital agenda for Europe

2. Innovation Union3. Youth on the move4. Resource efficient

Europe

5. An industrial policy for

the globalisation6. An agenda for new

skills and jobs7. European platform

against poverty

Europe 2020 is a strategy launched by the EC in July 2010, which has set the following objectives:

► Enable member economies to emerge stronger from crisis

► Transform the EU economy as a "smart, sustainable and inclusive“

► Ensure a society with high employment levels, good productivity, social cohesion

Innovation Unionat the core of the Europe 2020 Strategy

The EU has set ambitious objectives to be reached by 2020 in five main areas:

1.Employment - 75 % of the population aged 20-64 should be employed

2.Innovation - 3% of the EU's GDP should be invested in Research & Development

3.Climate change - The "20/20/20" climate/energy targets should be met (including an

increase to 30% of emissions reduction if the conditions are right)

4.Education - The share of early school leavers should be under 10% and at least 40%

of 30-34 years old should have completed a tertiary or equivalent education

5.Poverty - Reduction of poverty by aiming to lift at least 20 million people out of the

risk of poverty or exclusion

The “Innovation Union" aims to improve conditions and access to finance for R&I, to ensure that innovative ideas can be turned into products and services that create growth and jobs.

2

ESIF:

The main instruments for cohesion policy

picture

Structural Funds and Cohesion Policy in 2014-2020: A brief overview

► ESIF are the financial instruments through which EU Cohesion Policy is implemented

► It aims to strengthen competitiveness and innovation

► Cohesion Policy contributes to raising the EU’s long-term research and innovation performance based on smart specialisation

► The implementation and allocation of funds to projects is handled by by Managing Authorities in Member States at local/regional/national levels

► Structural funds are based on the principle of co-financing between the EU and Member States/ project holders*

* Co-financing levels vary depending on regional GDP compared to the EU average GDP, status of the project holder, Operational Programme specific rules

The three main funds under which research and innovation activities can be supported are:

► European Regional Development Fund (ERDF) and European Social Fund (ESF): EUR 273 B

► Cohesion Fund: EUR 63 B

► European territorial cooperation: EUR 10,2 B

.

Structural Funds (2014-2020)

EUR 352 B

ERDF & ESF

Cohesion Fund

European terri-torial coopera-tion

Other

78%

18%

3%

1%

Focus on Thematic Objectives (TO)

2 Key drivers for the 2014-2020 programming period

1. Research & innovation2. Information & Communication Technologies 3. Competitiveness of Small and Medium-sized

Enterprises (SMEs) 4. Shift towards a low-carbon economy5. Climate change adaptation & risk prevention

and management6. Environmental protection & resource efficiency7. Sustainable transport & removing bottlenecks

in key network infrastructures8. Employment & supporting labour mobility9. Social inclusion & combating poverty10.Education, skills & lifelong learning11.Institutional capacity building & efficient public

administrations

The RIS3 requires national/regional authorities to identify the unique

characteristics and assets of each country and region, so as to focus on policy support and investments received through Structural

Funds. Stakeholder participation and ownership is essential to the development of these

strategies.

Be based on R&I Strategies for Smart Specialisations (RIS3)

Experience shows that thematic concentration allows for an increase in effectiveness of public interventions by reaching a critical mass with a real impact on the socio-economic situation of a country and its regions. Prioritisation is of particular importance in times of fiscal consolidation.

1 2

Dual-use technologies and key enabling technologies

Nuclear, biological & chemical sectors

Materials processing equipmentElectronics

ComputersTelecommunications

Encryption

Sensors & lasersNavigation & avionicsMarine equipment

Aerospace & propulsion equipment

Defence expenditure is not eligible for Structural Funds.

However: ► Security has become a top

priority for the European Union► Dual-use technologies that are

transversal to both defence and security can be eligible

► Key enabling technologies can be applied to several sectors

Cluster mapping linked with defence/security dual-use technologies

Source: Europe Innova project, www.clusterobservatory.eu

European Commission’s definition:Goods and technologies are

considered to be dual-use when they can be used for both civil and

military purposes.

http://www.clusterobservatory.eu/

FutureHealth

Sustainable Energy

Solutions

Smart City andRenewingIndustries

Bioeconomy

Cybersecurity

OULU JOENSUU

TAMPERE

JYVÄSKYLÄ

Jyväskylä

Seinäjoki

Lappeenranta

Pori

Helsinki Region

Tampere

Turku

Lahti

Oulu

Helsinki Region

Turku

Kuopio

Smart specialisation in HelsinkiINKA-hubs and partners

Concept of Inka:

► Public-private collaboration: Pools the best competencies locally (companies, research organisations, universities, users)

► Encourages to interregional and international collaboration

► Competitive, agile, fast, risk-taking, experimental

► Actions will closely link to EU Structural funds and Horizon 2020 programmes

Operational programmes (Ops) in Finland

► Operational programmes at national/ level• Finnish structural funds programme for sustainable growth and job

2014-2020• Operational programme of Aland

► Cooperation programmes• Cross-border cooperation:- Nord (North)- Botnia-Atlantica- Central Baltic• Transnational cooperation programmes:- Northern Periphery and Arctic- Baltic Sea Region• Interregional cooperation programmes:- INTERREG EUROPE- INTERACT- URBACT- ESPON

The new ESIF in Finland will be structured through one major OP + one specific OP for Alands. Actions and projects will, in most cases, be selected in the regions based on their own regional plans and decision-making.

Aland

Priorities for funding in Finland (main OP)

The Finnish ERDF main OP priorities

Line Fund

EU-support (million €)

Share %

Thematic objective (numbering according to general regulation article 9)

inv.priority

Special objective

1 ERDF 328 389 25,30% 1 1.1 Creating new business1 1.2 Improving transport and logistic connections important

to SMEs2 2.1 Promoting the internationalization of the growth of

entities

Supporting transfer to low-carbon economy in all business sectors

(4)

3

3.1 Promoting energy effi ciency of SMEs

2 ERDF 434750 33,50% 44.1 Developing research-, knowledge and innovation centres based on regional strengths

5 5.1 Strengthening innovation activity of the entities

Supporting transfer to low-carbon economy in all business sectors

(4)

3

3.2 Developing of renewable energy and energy effi cient solutions

3 ESR 233723 18% 6 6.1 Promoting employment of young people and other people in a weak employment situation

77.1 Improving productivity and well-being in working places

8 8.1 Mitigating gender segregation of career and education 4 ESR 164103 12,60% 9 9.1 Improving services that support transitional period and

educational equality

9.2 Improving the quality and supply of education in sectors of growth and structural change

5 ESR 99456 7,70% Promoting social participation and

preventing poverty and discrimination (9)

10

10.1 Improving ability to work of those people that are outside working life

6 ERDF 38938 3,00%Technical support 11.1 Confirming effi cient implementing of RR-programm

Improving the competitiveness of

SMEs (3)

Investing in education,

professional skills and lifelong learning (10)

Accelerating research, developing

technology and innovation (1)

Promoting lasting and qualitative

employment and supporting movement

of labour (8)

Presentation title

Budget allocation per thematic objectives

1 January 2014

POLICY FUNDCLASS

ISTHEMATIC OBJECTIVE EU-SUPPORT

NATIONAL CONTRIBUTION

THE TOTAL PUBLIC

Improving the competitiveness of SMEs (3)

257 610 109 257 610 109 515 220 217

Supporting transfer to low-carbon economy in all business sectors (4)

70 793 147 70 793 147 141 586 294

Accelerating research, developing technology and innovation (1)

314 769 332 314 769 332 629 538 664

Supporting transfer to low-carbon economy in all business sectors (4)

120 000 000 120 000 000 240 000 000

3ESF (ESR)

Developed

regions

Promoting lasting and qualitative employment and supporting movement of labour (8)

233 732 660 233 732 660 467 465 320

4ESF (ESR)

Developed

regions

Investing in education, professional skills and lifelong learning (10)

164 110 165 164 110 165 328 220 331

5ESF (ESR)

Developed

regions

Promoting social participation and preventing poverty and discrimination (9)

99 460 706 99 460 706 198 921 413

6ERDF (EAKR)

Developed

regionsTechnical support 38 984 852 38 984 852 77 969 703

Developed

1 299 460 971 1 299 460 971 2 598 921 942TOTAL

2ERDF (EAKR)

Developed

regions

1ERDF (EAKR)

Developed

regions

Cooperation programmes brief description (1/2)

Type of information Description

Interact It specifically seeks to build capacity for research and monitoring in the European Arctic and beyond, and is offering access to numerous research stations through the Transnational Access program.

Interreg europe It will finance two actions:a) Cooperation projects: partnerships of public organisations

coming from different countries in Europe work together for 3 to 5 years to exchange their experiences on a particular policy issue.

b) Policy Learning Platforms: a space for continuous learning where any organisation dealing with regional development policies in Europe can find solutions to improve the way they manage and implement their public policies in the four topics above.

Botnia Atlantica It is composed by 2 Programme :a) Development of communication, the natural and cultural

environment, and people-to-people contacts, in an effort to increase regional cohesion;

b) Cross-border cooperation designed to strengthen innovation and technology, and improve the skills and competitiveness of industry and the community.

Cooperation programmes brief description (2/2)Type of information Links

Central baltic It aims to contribute to the EU Strategy for the Baltic Sea Region supporting objectives “save the sea”, “connect the region” and “increase prosperity”.

Nord It aims at strengthening the competitiveness and cohesion in the region. The program strategy aims to develop methods and structures that facilitate cooperation between regions.

Urbact It aims at providing an exchange and learning tool for policy decision-makers, practitioners and other bodies involved in developing urban policies

Espon It supports territorial cohesion by:a) Providing comparable information, evidence, analyses and

scenarios on territorial dynamicsb) Revealing territorial capital and potentials for development

of regions and larger territories

Northern Periphery and Arctic It aims to help peripheral and remote communities on the northern margins of Europe to develop their economic, social and environmental potential by creating innovative products and services.

Baltic sea It aims at serving as a source for common identification across the region. It constitutes a joint 15 environmental and economic asset and brings about 16 transnational challenges.

ERDF specific thematic objectives for SMEs

The ERDF supports the development and structural adjustment of regional economies, including the conversion of declining industrial regions. Funds can either be allocated as grants or financial instruments. The ERDF contributes to all of the 9 thematic objectives. In the context of SME policies the following thematic objectives are of particular interest:

► Objective n°1: Strengthening research, technological development and innovation

► Objective n°2: Enhancing access to and use and quality of Information and Communication Technologies (ICTs)

► Objective n°3: Enhancing the competitiveness of SMEs

3

How to apply a project?picture

3.1

Eligibility characteristics of projects

Project eligibility: an overview

Relevant objectives, clear added-value and appropriate location of the project, proposed by the right beneficiaries, featuring a realistic and collaborative approach and foreseeing tangible results and impacts

Best and worst practices identified from past experiences

Lessons learned

Setting up appropriate project management and monitoring structures (e.g. in terms of

identifying realistic indicators, planning for evaluations and managing risks)

Meeting the rules and conditions for co-financing

PROJECT ELIGIBILITY

Key characteristics Added value components

Lessons learned Co-financing

What are the key characteristics that projects must have to be eligible?Characteristics Project Project *

holderProject expenditure

Why Overall objective(s) in compliance with EU policies (from EU scale to OP scale)An innovation and an added-value for the EU through concrete actions answering specific objectives (project logic)

What

Where Geographical location (some areas are more appropriate for certain activities than others – cf. smart specialization – and also have ad-hoc funding rules with regards to the activities and beneficiaries that can receive funding)

Who Eligible beneficiaries (clearly mentioned in each funding measure)*In the new programming period, large enterprises are now excluded except for R&D projects

For whom

Expected target groups (direct and indirect)

How Realistic means to achieve specific objectivesA collaborative approach (public-private)Time (There are limits on the period during which expenditure can take place)

For which results

Tangible results contributing to the main policy objectives, based on indicatorsMedium term impact (sustainability)

Added-value components for project eligibility

► Quantifying and qualifying the targets

► Indicating realistic means for expected results

► Choosing the right indicators (implementation and results) and limiting their number

► Planning for an external evaluation of activities and results

► Planning and risk management:

► Setting up adequate project management and quality assurance processes► Respecting European policies (competition; procurement; environment; equal

opportunities; employment; reduction of inequalities; etc)► Avoiding delays► Keeping within the budget► Meeting reporting requirements► Carrying out information and publicity activities

Lessons learned from best/worst practices

► Do not submit your application before obtaining an agreement in principle or a confirmation of the interests of administrators/actors (OP Managing Authorities)

► Describe the project by focusing on EU priorities and using the appropriate vocabulary

► Try to raise support for the project in the territory before submission (communication and dissemination)

► Try to involve different stakeholders in the project area

► Involve companies (SMEs and RTD performers) and disseminate EU added values

► Describe the potential impact on the economic development of the area

► Try to integrate your project within the strategy of your organization, sharing it with and showcasing it for the relevant actors

► Check that human resources are sufficient

► Anticipate delays in payments and non-payments by budgeting for sufficient working capital

► Think about the sustainability of your project

Co-financing

► Structural funds work on the principle of co-financing: the costs of a project are shared

between the EU and Member States/project holders/external funding

► The total planned “own” resources and the contribution from the Funds have to be clear

► The co-financing is usually based on a maximum rate and a maximum amount

► Co-financing takes place in the form of non reimbursable grants, usually paid on

expenditure occurred and linked to means and not to results

► In order to be eligible, expenditure must be incurred between 1.1.2007 - 31.12.2015

► Co-financed transactions must not be completed before the starting date for eligibility

► Rules are established at national level

Cost categories excluded from co-financing ► Debt interest and recoverable VAT ► In the case of land costs, these cannot exceed 10% of the total eligible expenditure of the

operation concerned► Decommissioning of nuclear power stations ► Lost opportunity costs

3.2

Applying for co-financing

Methodology: 3 phases for an optimal approach to applying for co-financing

1: Draft the Project Factsheet 2: Identify the funding measure & assess the

project eligibility

3: Draft, test and submit the Application Form

Track the appropriate funding measure

Analyze the eligibility

Control the compliance

Fill-in the Application Form

Fill-in the 10 sections

Check the compliance

Submit the Application Form

Who?

What?

Why?

Where?

How?

Outcome expected?

Methodology: Phase 1

What

1

Provide data and information required to track the appropriate funding measure and check the compliance with the eligibility criteria and selection priorities

The main scope of the project, the budget, proposed co-financing arrangements

Why

Context, rationale and the project value proposal. Provide the state of the art. Describe the overall and the specific objectives of the project. Precise how the project will support:● the EU 2020 strategy● the regional smart specialization (S3 ● the OP, specific priorities and objectives.

Where

Draft the project factsheet

For Whom

Direct and indirect targets in terms of population eligible (beneficiary groups)? Direct targets are the first beneficiaries of the action and directly affected by the project activities.

How

Activities and means to be undertaken to achieve your qualitative and quantitative objectives? Description of the project management to deliver the project to limit the risks related to three criteria: timing, budget and technical specifications.

Results

Concrete measurable outcomes. Criteria to be used to measure the success? Demonstrate the project added value with quantitative and qualitative indicators

Compliance

Check the specific eligibility indicators and selection priorities. Verify the status and the size of eligible project orders, eligible charges, co-funding rate and beneficiaries.

2 3

WhoDescription of the project holder

Location of the project? Why has this location?


1. Identify the funding measure and assess the project eligibility

2. 3

Analyse the eligibility● Check the timing of the application process● Check the alignment of the project characteristics

with the measures eligibility rules and priorities● Control with Managing Authority the project

compliance with the Funding measure eligibility rules and selection priorities

Control the compliance

● Check State Aids rules

Check the compliance of the project with the regional smart specialization 1. Identify potential locations to develop the project:

2. Analyse the S3 platform website to identify the best region according to project specificities and regional smart specialization

3. Select the final location to develop the project and get the co-funding.

The project must have a legal entity in the region to be selected

Use the InfoRegio web portal to find information Use the European Commission’s central web portals to research funding opportunities. You will find information on OPs, categories of regions, legislation, for the kind of initiative you would like to set up to support SMEs or entrepreneurship in your region.http://ec.europa.eu/regional_policy/index_fr.cfm

Track the appropriate funding measureqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq 1

2

Identify:● the most appropriate Region●the appropriate Operational Programme● the right priority and funding measures in the Ops

Check● the specific eligibility rules● Priority indicators


1 2 3

► The website provides presentation of regional smart specialisation strategies and in most cases background material that provides context to the cases and direct link to the Region’s website.

http://s3platform.jrc.ec.europa.eu/regions/FI196/tags/FI196

S3 Platform, JRC website provides all information and details to analyse the most appropriate regions

1


1 2 3

http://ec.europa.eu/regional_policy/index_en.cfm

Inforegio: The first source to track ERDF fundings (1/2)

► Select your country and access to the different types of programmes ( national level, cross-border co-operation and transnational cooperation)

2


1 2 3

Inforegio: The first source to track ERDF fundings (2/2)

► Access Operational programme summary for identifying main priorities

► Access to Managing Authorities contact to get full operational programme with more details

*This example is elaborated on the data from the last programming period 2007-2013 as the information is not yet published on the website for the current period.

2


1. 2. Draft, test and submit the application form

3

Fill-in the application form*

Fill-in the 10 sections

Identification of the Project Holder ● Project details ● Project Applicant ● Delivery partner ● Strategic Fit ● Rationale ● Estimated deliverables (Outputs/ results/ Impacts), Costs

and Funding ● Project management capacity and risk ● Compliance ● Applicant declaration and certification

* For an example, check out the Outline Application Form Guidance ERDF-GN-2-001 available on internet

Check the compliance

● Meet the Managing Authority to check whether the project matches with eligibility criteria and selection priorities● Adapt the project● Check the compliance of the project with all EU requirements

Submit the application form in due time

• Answer any request for clarifications

Project application procedure differs from countries

Project application procedures differ substantially from one region to another. To fill-in the sections of the Application Form, check which guides and users’ manuals have been established in your region / country.

In order to provide potential project holders with real-life examples. The applications are published in the original language together with an English translation and are available under the following link: http://ec.europa.eu/enterprise/policies/sme/regional-sme- policies/applicationexamples

http://ec.europa.eu/enterprise/policies/sme/regional-sme-

helsinki 25 march 2014 how to use european structural funds for dual- use technologies?

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