Atividade Parlamentar Horizonte 2020: Two years of preparation and negotiations

Horizon 2020 constitutes the European Union framework programme for Research and Innovation over the period from 2014-2020 and, as such, constitutes a core section of the Europe 2020 strategy. Horizon 2020 brings together three stand-alone initiatives (the 7th Research Framework Programme (FP7), the Competitiveness and Innovation Framework Programme (CIP) and the EU contribution to the European Institute of Innovation and Technology (EIT).

The programme aims at coupling research with innovation by turning scientific breakthroughs into innovative products whilst addressing the challenges posed by globalisation (e.g. climate change, energy security and ageing of population).  This will enable H2020 to meet the needs of companies, universities and institutes in terms of rapid and simplified access to financial support. To achieve these goals, the programme identifies three priorities: excellent science, industrial leadership and societal challenges, each of which are divided into a number of definite objectives and activities.

The most significant novelties of the proposed programme include: a stronger focus on 'societal challenges' and competitiveness; better integration of research and innovation (seamless and coherent funding from idea to market) and more support for innovation and activities close to the market.  At the same time, the programme foregrounds simplification (simpler programme architecture, single set of rules, less red tape through an easy to use cost reimbursement model, less paperwork, fewer controls and audits) and enhanced possibilities for new entrants and young, promising scientists.

The negotiations of Horizon 2020 and its outcomes

The negotiation package includes the following files:

• The Framework Programme for Research and Innovation (2014-2020) - Report Riera Madurel (S&D);
• Proposal for a Regulation laying down the rules for the participation and dissemination in Horizon 2020 - Ehler Report (EPP);
• Proposal for a Decision establishing the Specific Programme implementing Horizon 2020 - Carvalho Report (EPP);
• Proposal for a Regulation on the European Institute of Innovation and Technology (EIT) - Report Matias (GUE/NGL);
• The Strategic Innovation Agenda of the EIT - Report Lamberts (Greens).

After 6 months of negotiations and 9 trilogue meetings between the European Parliament, Council and Commission the three institutions reached an agreement regarding Horizon 2020.

The main outcomes of these negotiations regarding the Specific Programme implementing Horizon 2020 are the following:

Pillar 1 - Excellent Science

Pillar 1 aims at supporting the EU's position as a world leader in science. This pillar contains 4 sub-programmes: European Research Council, Future and Emerging Technologies, Marie Skłodowska Curie actions and Research Infrastructures.

• European Research Council (ERC grants) will provide individual grants for excellent researchers with brilliant ideas at different career stages: Starting, Consolidators, Advanced, Synergy (2-4 researchers) and Proof-of-concept.
• Future and Emerging Technologies (FET) will fund high risk breakthrough ideas with high potential for technological and social impact through collaborative research and 3 types of projects depending on the dimension: FET Open (bottom-up), FET Proactive (predefined topics, creation of multidisciplinary research communities) and FET Flagship (large scale).
• Marie Skłodowska Curie actions will reinforce education through mobility with 4 grant categories: Initial training researchers, Life-long training and career development, Industry dimension and International dimension "World Fellowships".
• Research Infrastructures (RI) will focus on world-leading research infrastructures accessible to all researchers. It will develop new research infrastructures; foster the innovation potential of research infrastructures and their human capital and reinforce European policy on research infrastructures and International Cooperation.

Novelties in Pillar 1 after the negotiations:

• The creation of Return Grants within the Marie Skłodowska Curie Actions for the reintegration of researchers after an international experience, mainly towards less innovation performing regions.

Pillar 2 - Industrial Leadership

Pillar 2 is devoted to help securing industrial leadership in innovation, key technologies and access to capital and support for SMEs. This pillar is divided in three sub-programmes: Enabling and Industrial Technologies, Financial instruments and specific support for SMEs.

• Enabling and Industrial Technologies will support research and innovation activities on strategic technologies to foster innovation in existing and emerging sectors. These include Key Enabling Technologies such as Information and Communications Technologies (ICTs), Nanotechnologies, Advanced materials, Biotechnology, Advanced manufacturing and processing and Space.
• Financial instruments will attract more private investment in research and innovation. These include a Debt facility (loans and guarantees for high risk projects implemented by the EIB and the EIF) and an Equity facility (investment in early and growth stages through Venture Capitalists and Business Angels).
• SME instrument is a dedicated sub-programme designed for supporting innovative SMEs which is divided in 3 phases: phase 1: Concept & Feasibility Assessment; phase 2: Demonstration, Market Replication, R&D; phase 3:  Commercialisation.

Novelties in Pillar 2 after the negotiations:

• SMEs will benefit from at least 20% of the combined budget of Leadership in Enabling and Industrial Technologies and Societal challenges;
• Moreover, the Parliament insisted in a dedicated budget and a single management structure for the SME instrument. The SME instrument will be allocated a 7% of the combined budget of Leadership in Enabling and Industrial Technologies (part of pillar II) and Societal challenges (pillar III);
• A simple and fast scheme of "Innovation Vouchers" will fund research and innovation activities within the Phase 2 of the SME instrument. This will promote the creation of start-ups and enhance the research and innovation activities in existing SMEs.

Pillar 3 - Societal Challenges

Pillar 3 will address major concerns shared by all Europeans, across six key 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.

Novelties in Pillar 3 after the negotiations:  

• A new activity line for Marine and Maritime cross-cutting issues;
• A new activity line to study "cultural heritage and European identity";
• Division of "Social Sciences and Humanities" and "Security" into two different Societal Challenges;
• Regarding the Health Societal Challenge more focus was given to children and elderly diseases; neurodegenerative, musculoskeletal and chronic diseases; poverty related diseases; ageing and well-being; personalized medicine;
• An increase of the Energy Budget - from 7,2% to 7,7% of the Horizon 2020 budget
• Earmarking of 70% of the Energy budget devoted to renewable energy, energy efficiency, smart grid and storage and an additional 15% for activities for the market uptake of existing renewable energy and energy efficiency technologies (former Intelligent Energy Europe Programme);
• The role of gas is reinforced with more focus on energy security and new technologies with disruptive effects, smart grids and technologies, energy storage, back-up and balancing technologies and CCU.
• Research on fossil fuels, both in terms of electricity production and grid flexibility and efficiency on the integration of renewables. 

General issues 

• An independent activity line with a dedicated budget (1,06% of the Horizon 2020 budget) for "Widening the Participation". This activity includes a number of actions that were already included in the Commission proposal under Societal Challenge 6, but also includes new activities such as the teaming and twinning actions between research institutions.
• An independent activity line with a dedicated budget (0,6% of the Horizon 2020 budget) for "Science with and for Society".
• The promotion of the synergies between Horizon 2020 and other funding instruments such as Structural Funds and the European Development Fund. A specific measure suggested is the attribution of a Seal of Excellence for excellent projects that for budgetary constraints were not funded. The Seal of Excellence will facilitate the consortia to find other sources of public or private funds
• The creation of Scientific Panels that will contribute with science-lead input on the societal challenges and define research and innovation priorities and encourage EU-wide scientific participation. These panels will be firstly implemented for the Health sector;

Next steps

Regarding the next steps, this agreement will now be submitted to the validation of the ITRE committee (September 2013), the COREPER and the EP plenary (September/October 2013). Horizon 2020 will be the third largest EU programme and the largest in the world supporting research and innovation.