Addressing Europe’s Investment Shortfalls
Despite being a powerhouse in scientific and technological potential, the EU lags behind its global competitors, particularly in private sector investment in RD&I. This gap jeopardizes the EU’s ability to maximize its innovations and sustain long-term competitiveness. The undersigned associations underscore the critical role of the EU Framework Programme in alleviating market failures and stimulating private investments by reducing associated industry risks.
Horizon 2020 – A Benchmark for Success
Recent evaluations of Horizon 2020 highlight the effectiveness of European partnerships, where private contributions often doubled or tripled the EU’s financial inputs, showcasing the high leverage impact of collective investments. This success story bolsters the call for increased budget allocation to FP10, reinforcing the importance of collaborative efforts across member states and sectors.
The impact of collective and coordinated EU RD&I investments has been recently demonstrated by the Ex-post evaluation of Horizon 2020 which found that the highest degree of financial leverage per each euro invested was achieved in European partnerships. In the institutionalised partnerships, private partners’ contributions with resources (in cash or in-kind) more than doubled or even tripled the volume of EU investments.
Call for Enhanced RD&I Investment in FP10
The undersigned associations call on the EU Institutions to significantly increase the current RD&I budget in view of FP10. Such collective EU RD&I investments need to be reinforced in the next EU budget (MFF). National RD&I investments should in parallel be ensured and at minimum meet the target of 3% of GDP, aiming at leveraging private RD&I investments. Committing to EU technological leadership should ensure that proper and timely investments are made.
To further support EU Competitiveness, FP10 must focus on excellent cross-border collaborative RD&I, with a strong industrial participation. To do so, the focus on competitiveness must be reinforced in Pillar II, and should similarly be a key driver for activities in Pillar I and Pillar III. Pillar II is the only truly collaborative part
of the FP today, breaking silos to promote the flow of knowledge between and within the private and public sectors as well as between basic and applied research. A significant part of FP10’s total budget should not only be allocated to Pillar II, with an enhanced focus on European Industrial Competitiveness but the activities in Pillar II must also be driven by strategic EU priorities and clearly defined industrial needs.
Importance of Pillar II in Strengthening RD&I Ecosystems
Pillar II is crucial to build long-term trust-based public-private partnerships (PPPs) amongst a wide variety of European RD&I actors, which is an indispensable element in strengthening Europe’s RD&I ecosystems. It reduces risk and uncertainty and stimulates private investment in Europe by demonstrating the
EU’s support for technology-intensive sectors, while preserving technology neutrality for a level playing field on the internal market. This would give the right incentives for industry to invest in RD&I in Europe, rather than in third countries and to support the delivery of the EU green and digital transitions.
The undersigned associations express their readiness to engage in detailed discussions with EU institutions to shape FP10. They are confident that with the right investment and collaborative strategies, Europe can significantly enhance its standing in the global innovation race, ensuring continued economic and social prosperity. Europe’s commitment to strategic, pan-European collaborative RD&I will not only strengthen its own competitiveness but also secure a sustainable future for the next generations.
Background
“Pillar II” refers to one of the three main areas (pillars) within the European Framework Programme for Research and Innovation, currently known as Horizon Europe. This specific pillar focuses on global challenges and European industrial competitiveness. Pillar II of Horizon Europe aims to foster cross-border collaborations, bringing together actors from both the public and private sectors to jointly develop solutions for complex challenges.
