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European Structural and Investment Funds & ICT investments State of Play

This report provides an overview of European Structural and Investment Funds and ICT investments in Europe, including the allocation of funds and achievements. It also highlights specific examples of ICT-related cohesion policy investments.

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European Structural and Investment Funds & ICT investments State of Play

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  1. European Structural and Investment Funds & ICT investments State of Play Katja Reppel G.1 CC smart and sustainable growth & senior experts for smart growth

  2. €347 billion in 2007-13 COHESION POLICY = Regional & Urban Policy: ERDF, incl. INTERREG, Cohesion Fund (“basic” infrastructures) Social Policy: ESF OTHER POLICIES RELATED TO COHESION Common Agricultural Policy and Rural Development (EAFRD) Common Fisheries Policy (EMFF) Basics on current Cohesion Policy 455 Operational Programmes … and almost as many Managing Authorities Programmes are more or less 50/50 at national vs. regional level • Disbursed via: • Grants – to individual recipients and consortia • Financial instruments (loans, VC, guarantees) = €12 billion = around 5.5% of ERDF (in the future: 10%) • Public procurement: around 46% = some €160 billion • Support services, feasibility studies, platforms & networks … • Technical assistance Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective. Regional competitiveness and employment objective.

  3. Planned investments of total ERDF and Cohesion Fund (€ 271 billion): Unlocking growth potential by promoting research and innovation in all regions: € 86 billion for research and innovation, over 25% of total cohesion policy budget: • R&I capacity-building and infrastructure: over €50 billion • Entrepreneurship: over €8.3 billion • ICT capacities, research and take-up: over €13 billion • Human capital for innovation: over €14.5 billion In less developed regions, ERDF is the most important source of funding for research and innovation! Environment Transport Research/Innovation Information society Tourism Social infrastructure Culture Energy Institutional capacity

  4. Basics on current Cohesion Policy Funds allocated to ICTs in 2007-13: • over EUR 15 billion or 4.4% of the total cohesion policy budget. • Shift in the investment priorities from infrastructure to support for content development, both in the public sector (eHealth, eGovernment, etc.) and for SMEs (eLearning, eBusiness, etc.) "ABSORPTION" PROBLEMS! Cohesion Policy

  5. State of Play: Cohesion Policy achievements since 2007 • More than 15 900 cooperation project enterprises – research institutions. • More than 15 600 Research jobs created. PT used the indicator but did not report achievements for 2011. But 8 MS did not use the jobs indicator, including some which devote significant resources to this thematic area (ES, GR, SI). BG, LV, SK reported zero achievements. • More than 20 700 ICT projects • More than 53 100 start-ups • See Strategic Report 2013: http://ec.europa.eu/regional_policy/how/policy/strategic_report_en.cfm#sr2013

  6. Examples for ICT related Cohesion Policy investments INTERREG networks for policy learning in the field of ICT: http://i4c.eu/approved_projects.html B3 Regions: Regions for Better Broadband connection: spreading good practices of the expert partners relating to broadband implementation in disadvantaged areas and share experience with Managing Authorities and ICT agencies willing to implement successful broadband strategies with Structural Fund support. IMMODI:Making the most of good practice in e-Government and e-health, which contribute to the development of mountain and rural areas. Selected examples are presented at technical and regional workshops, detailed in a published guide and discussed with Managing Authorities in order to transfer them into the regional development programmes of participating regions PIKE: Promoting Innovation and the Knowledge Economy: to improve regional and local Innovation & Knowledge Economy policies through the exchange and transfer of examples of e-Government and Wireless Broadband good practice, and through the integration of these into the development policies of participating regions. See guide: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/broadband2011_en.pdf

  7. Financialengineeringfor IT firms: JOint SmE Finance for INovation (JOSEFIN): To help knowledge-based SMEs in the Baltic Sea region expand internationally, the JOSEFIN project introduced a range of practical instruments designed to support them, including a European counter guarantee and a new risk-sharing model. See: www.josefin-org.euERDF contribution: €2.9 million (January 2009 to January 2012) JEREMIE Holding Fund, Andalucia, Spain: The Innovation and Development Agency of Andalucia has put up a JEREMIE Holding Fund in 2009. The fund has a size of € 235m million (70% from ERDF and 30% from the Ministry of Economy, Innovation and Science of Andalusia). It consists of a MULTI-INSTRUMENT FUND (€ 185m) and a VENTURE CAPITAL FUND (€ 50m). At the end of 2010 the fund had already invested € 68m in 22 enterprises. These investments leveraged a total of €220m of new investment in these companies based on an average co-investment rate of 78% and a multiplier of 4.6, resulting in 3.060 new jobs and supporting 2.500 existing jobs. See: http://www.agenciaidea.es/fondos-reembolsablesERDF contribution: € 164,5 million Cohesion Policy

  8. Future of CohesionPolicy 2014-2020 • Deliver Europe 2020 • Strengthen partnership • Simplification • Focus on results, not spending • Maximise the impact of EU funding

  9. Up to €100 billion for innovation investments bolstering over 150 smart specialisation strategies, Digital growth strategies and NGN Plans

  10. Thematicobjectives • Research and innovation • Information and Communication Technologies • Competitiveness of Small and Medium-Sized Enterprises (SME) • Shift to a low-carbon economy • Climate change adaptation and risk management and prevention • Environmental protection and resource efficiency • Sustainable transport and disposal of congestion on major network infrastructure • Employment and support for labour mobility • Social inclusion and poverty reduction • Education, skills and lifelong learning • Increased institutional capacity and effectiveness of public administration smart Europe 2020 sustainable inclusive

  11. Energy efficiency and renewable energy Research and Innovation SMEs competitiveness Thematic Concentration… and evermore need to concentrate on investments on themes that enable smart & sustainable growth Less developed regions Developed regions and transition regions Flexibility (different regions present different needs)Special arrangements for the previously convergence regions Cohesion Policy

  12. Energy efficiency and renewable energy Research and Innovation SMEs competitiveness Thematic concentration of the ERDF + ICT access, quality and use Concentration on "two or more of the thematic objectives 1, 2,3 and 4" 12% Less developed regions Developed regions and transition regions Transition regions: 60 % concentration (incl. 15% for energy/renewables) Flexibility (different regions present different needs)Special arrangements for the previously convergence regions

  13. Thematic concentration in Cohesion Policy SME competitiveness Energy Innovation Public procurement of innovative solutions Eco-innovation Human Capital Skills Mobility New business models Entrepreneurship skills ICT Smart Grids E-skills R&I infrastructures Open Data E-commerce Researchers Public sector Innovation +admin. capacity E-government Broadband

  14. Thematic Objective 2 translates into ERDF Investment Priority 2: Enhancing access to + use and quality of ICT Investment prioritiesunder TO 2: a) diffusion of broadband and high speed networks, supporting adoption of emerging technologies and networks for the digital economy b) development of ICT products and services, electronic commerce and increased demand for ICT c) strengthening the application of ICT for eGovernment, eLearning, eInclusion and eHealth • Ex ante conditionalities: • Next Generation Access • Plan • Strategic policy framework for digital growth (also in RIS3)

  15. Ex ante conditionality for IP 2bc Final result of the trilogue:

  16. Ex ante conditionality for IP 2a Final result of the trilogue:

  17. What other investment priorities are ICT relevant? Investment Priority 1 result of trilogue in July 1. strengthening research, technological development and innovation through: (a) enhancing research and innovation (R&I) infrastructure and capacities to develop R&I excellence and promoting centres of competence, in particular those of European interest; (b) promoting business investment in innovation and research, and developing links and synergies between enterprises, R&D centres and higher education, in particular product and service development, technology transfer, social innovation, eco-innovation, public service applications, demand stimulation, networking, clusters and open innovation through smart specialisation and supporting technological and applied research, pilot lines, early product validation actions, advanced manufacturing capabilities and first production, in particular in Key Enabling Technologies and diffusion of general purpose technologies,

  18. What other investment priorities are ICT relevant? Investment Priority 3 result of trilogue in July enhancing the competitiveness of SMEs through: (a) promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms, including through business incubators; (b) developing and implementing new business models for SMEs, in particular for internationalisation; (c) supporting the creation and the extension of advanced capacities for product and service development; (d) supporting the capacity of SMEs to engage in growth in regional, national and international markets, and in innovation processes;

  19. What other investment priorities are ICT relevant? Investment Priority 4 result of trilogue in July Low-carbon economy (4) supporting the shift towards a low-carbon economy in all sectors through: (a) promoting the production and distribution of energy derived from renewable sources; (b) promoting energy efficiency and renewable energy use in enterprises; (c) supporting energy efficiency, smart energy management and renewable energy use in public infrastructures, including in public buildings, and in the housing sector; (d) developing and implementing smart distribution systems at low and medium voltage levels; promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multi-modal urban mobility and mitigation relevant adaptation measures; (e) promoting research in, innovation in and adoption of low-carbon technologies; (f) promoting the use of high-efficiency co-generation of heat and power based on useful heat demand,

  20. State of play in negotiations Partnership Agreements • Informal drafts received & ISC finalised: 14 MS ( FI, HU, SK, SE, SI, DK, LV, EE, LT, CZ, DE, PL, BG, NL ) • ISCby mid-Dec if draft PA sufficiently developed: 10 MS (RO, LU, PT, ES, EL, UK, AT, FR, BE, MT ) • No time for informal check: IT, CY, IE, HR • Problems: incomplete, inconsistent, attempts of "business as usual" Operational Programmes: around 10-15% received as informal drafts – Problems: no intervention logic, X-mas treeing, retro-fitting … Conclusions: Implement as manydifferent types of measure as possible in support of the Information Society, providedthey are in line with the local/regionalneeds and context

  21. Which fields of specialisation emerge in the RIS3 analysis? Regions and MS can indcate envisaged fields fo spacialisation and identify partners for cooperation • Most frequentlycitedfieldsof RIS3arerelatedto: • Energy • Life science • ICT • Environment • Agro-food • Tourism • New materials See: http://s3platform.jrc.ec.europa.eu/eye-ris3;jsessionid=87skR80JmqXZLlWhxL8ZvyH9XYkGRTg62j2k1YVkctXQR0tRyWgQ!1058177620!1362916436845 Cohesion Policy

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