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5 Funding Programs
• European Regional Development Fund (ERDF) • European Social Fund (ESF) • Cohesion Fund (CF) • European Agricultural Fund for Rural Development (EAFRD) • European Maritime and Fisheries Fund (EMFF) Projects are expected to generate enough income or savings to pay back the support received
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Beneficiaries of the ESIF
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10.000,0
20.000,0
30.000,0
40.000,0
50.000,0
60.000,0
70.000,0
80.000,0
90.000,0
100.000,0
BE BG CZ DK DE EE IE EL ES FR HR IT CY LV LT LU HUMT NL AT PL PT RO SI SK FI SE UK
Cohesion Fund
Less Developed Regions
Transition Regions
More Developed Regions
Outermost and northernsparsely populated regions
European TerritorialCooperation Cross-BorderCooperationEuropean TerritorialCooperation TransnationalCooperationYouth Employment Initiative(additional allocation)DRAFT
11 Thematic Objectives
In the 2014-2020 programming period, the European Structural and Investment Funds, in particular the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund, will support 11 investment priorities, also known as thematic objectives: 1. Strengthening research, technological development and innovation 2. Enhancing access to, and use and quality of information and communication technologies (ICT) 3. Enhancing the competitiveness of small and medium-sized enterprises (SMEs) 4. Supporting the shift towards a low-carbon economy in all sectors 5. Promoting climate change adaptation, risk prevention and management 6. Preserving and protecting the environment and promoting resource efficiency 7. Promoting sustainable transport and removing bottlenecks in key network infrastructures 8. Promoting sustainable and quality employment and supporting labour mobility 9. Promoting social inclusion, combating poverty and any discrimination 10. Investing in education, training and vocational training for skills and lifelong learning 11. Enhancing institutional capacity of public authorities and stakeholders and efficient public
administration
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ESIF Financial Instruments
Lending Project loans Intermediated Loans Venture capital Microfinance Equity and fund investments
Blending Structured finance Guarantees Project bonds EU Finance for Innovators Transport infrastructure JEREMIE: Flexiible SME funding ESIF Financial Instruments Supporting urban development Mutual Reliance Initiative Private Finance for Energy
Efficiency (PF4EE) Natural Capital Financing Facility Guarantee Fund for Greek SMEs
Advising InnovFin Advisory Public-private partnership Infrastructure project advice Sustainable energy ESIF Financial Instruments NER300 – Green tech support
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The Role of Financial Intermediaries
The EU Member States who receive funding under the ESIF have a national body known as the Managing Authority (MA) which oversees the use of the available resources. MAs use ESIF allocations and place them in FIs through a Fund of Funds or a financial intermediary from which eligible projects can be financed.
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Benefits of Financial Intermediaries
Revolving nature of funds: Member States place part of their ESI Fund allocations in an existing or newly-created FI. The FI finances projects and when it is repaid by the promoter the FI reinvests the funds plus the interest into other projects.
Leverage effect: FIs attract public/private investors given the lower risk and long-term nature of projects. This increases the amount of money available for financing, as is the case for JESSICA Urban Development Funds (see examples below).
Expertise: Public institutions using FIs benefit from the financial expertise of the EIB Group and other administrating financial intermediaries. Technical assistance can also be financed; combining loans, grants and technical assistance in the same FI is possible.
Incentives for better performance: The repayable nature of FIs means that projects funded through them must prove themselves to be more financially-sound than grant-financed ones. The flexibility and financial accountability rules set out in the 2014-2020 MFF offer more control over the resources.
Move away from grant-dependency: A (total or partial) switch to FIs offers projects a more sustainable and innovative way of financing rather than the traditional dependence on grants.
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Principles at Country Level
Additionality is one of the principles driving the workings of the European Structural and Investment Funds. This principle stipulates that contributions from the Funds must not replace public or equivalent structural expenditure by a Member State in the regions concerned by this principle. In other words, the financial allocations from the Structural and Investment Funds may not result in a reduction of national structural expenditure in those regions, but should be in addition to national public spending. The principle of additionality is verified in Member States where less developed regions cover at least 15 % of the population because of the scale of the financial resources allocated to them.
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ESIF Principles at Project Level
• Co-financing; Funding from the EU is based only on contribution. • No profit allowed • Only those costs occuring after the project start are eligible for funding • Only one ESIF funding at a time allowed.
Simultaneous funding from different sources, for example from H2020, is however possible
Individual cost elements can‘t be double funded Co-financing is still mandatory
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Structure of Horizon 2020
I. Excellent Science II. Industrial Leadership
III. Societal Challenges
LEIT Leadership in Enabling and
Industrial Technologies:
ICT, Nanotechnology, Advanced Materials, Biotechnology,
Production Technology, Space
Access to Risk Finance
Innovation in SMEs
ERC
FET
Marie-Skłodowska- Curie
Infrastructures
JRC
EIT
Health, Demographic Change and Wellbeing
Challenges in the European Bioeconomy…
Secure, clean and efficient Energy
Smart, green and integrated transport
Climate, environment, resource efficiency & raw materials
Integrative, innovative and reflective societies
Spreading Excellence Widening
Participation
Science with and for Society
Secure societies DRAFT
Budgetary Breakdown (EUR)
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31.3%
38.53%
1.06% 3.52% 2.47%
0.60%
Excellent Science
Industrial Leadership
Societal Challenges
Widening Participation
Science with and for Society
JRC
EIT 29.7 bn
24.4 bn.
17 bn.
1.9 bn. 2.7 bn. 0.8 bn.
0.4 bn.
Total: 77 bn EUR DRAFT
Knowledge & Innovation Communities (KIC)
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Year KIC Thematic
2010 Climate-KIC Climate change mitigation and adaptation
EIT ICT Labs Information and communication technologies
KIC InnoEnergy Sustainable energy
2014 InnoLIFE Innovation for healthy living and active ageing
EIT RawMaterials Raw materials: sustainable exploration, extraction, processing, recycling and substitution
2016 ? Food for the future
? Added value manufacturing
2018 ? Urban mobility DRAFT
NATIONAL FUNDING An overview for Germany
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14 German Ministries
• Federal Ministry of Economics and Technology (BMWi) • Federal Foreign Office (AA) • Federal Ministry of the Interior (BMI) • Federal Ministry of Justice (BMJ) • Federal Ministry of Finance (BMF) • Federal Ministry of Labour and Social Affairs (BMAS) • Federal Ministry of Food, Agriculture and Consumer Protection (BMELV) • Federal Ministry of Defence (BMVg) • Federal Ministry of Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) • Federal Ministry of Health (BMG) • Federal Ministry of Transport, Building and Urban Affairs (BMVBS) • Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU) • Federal Ministry of Education and Research (BMBF) • Federal Ministry of Economic Cooperation and Development (BMZ) DRAFT
Federal Ministry of Economics and Technology (BMWi)
• More than 300 programs • Directed to industry or mixed industry-academia consortia • Funding, loans, services • For a TTO the most important are those directed to consortia with a university or IP-protection • Most temporary, and changing topics
Some are permanent and of particular importance for universities: • ZIM Zentrales Innovationsprogramm Mittelstand: TRL4, SME, Research; partial cost
reimbursment, 380k€, up to 2 mil. for consortia • SIGNO KMU Patentaktion: TRL < 3, SME, partial cost reimbursment of IP protection, 16k€ • EXIST Company foundation at universities Further examples: • INVEST: on-top funding for acquired venture capital • Tickets for market access: SME, lump-sum for travel, fairs, negotiations etc., ~ 3 k€
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Federal Ministry of Education and Research (BMBF)
• About 80 programs • Directed to academia or mixed industry-academia consortia • Funding • Generally at a lower TRL • Most temporary, and changing topics Permanent: • KMU-innovativ: since 2007, most important instrument for joint development projects with industry
• 2 deadlines per year, April 15th, October 15th • application to grant max. 4 months • No limit, typical sum 700-2000 k€
• VIP+: Funding for developing an invention up to TRL 4, academia 500-1500 k€
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Funding by Federal States
• Each Federal State has its own instruments, although they are quite similar • Funding amount is generally lower, but processes for application and assignement much faster • No deadlines throughout the year
• For Baden-Württemberg: Innovationsgutschein („Innovation-Ticket“) • 2-10k€ • Suitable for exploring activities and contract research • Decision within 6 weeks • Possible pathway: Innovationsgutschein → KMU Patentaktion → ZIM (→ Horizon 2020)
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Useful Links
ESIF European Structural Fonds • European Investment Bank http://www.eib.org • InfoRegio, EU Regional Policy http://ec.europa.eu/regional_policy
Horizon 2020 • European Commission, Research & Innovation http://ec.europa.eu/research/ German National Funding • Comprehensive search engine http://www.foerderdatenbank.de/ • Federal Agencies and Offices https://www.deutschland.de
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