17 Horizon 2020: Public-private partnerships~
| (35200)
12344/13
COM(13) 494
| Commission Communication: Public-private partnerships in Horizon 2020 — a powerful tool to deliver on innovation and growth in Europe
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| Legal base | —
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| Document originated | 10 July 2013
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| Deposited in Parliament | 19 July 2013
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| Department | Business, Innovation & Skills
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| Basis of consideration | EM of 31 July 2013
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| Previous Committee Report | None
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| Discussion in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
17.1 The Commission says that, although Europe needs more investment
in research and innovation in order to create sustainable growth,
reinforce its international competitiveness, and address major
challenges such as combating climate change, progress has been
slow, particularly as regards private investments. It is therefore
working to address this problem, with a key element of the next
EU research and investment programme (Horizon 2020) being a joining
of forces with the private sector and Member States to achieve
results which one country or company is less likely to achieve
alone. In this Communication, it has sought to identify the need
for public-private partnerships, the lessons learned from their
operation under the current Seventh Framework Programme, and the
ways in which these might be applied under Horizon 2020.
The current document
17.2 The Commission observes that the high risks associated with
research and innovation provide a strong rationale for public
support for private activities, but that, in many cases, the complexity
and scale means that support for individual projects is not effective.
It therefore suggests that structured partnerships are needed
instead, and that the most effective approach for sectors operating
at international level is to establish these at EU level.
17.3 It notes that partnerships of this kind were
first introduced in the Seventh Framework Programme by means of
Joint Technology Initiatives (JTIs), implemented through Joint
Undertakings, with five such Initiatives having been established.
It also says they are increasingly being seen as representing
an innovative way of implementing the EU's research and innovation
policy and allowing the frontrunners to align their efforts around
strategic research and innovation. It observes that early evaluations
indicate progress in a number of areas and a high level of industrial
participation, but that they have also identified certain weaknesses,
including the need for stronger commitments from industrial partners,
with a clearer measurement of the associated leverage effect,
for more clarity on how JTIs are established, and for there to
be clearer objectives.
17.4 The Commission says that the proposed regulatory
framework for Horizon 2020 allows for far-reaching types of engagement
between the EU and the private sector, including JTIs, in order
to address the programme's objectives, and in particular that
public-private partnerships will:
- enable a long-term strategic
approach, and so reduce uncertainties;
- provide a legal structure to pool resources,
enabling a scale of effort which individual firms would not be
able to achieve;
- increase the efficiency of research and innovation
across the EU by sharing financial, human and infrastructure resources,
reducing fragmentation and leading to economies of scale;
- better address complex challenges through interdisciplinary
approaches;
- facilitate the creation of an internal market
for innovative products and services;
- enable innovative technologies to reach the market
more quickly;
- provide the right framework for international
companies to anchor their research investments in Europe, and
to benefit from European strengths, such as a well trained workforce;
and
- provide the scale of research effort needed to
address critical societal challenges and major EU policy objectives
under the Europe 2020 strategy.
17.5 The Commission has also presented a number of
legislative proposals for JTIs to be established at the start
of Horizon 2020, in order to address strategic technologies which
it says will underpin growth in globally competitive sectors,
and which have emerged as strongholds of a knowledge-based European
economy. In doing so, it has sought to build on the track record
established under the Seventh Framework Programme, in that four
of the proposed JTIs — covering electronic and component
systems, clean sky, fuel cells and hydrogen, and innovative medicines
— represent the next stage of an earlier JTI, with bio-based
industries having been identified as a new initiative.[62]
17.6 It says that the five JTIs are expected to generate
an overall investment of over €17 billion, comprising an
EU budget contribution of around €6.4 billion, just under
€10 billion from industry and €1.2 billion from Member
States. It also suggests that these proposals represent significantly
more ambitious partnerships than the current generation of JTIs,
as they will have clearer and more ambitious objectives, contributing
directly to competitiveness and EU policy goals; improved governance
to ensure openness to new participants, the allocation of funding
on the basis of excellence, and better links with national activities;
incorporate major simplification, in terms of both implementation
structures and rules for participants; and involve stronger commitments
from industry, including substantial financial contributions,
at least commensurate with that from the EU budget.
17.7 The Communication also looks at two other partnerships
under Horizon 2020, namely:
Contractual public-private partnerships
In order to complement JTIs under the Seventh Framework
Programme, the Commission also engaged in a number of structured
partnerships with the private sector in order to seek direct input
into work programmes in areas of industrial relevance, though,
unlike, JTIs, these do not require additional legislation because
funding is implemented by the Commission through normal procedures.
It says that, in order to building on this experience, such partnerships
will be provided for under Horizon 2020, based on a contractual
agreement between the Commission and industry partners, setting
out the objectives, commitments, key performance indicators and
output to be delivered. Partnerships are being considered in areas
such as factories for the future, energy-efficient buildings,
green vehicles and the future internet, and industry proposals
will be assessed against the criteria established under Horizon
2020, with the results being made publicly available, and a Memorandum
of Understanding being concluded between the Commission and the
private partners on the basis of a Commission Decision, the aim
being to achieve this in time for the first Horizon 2020 work
programme.
Public-public and other partnerships
The Commission says that it is presenting four legislative
proposals[63] —
supporting research relating to small and medium-sizes enterprises
(Eurostars); Active and Assisted Living; Clinical Trials; and
the European Metrology Programme — to establish public-public
partnerships with Member States under Article 185TFEU for the
joint implementation of national research programmes. In addition,
it says that Horizon 2020 will also make use of advice coming
from other forms of partnership, such as the European Innovation
Partnerships and Joint Programming Initiatives as well as from
European Technology Platforms, and that the European Institute
of Innovation and Technology will establish under Horizon 2020
Knowledge and Innovation Communities.
17.8 The Commission concludes by calling on the Council
and European Parliament to take the necessary legislative decisions
to launch these partnerships at the start of Horizon 2020, but
cautions that the establishment of Joint Undertakings requires
considerable time and effort, and should only be pursued where
there is a major strategic research and innovation objective which
cannot be met through the normal Horizon 2020 mechanism. It adds
that it will only consider the need for future such initiatives
where there is a clear case based on the criteria under Horizon
2020, and a clear strategic policy need.
The Government's view
17.9 In his Explanatory Memorandum of 31 July 2013,
the Minister for Universities and Science (David Willetts) says
that the Government supports the Europe 2020 Strategy and the
associated Innovation Union Flagship Initiative which recognise
research, development and innovation as key to the creation of
better paid and more durable jobs and sustainable economic growth
in Europe. It agrees that, in specific, well-defined areas, formal
partnerships between the Commission and/or the private sector
and/or with Member States are the most effective way of meeting
the Europe 2020 goal and those of the Horizon 2020 programme.
It also agrees that, overall, interim evaluations of the current
JTIs show that they attract a high-quality industrial participation,
including SMEs, and develop long-term commitments and strategies
in RDI and interdisciplinary approaches to address the challenges.
17.10 The Minister endorses the Commission's analysis
of the potential benefits of Public-Private and Public-Public
Partnerships, agreeing that good progress overall has been made
by the JTIs judged against their relevance, effectiveness, efficiency
and the RDI quality, although he comments that there are areas
in which improvements are needed. He also notes that identified
contractual Public-Private Partnerships are under consideration,
and expects to see how these meet the criteria in the draft Horizon
2020 Main Regulation before endorsing Work Programmes with the
relevant funding lines.
Conclusion
17.11 This Communication provides a useful analysis
of the operation of public-private and other research partnerships
under the Seventh Framework Programme, and of the ways in which
these might best be taken forward in certain areas under Horizon
2020, and, bearing in mind the scale of the EU financing involved,
we think it right to draw it to the attention of the House. However,
we note that the Government has endorsed the Commission's conclusions
as regards the progress made so far, as well as its general support
for what is proposed, and we are therefore content to clear the
document.
62 We considered the JTI for innovative medicines at
our meeting on 4 September 2013 - (35206) 12370/13: see HC 83-xiii
(2013-14), Chapter 35 (4 September 2013) - whilst the other four
are dealt with in Chapter 18 below. Back
63
We considered the proposals on Eurostars, Active and Assisted
Living and Clinical Trials at our meeting on 4 September 2013
- (35196) 12336/13, (35201) 12367/13 and (35205) 12369/13: see
HC 83-xiii (2013-14), Chapter 35 (4 September 2013), whilst that
on European Metrology is dealt with in Chapter 18 below. Back
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