Report about Horizon 2020 by Pyrrhus Mercouris

Introduction

Horizon 2020 follows up for the Seventh Framework Programme for Research and Technological Development [FP7]. FP7 as its names suggests, is the seventh framework programme. In other words H2020 follows on from a long line of programmes of the European Commission. A ‘framework programme’ bundles and brings together diverse related programmes and also diverse European objectives and aims. The key factor in these programmes, which include H2020 is focus on research and developing new technologies. The budget has been increased from 70 billion euros to 80 billion euros. To justify an increase in budget during a time of austerity, the H2020 is presented as a strategic element towards meeting the goals of the Europe 2020 strategy

[http://ec.europa.eu/europe2020/index_en.htm ]^¹;

which is all about maximising the benefits of digital technologies and the information revolution. Indeed, it is a continuation of the Lisbon Strategy which aims to turn the European Union [EU] into the most dynamic knowledge based economy in the world. This policy has permeated many funding programmes, for example the Creative Europe Programme. Any project that is not using or contributing to the information society is unlikely to be funded.

Anther aim of H2020 is to contribute to the European Research Area [ERA]. ERA is a concept that pre-dates the Lisbon Agenda and Europe 2020. Essentially, it wants European research institutions and companies carrying out research to combine efforts and to maximise the benefits of the research and to develop synergies. It also infers supporting networks of research excellence. It defines the framework programmes and also H2020. Projects should comprise ‘networks’ or partnership that involved research organisations from as many countries as possible. Indeed, H2020 favours large projects with many partners. This has been seen as unfair to small countries like Greece and Cyprus, where the bulk of firms are small and research organisations have modest resources. Consequently, a special funding line for small and medium size enterprises [SMEs] was developed in FP7 and this is to be carried over in H2020^². The criterion to need to have ‘partners’ is greatly relaxed. The key programme in H2020 for SMEs is the Competitiveness of Enterprises and SMEs (COSME) will run from 2014 to 2020, with a planned budget of EUR 2.3 bn. Its aim is to «facilitate SME access to finance, create supportive environment for business creation, help small businesses operate outside their home countries and improve their access to markets».

[More on COSME below]

Horizon 2020, European Union FrameworkProgramme for Researchand Innovation [2014-2020]:

What’s in it for culture?

The budget related to research and innovation, will not be cut. It represents about 10% of the total EU budget.

Horizon 2020 has three pillars:

excellent science
industrial leadership
social challenges

Under pillar 1: it is important to stress the category: “excellent science” which includes humanities and social sciences, and contemporary culture and cultural heritage could find opportunities here. It includes the Marie Currie initiative which is to support individual researchers.

Pillar 2 – there is a sub-heading which specifically mentioned the cultural heritage. Energy strategies would include use of historic buildings.

Pillar 3 - Culture is found in ‘social challenges’. This pillar includes all kinds of topics, like health, energy, transport, environment, etc. However, cultural heritage is a sub-category of many of these [e.g., under energy and under environment]. Inclusive and innovative and reflective societies is a category that the culture sector could make use.

These “pillars” set out to solve various “challenges”. In terms of culture the focus seems to be on cultural heritage. This includes researching into the ‘challenges’ confronted by heritage – the sites and monuments, but also artefacts and exhibits. Indeed, this is scattered all over the Horizon 2020. Digital cultural heritage has been worked on by many member states, who have digitised collections, seems they are not sure what to do with these digitised images.

On ‘creative industries’ H2020 is not clear at all.

There are examples of research projects that have investigated culture:

regions and cultural identity
effects of war on European cultural identity
culture and external and economic ties

Who can apply:

any organisation can apply – You need to show you have a research background, or you will not be considered.

ANNEX 3 gives a detailed account on a specific on Pillar 3 - Societal Challenge Horizon, with information on how to apply.

Creative Industries in COSME, Programme for the Competitiveness of enterprises and SMEs [2014-2020]^³

Funding of COSME [2.3 billion euros]: this funding programme is trying to help SMEs deal with red tap, complexities of laws, assist them in exporting and encouraging workers to consider self-employment. 60% of one’s project budget would be funded by COSME. Areas eligible: include improving an SMEs competitiveness and entrepreneurship.

Equity facility for growth for SMEs – this fund is not for start ups, but for the growth of an SME.

Loans for all types of SMES. Not much more than 200,000 euros can be applied for.
Only a small amount of money is grants.
Access to market – this is part of the “enterprise Europe network” and this provides a service, like the China IPR help desk.
Improving and reducing that administrative burden
Stimulate new business models – this is specific to consumer industries. Support to clusters in included and regional development funds can also be accessed. Tourism and fashion goods can benefit from this.

Fashion and consumer goods – footwear, textiles, clothes, jewellery, and all kinds of sectors relating to design – unfortunately, SMEs have difficulty in being competent in design, and competing. The growth of SMEs, is neglected. COSME focuses on growing and developing SMEs, rather then supporting start ups.

Target audience is the creative and design industry. This action complements Creative Europe Programme and work done by DG Connect. Synergies between tourism and fashion vis a vis cultural events like festival is sought. The budget is tiny, 73 million euros. The aim is to push through “market replication projects” which close the gap between R&D and market exploitation, and this means up take of new business models. Secondly, soft measures, which is closing the gap between design and manufacture. SMEs often are sub-contractors to big firms and cannot manufacture and design – i.e., they cannot do both. The bulk of the 73 million euros goes to replication project. This part of the programme will start in 2015.
For the soft side of will include the bulk of the 2.2 billion euros. Only two calls for proposals. This will be part of the WORTH Funding Project

“Worth funding project”: this will last 24 months. It is a mechanism to be managed by an outside firm and it will first be tested first, meaning the call for proposals is delayed to 2016. Basically, the EC wants to set up a platform between designers and manufacturers of SMEs from different countries working together, to create better fashion and designed goods. The platform will showcase partners’ products and therefore enable them to further showcase their products at trade fairs. Arts and crafts and micro firms could also benefit. The Worth funding project wants to support products that have a significant design and creative process before going to manufacture. Developing trans-national network of SMEs in design and manufacture is the goal. Designers must have experience and have at least experience in two fashion seasons [spring and autumn].

Call for tender to manage the Worth Funding Project is over, and hopefully a firm to manage the project will be selected by the end of the year.

Some interesting points about COSME:

Can immigrant SMEs apply? COSME targets SMES in the growth phases, and not start-ups, so a start-up business run by immigrants, could get money for growth, not for start up.
What is the interest on the loans? On loans, he is not sure at all what the interest rate on the loans would be.
Can product designers apply? Product designers are eligible, provided the design is not technical or eco, COSME would cover furniture design but not the design of a component of a refrigerator.
What kind of audio-visual SMEs can apply to get better access to the market? Such a sector would probably be funded elsewhere by DG EAC [i.e., the Creative Europe Programme]. However, there could be opportunities in COSME if the project is designed to meet its criteria.
Can non-EU countries participate, namely former Yugoslavia? The answer is that all countries that contribute to the COSME budget, that include Bosnia and Serbia, and even some Mediterranean countries.
Market replication – does this include developing and applying business models? The answer is support will go to customisation of the research and the products the research has created. If you are still in development stage then you go to HORIZON 2020.
What concrete measures does COSME have to enhance exports? In this regard the programme has limited means, plus you cannot force a firm to export, the most it will do is exchange good practices, support workshop and seminars. Plus ‘mapping’ of the business support facilities of all member states, i.e., simply knowing and promoting what member states are doing abroad.

Conclusion

Having examined the funding opportunities of Creative Europe and Horizon 2020, especially COSME, it would seem that H2020 is a much better funding programme. The application procedure of H2020 is also complex, but the balance is much better and there are more opportunities for SMEs. The information on Creative Europe is also muddled, as can be seen by different contradictory information on the CCSGF. The main limitation on H2020 is that projects must focus on research, you need to have research institutions or firms that are large. The partnerships would complex. Funding could be several millions .

Report by Pyrrhus Mercouris

1 «Europe 2020 is the EU's growth strategy for the coming decade. In a changing world, we want the EU to become a smart, sustainable and inclusive economy. These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion. Concretely, the Union has set five ambitious objectives - on employment, innovation, education, social inclusion and climate/energy - to be reached by 2020. Each Member State has adopted its own national targets in each of these areas. Concrete actions at EU and national levels underpin the strategy ». EC Europe 2020 website [home page].

2 See http://ec.europa.eu/research/participants/portal/desktop/en/funding/sme_participation.html. An SME should not be more than 250 employees. In many small EU countries, firms this size would be considered to be large.

3Contact : Mr. Julio Cardoso, Policy Officer, European Commission - Directorate-General for Enterprise and Industry, Textiles, Fashion, Design and Creative Industries Unit

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Report about Horizon 2020 by Pyrrhus Mercouris