Smarter Europe smarter funding EWRC 10 October 2017

Smarter Europe – smarter funding? EWRC 10 October 2017, Brussels Monica Tanaka, Interact

Smarter Europe – smarter funding? EWRC, 10 B 45 Workshop 10 October 2017, Brussels Monica Tanaka, Interact

2014 -2020 period - 1 of 2 Objectives - 2. 8% of Cohesion Policy - € 10 b 100+ programmes - Interact: help to implement

2014 -2020 period - Technical Assistance: Clarification of rules, exchange platform, trainings close to beneficiaries - Harmonisation – HIT, networking, exchange of best practice. - Visibility: Promote Interreg results - Branding strategy, networking, capitalisation, visibility. KEEP. eu, MRS, IPCC. - Simplification: Collect input on EU fund management.

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The European Commission’s science and knowledge service Joint Research Centre

Innovation divide – between EU 15 and EU 13 countries R&D Expenditure - % GDP (2013) Sources S 2 E R&I Viewer - H 2020 per capita per year

Stairway to Excellence (S 2 E) at a glance • Origin of S 2 E: Pilot project launched by the European Parliament in 2014 and co-implemented by DG JRC and DG REGIO • Aim of S 2 E: Help achieving excellence in all EU MS and regions; support the exploitation of synergies between ESIF & other R&I programmes (e. g. H 2020 including JU, KICs etc. , COSME, EFSI, …) ►►► RIS 3 • Geographical coverage of S 2 E: Support so far EU 13 MS and its regions ►►► now concentrates on EU 28 • Thematic coverage of S 2 E: Cross thematic, focussing mainly on capacity building to increase

Stairway to Excellence I & II (S 2 E): Achievements Launched in 2014 to support EU 13 MSs and regions to develop and exploit synergies between EU funding. • Policy Insights - #1 on "Lessons Learnt from S 2 E National Events" & #2 on "EU 13 Participation in International Science" • National Policy Events & Joint Statements – main challenges and possible actions in each EU 13 MS • National and Regional "Facts and Figures" & "Country Reports" of all EU 13 MSs empirical facts and R&I ecosystems • 25 Synergy Examples - cases of combined funding http: //s 3 platform. jrc. europa. eu/stairway-to-

Policy instruments to facilitate synergies ESIF-H 2020 for all EU regions - Specific examples Joint Undertakings (JUs) • Good example of mechanism to boost interactions between H 2020 and ESIF to underpin RIS 3 efforts in specific domains • Collaboration JRC-JU to understand the process and governance, to facilitate learning by other initiatives • Spreading synergy tools: Mo. U between regional MAs and JUs, JU seal of excellence, synergy guidelines in JU calls, … EIT Innovation Communities

Test hands-on ways to address barriers to synergies and to increasing excellence Options explored • Increase quality of ERDF calls (training to MAs) and proposals (e. g. use of international review experts) • Mutual learning between regions: e. g. multilevel RIS 3 governance and synergies • Partnering events: support interregional collaboration between more and less advanced regions, matchmaking between regions and H 2020 actors (JUs, KICs, …) • Map available R&I funding sources in selected

Smarter Europe – smarter funding? EWRC, 10 B 45 Workshop 10 October 2017, Brussels Nora Sarasola Irizar, Bilbao Ekintza

IN FOCUS, the first sound transnational project on smart specialisation at city level IN FOCUS brings together cities with some background in cluster-based economic development, wishing to deepen into the concept of Smart Specialisation and bridge with RIS 3 at regional level. Cities wanting to assemble the ultimate approaches in business-led local economic development into new fresh supporting and catalysing schemes, much better adapted to the current times. 1. Bilbao’s what is very interesting to explore is how to bridge, in order to create synergies and alignment, between the different cluster agendas on experience in internationalisation and the own city´s international agenda. European So, IN FOCUS´s main goal is boosting the urban agendas on economic development by means of smart specialisation as overarching concept, while articulating better with the RIS 3 regional agenda funding to enrich existing RIS 3 13

Bilbao City Council’s Government Plan (2015 -2019), a dynamic management tool for the success of the city's transformation 10 different axes or perspectives 1. Employment and economic activity 2. Social services and policies 3. Education, formation, youth and social values 4. Culture and leisure time 5. Security 6. Urban transformation and environment 7. Transport, mobility and accessibility 8. Neighbourhood development 9. Bilbao for the Basque language 10. Transparency, participation and 16 strategic projects launched advanced management It makes mandatory to find complementary sources to achieve the needed funds for all the actions set out in the plan A global financing strategy must be carry out

Bilbao has had some fruitful experiences getting funds from different sources for developing a set of actions or projects related to its Government Plan Integrated Sustainable Urban Development Strategy in the Zorrotzaurre Area Smart specialisation at local level AS FABRIK Bilbao Alliance for smart specialisation in advanced services towards the digital transformation of the industry

Aligned with the city’s Government Plan and the European Union framework, the Integrated Sustainable Urban Development Strategy in the Zorrotzaurre Area is funded by different European programmes Implementation Plan Total Budget 53, 698, 000 € Co-financing rate: 50% A financial plan has been established as a roadmap trying to match the content of each action defined in the plan with different funding European Programmes, such as the European Structural and Investment Funds (ESIF), Horizon 2020, and other EU programmes directly managed by the Commission in the areas of research, innovation and competitiveness.

Bilbao leads the European project IN FOCUS within the URBACT Programme IN FOCUS brings together cities wishing to deepen into the concept of Smart Specialisation. It’s main goal is boosting the urban agendas on economic development by means of smart specialisation as overarching concept, while articulating better with the RIS 3 regional agenda. Action Planning Network (APN) 10 partners Total Budget: 748, 961€ Co-financing rate: 70% 85% -

In the framework of IN FOCUS, Bilbao is working specifically on three of the six priority sectors at city level Innovation and intelligent specialisation strategy for Bilbao, i. Bilbao 2020 URBACT IN FOCUS Advanced Business Services (KIBS) Cultural and Creative Industries Digital Economy

… which are aligned to Basque Country´s RIS 3 priorities Basque Country RIS 3 URBACT IN FOCUS Cultural and Creative Industries Advanced Business Services (KIBS) Digital Economy

AS FABRIK has been recognised by the European Commission such an Urban Innovative Action Total Planned investment 5, 800, 000 € Co-financing rate: 80% (4, 6 M€) This project will increase the competitiveness of the Knowledge Intensive Business Services (KIBS) sector of Bilbao through a capacity building collaborative process that will prepare them to answer to the challenges of the digital transformation to industry 4. 0 that the manufacturing sector must face in a very near future.

AS FABRIK seeks to improve the competitiveness of one of the priority sectors within the project IN FOCUS (Advanced Business Services - KIBs) A collaborative ecosystem configured through SERVICES …

… and developed in a physical SPACE that is located in Zorrotzaurre Almost 3, 000 m 2 in Zorrotza urre

2. Issues and challenges related to implementatio n (and synergies) 23

Main issues and challenges § Too ambitious plans with dimensions (hundreds of M€, long term projects with many years of duration, multi-disciplinary. . . ) not always covered by the majority of public funding programmes (expect, maybe the EIB). § To fit content, time schedules, budgets and other special requirements of different funding programmes with the overall strategy of the city council. § Long term plans may evolve and suffer lots of changes (legislative changes, maturation of new technologies, new societal needs, political changes). For this reason, financial plans must be periodically updated to adapt to the above-mentioned changes § Diversity of funding sources, different ways of managing them, what may cause a huge administrative burden. § Building the consortium and finding the winning partnership in EU initiatives is not always easy. § Some programmes are very competitive and only a small proportion

3. Good practices and the way forward: Options for the future?

Good practices for future strategies… AT CITY LEVEL: § Although public funding may be key when launching an action, the action itself must be always economically sustainable in the long term with no funds. A reasonable ROI (Return of Investment) should be assured in all the cases beyond the funding. § Get the optimum mix between public-private finance including Public–private partnership agreements. § To cover as much initiatives as possible under the same strategic aim.

Good practices for future strategies… AT EU LEVEL: § More flexibility from the funding bodies to adapt their programmes to city project changes within their execution periods would help to reduce uncertainties. § More guidance through information and services (provide training, mentoring and coaching in the different types of funds available, in the management of EU funds, …) § Assistance when setting up a “winning” partnership in EU initiatives. Support to international partner search to facilitate the formation of transnational consortia. § Alleviate the administrative workload for beneficiaries in terms of financial management, reporting and audits.

Thank you Eskerrik asko Muchas gracias Contact: direccion@bilbaoekintza. bilbao. eus www. bilbao. net/Bilbao. Ekint za

Smarter Europe – smarter funding? EWRC, 10 B 45 Workshop 10 October 2017, Brussels Twan de Bruijn, Euquest B. V.

Strategic Recommendations NETWORKING LOBBYING Local strategy / EU agenda DEVELOPING (EU FUNDED) PROJECTS COMMUNICATION

Example: Eindhoven & lighting NETWORKING LOBBYING Luci Association ERDF, calls H 2020 Local strategy / EU agenda PROJECTS COMMUNICATION FP 7: enigma e. g. PLUS guide & ssl-erate Interreg IVC: Plus Interreg IVB NWE: Bliss

Example: Heerlen & Energy Minewater LOBBYING NETWORKING National strategies, Energycities MEP Local strategy / EU agenda PROJECTS INTERR IIIB NWE: Minewater Concerto: Remining-Lowex H 2020: EE STORM INTERR VB NWE: Heathnet ERDF COMMUNICATION

Benefits of EU-funding • • Going beyond current practice, preparing for the future Acces to new resources New knowledge, best practices Acces to a network Creating momentum Branding & promotion Yes, …. funding (co-)

All materials will be available on: www. interact-eu. net