An independent expert report sheds light on the results of Horizon Europe’s Pillar 3 ‘Innovative Europe’ and how it has supported innovation since 2021.
The midway point of the ninth European Framework Programme for Research & Innovation (2021-2027), Horizon Europe (HE), has recently passed and the interim evaluation provides evidence of the added value of the Framework Programme. Several support studies have recently been published, focusing on different parts of HE. ‘Innovative Europe’ is HE’s third pillar which contributes to supporting innovation within the European Innovation Council (EIC), the European Innovation Ecosystems (EIE), and the European Institute of Innovation & Technology (EIT).
The report underscores the relevance of the innovation instruments, particularly in tackling the evolving challenges of EU innovation policy. The three instruments – EIC, EIT, and EIE – align with societal needs and EU policy goals, and demonstrate flexibility and adaptability, especially during the COVID-19 crisis and the war in Ukraine by launching specific calls to deliver support during these unexpected crises. The EIT also played a crucial role in Industrial Alliances, supporting the EU’s industrial policy to facilitate stronger cooperation and joint action between all interested partners.
The EIC’s investment focus on breakthrough innovations addresses the well-recognised scale-up financing gap, essential for Europe’s industrial competitiveness and for tackling global challenges. While not offering direct investment, the EIT facilitates funding through its Knowledge and Innovation Communities (KICs), leveraging resources from other sources to support innovation. A closer look at the respective leverage effects also shows the need for further private co-investments: Leverage effects are 3.1x on average and <2x median effect for the EIC vs varying from 0.27x to 7.86x for the EIT depending on 1st, 2nd or 3rd leverage. Nevertheless, HE continues the efforts from Horizon 2020 to cover the entire innovation value chain. This is evident in the introduction of the EIC Transition scheme, designed to support the journey from basic research to market-ready solutions, making the EIC a comprehensive ‘one-stop-shop’ for innovation support. Another key finding is the role of education and skill-building, particularly under the EIT, in addressing the shortage of high-tech workers across the EU. The EIT’s extensive presence across all member states supports local innovation ecosystems, thereby preventing brain drain and fostering regional innovation capabilities.
Several products, services, and processes have been successfully launched through the HE programme, with reports indicating that 867 innovations were developed between 2021 and 2022. The role of the EIT in Industrial Alliances, like the European Batteries Alliance and European Solar Photovoltaic Alliance, further showcases the effectiveness of these instruments in supporting the green and digital transition. In terms of job creation, while the results are limited due to available data, the programme has been quite impactful, with over 525 full-time jobs created and projections suggesting up to 63’000 additional jobs by 2033-2034. Additionally, companies supported by the EIC Accelerator have exhibited a 35% employment growth rate and a 68% revenue increase in the two years following funding.
The report identifies key lessons for the future. One major takeaway is the importance of simplifying application processes and engaging new actors in the innovation landscape. Efforts to increase participation from third countries and underperforming regions within the EU should be sustained, with the National Contact Points (NCPs) being vital in offering guidance and support. It is also highlighted that collaboration between the EIC and EIT needs to be further strengthened. Although progress has been made, such as the successful joint management of initiatives like the European Prize for Women Innovators, there is potential for deeper strategic alignment and resource sharing. Moreover, the Fast Track scheme, which facilitates smoother transitions from EIT-backed projects to the EIC Accelerator, has proven valuable but could benefit from refinement. Lastly, the report stresses the importance of maintaining a long-term vision for programmes like the EIE and EIT to foster regional and interregional innovation ecosystems. By putting special emphasis on certain parts of the TRL scale or offering support for only specified target groups, the ‘Innovative Europe’ instruments would also see less overlap in terms of their goals, activities, TRL levels covered, and groups targeted. These overlaps should be addressed and minimised in the forthcoming years.
In summary, the ‘Innovation Europe’ Pillar provides substantial value through its broad array of support mechanisms that address financial, knowledge, and skill shortages in the European innovation landscape. While the programmes under Pillar 3, such as EIC and EIT, have made significant strides in fostering innovation ecosystems, there remain areas for improvement, particularly in facilitating collaboration and reducing application barriers. Moving forward, a sustained effort to enhance synergies and leverage the strengths of different innovation instruments will be critical to ensuring the success of Europe’s innovation agenda.