Brussels,

Research & Innovation and Regional Policy

REGIONAL & URBAN DEVELOPMENT POLICY

Promoting Sustainable Growth through Innovation

The EU Cohesion Policy emphasizes sustainable growth by enhancing regional economies' capacity to innovate and adapt to a competitive environment. Innovation plays a critical role in several EU priorities, including the European Green Deal and making Europe fit for the digital age.

Key Areas of Investment

  1. Smart Specialisation Strategies (S3):
    • These strategies mobilize the innovation potential of all EU regions by aligning research strengths with business needs through an Entrepreneurial Discovery Process (EDP).
    • Over €56.6 billion is allocated to innovation and research for the 2021-2027 period.
  2. Interregional Innovation Investments (I3):
    • With a budget of €570 million over seven years, this instrument supports the commercialization and scale-up of interregional innovation projects.
    • At least half of the budget is dedicated to less developed regions, encouraging European value chain development.

Innovation 2021-2027 programming period

In the 2021-2027 programming period, the EU Cohesion Policy places a strong emphasis on making Europe more competitive and smarter (Policy Objective 1 - PO1) and promoting a greener, low-carbon transition towards a net zero carbon economy (Policy Objective 2 - PO2). This approach, known as “thematic concentration,” ensures that resources are focused on strategic areas to maximize impact.

Key Policy Objectives

  1. More Competitive and Smarter Europe (PO1):
    • Focus on enhancing research and innovation.
    • Support for digitization and technological advancements.
  2. Greener, Low-Carbon Europe (PO2):
    • Investments in sustainable infrastructure.
    • Promoting green technologies and practices.

Smart Specialisation Strategies (S3)

Smart Specialisation Strategies (S3) are central to the EU’s approach, leveraging the unique strengths and assets of each region through a place-based strategy. These strategies ensure that investments are tailored to regional needs, fostering innovation and economic growth.

  • Implementation of S3: Over 185 smart specialisation strategies have been supported by the ERDF, driving sustainable job creation and growth.
  • Regional Focus: Strategies are designed to align regional research and innovation strengths with business needs through the Entrepreneurial Discovery Process (EDP).

For more information on Smart Specialisation Strategies, visit Smart Specialisation Platform.

Market Orientation and Applied Research

The current programming period emphasizes market-oriented research and innovation to support industrial transitions towards high-value, future-oriented activities. This includes sectors like services, primary production, and value chains.

The focus is on:

  • Applied Research: Encouraging the practical application of research to meet market needs.
  • Technology Uptake: Promoting the adoption of new technologies by businesses, public administrations, and citizens, addressing societal challenges like climate change, digitalization, and health.

Diffusion of Knowledge and Digitalisation

To bridge the innovation divide, the EU supports the diffusion of knowledge, technologies, and innovations across all regions. Specific attention is given to:

  • Digitalisation: Using digital tools as enablers of innovation.
  • Skill Development: Investing in skills necessary for smart specialization and digital transformation.

Interregional Innovation Investments (I3)

The Interregional Innovation Investments (I3) instrument, proposed under the ERDF, has a budget of €570 million over seven years. It aims to support the commercialization and scaling up of interregional innovation projects. Key features include:

  • Development of European Value Chains: Fostering strong cohesion across regions.
  • Focus on Less Developed Regions: At least half of the I3 budget is dedicated to these areas.
  • Synergy with Other Programmes: Enhancing cooperation with programs like Interreg Europe, Horizon Europe, and the Single Market Programme.

For detailed information on the I3 instrument, visit Interregional Innovation Investments (I3).

The I3 instrument is managed by the European Innovation Council and SMEs Executive Agency (EISMEA), aiming to bolster innovation and economic cohesion across the EU.

By leveraging thematic concentration and smart specialisation strategies, the EU Cohesion Policy aims to create a resilient, competitive, and sustainable economy that benefits all its regions.