Opportunities for Local Authorities in the New EU Research and Innovation Programmes (2007-13)

1. February 14th 2007 Opportunities for Local Authorities in the New EU Research and Innovation Programmes(2007-13) Kerry Jonas Tees Valley Joint Strategy Unit

2. Happy Valentines Day!

3. Framework Programme 7in Perspective Total Budget 2007-13 • EU Programme in R&D €50.52 billion • EU Competitiveness & Innovation € 3.2 billion • EU Structural Funds for UK € 9.6 billion • EU Structural Funds for the NE € 0.55 billion • Half-Way point in EU FP6 programme: • EU FP6 for SE € 0.67 billion • EU FP6 for NE € 0.05 billion

4. FP7 LA Engagement • Economic development: Creating the conditions for public and private sector participation in FP7 • Direct involvement in projects as a significant end-user of technology and its applications and as a demonstrator

5. Framework Programme 7: The Context • Scientific research, technological development and innovation are acknowledged by the EU and UK government as the cornerstones of a modern, competitive, knowledge-based economy and key to economic growth, the creation of high value added jobs and regional prosperity. “I believe this new, knowledge-driven economy is the equivalent of the machine-driven economy of the industrial revolution.” 2000 Conference on the ‘Knowledge-Based Economy’

6. The Challenge (i) • R&D will be key to the future economic growth and the creation of high value-added jobs in the region and the North East’s ability to compete in a global economy. • The shift to a knowledge-based economy is, however, likely to favour those regions already well endowed with scientific and technical assets. • In the UK, for example, a ‘Golden Triangle’ of science and research excellence has already emerged between London, Oxford and Cambridge; wherein, 90% of national government expenditure on research and development is invested.

7. The Challenge (ii) • The North East region has the lowest regional investment in R&D in the UK (£100 per capita compared to £650 per capita in the Eastern region). • Business expenditure on R&D in the North East is £40 per capita (the North East is the only region in the UK where University R&D expenditure (£60) exceeds the business sector expenditure on R&D). • At 0.9%, the region is ranked in the bottom quarter of EU regions for total R&D expenditure, as a percentage of regional GDP.

8. Regional FP6 Participation(Feb 2006)

9. CORDIS NUTS Regions FP6 Total UK Part. Total EC Contrib. (€m) % of Total UK Part. % of Total UK Funding Higher Education Research Centre Other Industry South East 972 404 355 307 2,038 €668 41% 46% Scotland 296 43 77 27 443 €125 9% 9% East Anglia 308 106 138 43 595 €161 12% 11% North West 248 69 9 30 356 €86 7% 6% Yorks & Humberside 229 45 9 11 294 €77 6% 5% South West 147 75 91 68 381 €107 8% 7% East Midlands 134 49 57 21 261 €70 5% 5% West Midlands 150 64 17 27 258 €62 5% 4% North 122 26 1 13 162 €46 3% 3% Wales 90 21 8 12 131 €29 3% 2% Northern Ireland 67 14 2 12 95 €20 2% 1% Total UK 2,763 916 764 571 5,014 €1,449 100% 100% Regional FP6 Participation by Sector

10. FP7 (2007-13)

11. FP7 Instruments:Scope for Direct Involvement • R&D Collaborative Projects (€0.8 - €25 million); 18-60 months, 6-20 partnersScientific Research, Demonstration & Exploitation, Evaluation (Technical & Impact) & Policy ramifications – EC contribution: up to 75% • Co-ordination Actions(€0.5 - €1.2 million / €1 million);18-36 months, 13-26 participantsCoordination of Research & Networking (Programme of meetings; Seminars; Workshops; Working groups; Studies; Analyses; Exchanges of personnel; Exchange and dissemination of good practices; Setting up information systems) – EC contribution: up to 100% • Support Action (€ 0.03 - €1 million / €0.5 million); 9-30 months, 1-15 participantsPreparation of future actions, support to policy, dissemination of results (Individual meetings; Seminars; Workshops; Studies; Publications; Scientific awards and competitions; Consortium Management) – EC contribution: up to 100% • Networks of Excellence • Technology Platforms & Special Interest Groups

12. Local Authorities and FP7: Creating the Conditions for Participation • Working closely with the RDA to develop a regional innovation strategy with the aim of developing a knowledge-based economy and improving the intellectual asset base in the sub-regional economy Examples: a) Newcastle Science City b) Tees Valley - Hydrogen Storage (Fuel Cells) c) Blyth Valley - Largest indoor wave pool in Europe (NaREC) • Providing information, conferences/ workshops and advice aimed at improving the level of participation of public and private sector organisations, e.g. developing early warning/ alert service on up-coming calls, use of North East Brussels Office.

13. Local Authorities and FP7:Direct Involvement (i) ICT [COOPERATION programme] • Aim: New systems, novel structures, technologies and services in areas of public interest improving quality, efficiency and inclusiveness. • Improve inclusion and equal participation through assistive technologies for elderly and for disabled people. • Intelligent ICT-based transportation systems and vehicles, enabling people and goods to move safely, ecologically and comfortably. • Intelligent mobility service and information solutions, e.g. tourism, libraries. • Environmental risk management: prevent or reduce vulnerability and to mitigate the consequences of natural disasters and industrial accidents. • Efficiency, openness and accountability for world-class public administration (local, regional and national governments), supporting democracy, allowing access to information to all.

14. Local Authorities and FP7:Direct Involvement (ii) Energy [COOPERATION programme] • Aim: Adapting the current fossil-fuel based energy system into a more sustainable one, less dependent of imported fuels, based on a mix of energy sources and carriers, combined with energy efficiency and conservation. • Hydrogen and fuel cells: Stationary, portable and transport applications, e.g. LA vehicles, public transport • Renewables for heating and cooling: Active and passive heating and cooling from renewable energy sources, e.g. application in LA buildings • Smart energy networks: Transform current electricity grids into an interactive service network, e.g. selling un-used renewables-generated electricity back to large producers/ large users. • Energy efficiency and savings: Taking the whole lifecycle of buildings, transport, services and industry into account, improve energy efficiency and reduce further energy consumption.

15. Local Authorities and FP7:Direct Involvement (iii) Health [COOPERATION programme] • Aim: To improve the health of European citizens and increase the competitiveness of European health-related industries and businesses while addressing global health issues (e.g. emerging epidemics – influenza) • Ageing: Research and support actions for workshops and conferences and comparative regional/sub-regional analysis • Children: Promoting healthy behaviour • Public Health: interventions, e.g. obesity, alcohol

16. Local Authorities and FP7:Direct Involvement (iv) Regions of Knowledge [CAPACITIES programme] • Aim: Strengthening the research potential of European regions, in particular by encouraging and supporting the development, across Europe, of regional ‘research-driven clusters’, associating universities, research centres, enterprises and regional/ Local Authorities. Examples: • Newcastle Science City (Declaration of Magdeburgh and the first European Conference of Science Cities 7-9 November 2006) • Tees Valley – Fuel Cells and Hydrogen Storage

17. Local Authorities and FP7:Direct Involvement (v) Science & Society [CAPACITIES programme] • Aim: The development of an open, effective and democratic European Knowledge Society • Improving scientific accessibility – e.g. the informed citizen • Science and education- e.g. promoting interest in science amongst young people in schools • Science and gender – e.g. promoting the participation of women in science

18. Competitiveness & Innovation Programme (2007-13) (i) Programme Aim • To help enterprises innovate by providing access to finance: sharing risks and reward with private equity investors and providing counter or co-guarantees to national guarantee schemes. Programme Focus • Improved and simplified EU business support networks (EICs, IRCs). • Innovation actions including exchange of best practice between Member States and evidence (innovation trendchart, innobarometer, innovation scoreboard). • Eco-innovation (e.g. demonstration projects). • Financial instruments – financial support for SMEs (grants/ loans).

19. Competitiveness & Innovation Programme (2007-13) (ii) Project Aim • To stimulate converging markets for electronic networks, content and digital technologies. Test solutions to the bottlenecks that delay wide European deployment of electronic services. Support the modernisation of public sector services to raise productivity and improve services. Focus of the Programme • Stimulate digital economy based on the convergence of network services, content and new electronic devices. • Provide a bridge between research investment and wide adoption, by providing a testing ground for pan-European electronic services in both the public and private sectors. • Support the production and distribution of European digital content. • An open and inclusive European Information Society through stimulating innovative approaches to inclusion, quality of life and public services.

20. Competitiveness & Innovation Programme (2007-13) (iii) Project Aim • To encourage the wider uptake of new and renewable energies and improve energy efficiency, increase the share of renewable energy and further reduce energy consumption. Focus of the Programme • Increase the uptake and demand for energy efficiency. • Promote renewable energy sources and energy diversification. • Stimulate the diversification of fuels and energy efficiency in transport.

21. Conclusion FP7 and CIP provide significant financial resources for Local Authorities to: • Help meet strategic priorities, deliver flagship projects and maximise the use of EU/ UK grants • Support the development and delivery of enhanced LA services • Improve the quality of life for citizens • Support the development of knowledge-based, high-value added economic activity • Improve competitiveness and comparative advantage of businesses in the locality • Support and increase indigenous investment in R&D • Support job creation in high-value added industries • Improve intellectual asset base • Raise international profile and support international collaboration