EUROPEAN COMMISSION Brussels, 1.8.2019 SWD(2019) 330 final/2 CORRIGENDUM This document corrects SWD(2019) 330 final of 11.7.2019. This version corrects the omission of the annexes to the Impact Assessment. The text shall read as follows: COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the document Proposal for a Regulation of the European Parliament and of the Council on the European Institute of Innovation and Technology (recast) and Proposal for a Decision of the European Parliament and of the Council on the Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT) 2021-2027: Boosting the Innovation Talent and Capacity of Europe {COM(2019) 330 final} - {COM(2019) 331 final} - {SEC(2019) 275 final} - {SWD(2019) 331 final} EN EN TABLE OF CONTENTS 1. INTRODUCTION: POLICY AND LEGAL CONTEXT ................................................ 5 1.1. Scope of the impact assessment ......................................................................... 5 1.2. Legal and operational context of the EIT and the KICs .................................. 5 1.3. The EIT as part of the Horizon Europe Programme ....................................... 8 1.4. What decisions on the future of the EIT have already been taken in the Horizon Europe proposal and what are their implications?............................ 9 1.5. The need to act ................................................................................................. 10 1.5.1. The need to amend the EIT Regulation ...................................................... 10 1.5.2. The need for a new Strategic Innovation Agenda of the EIT .................... 10 1.5.3. Lessons learned ........................................................................................... 11 2. PROBLEM DEFINITION ...................................................................................... 13 2.1. Suboptimal funding model .............................................................................. 13 2.2. Limited impact of EIT’s education activities .................................................. 15 2.3. Limited impact of EIT’s regional outreach .................................................... 17 2.4. Technical issues ............................................................................................... 18 2.5. Summary of problems and technical issues to be addressed: ........................ 21 3. WHY SHOULD THE EU ACT? .............................................................................. 22 3.1. Legal basis ........................................................................................................ 22 3.2. Subsidiarity and proportionality: need for, and added value of EU action .. 22 4. OBJECTIVES: WHAT IS TO BE ACHIEVED? ........................................................ 23 5. HOW OPTIONS ADDRESS PROBLEMS AND TECHNICAL ISSUES ......................... 24 5.1. Discussion of technical issues ......................................................................... 24 5.2. Discussion of priority fields ............................................................................. 26 5.3. Discussion of funding model ........................................................................... 28 5.3.1. Continuation of current funding model (discarded) .................................. 29 5.3.2. Introduction of a 50/50 co-funding rate (discarded) .................................. 29 5.3.3. Introduction of a gradually decreasing EIT co-funding rate (retained) ... 30 5.4. Description of policy options ........................................................................... 34 5.4.1. Option 1: Baseline ....................................................................................... 34 5.4.2. Option 2 ........................................................................................................ 35 5.4.3. Option 3 ........................................................................................................ 38 5.4.4. Inputs of options .......................................................................................... 40 5.4.5. Key features of options ................................................................................ 40 6. IMPACT OF POLICY OPTIONS ............................................................................ 41 6.1. Option 1: Baseline ........................................................................................... 41 6.2. Option 2 ............................................................................................................ 43 6.3. Option 3 ............................................................................................................ 46 6.4. Outputs of options ............................................................................................ 50 7. HOW DO THE OPTIONS COMPARE? .................................................................. 51 7.1. Risks associated with policy options ............................................................... 53 8. PREFERRED OPTION ......................................................................................... 55 8.1. Implications of the preferred Option for the EIT Regulation and the SIA ... 56 9. HOW WILL IMPACT BE MONITORED AND EVALUATED? .................................. 57 10. ANNEXES .......................................................................................................... 61 10.1. Annex 1: Procedural information ................................................................... 61 1 10.2. Annex 2a: Stakeholder consultation activities ............................................... 67 10.3. Annex 2b: Public consultation - Synopsis Report .......................................... 72 10.4. Annex 3: Who is affected and how? ............................................................... 99 10.5. Annex 4A: Key achievements of the EIT ...................................................... 102 10.6. Annex 4B: key achievements and challenges as outlined in the EIT interim evaluation: ..................................................................................................... 103 10.7. Annex 5: Discarded policy options regarding the EIT under Horizon Europe ........................................................................................................................ 107 10.8. Annex 6: Selection criteria for establishing KICs ........................................ 108 10.9. Annex 7: Social network analysis of KICs’ partnerships ............................ 111 10.10. Annex 8: Impact Indicator Framework ....................................................... 118 10.11. Annex 9: Analysis of possible themes for future KICs ................................ 132 10.12. Annex 10: Model-based Analysis on co-funding model for KICs ............... 159 10.13. Annex 11: Overview of KIC co-funding rates in 2014-2017 ....................... 185 2 Glossary Term or acronym Meaning or definition CLC Co-Location Centre, a geographical hub for the practical integration of the knowledge triangle DG EAC Directorate-General Education, Youth, Sport and Culture, a Directorate General of the European Commission DG GROW Directorate-General Internal Market, Industry, Entrepreneurship and SMEs DG RTD Directorate-General Research and Innovation ECA European Court of Auditors EFSI European Fund for Strategic Investments EIC European Innovation Council RIS EIT Regional Innovation Scheme EIT European Institute of Innovation and Technology ERASMUS+ The EU programme supporting education, training, youth and sport in Europe during the 2014-2020 period ERDF European Regional Development Fund ESIF European Structural and Investment Fund EU European Union ExCo Executive Committee of the EIT Governing Board GB Governing Board of the EIT Horizon 2020 Horizon 2020 – the EU’s framework programme for research and innovation 2014-2020 HEI Higher Education Institution 3 HEInnovate Joint initiative of the European Commission and the OECD supporting HEIs wishing to increase their innovative and entrepreneurial potential HLG High Level Group JRC Joint Research Centre, a Directorate General of the European Commission KAVA KIC Added Value Activities KCA KIC Complementary Activities KIC Knowledge and Innovation Community KPI Key Performance Indicator KTI Knowledge Triangle Integration - close, effective links between education, research, and innovation MFF Multiannual Financial Framework OECD Organisation for Economic Co-operation and Development OPC Open Public Consultation R&I Research and Innovation R&D Research and Development SIA Strategic Innovation Agenda SME Small and Medium-sized Enterprise SPD Single Programming Document SWD Staff Working Document TFEU Treaty on the Functioning of the European Union TRL Technology Readiness Level - a method of estimating the maturity of technology 4 1. INTRODUCTION: POLICY AND LEGAL CONTEXT 1.1. Scope of the impact assessment This impact assessment accompanies the Commission proposals for an amendment of the European Institute of Innovation and Technology (EIT) Regulation1 through a recast2 and for a new Strategic Innovation Agenda (SIA) for the EIT for the period 2021-2027. These initiatives aim to align the EIT legislative framework with the Commission proposal establishing the Horizon Europe Programme3, the next Union framework programme supporting research and innovation, to define the new priority fields of the EIT as well as its financial needs, and to improve the functioning of the EIT taking into account