Investing in Europe's future competitiveness through joint research, development and innovation

As the next European Framework Programme for Research and Innovation (FP10) is developed, the 110 European Associations (undersigned), representing Europe's main R&D and innovation players, urge EU institutions to significantly increase their current budgets in anticipation of FP10, to make pan-European collaborative research a cornerstone of FP10 and to excel in serving the needs of industry.

As the global technology race accelerates, the EU is significantly lagging behind its global competitors in investing in RD&I. This applies especially to private investment. This shortfall prevents the EU from fully utilizing its science and technology potential. To ensure long-term competitiveness, the EU needs to do more to attract and retain private RD&I investment in Europe.

In this respect, EU Framework Programmes play a key role: public RD&I investments made possible through EU Framework Programmes are essential to stimulate private RD&I investments by mitigating market failures and the risks that private RD&I investments pose to industry. By pooling resources and expertise through EU Framework Programmes, Member States and EEA countries, industry, RTOs and academia aim to jointly address complex challenges, accelerate the pace of technological maturity and innovation, and support the EU's position in today's currently struggling technology race (see EU Innovation Scoreboard 2023).

The impact of such joint and coordinated EU RD&I investments has been demonstrated in the recent ex-post evaluation of Horizon 2020, which found that European partnerships had the highest financial leverage per euro invested. Institutionalized partnerships, the contribution of resources (cash or in kind) by private partners more than doubled or even tripled the EU investment.

We call on EU institutions to significantly increase their current RD&I budgets with FP10 in mind. Such joint EU RD&I investments need to be strengthened in the next EU budget (MFF). At the same time, a target of at least 3% of GDP should be achieved, aiming to secure national RD&I investments and leverage private RD&I investments. A commitment to EU technology leadership should ensure that adequate and timely investments are made.

To further strengthen EU competitiveness, FP10 should place emphasis on excellent cross-border collaborative R&D with strong industry participation. To achieve this, the focus on competitiveness needs to be strengthened in Pillar II and should be the main driver of Pillar I and III activities as well. Pillar II is currently the only truly collaborative part of the FP, breaking down silos and facilitating knowledge flows between and within the private and public sectors, as well as between fundamental and applied research. Not only should a significant part of the total FP10 budget be allocated to Pillar II, but it should also focus on European industrial competitiveness, but Pillar II activities should also be driven by EU strategic priorities and clearly defined industry needs. Pillar II is important for:

Develop long-term, trust-based public-private partnerships (PPPs) among a wide range of European R&D and innovation actors. This is an essential element of strengthening the European R&D and innovation ecosystem. It enables industry to embrace new technologies and expand into new solutions, products and services, improving people's well-being and quality of life, and enhancing Europe's long-term competitiveness. The current pillar II of the FP, including major EU industrial partnerships, especially co-programmed and institutionalized partnerships, supports this ambitious goal. Pillar II, including industrial partnerships, therefore needs to be further strengthened with sufficient funding. Reduce risks and uncertainties by demonstrating EU support for technology-intensive sectors and stimulate private investment in Europe, while at the same time maintaining technology neutrality for a level playing field in the internal market. This will provide the right incentives for industry to invest in European R&D and innovation, rather than in third countries, and support the realization of the EU's green and digital transition.

We, the undersigned organisations, are ready to further consult with the EU institutions on the design of FP10. We are convinced that Europe has the potential to perform much better in the global innovation race than it currently does. To remain a model of economic and social prosperity, Europe needs to actively invest in collaborative pan-European RD&I to foster collaboration, drive technological maturity and innovation, leverage the expertise of public and private actors in RD&I to strengthen its competitiveness, demonstrate leadership in key technology areas and pave the way for a prosperous and sustainable future.

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