PART II

The successful mastering, integration and deployment of enabling technologies by European industry is a key factor in strengthening Europe's productivity and innovation capacity and ensuring Europe has an advanced, sustainable and competitive economy, global leadership in high-tech application sectors and the ability to develop effective and sustainable solutions for societal challenges taking into account, inter alia, user needs. Innovation activities will be combined with R&D, as an integral part of the funding. A major component of the specific objective 'Leadership in Enabling and Industrial Technologies' are Key Enabling Technologies (KETs), defined as micro- and nanoelectronics, photonics, nanotechnology, biotechnology, advanced materials and advanced manufacturing systems. Many innovative products incorporate several of these technologies simultaneously, as single or integrated parts. While each technology offers technological innovation, the accumulated benefit from the numerous interactions of KETs and other industrial enabling technologies and their combinations can also lead to technological leaps. Tapping into cross-cutting key enabling technologies will enhance product competitiveness and impact, stimulate growth and jobs and provide new opportunities to tackle societal challenges. The numerous interactions of these technologies will therefore be exploited. Dedicated support will be provided for larger-scale pilot line and demonstrator projects to be implemented in various environments and conditions. This will include KETs and cross-cutting KET (multi KETs) activities that bring together and integrate various individual technologies, resulting in technology validation in an industrial environment to a complete and qualified system, ready or close to enter the market. Strong private sector involvement in such activities and the demonstration of how project results will contribute to market value for the Union will be a prerequisite, and implementation could therefore take the form of public-private partnerships. To this extent and through the Horizon 2020 implementation structure, a joint work programme for cross-cutting KET activities will be developed. Taking into account market needs and the requirements of the societal challenges, it will aim at providing generic KETs and multi KETs building blocks for different application areas, including societal challenges. In addition, synergies will be sought, where appropriate, between KET activities and the activities under the cohesion policy framework in the context of national and regional R&I strategies for smart specialisation, as well as with the EIT, the European Investment Bank (EIB) and, where appropriate, with the Member States driven activities under the Joint Programming Initiatives. Innovation activities will include the integration of individual technologies; demonstrations of capacities to make and deliver innovative products, systems, processes and services; user and customer pilots to prove feasibility and added value; and large-scale demonstrators to facilitate market take-up of the research results. Adequate focus will be given to small and medium scale projects. Furthermore, implementation under this Part will encourage the involvement of small and medium-sized research teams, also contributing to a more active participation of SMEs. Various individual technologies will be integrated, resulting in technology validation in an industrial environment to a complete and qualified system, ready for the market. Strong private sector involvement in such activities will be a prerequisite, including public-private partnerships. Demand-side actions will complement the technology push of the research and innovation initiatives. These include making the best use of public procurement of innovation; developing appropriate technical standards and technical activities in support of standardisation and regulation; private demand and engaging users to create more innovation-friendly markets. For nanotechnology and biotechnology in particular engagement with stakeholders and the general public will aim to raise the awareness of benefits and risks. Safety assessment and the management of overall risks in the deployment of these technologies will be systematically addressed. Where appropriate, social sciences and humanities will contribute to taking into account user needs preferences and acceptance as well as ensuring societal engagement and informed consumers' choice. The activities supported under this specific objective will complement support for research and innovation in enabling technologies, which may be provided by national or regional authorities under the Cohesion Policy Funds, within the framework of smart specialisation strategies. This specific objective shall, as part of the funding of actions, also support technology transfer activities (both at national and regional level), including the development of international and regional innovation clusters, to promote more effective linkages between universities and the industry. Strategic international cooperation initiatives will be pursued in areas of mutual interest and benefit with leading partner countries. Of particular, but not exclusive, interest for enabling and industrial technologies are: access to world-leading scientific and technological expertise; the development of global standards; the removal of bottlenecks in industrial exploitation, R&D collaboration and conditions for trade; the safety of nanotechnology-based and biotechnology-based products and the long-term impact of their use; the development of materials and methods to reduce energy and resource consumption; industry-led, collaborative international initiatives within the manufacturing community; and the interoperability of systems. A number of activity lines will target ICT industrial and technological leadership challenges along the whole value chain and cover generic ICT research and innovation agendas, including notably: The objective is to maintain and reinforce European leadership in technologies related to advanced, embedded, energy-and resource-efficient and robust components and systems. It also includes micro-nano-bio systems, organic electronics, large area integration, underlying technologies for the Internet of Things (IoT) Internet of Things will be coordinated as a cross-cutting issue. , including platforms to support the delivery of advanced services, sensors, smart integrated systems, embedded and distributed systems, systems of systems and complex systems engineering. The objective is to leverage European assets in processor and system architecture, interconnect and data localisation technologies, cloud computing, parallel computing, modelling and simulation software for all market segments, including engineering applications (such as uncertainty quantification, risk analysis and decision in engineering). The objective is to reinforce the competitiveness of European industry in developing, mastering and shaping the next generation Internet that will gradually replace and surpass the current Web, fixed and mobile networks and service infrastructures, and enable the interconnection of trillions of devices (IoT) across multiple operators and domains that will change the way we communicate, access and use knowledge. This includes R&I on networks, software, processes and services, cyber security, privacy, reliability and trust, wireless Including space-based networks. communication and all optical networks, immersive interactive multimedia and the connected enterprise of the future. The objective is to strengthen Europe's position as provider of products and services based on individual and business creativity. It will do so by providing professionals and citizens with new tools to create, access, exploit, preserve and re-use all forms of digital content in any language and to model, analyse and visualise vast amounts of data (big data), including linked data. This includes new technologies for arts, language, learning, interaction, digital preservation, web design, content access, analytics and media; and intelligent and adaptive information management systems based on advanced data mining, machine learning, statistical analysis and visual computing technologies. The objective is to reinforce European scientific and industrial leadership in industrial and service robotics, cognitive and communicative systems, advanced interfaces and smart spaces, and sentient machines, building on increases in computing and networking performance and progress in the ability to design and build systems that can learn, self-assemble, adapt and react or that optimise human-machine interactions. Where appropriate, the systems developed and advancements in the state of the art should be validated in real-world environments. The objective is to take advantage of the excellence of Europe in these key enabling technologies and support and further enhance the competitiveness and market leadership of its industry. Activities will also include research and innovation on design, advanced processes, pilot lines for fabrication, related production technologies and demonstration actions to validate technology developments and innovative business models as well as underlying next generation technologies exploiting advances in quantum physics. These six major activity lines are expected to cover the full range of needs taking into account the competitiveness of European industry on a global scale. These would include industrial leadership in generic ICT-based solutions, products and services needed to tackle major societal challenges as well as application-driven ICT research and innovation agendas which will be supported together with the relevant societal challenge. In view of the ever increasing advancement of technology in all areas of life, the interaction between humans and technology will be important in this respect, and part of the application-driven ICT research mentioned above. Research with a user-centred perspective will contribute to the development of competitive solutions. Included under each of these six major activity lines are also ICT-specific research infrastructures, such as living labs for experimentation, and infrastructures for underlying key enabling technologies and their integration in advanced products and innovative smart systems, including equipment, tools, support services, clean rooms and access to foundries for prototyping. This should be implemented in a way that ensures complementarity and consistency with the specific objective "Research infrastructures" under the priority "Excellent Science". Activities will support research and development of ICT systems in full respect of the fundamental rights and freedoms of natural persons and in particular their right to privacy. Development and integration of knowledge of nanoscale phenomena at the cross-roads of different scientific disciplines, aiming at fundamentally new products and systems enabling sustainable solutions in a wide range of sectors. Advancing scientific knowledge of the potential impact of nanotechnologies on health or on the environment for pro-active, science-based governance of nanotechnologies, and providing validated scientific tools, methods and platforms for hazard, exposure and risk assessment and management along the entire life cycle of nanomaterials and nanosystems, including standardisation issues. Addressing the human and physical needs of nanotechnology deployment and focusing on governance of nanotechnology for societal and environmental benefit, including communication strategies to ensure social engagement. Focusing on new flexible, scalable and repeatable unit operations, smart integration of new and existing processes, including technology convergence such as nanobiotechnology, as well as up-scaling to enable sustainable high precision large-scale production of products and flexible and multi-purpose plants that ensure the efficient transfer of knowledge into industrial innovation. Focusing on the underpinning technologies, supporting the development and market introduction of safe complex nanomaterials and nanosystems, including nanometrology, characterisation and manipulation of matter at the nano-scale, modelling, computational design and advanced engineering at the atomic level. Research on materials by design, functional materials, multifunctional materials with higher knowledge content, new functionalities and improved performance, such as self-repairing or biocompatible materials, self-assembling materials, novel magnetic materials and structural materials, for innovation in all industrial sectors, particularly for high value markets, and including the creative industries. Research and development to ensure efficient, safe and sustainable development and scale-up to enable industrial manufacturing of future design-based products towards a "no-waste" management of materials in Europe, e.g. in the metal, chemical or biotechnological industries, and to improve the understanding of material degradation mechanisms (wear, corrosion and mechanical reliability). Research and development for new and innovative techniques for materials, components and systems, joining, adhesion, separation, assembly, self-assembly and the disassembling, decomposition and deconstruction of material components, and management of life-cycle costs and environmental impacts through novel use of advanced materials technology. Developing new products and applications, business models and responsible consumer behaviour that increase the use of the renewable resources for sustainable applications, reduce energy demand in the product's entire life cycle and facilitate low-emission production, as well as process intensification, recycling, depollution, materials for energy storage and materials with potential for high added value from waste and remanufacture. Applying design and the development of converging technologies to create new business opportunities, including the preservation and restoration of Europe's heritage and materials with historical or cultural value, as well as novel materials. Promoting technologies such as characterisation, non-destructive evaluation, continuous assessing and monitoring and predictive modelling of performance for progress and impact in materials science and engineering. Research and development to investigate substitution and alternatives to the use of materials, including addressing the challenge of raw materials through tailor-made materials or the substitution of scarce, critical or dangerous materials, and innovative business model approaches and identification of critical resources. The objective is to lay the foundations for the European industry to stay at the front line of innovation, also in the medium and long term. It encompasses the development of emerging technology areas such as synthetic biology, bioinformatics and systems biology, as well as exploiting the convergence with other enabling technologies such as nanotechnology (e.g. bionanotechnology), ICT (e.g. bioelectronics) and engineering technology. These and other cutting-edge fields deserve appropriate measures in terms of research and development to facilitate effective transfer and implementation into new applications. The objective is twofold: on the one hand, enabling the European industry (e.g. chemical, health, mining, energy, pulp and paper, fibre-based products and wood, textile, starch, and food processing industries) to develop new products and processes meeting industrial and societal demands using preferably environmentally friendly and sustainable production methods and competitive and enhanced biotechnology-based alternatives to replace established ones; on the other hand, harnessing the potential of biotechnology for detecting, monitoring, preventing and removing pollution. It includes R&I on novel enzymes with optimised biocatalyst functions, enzymatic and metabolic pathways, industrial scale bio-process design, integration of bio-processes in industrial production processes, advanced fermentation, up- and down-stream processing, and gaining insight on the dynamics of microbial communities. It will also encompass the development of prototypes for assessing the techno-economic feasibility as well as the sustainability of the developed products and processes. The objective is to develop platform technologies (e.g. genomics, meta-genomics, proteomics, metabolomics, molecular tools, expression systems, phenotyping platforms and cell-based platforms) triggering leadership and competitive advantage on a wide number of economic sectors having econonomic impact. It includes aspects such as underpinning the development of bio-resources with optimised properties and applications beyond conventional alternatives; enabling exploration, understanding and exploitation in a sustainable manner of terrestrial and marine biodiversity for novel applications, bio-based products and processes; and sustaining the development of biotechnology-based healthcare solutions (e.g. diagnostics, biologicals, and bio-medical devices). Promoting sustainable industrial growth by facilitating a strategic shift in Europe from cost-based manufacturing to an approach based on the creation of high added value products and ICT-enabled intelligent and high performance manufacturing in an integrated system. This requires addressing the challenge of producing more, while consuming less material, using less energy and generating less waste and pollution aiming at high ecological efficiency. The focus will be on the development and integration of the adaptive production systems of the future, with particular emphasis on the needs of European SMEs, in order to achieve advanced and sustainable manufacturing systems and processes. Focus shall also be on methodologies for enhancing flexible, safe and smart production where adequate levels of automation are applied in worker-friendly environments. Reducing energy consumption and CO_(2) emissions by the development and deployment of sustainable construction technologies and systems and by the implementation and replication of measures for an increased uptake of energy-efficient systems and materials in new, renovated and retrofitted buildings. Life-cycle considerations and the growing importance of design-build-operate concepts will be key factors in addressing the challenge of a transition to near-zero-energy buildings in Europe by 2020 and the realisation of energy-efficient districts through the engagement of the wide stakeholder community. Increasing the competitiveness of process industries, such as chemical, cement, pulp and paper, glass, minerals or non-ferrous metals and steel industries, by drastically improving resource and energy efficiencies and reducing the environmental impact of such industrial activities. Focus will be on the development and validation of enabling technologies for innovative substances, materials and technological solutions for low-carbon products and less energy-intensive processes and services along the value chain, as well as on the adoption of ultra-low carbon production technologies and techniques, to achieve specific greenhouse gas emission intensity reductions. Cross-sectoral cooperation in concepts and methodologies for knowledge-based, specialised production can boost learning in organisations, creativity and innovation with a focus on business models in customised approaches that can adapt to the requirements of globalised value chains and networks, changing markets, and emerging and future industries. This includes addressing sustainable business models by covering the whole lifecycle of the product and process. In the field of space research, action at Union level will be carried out in conjunction with the space research activities of the Member States and the European Space Agency (ESA), aiming at building up complementarity among different actors. The objective is to maintain a globally leading role in space by safeguarding and further developing a cost-effective, competitive and innovative space industry (including SMEs) and research community and by fostering space-based innovation. Europe is playing a leading role in space research and in the development of space technologies and is continually developing its own operational space infrastructures (e.g. the Galileo programme and the Copernicus programme). In fact, European industry has established itself as an exporter of first class satellites and other space-related technologies. Nevertheless, this position is challenged by competition from other major space powers. The objective of this measure is the development of a research base by providing continuity in space research and innovation programmes, for example by a sequence of smaller and more frequent in-space demonstration projects. This will allow Europe to develop its industrial base and space research and technological development (RTD) community, thereby contributing to advancing beyond the current state of the art and to its non-dependence from imports of critical technologies. Standardisation should be supported in order to optimise the investments and to develop access to market. A number of challenges in space technologies have parallels to terrestrial challenges, for example in the fields of aeronautics, energy, environment, telecommunications and ICT, natural resource exploration, sensors, robotics, advanced materials, security and health. These commonalities offer opportunities for early co-development, in particular by SMEs, of technologies across space and non-space communities, including non-space industries, potentially resulting in breakthrough innovations more rapidly than achieved in spin-offs at a later stage. Exploitation of existing European space infrastructure should be stimulated by promoting the development of innovative products and services based on remote sensing, geo-positioning or other types of satellite enabled data. Europe should furthermore reinforce the incipient development of an entrepreneurial space sector, where appropriate, by well targeted measures, including support for space technology transfer initiatives. The objective is to develop advanced and enabling space technologies and operational concepts from idea to demonstration in space. The ability to access space and to develop, maintain and operate space systems in Earth orbit and beyond are vital to the future of European society. The necessary capabilities require research and innovation investments in a multitude of space technologies (e.g. for launchers and other vehicles, satellites, robotics, instruments and sensors) and in operational concepts from idea to demonstration in space. Europe is currently one of the three leading space powers mainly driven by investments by Member States through ESA and national programmes, but compared to the level of investment in space R&D in the United States (e.g. about 20 % of the total NASA budget) the European focus in future space technologies and applications needs to be strengthened along the entire chain: low technology readiness level (TRL) research, often relying heavily on key enabling technologies, with the potential of generating breakthrough technologies with terrestrial applications; improvement of existing technologies, e.g. through miniaturisation, higher energy efficiency, and higher sensor sensitivity; demonstration and validation of new technologies and concepts in the space and terrestrial analogue environments; mission context, e.g. analysis of the space environment, ground stations, protecting space systems and infrastructure against damage or destruction from collision with debris or other space objects, as well as the effects of space weather events including solar flares (Space Situational Awareness, SSA), fostering innovative data gathering and transmission and sample archiving infrastructure; satellite communication, advanced navigation and remote sensing technologies, covering the research essential for future generations of Union space systems (e.g. Galileo and Copernicus). The objective is to ensure more extensive utilisation of space data from existing, archived and future European missions in the scientific, public and commercial domain. Space systems produce information which often cannot be acquired in any other way. Despite world-class European missions, publication figures show that data from European missions are not as likely to be used as data from US missions. A considerably increased exploitation of data from European satellites (scientific, public or commercial) can be achieved if further effort is made for the processing, archiving, validation, standardisation and sustainable availability of space data from European missions as well as to support the development of new information products and services resulting from those data and, where appropriate, in combination with data from ground-based observations. Innovations in data acquisition and processing, data fusion, and data dissemination and interoperability, in particular promotion of access to and exchange of earth science data and metadata, utilising also innovative ICT-enabled forms of collaboration, can ensure a higher return on investment of space infrastructure and contribute to tackling societal challenges. Calibration and validation of space data (for individual instruments, between instruments and missions, and with respect to in-situ objects) are key factors in the efficient use of space data in all domains, and there is a need to enhance the standardisation of space-derived data and reference frames. Data access and exploitation of space missions is a matter that requires global coordination. For Earth observation data, harmonised approaches and best practices are partly achieved in coordination with the intergovernmental organisation Group on Earth Observation (GEO), aiming to sustain a Global Earth Observation System of Systems (GEOSS), in which the Union participates, namely by fully exploiting the Copernicus programme. A fast introduction of these innovations into the relevant application and decision making processes will be supported. This includes as well the exploitation of data for further scientific investigation. The objective is to support the European research and innovation contribution to long term international space partnerships. Although space information provides great local benefits, space undertakings have a fundamentally global character. This is particularly clear for the cosmic threat to Earth and space systems. The loss of satellites due to space weather and space debris is estimated to cost around EUR 100 million a year. Equally global are many space science and exploration projects. The development of cutting-edge space technology is increasingly taking place within such international partnerships, making access to such international projects an important success factor for European researchers and industry. The Union contribution to such global space endeavours needs to be defined in long-term strategic roadmaps (10 years and more), aligning with the Union's space policy priorities, and in coordination with the Member States and internal European partners, such as ESA and National Space Agencies, and, when relevant, with international partners and with the space agencies of space-faring nations. The implementation priorities of space research and innovation under Horizon 2020 are in line with the Union's space policy priorities as defined by the Space Council and in the Commission Communication of 4 April 2011 entitled "Towards a space strategy for the European Union that benefits its citizens". The implementation will, where appropriate, be based on strategic research agendas developed in consultation with the Member States and National Space Agencies, ESA, stakeholders from European space industry (including SMEs), academia, technology institutes and the Space Advisory Group. As regards the participation in international undertakings, the research and innovation agenda will be defined in collaboration with European stakeholders and international partners (e.g. NASA, ROSCOSMOS and JAXA). The application of space technologies shall be supported through the respective specific objectives of the priority "Societal challenges", where appropriate. Horizon 2020 will set up two facilities (the 'Equity facility' and the 'Debt facility'), composed of various windows. The Equity facility and the SME window of the Debt facility will be implemented in interdependence with COSME, as part of two Union Financial Instruments that provide equity and debt to support R&I and growth of SMEs. The Equity facility and the Debt facility may, where appropriate, allow pooling of financial resources with Member States or regions willing to contribute part of the ESI Funds allocated to them, in accordance with Regulation (EU) No 1303/2013 of the European Parliament and of the Council Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No 1083/2006 (See page 320 of this Official Journal.). . Instead of providing for instance loans, guarantees or equity directly to final beneficiaries, the Commission will delegate to financial institutions the provision of support via, in particular, risk-sharing, guarantee schemes and equity and quasi-equity investments. The Debt facility will provide loans to single beneficiaries for investment in R&I; (counter-) guarantees to financial intermediaries providing loans to beneficiaries; combinations of loans and (counter-) guarantees; and guarantees and/or counter-guarantees for national or regional debt-financing schemes. The Debt facility will undertake maturity enhancement activities, and it will support the dedicated SME Instrument, subject to the level of demand (see section 3 'Innovation in SMEs' of Part II). Provisions from the Debt facility may be combined, with the possible addition of grants (including lump sums), with provisions from the Equity facility in one or more integrated schemes. Soft loans, convertible loans, subordinated loans, participating loans, leasing loans and securitisation may also be possible. As well as providing loans and guarantees on a market-driven, first-come, first-served basis, the Debt facility will target, under a series of compartments, particular policies and sectors. Ring-fenced budgetary contributions for this purpose may, where appropriate, come from: other parts of Horizon 2020, notably Part III 'Societal challenges'; other frameworks, programmes and budget lines in the general budget of the Union; particular regions and Member States that wish to contribute with resources available from the Cohesion Policy Funds; and specific entities (such as Joint Technology Initiatives) or initiatives. Such budgetary contributions may be made or topped up at any time during the course of Horizon 2020. Risk-sharing and other parameters may vary within policy or sector compartments, provided their values or states comply with the common rules for debt instruments. Furthermore, compartments may have specific communications strategies within the overall promotional campaign for the Debt facility. In addition, specialist intermediaries at national level may be used if specific expertise is needed to assess prospective loans in the domain of a particular compartment. The SME window under the Debt facility shall target R&I-driven SMEs and small mid-caps with loan amounts exceeding EUR 150000, thus complementing finance to SMEs by the Loan Guarantee Facility under COSME. The SME window of the Debt facility shall also cover loans below EUR 150000 for R&I-driven SMEs and small mid-caps. The leverage of the Debt facility - defined as the total funding (i.e. Union funding plus contribution from other financial institutions) divided by the Union financial contribution - is expected to range from an average 1,5 to 6,5, depending on the type of operations involved (level of risk, target beneficiaries, and the particular debt financial instrument facility concerned). The multiplier effect - defined as the total of investments made by supported beneficiaries divided by the Union financial contribution - is expected to be 5 to 20, again depending on the type of operations involved. The Equity facility will focus on early-stage venture capital funds and public and private funds-of-funds providing venture capital and/or mezzanine capital to individual portfolio enterprises. These enterprises may, in addition, seek debt financing from financial intermediaries implementing the Debt facility. Furthermore, the Equity facility will also explore possibilities to support business angels and other potential sources of equity finance. This could also include support at the phase 3 stage of the SME instrument subject to the level of demand, as well as to technology transfer (including the transfer of research results and inventions stemming from the sphere of public research to the productive sector, for example through proof-of-concept). The Equity facility will also have the possibility to make expansion and growth-stage investments in conjunction with the Equity Facility for Growth (EFG) under COSME (this includes investments in funds-of-funds with a broad investor base and includes private institutional and strategic investors as well as national public and semi-public financial institutions). In the latter case, the investment from the Equity facility of Horizon 2020 shall not exceed 20 % of the total Union investment except in cases of multi-stage funds, where funding from EFG and the Equity facility of Horizon 2020 will be provided on a pro rata basis, based on the funds' investment policy. Like the EFG, the Equity facility shall avoid buy-out or replacement capital intended for the dismantling of an acquired enterprise. The Commission may decide to amend the 20 % threshold in light of changing market conditions. The Union Equity Financial Instrument for SMEs' R&I and growth referred to in the first paragraph of section 2 should be of an appropriate size and scale to back innovative companies from the earliest stage through to growth and expansion, in an integrated approach. Investment parameters will be set in such a way that specific policy objectives, including the targeting of particular groups of potential beneficiaries, can be achieved while still preserving the market-oriented, demand-driven approach of this instrument. The Equity facility may be supported by budgetary contributions from: other parts of Horizon 2020; other frameworks, programmes and budget lines in the general budget of the Union; particular regions and Member States; and specific entities or initiatives. The leverage of the Equity facility - defined as the total funding (i.e. Union funding plus contribution from other financial institutions) divided by the Union financial contribution - is expected to be around 6, depending on market specificities, with an expected multiplier effect - defined as the total of investments made by supported beneficiaries divided by the Union financial contribution - of, on average, 18. The implementation of the two facilities will be delegated to the European Investment Bank Group (EIB and the European Investment Fund (EIF)) and/or to other financial institutions that may be entrusted with the implementation of financial instruments in compliance with Regulation (EU, Euratom) No 966/2012. Their design and implementation will be aligned with the general provisions for financial instruments set out in that Regulation and with more specific operational requirements to be set out in Commission guidance. The use of financial instruments must have a clear European added value and should provide leverage and function as a complement to national instruments. Financial intermediaries, selected by entrusted entities for the implementation of financial instruments pursuant to Article 139(4) of Regulation (EU, Euratom) No 966/2012 on the basis of open, transparent, proportionate and non-discriminatory procedures, may include private financial institutions as well as governmental and semi-governmental financial institutions, national and regional public banks as well as national and regional investment banks. Their elements may be combined, with the possible addition of grants (including lump sums), in one or more integrated schemes supporting particular categories of beneficiary or special-purpose projects, such as SMEs and mid-caps with growth potential, or the large-scale demonstration of innovative technologies. Their implementation will be supported by a set of accompanying measures. These may include technical assistance for financial intermediaries involved in assessing the eligibility of loan applications or the value of knowledge assets; investment-readiness schemes covering incubating, coaching and mentoring SMEs and fostering their interaction with potential investors; measures to raise the awareness of venture capital firms and business angels of the growth potential of innovative SMEs involved in Union funding programmes; schemes to attract private investors to support the growth of innovative SMEs and mid-caps; actions to improve cross-border and multi-country debt and equity financing; schemes for encouraging philanthropic foundations and individuals to support R&I; and schemes to foster corporate venturing and encourage the activities of family offices and business angels. Bodies such as regional authorities, SMEs associations, chambers of commerce and relevant financial intermediaries may be consulted, as appropriate, in relation to the preparation and implementation of these activities. Complementarity will be ensured with the facilities of COSME. SMEs will be supported across Horizon 2020. For this purpose, to participate in Horizon 2020, better conditions for SMEs shall be established. In addition, a dedicated SME instrument is targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise. It will be provided for all types of innovation, including non-technological, social and service innovations, given each activity has a clear European added value. The objective is to help fill the gap in funding for early stage high-risk research and innovation, stimulate breakthrough innovations and increase private-sector commercialisation of research results. All specific objectives of the priority "Societal challenges" and the specific objective "Leadership in enabling and industrial technologies" shall apply the dedicated SME instrument and allocate an appropriate amount to it, to reach the minimum goal of 20 % of total combined budgets for all specific objectives of the priority "Societal challenges" and the specific objective 'Leadership in enabling and industrial technologies' being devoted to SMEs. Only SMEs will be allowed to apply for funding and support. They can form collaborations according to their needs, including for subcontracting research and development work. Projects must be of clear interest and potential benefit to SMEs and have a clear European dimension. The SME instrument will cover all fields of science, technology and innovation in a bottom-up approach within a given societal challenge or enabling technology so as to leave sufficient room for all kinds of promising ideas, notably cross-sector and interdisciplinary projects, to be funded. The SME instrument will operate under a single centralised management system, light administrative regime and a single entry point. It shall be implemented primarily in a bottom-up manner through a continuously open call. The SME instrument will provide simplified and staged support. Its three phases will cover the whole innovation cycle. Transition from one phase to the next will be seamless, provided that the SME project has proven to be worth further funding during a previous phase. There is no obligation for applicants to sequentially cover all three phases. At the same time each phase will be open to all SMEs: Phase 1: Concept and feasibility assessment: SMEs will receive funding to explore the scientific or technical feasibility and the commercial potential of a new idea (proof of concept) in order to develop an innovation project. A positive outcome of this assessment, in which the linkage between project-topic and potential user/buyer needs is an important issue, will allow for funding under the following phase(s). Phase 2: R&D, demonstration, market replication: With due attention to the innovation voucher concept, research and development will be supported with a particular focus on demonstration activities (testing, prototype, scale-up studies, design, piloting innovative processes, products and services, validation, performance verification etc.) and market replication encouraging the involvement of end users or potential clients. Innovation Vouchers will promote the participation of young entrepreneurs. Phase 3: Commercialisation: This phase will not provide direct funding other than support activities, but aims to facilitate access to private capital and innovation enabling environments. Links to the financial instruments (see section 2 'Access to Risk Finance' of Part II) are foreseen, for example by giving SMEs that have successfully completed phases 1 and/or 2 priority within a ring-fenced volume of financial resources. SMEs will also benefit from support measures such as networking, training, coaching and advice. In addition, this phase may connect to measures promoting pre-commercial procurement and procurement of innovative solutions. Uniform promotion, implementation and monitoring of the SME instrument across Horizon 2020 will ensure easy access for SMEs. Relying on existing SME support networks, such as the Europe Enterprise Network and other innovation service providers, a mentoring scheme for the beneficiary SMEs shall be established to accelerate impact from the support provided. In addition, links will be explored with relevant national and/or regional intermediaries to ensure an efficient implementation of the mentoring scheme. A dedicated body of stakeholders and experts in SME research and innovation will be set up with view to promoting and accompanying the specific SME measures of Horizon 2020. A specific action will promote transnational market-oriented innovation of R&D performing SMEs. It targets research-intensive SMEs in any sectors that also need to demonstrate their capability to commercially exploit the project results. The action will cover the entire field of science and technology with a bottom-up approach to fit the needs of R&D performing SMEs. The action will be implemented by an Article 185 TFEU initiative building on the Eurostars Programme and reorienting it along the lines stated in its interim evaluation. Transnational activities assisting the implementation of and complementing the SME specific measures across Horizon 2020 will be supported, notably to enhance the innovation capacity of SMEs. Activities may include awareness raising, information and dissemination, training and mobility activities, networking and exchange of best practices, developing high quality innovation support mechanisms and services with strong Union added value for SMEs (e.g. intellectual property and innovation management, knowledge transfer, innovative use of ICT and e-skills in SMEs), as well as assisting SMEs to connect to research and innovation partners across the Union, allowing them to spin in technology and develop their innovation capacity. Intermediary organisations representing groups of innovative SMEs shall be invited to conduct cross-sectoral and cross-regional innovation activities with SMEs having mutually reinforcing competences, in order to develop new industrial value chains. These activities shall be coordinated with similar national measures when appropriate. Close cooperation with the National Contact Point (NCP) Network is envisaged. Synergies with Union cohesion policy will be sought in the context of national and regional innovation strategies for smart specialisation. A reinforced link with the Enterprise Europe Network (EEN) (under COSME) is envisaged ensuring its coordination with the National Contact Points. The support could range from improved information and advisory services through mentoring, coaching and partner search activities for SMEs wishing to develop cross-border innovation projects, to providing innovation support services. This will consolidate the 'one stop shop' approach of the Enterprise Europe Network to supporting SMEs, together with a strong regional and local presence of the network. These activities will support transnational market-driven innovation in view of enhancing the innovation capacity of SMEs by improving the framework conditions for innovation as well as tackling the specific barriers preventing the growth of innovative SMEs with potential for fast growth. Specialised innovation support (on e.g. exploitation of intellectual property, networks of procurers, support to technology transfer offices, and strategic design) and reviews of public policies in relation to innovation will be supported.

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Source: EUR-Lex (Cellar) · retrieved 2026-11-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.