Priorities and focus areas in Horizon 2020 strategic programme for 2018 2020 Norwegian proposal June 29, 2016 Abstract European Added Value and a clear division of responsibility between national and European activities should be guiding principles for the design of the work programme 2018-2020. The challenge-driven approach is central to Horizon 2020, and societal impact can be further improved by stronger emphasis on mainstreaming social science and humanities, responsible research and innovation, and gender issues. The framework programme is set up to make major contributions to sustainable development and climate action, and the last work programme should ensure that these goals are met. Norway has a comprehensive list of potential focus areas, and gives special priority to focus areas on the Arctic, on Blue Growth and on Migration and Integration. Simplification is still an issue, and simplification and oversubscription should be addressed in order to attract the best researchers and innovators. A stricter interpretation of European Added Value may be a help in prioritising calls, and thus reduce oversubscription. Norway is positive to the integration of the vision of Open Science, Open Innovation and Open to the world into the work programme. There is a need to consider how Europe can address disruptive, market creating innovation in a better way. We should not overestimate the role of public policy in this regard, and we restrict public intervention to measures where a significant difference can be made. We are positive to the idea of a European Innovation Council as a way to approach these challenges. Introduction Funding of research and innovation through the Horizon 2020 Work Programme should be based on considerations of European Added Value. Good coordination and division of labour with national activities, i.a. through Joint Programming, should be ensured in order to contribute to effective and efficient use of public funding, at both European and national level. Europe is currently facing a range of challenges, which largely are of a global nature. These challenges require a response from research and innovation that i.a. should contribute to the UN Sustainable Development Goals (SDGs) and the global climate deal reached at the Paris climate conference (COP21) in December 2015. In addition to responding to key areas of societal concern, growth and employment through innovation and renewal should be emphasised in the last Work Programme, including a strengthening of green and blue growth and the digital economy. Please find below first our comments on general issues and then our specific suggestions for focus areas. 1
General aspects of the work programme for 2018 2020 We would like to underline the following aspects that we believe are of importance for the coming Work Programme: The funding targets for sustainable development and climate should be reached Specific targets have been set for the share of the Horizon 2020 budget that should be allocated to projects relevant for sustainable development and climate action. At least 60% of the overall Horizon 2020 expenditure shall be related to sustainable development. Climaterelated expenditure should exceed 35% of the budget. These funding targets have not yet been reached. Efforts should therefore be made in the Work Programme 2018-20 to ensure that these targets are actually met by the end of Horizon 2020. In our view, efforts at strengthening innovation and competitiveness in trade and industry and efforts at securing a green shift in the economy are mutually reinforcing. Consequently, strengthening efforts at reaching the goals for sustainable development and in climate action will not come at the expense of efforts at strengthening innovation and competitiveness. Intensified efforts at simplification and reducing oversubscription A clear focus on simplification is essential for the success of Horizon 2020. We urge to keep up the momentum and to consider even further simplification in the final part of Horizon 2020. Meeting the challenge of oversubscription is also paramount in order to secure the attractiveness of the programme to the best researchers and innovators, including through a stricter interpretation of European Added Value. Increased use of two-stage proposal processes could contribute both to simplification and reduce the negative effects of oversubscription. Enough time must be granted between notification of success at first stage and the deadline for second stage submissions. Please also find some suggestions for the improvement of existing simplification measures and measures to counteract oversubscription under the implementation chapter below. Integrate the three O's: Open Science, Open Innovation and Open to the World Norway supports a follow-up of the three O's launched by Commissioner Moedas in the final Work Programme of Horizon 2020, with a view also to the next Framework Programme. The three O's also need to be firmly integrated in the European Research Area. Open Science Norway supports an emphasis on Open Science in Horizon 2020, especially open access to publications, but also open access to data, albeit with some necessary preconditions and modifications, i.a. for industry. We would also like to express initial support to the initiative from the European Commission to develop a European Open Science Cloud (EOSC) as a supporting measure for Open Science and Open Innovation. The Member States and Associated Countries should agree on a model for participation in the EOSC to contribute to the realisation of this project, including how to establish links to the national level and secure contributions of existing national components to the EOSC. Open Innovation Establishment of a new European Innovation Council within Horizon 2020 The European Commission has recently finalised its Call for Ideas for a European Innovation Council (EIC) to support more disruptive innovation. 2
To us it seems that the challenges related to disruptive and radical innovation in Europe remain, as already indicated by the Commissioner, and there is a need for close to market initiatives. Norway is positive to the proposal of a European Innovation Council as a way to address these challenges, and that the Work Programme is used to develop this approach. However, the role of public policy in this regard should not be overestimated. The focus should be on a few key issues where public intervention could make a significant difference. In order to support disruptive, market-creating innovation financial support should play a limited role. Other kinds of support could be more relevant, such as improving framework conditions for innovation, securing access to (professional) risk capital and links to education, i.e. strengthened cooperation between the EU and the national level on how to ensure a stronger entrepreneurship culture in Europe. No new instruments should be introduced at this stage. Existing instruments should be rationalised, adjusted and simplified to improve access and attractiveness to innovators, entrepreneurs and, especially, newcomers. Close dialogue and contact with national funding and advisory bodies would be necessary. We may elaborate and revise our views on EIC at later occasions. Open to the World The level of participation of third countries in Horizon 2020 is lower than in FP7, partly due to BRIC countries and Mexico no longer being automatically qualified for EU funding. Horizon 2020 should aim for global outreach and impact and this requires participation of the best researchers and the most innovative companies worldwide in Horizon 2020 projects. There is a need to increase the efforts on international co-operation in order to strengthen the participation of priority third countries in Horizon 2020. Implementation key messages Continued emphasis on impact and interdisciplinarity We support the integrative approach on societal impact in Horizon 2020 and we believe the societal impact could be increased further by an even stronger emphasis on mainstreaming of SSH, RRI and gender issues. The challenge driven approach to research and innovation is at the core of Horizon 2020. A relevant response to the societal challenges can only be achieved through collaboration between a variety of scientific disciplines, users and businesses. In particular, interdisciplinarity among the STEM disciplines (Science, Technology, Engineering and Mathematics) and the SSH is important. The formulation of research topics should, where applicable, take into account perspectives from both STEM and SSH so that all involved disciplines are included in the overall design of the topic and in the description of the research challenges. Widespread integration of SSH perspectives will steer the R&I process towards solutions and products that are more relevant to societal needs, and more applicable and marketable. This could be important in order to deliver on the key Horizon 2020 objectives for research and innovation to serve society and to build the foundation for growth and jobs. Strike the right balance between projects at intermediate and high TRL levels We support the focus on impact in Horizon 2020, but would like to urge for better explanations to applicants. We are also a bit concerned that the focus on impact could lead to a too strong focus on demonstration and innovation activities at high Technology Readiness Levels (7-8), based on existing, mature technologies. Projects at intermediate TRL-levels (applied research) act as a bridge between basic research and innovation, and are necessary to 3
have more and better projects at the higher TRL levels. Product and process innovation at intermediate TRL levels normally take longer time. We believe attention should be paid to a balanced financial support for all TRL levels. A broader concept of innovation The strong emphasis on innovation and industrial competitiveness under Horizon 2020 is a crucial response for the need to create jobs and more sustainable growth in Europe. In our view, there is a need to complement technological innovation with a stronger focus also on other types of innovation in the final Work Programme, such as service innovation and public sector innovation. The focus on the TRL scale should not lead to a linear approach to innovation. Innovation takes place in more ways than through research. Public procurement of innovative solutions is an instrument that can help bring innovative end-solutions faster to the market, and could be more emphasised. Role of Public Private Partnerships: Joint Technology Initiatives and Contractual Public Private Partnerships Joint Technology Initiatives (JTI) and Contractual Public Private Partnerships (cppp) are important catalysts for industry participation and industry interests in Horizon 2020. cppps now address a number of both established and emerging industries. It is important that cppps are open and transparent from their inception, not only when they are formally constituted. Consultations formal and informal on cppps and other partnerships also need to involve Associated Countries. The JTIs have become an important part of the innovation efforts at the European level. It is important to ensure that all calls through JTIs that involve Horizon 2020 funding are open for all potential participants that could make important contributions. Industry driven initiatives, like PPPs, should be based on strong commitment from industry and focused in areas where industrial R&I cooperation across borders is crucial, and where there is a clear European Added Value. It is important to strike a balance also in this respect between the amount of funding channelled through partnership initiatives and funding of collaborative projects, giving enough room for more independent, innovative and curiositydriven research. Administrative simplification and rules of participation The focus on simplification has been essential for the success of Horizon 2020. However, we have observed some challenges caused by the simplification measures. We urge the Commission to look for ways to reduce these challenges: The simplified cost model (100+25) does not reflect the total cost of a project. This also affects the ceiling for third party funding, effectively making it impossible to get full funding of all project expenses in research organisation with high indirect costs (e.g. infrastructure costs). Some of the above challenges are addressed by the model for Large Research Infrastructure (LRI). However, the LRI rules are not adapted to the structure of the organisations targeted by the LRI. As a consequence, this solution does not work as intended. 4
Separate work packages for management are no longer accepted and the funding for management activities is reduced. As a result, it is more difficult to find organizations that are willing to take on the responsibility as project coordinator. How to tackle the issue of oversubscription? A shared challenge in Horizon 2020 is oversubscription. The very low success rates observed for most of the calls under Horizon 2020 might undermine the trust in the funding mechanisms and have a negative impact on the motivations for excellent applicants. A stricter interpretation of European added value may help us in prioritising topics and instruments in the framework programme. This may subsequently ensure a better funding level of the selected topics and instruments, and thus increase the success rates. Moreover, reduced overlaps with national funding may diminish potential disincentives to fund research nationally. A possible solution to oversubscription could also be to limit the possibilities for resubmission or to have more two stage proposal processes. We believe that some improvement could also be achieved by a more careful and explicit description of the expected impacts in the topic texts. Focus areas for 2018 2020 Norway would like to put forward three top priorities for focus areas in the last strategic programme of the Horizon 2020. We would also support six additional new and continued focus areas as listed below. The Arctic We suggest the Arctic as a new focus area that is broad, sustainable and inclusive, as a follow up of EU's new Arctic policy. Climate change, international cooperation and sustainable development, as addressed in the new policy, should be the core of the suggested focus area Arctic. Today the Arctic is included in the existing focus area Blue Growth, whose focus mainly comprises marine issues. However, due to the diversity of the research and innovation challenges in the Arctic, to be addressed by expertise in both natural and social sciences, there is a need for a separate focus area on the Arctic in the last parts of Horizon 2020. The follow up from the Galway declaration should also be a priority for the Arctic focus area related to increased cooperation with the US and Canada. Contributions could be foreseen from SC1, SC2, SC3, SC4, SC5, SC6, SC7, LEIT NMBP. A focus area on the Arctic could include: The Arctic climate system and Earth System perspectives Integrated observing systems and open access Natural resource exploitation and management: commercial opportunities and limitations Changes in the ecosystem and biodiversity preservation Weather and sea ice prediction and maritime operations and transport Communication, incl. broadband Arctic geopolitics 5
Preservation of cultural heritage the role of multilateral organisations, ways to ensure sustainable and local governance and the transformations of identities of indigenous peoples. Blue Growth Demonstrating an ocean of opportunities The OECD-report The Ocean Economy in 2030 emphasizes the importance of the Ocean to the future welfare and prosperity of humankind, and that the maritime industry landscape is poised to undergo a profound transition. The long-term potential for innovation, employment generation and growth is characterized as impressive. There is also a number of risks that need to be taken into consideration, such as unsustainable use. Marine sciences and technologies are mentioned in the Specific Programme of Horizon 2020 as an area that can benefit from crosscutting programming approaches, which have led to the focus area of Blue Growth. The integrating approach is a powerful tool to unlock the potential of blue growth, well demonstrated by the funded projects generated from calls. Norway suggests keeping a strong focus on this crosscutting approach to further integrate marine and maritime as well as relevant connected areas. However, this requires increased budget allocations and coordination with all Societal Challenges and the LEIT areas. Migration and integration The high level of migration to and within Europe represents both challenges and opportunities for the EU and for the European society. As emphasised in the Strategic Foresight report: Towards the 3rd Strategic Programme of Horizon 2020, the potential changes in Europe resulting from migration over the next 20 years are massive. There is a need for more research and better coordination of the research performed in this area to contribute to both have a better coverage of the challenges and possibilities at hand and also better compilations of the knowledge developed. Shared knowledge could form the basis for better cooperation on solutions to the challenges, both inside and outside Europe. A focus area on migration must cut across several of the societal challenges, and not only be linked to Societal Challenge 6. Sub-areas covered by the different societal challenges could be: SC1: Public services, health, infectious diseases, lifestyle. SC5: Cultural heritage and identity. Climate changes as a driver for migration. SC6: The legal aspects of migration; The arrival of refugees and its effects on welfare, labour market, education and social cohesion; role of public administration in providing services and promote integration of immigrants; community planning and the development of cities, the European language, metaphors and narratives about the immigrants, discourse and cultural analysis. SC7: Border security, integration and prevention of radicalisation. Other focus areas supported by Norway Norway will also support six additional focus areas in the Work Programme for 2018-20: A sustainable bio-economy Climate action after COP21 Transition to a low carbon society Industry 2020 in the circular economy 6
Sustainable food and nutrition security The fourth industrial revolution Please see Annex 1 for further details. 7
Annex 1: Additional focus areas suggested by Norway details A sustainable bio economy We suggest a continued focus on this promising area that includes biomass of all kinds, from land and sea. Since the European bio-economy strategy will be revised in the coming months, we recommend reinforcing European efforts. Paving the way for a new sustainable economy will have an impact on European societies and Europe's natural resources. Integration of bioenergy and biofuel into the bio-economy concept based on cascade thinking from raw material to product is necessary to simultaneously maximize utilization and profitability. Alternative feedstocks, such as side streams and waste streams and equal focus on marine and terrestrial sources of biomass, are necessary in a comprehensive bio-economy perspective. We also have to provide for integration of bioconversion process operations with existing industrial operations (chemical, petrochemical, refinery, etc.) to accelerate technology demonstration and take-up. To ensure an integrative approach and create the necessary knowledge base, contributions from SC2, SC3, SC5 and SC6 and LEIT ICT and NMBP are crucial. Climate action after COP21 This focus area should include research and innovation with emphasise on knowledge based development of climate services. Relevant important issues regarding climate services are: Development of next generation of climate models (including regional climate models and downscaling tools to local sites) Adaptation analyses (including climate change impact studies e.g. on health, agriculture, floods/droughts, forestry etc.) Solutions in relation to adaptation should also focus on nature based solutions, and mitigation (e.g. low carbon pathways). We emphasise the importance to strengthen the knowledge base for solution-oriented climate action in the policy, technological and social spheres. It is also important to implement these innovation findings in a social and ecological context, integrating behavioural change aspects and inequalities, as agreed upon at the COP21. Contribution to these activities could be foreseen from all societal challenges (SC1 SC7) and LEIT NMBP. Industry 2020 in the circular economy A link to reduction of environmental toxins (including the health aspects) and nature-based solutions should be included. Important areas are: Optimal recycling of complex products Recovery of high value materials (CRM) from EOL waste Design for disassembly, reuse and recycling Use of biomass as reductant in metal production Contributions could be foreseen from SC1, SC2, SC5 and LEIT NMBP. Sustainable food and nutrition security The focus area should include food from agriculture, aquaculture and fisheries, food-related value chains, food and health, as well as organic waste. We foresee a strong link to the European Food Research and Innovation Area to be launched later this year. Contributions 8
could be foreseen from all Societal Challenges, especially SC1, SC2, SC5 and all the LEIT areas. The fourth industrial revolution A focus area in the Fourth Industrial Revolution should be the funding of research and innovation on technological, human and social issues that can support the development of a Digital Single Market. This digitalization should be based on strong European-led research that continually adapts to new circumstances. Possible issues to be covered: Enabling and converging technologies The human and social context of technology Adaptation of jobs and working practices Inequalities and access Collaborative economy and societies Creativity and (digital) cultural heritage Lifestyles and social media Big data for societal challenges Cyber-physical systems Digital security, including security by design The internet of things and the internet of services The impact of robotics and the transition to the fully autonomous transport society. Contributions could be foreseen from SC4, SC6, SC7, LEIT ICT, LEIT NMBP and FET. Transition to a low carbon society We suggest a continued support of the existing three focus areas directly targeting energy, namely energy efficiency, competitive low-carbon energy, and smart and sustainable cities. These three areas are key to meet the European 2030 climate and energy targets, and the targets set in the Paris Agreement. Should it be agreed to reduce the number of focus areas, we would suggest that the three current focus areas are lumped together in one more general focus area i.e. Transition to a low carbon society, and that this focus area also covers issues such as energy, transport, climate, ICT, SSH. We consider it to be of vital importance to propose a focus area that will include Carbon Capture and Storage (CCS). Contribution to these activities could be foreseen from SC2, SC3, SC4, SC5 and SC6, LEIT ICT and LEIT NMBP. 9