01/10/2024 – 40 Years of EU Research Funding: Lessons Learned and the Road Ahead

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Editorial: 40 Years of EU Research Funding: Lessons Learned and the Road Ahead

As the European Union celebrates 40 years of Research and Innovation (R&I) framework programmes, I thought this would be an opportune moment to reflect on this remarkable journey. From the launch of the First Framework Programme (FP1) in 1984 to the comprehensive and ambitious Horizon Europe, these programmes have shaped the landscape of European research, driving both fundamental science and innovation. However, as we look forward to FP10, we must also critically examine the lessons of the past and ask: What are the unresolved challenges, and where do we go from here?

From Industry-Focused Beginnings to Societal Impact: The Evolution of the Framework Programmes

The EU’s Framework Programmes began with FP1 (1984-1987), which had a modest budget of €3.75 billion and was focused squarely on industrial competitiveness. At the time, Europe was grappling with technological advancements in the US and Japan, and the EU saw a need to coordinate industrial research across Member States. FP1 primarily supported sectors like telecommunications, energy, and information technology, aiming to bring together national industries in joint efforts to boost European technological capabilities.

However, the industry-centric approach started to expand in FP3 (1990-1994), with the inclusion of broader societal issues like environmental protection and health research. This was a recognition that European research could address not only industry-specific challenges but also pressing global issues. By FP5 (1998-2002), societal challenges were fully embedded in the programme’s structure, marking a decisive shift in focus. Programmes became more thematic, focusing on quality of life, sustainable development, and energy, all while encouraging collaboration across borders.

FP7 and Horizon 2020: Integrating Science and Innovation

The Seventh Framework Programme (FP7), launched in 2007 with a budget of €50.5 billion, marked a true moment of change. FP7 introduced the European Research Council (ERC), an institution dedicated to supporting fundamental, curiosity-driven research. This was the EU’s first substantial commitment to blue-sky research, which has since resulted in breakthroughs across knowledge domains. The ERC allowed Europe to compete with global research leaders, offering long-term funding for high-risk, high-reward research.

At the same time, FP7 introduced Joint Technology Initiatives (JTIs) and Public-Private Partnerships (PPPs), emphasizing collaboration between academia, industry, and governments. This integration of fundamental science and industrial application was further deepened in Horizon 2020 (H2020), which ran from 2014 to 2020 with a record budget of €77 billion. H2020 sought to bridge the gap between fundamental research and market-driven innovation, with its three pillars focusing on Excellent Science, Industrial Leadership, and Societal Challenges.

Horizon 2020 was also marked by its mission-oriented approach. For the first time, the EU attempted to unify its research efforts under one framework, addressing societal challenges such as climate change, energy security, and public health. The introduction of the European Innovation Council (EIC) aimed to support disruptive innovations, particularly those from startups and SMEs working on deep tech. However, critics argued that while Horizon 2020 achieved significant milestones, the balance between basic research and applied innovation remained a difficult challenge.

The Rise of Research and Technology Infrastructures: ESFRI and Beyond

Throughout these Framework Programmes, another critical component that gained prominence was the development of research infrastructures. In 2002, the European Strategy Forum on Research Infrastructures (ESFRI) was established to identify and support world-class research infrastructures across Europe. ESFRI played a key role in enhancing cross-border collaboration and building large-scale facilities that individual countries could not afford alone. It then developed the concept to include distributed research infrastructures, with the goal of better mobilising capacity across the continent (and beyond), avoid duplication of efforts and fortify an important pillar of an integrated European Research Area.

At the same time, the focus on technology infrastructures also grew, particularly under Horizon 2020 and Horizon Europe. These infrastructures provide industry and researchers with the facilities to test, validate, and scale up innovations. The development of technology infrastructures is critical to the EU’s aim of accelerating technology transfer from laboratories to market. The most recent developments point in the direction of an ecosystem approach towards the functioning of the ERA and a higher degree of collaboration and complementarity between different types of infrastructures. This is not foreign to the increased directionality and to a societal-challenge and value-chain focused intervention.

Multilevel Funding and Synergies: The Role of National and EU-Level Collaboration

One of the most significant developments over the past four decades has been the increasing alignment between EU-level funding and national and sub-national research programmes. In the early years, there was little coordination between national governments and EU-level research funding, leading to inefficiencies and fragmented efforts. However, from FP7 onwards, there has been a growing effort to align national research agendas with EU priorities.

The Common Provisions Regulation (2020), which governs the use of cohesion funds and Structural Funds, further integrated EU and national research funding mechanisms. Member States were encouraged to align their Smart Specialisation Strategies (S3) with the EU’s broader research and innovation goals, creating synergies between regional and European levels. This alignment has streamlined research funding and allowed for a more coherent research ecosystem that can address both local and EU-wide challenges.

However, despite these efforts, questions remain about the true extent of these synergies. While the EU has made significant advances in aligning its research and innovation programmes with national policies, funding disparities between Member States persist, particularly in widening countries. Ensuring that these countries can benefit from the same level of resources and access as their more research-intensive counterparts remains an unresolved issue. While there have been recent calls from ministries beneficiaries of widening to keep the programme, I think the key for success lies in deepening, not widening. The main rationale for deepening is to make sure that the existing EU-level funding works as a multiplier of investment in R&I at national and regional levels. Not only are the widening countries considered in this group because their investment in R&I is very low as a percentage of GDP, but the urgency in deepening is also related to the need for functional and practical synergies of funding instruments, particularly in regions where the majority of the investment in this sector comes from EU funds. Structural change is not achievable by perpetuating this situation.

Key Lessons

Looking back on 40 years of EU research funding, several key lessons emerge. I will focus on 3 of those learnings:

Balance is crucial: The most successful Framework Programmes have been those that balance fundamental research and applied innovation. FP10 must continue this balance, ensuring that blue-sky research remains well-funded while also pushing for innovation that directly addresses societal needs.

Collaboration and synergies: The success of the Framework Programmes has relied on fostering cross-border collaboration and aligning EU, national, and regional funding. FP10 must take this to the next level, ensuring that funding mechanisms are integrated and complementary at all levels, and that regions are not left behind.

Sustaining infrastructures: The development of research and technology infrastructures through initiatives like ESFRI – European Strategy Forum on Research Infrastructureshas been a key driver of European leadership in science. FP10 must ensure that these infrastructures are not only sustained but also expanded.

The Road Ahead

The next Framework Programme is expected to reflect the EU’s evolving policy priorities, including the Green Deal, digital transformation, and technological sovereignty. However, FP10 also presents an opportunity to address long-standing challenges, from regional disparities in research funding to the tension between exploratory research and market-driven innovation. The lessons of the past are clear: balance, collaboration, and infrastructure are the keys to Europe’s continued leadership in research and innovation. The task now is to ensure that FP10 reflects these priorities and sets Europe on a path to success for the next 40 years.

Ricardo Migueis

Head of INESC Brussels HUB

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