Competitiveness and Innovation Framework Programme (CIP) (2007-2013)

Reflecting the objectives of the Lisbon strategy, the Competitiveness and Innovation Framework Programme CIP supports measures to strengthen competitiveness and innovation capacity in the European Union (EU) for the period 2007-2013. It particularly encourages the use of information technologies, environmental technologies and renewable energy sources.

ACT

Decision 1639/2006/EC of the European Parliament and of the Council of 24 October 2006 establishing a Competitiveness and Innovation Framework Programme (2007-2013) [See amending act(s)].

SUMMARY

The Competitiveness and Innovation Framework Programme (CIP) proposes a coherent framework to improve competitiveness * and innovation capacity * in the European Union (EU). The actions it supports encourage the development of a knowledge society and sustainable development based on balanced economic growth.

The framework programme incorporates specific Community support programmes, new actions and synergies with other programmes, thus meeting the objectives of the renewed Lisbon Strategy for simpler, more visible and better targeted Community action.

Specific programmes

To take account of the diversity of its objectives and ensure that these are visible, the CIP is made up of three specific subprogrammes. The interests of small and medium-sized enterprises (SMEs) and eco-innovation are cross-cutting priorities reflected throughout the framework programme.

The Entrepreneurship and Innovation Programme brings together activities to promote entrepreneurship, industrial competitiveness and innovation. It specifically targets SMEs *, from hi-tech “gazelles” (companies with high growth potential) to the traditional micro-businesses and family firms which make up a large majority of European enterprises. It facilitates SMEs’ access to finance and investment during their start-up and growth phase. It also gives businesses access to information and advice on the functioning and opportunities of the internal market, as well as to information on Community legislation applying to them and on future legislation so that they can prepare to adapt in a cost-effective way. In this context, the Enterprise Europe Network plays an important role. The programme also makes provision for the exchange of best practices between Member States in order to create a better regulatory and administrative environment for business and innovation. Finally, it backs the promotion of eco-innovation * by encouraging efforts to tap the full potential of environmental technologies.
The objective of the ICT Policy Support Programme is to promote the adoption and use of information and communication technologies (ICT), the backbone of the knowledge economy. The uptake of ICTs by both the private and public sectors helps to stimulate European innovation performance and competitiveness. The programme forms part of the Digital Agenda for Europe and incorporates the instruments previously financed by the eTen, eContent and Modinis programmes.
The Intelligent Energy – Europe Programme helps speed up efforts to achieve the objectives in the field of sustainable energy. It supports improvements in energy efficiency, the adoption of new and renewable energy sources, greater market penetration for these energy sources, energy and fuel diversification, an increase in the share of renewable energy (the EU has set itself the objective of raising the share of renewable energy in gross domestic consumption to 12 % by 2010) and a reduction in final energy consumption. Particular attention is paid in this context to the transport sector. The programme follows up the Intelligent Energy – Europe (2003-2006) programme, which expired on 31 December 2006.

Implementation

Implementation of the CIP relies on several instruments (financial instruments, projects, networks, analyses, etc.), which can be applied in each of the specific programmes. This common “toolbox” for the different programmes helps to simplify the way the framework programme works for its users. The CIP is not just based on tried and tested measures, but also introduces new instruments.

Several Community financial instruments are involved in business support. The High Growth and Innovative SME Facility (GIF) promotes the supply of seed and early-stage capital for SMEs for their start-up, and a new feature introduced by the CIP is the provision of “follow-on” capital during their growth phase. The SME Guarantee Facility, for its part, facilitates access for SMEs to financing (loans or leasing), microcredit and equity or quasi-equity. This facility also includes a new securitisation instrument for bank loan portfolios to help mobilise additional loan financing for SMEs.

The CIP strengthens and develops business and innovation support services which disseminate information to businesses on Community policies, legislation and programmes, particularly concerning the internal market and framework research programmes. These services also offer businesses information on innovation, technology and knowledge transfer and provide feedback from them for impact assessments and policy development.

A new mechanism fosters cooperation among national and regional programmes to promote business innovation, thus providing businesses with other ways of benefiting from ideas, know-how and market opportunities in other European regions.

The framework programme also supports pilot market replication projects. These aim to promote the effective marketing and economic exploitation of innovative or eco-innovative technologies and products which have already been technically demonstrated with success but have not yet penetrated the market to a significant extent. These projects are implemented through public-private partnerships.

The Intelligent Energy Executive Agency is responsible for the implementation of action under the “Intelligent Energy – Europe” programme and action under the “Enterprise and Innovation” programme.

In order to optimise the flow of knowledge and ideas, the strategic development of Community policies must continue on the basis of the open method of coordination and be backed up by new twinning actions to help Member States and regions exploit examples of best practice.

Consistency with other Community policies

The CIP links up with other key Community initiatives. Their different activities are implemented in parallel and complement each other. The framework programme is thus involved in achieving Community objectives in the fields of research, cohesion, the environment, education and training.

The CIP thus facilitates access to finance for businesses whose activities relate to innovation, research and development. It also helps businesses get involved in the 7th Framework Programme for Research and Technological Development (FP7-RTD).

Budget

The framework programme will run for seven years, from 1 January 2007 to 31 December 2013. It has been allocated a budget of €3.621 billion for that period.

According to an indicative breakdown, 60 % of the overall budget (€2.170 billion) is allocated to the Entrepreneurship and Innovation Programme. One fifth of this (€430 million) is earmarked for promoting eco-innovation. 20 % of the overall budget (€730 million) has been allocated to the ICT Policy Support Programme, and the last 20 % (€730 million) is for the Intelligent Energy – Europe Programme.

Costs that are eligible under several instruments cannot be funded twice.

Monitoring and assessment

The Commission carries out regular monitoring of the implementation of the framework-programme and the specific programmes which come under it. Each year it drafts a report to provide an update of the activities supported using indicators concerning the financial implementation, the results achieved and, where possible, the impact of the actions implemented.

The framework-programme and the specific programmes which come under it are subject to an intermediary assessment and a final assessment. These assessments examine aspects such as the relevance, the coherence and synergies, effectiveness, the efficient use of resources, and the sustainability, etc. of the actions. Furthermore, the final assessment verifies to what extent the framework-programme as a whole, and each of its specific individual programmes, have achieved their objectives.

Context

The Lisbon Process, whose objective is to make Europe the most competitive and dynamic knowledge-based economy in the world, has naturally made competitiveness one of the EU’s key political concerns. In order to ensure greater coherence between the different programmes involved in the Community’s efforts to enhance competitiveness, and in response to the objectives set by the renewed Lisbon Strategy, the European Commission is proposing a framework programme for innovation and competitiveness.

Key terms used in the act

Small and medium-sized enterprises (SMEs):
Competitiveness: the capacity of enterprises to adapt quickly to change, exploit their innovation potential and develop high-quality products.
Innovation: renewal and extension of the range of products and services, introduction of new design, production, supply and distribution methods, introduction of changes to management methods, work organisation and employees’ terms and conditions of employment and qualifications.
Eco-innovation: any form of innovation intended to achieve the objective of sustainable environmentally-friendly development by reducing the impact on the environment or by using natural resources, especially energy, in a more efficient and responsible manner.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Decision 1639/2006/EC	29.11.2006	-	OJ L 310 of 9.11.2006

Amending Act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EU) No. 670/2012	18.8.2012	-	OJ L 204 of 31.7.2012

Successive amendments and corrections to Decision 1639/2006/EC have been incorporated in the basic text. This consolidated version is for reference purpose only.

RELATED ACTS

Proposal for a Regulation of the European Parliament and of the Council establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014 - 2020) [COM(2011) 834 final – Not published in the Official Journal].Codecision procedure (2011/0394/COD)

Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Evaluations of the Competitiveness and Innovation Framework Programme [COM(2013) 2 final – Not published in the Official Journal].

See also