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Speakers corner 13 November 2024

The Heitor report: rethinking EU R&I funding to boost competitiveness


EERA's November 2024 newsletter main article

On 16 October, the European Commission’s expert group responsible for the interim evaluation of Framework Programme 9 (FP9), known also as Horizon Europe (HEU), published a report outlining the trajectory for HEU’s remaining years and offering a vision for the next Framework Programme (FP10). Chaired by Manuel Heitor, former Portuguese Minister of Science, Technology, and Higher Education, the report builds on the momentum generated by three recent key publications: Ursula von der Leyen’s Political Guidelines, and the Letta and Draghi reports, all highlighting the urgent need to enhance EU competitiveness by prioritising research and innovation (R&I). Heitor’s report specifically describes R&I as a “game changer,” vital to Europe’s continued relevance and resilience in the current context. This focus was further underscored on 5 November, when the European Parliament confirmed Ekaterina Zaharieva as the new Commissioner for Startups, Research, and Innovation, reaffirming the political significance of R&I as central to strengthening competitiveness for the upcoming EU institutional term.

Titled “Align, Act, Accelerate: Research, Technology, and Innovation to Boost European Competitiveness”, the Heitor report underscores the global pressures created by disruptive technologies, worsening climate change, and intensifying international competition. It calls for harnessing the political momentum around R&I’s critical role in reinforcing EU competitiveness to recalibrate framework programmes for more effective responses to these pressing challenges. In this light, it provides a comprehensive overview of the hurdles to overcome and sets forth an array of potential solutions.

In outlining the obstacles, the analysis primarily examines the EU’s standing relative to key systemic competitors, particularly the US and China. It highlights that China’s R&I expenditure surged by 3,299% between 1996 and 2020, with R&I spending as a share of GDP rising from 0.94% in 2001 to 2.43% in 2021, far outpacing the EU, whose share increased only from 1.70% to 2.16% over the same period. Alarmingly, the report notes that more US companies are exploiting European Research Council (ERC)-funded discoveries than EU firms and further indicates that, while the EU has attracted young talent, stagnation in R&I job quality over the past 20 years has contributed to a brain drain, particularly to the US. Additionally, the evaluation highlights the EU’s disproportionate focus on less complex technologies, which weakens its competitive position, particularly in relation to the United States. The evaluation also points to a concerning decline in the EU’s share of global scientific publications, which dropped from 25.5% in 2000 to 18.1% in 2022, alongside a decrease in EU patent applications.

To address these issues, the study outlines four interconnected action areas: competitive excellence, industrial competitiveness, societal challenges, and a resilient R&I ecosystem. Key recommendations include increasing the FP10 budget to €220 billion, more than double the current FP9 budget of €95.5 billion, allowing the EU to fund all outstanding proposals and match the investment levels of global rivals. The report also advocates for simplifying the R&I landscape with a “trust first, evaluate later” approach, enhancing support for the European Innovation Council (EIC), the European Research Council (ERC), and the Marie Skłodowska-Curie Actions (MSCA) to foster pioneering R&I and support young researchers' careers. Furthermore, it suggests discontinuing programmes such as EU Innovation Ecosystems (EIE) and the European Institute of Innovation & Technology (EIT) that, according to a series of interim evaluations, have been assessed as underperforming, redundant, or obsolete, while streamlining initiatives to better integrate newer EU member states into the research programme.

The report also proposes establishing an Industrial Competitiveness and Technology Council, alongside a Societal Challenges Council, as essential components of the next Framework Programme. The former would focus on bolstering industrial competitiveness and strengthening private-sector partnerships, while the latter would address societal challenges such as climate change, biodiversity loss, and planetary boundaries, also fostering collaboration with philanthropy and civil society. Moreover, it calls for an R&I ecosystem that attracts top talent, increased investment in infrastructure, strengthened university alliances, and more effective use of innovation procurement while also stressing the importance of dual-use research with both civilian and defence applications. Notably, the report advocates for a pragmatic approach to international collaboration by underscoring that countries may act as partners, competitors, or systemic rivals depending on the research domain. For example, despite political rivalries, it highlights a significant increase in scientific collaboration between the US and China, with 24% of US science and engineering publications in 2022 involving a Chinese co-author.

The expert group’s recommendations will now inform the European Commission’s strategy for the remaining years of Horizon Europe and for the planning of FP10, for which an initial proposal is due by mid-2025, followed by negotiations with EU co-legislators ahead of its launch in 2028. This process unfolds against a backdrop of intense political developments, including intensified trade tensions with China following the EU’s recent increase in tariffs on imported electric vehicles, and uncertainties surrounding Donald Trump’s second term as US President.  

In this context, the political and policy developments within the EU over the past few months have clearly established R&I as a fundamental lever to boost competitiveness and address strategic challenges, positioning it at the heart of the EU’s agenda for the upcoming institutional term. This creates a key opportunity for the research community gathered in EERA to further actively contribute to shaping the future of the European R&I landscape. However, it is now crucial to capitalise on this momentum and ensure it is not allowed to fade, transforming potential into tangible actions for the benefit of Europe’s long-term sustainable competitiveness. This appeal aligns closely with the insights and recommendations outlined in the upcoming EERA report, Increasing EU Competitiveness and Strategic Autonomy: The central role of low-carbon energy research & innovation, further emphasising the role of R&I as a cornerstone for developing alternatives that respond, and adapt swiftly, to an increasingly challenging context and its evolving needs.