Towards a Strong R&I Programme under the next Multiannual Financial Framework
Space for your subline.
Research and Innovation at the Heart of the European Economy
April 11, 2025
The EU is continuously falling behind in global competition and the innovation gap is further increasing between Europe and its competitors, as highlighted by the Draghi and Heitor reports. In face of a changing international order and new geopolitical challenges, R&I play a fundamental role as a driving force for a self-determined and economically strong Europe R&I must be at the heart of the European economic and technological agenda. Any upcoming R&I programme must be
(1) equipped with an increased budget of 200 billion Euro to address the many challenges Europe is facing,
(2) business and competitiveness-oriented,
(3) offering attractive conditions for sustained industry participation
(4) focusing on technologies and core areas in which Europe can cement its leading position.
By refocusing its collective efforts on this, Europe can close the innovation gap with global leaders, particularly in high technology. The Multiannual Financial Framework must prioritise R&I through higher, stable EU-R&I investments and leverage more private R&I capital and national public R&I investments to achieve the 3.0% target – long-term 3.5% of GDP
Establish a Standalone Budget for Research and Innovation
While a certain degree of flexibility in the EU budget is advisable, R&D projects, which are often based on a long-term perspective, should have certainty in their planning. It is therefore crucial that the budget for R&I under the next MFF is ringfenced Any upcoming R&I programme must include European Partnerships as focal points for cross-border precompetitive collaboration in dedicated research consortia. Funding tools must be linked along the development chain
Expand Public-Private-Partnerships (PPPs)
The aim of public-private partnerships under Horizon Europe is to address global challenges and priorities that require a critical mass of partners and resources as well as a long-term vision. Thanks to this cooperation in well-developed ecosystems, capacities and resources are shared and ideally utilised by many project participants.
Both1, the co-programmed partnerships as well as the Joint Undertakings have proven to be important platforms for prioritisation and innovation transfer and have proven to be successful examples of PPP collaborations. Sectoral PPPs which support the competitiveness of crucial industries are key instruments to co-design targeted R&I programmes for a transformation to a sustainable, clean and digital future in Europe These public-private success-models must be continued
However, PPPs must be made considerably more agile, less bureaucratic, and more industrydriven to ensure participation, focus on needs, acceptance, and investments of industrial companies as well as more involvement when defining the strategic orientation and direction of partnerships. They need to build upon the omnibus packages and reduce the administrative burdens of IKAA reporting and the time from proposal to grant Long-term commitments (esp. in Joint-Undertakings) of industrial companies are only possible when securing long-term public budget commitments
Align the R&I Budget with Competitiveness
Incentivising private investments in R&I requires reliable framework conditions such as those that have proven their worth in the EU Framework Programme for R&I “Horizon Europe” A simplification of the funding programme landscape within the framework of a European Competitiveness Fund is desirable. But it must enable European companies to prosper, research and innovate on their own terms. Longterm viability must also be ensured when focusing on core pillars, that should cover a broad range of sectors and cross-cutting industrial technologies Flexibility in the funding lines must go hand in hand with planning security, an independent structure and stable financial resources New flexibility must not lead to short-term reprioritisation. When designing R&I funding, the technology openness principle must be applied.
Simplify by Reducing Bureaucracy and Streamlining Processes
A rationalisation and better coordination of R&I funding programmes should be achieved without fragmentation of the various programmes. Authorisation processes must become faster and more transparent Flexibility in adapting to changing markets, streamlined approval processes, and accelerated commercialisation of emerging technologies by supporting projects with higher TRLs is needed.
Funding should define the project goals and desired outcomes but not the path to reach the desired targets. Industry participation in publicly funded European R&I projects shall be boosted by:
(1) Less administration and more industry-participation friendly rules and incentives
(2) Exploiting the potential of public-private partnerships and industry associations to co-design efficient and industry-friendly rules and regulations,
(3) Increasing flexibility and agility in project development,
(4) Ensuring that IP and exploitation rights are not limited to the EU,
(5) Ensuring access to research data strictly following the principle “as open as possible, as closed as necessary”,
(6) Keeping industry participation in publicly funded research projects and not require in-cash contributions from industrial beneficiaries
1 For reference see: European Partnerships in Horizon Europe: The European Partnership portfolio, European Commission, 2025.
Imprint
Bundesverband der Deutschen Industrie e.V. (BDI)
Breite Straße 29, 10178 Berlin www.bdi.eu
T: +49 30 2028-0
German Lobbyregister Number R000534
Editorial
Lukas Martin
Senior Manager Digitalisation and Innovation
T: +3227921017
L.Martin@bdi.eu
BDI Document number: D 2077