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Why CIP

Overview

The three specific programmes under CIP

Entrepreneurship and Innovation Programme

ICT Policy Support Programme

Intelligent Energy Programme

New actions in CIP

Links with other EU programmes and objectives

Further information

 

 

 Why CIP

We need to boost entrepreneurship in EUROPE

The EU entrepreneurial spirit remains weak: only 47% of Europeans say that they will prefer self-employment to being employed. Europe lags behind the US in 10 out of 11 innovation indicators and within the EU significant national differences are also observed.
 

Insufficient innovation is a major cause of Europe’s disappointing growth performance. Innovation is about bringing ideas to market and turning them into Euros. It is about firms innovating in their technology, design, management, marketing, logistical and organisation. CIP actions will support all of these. They will help firms bring knowledge to bear on their economic activity.
 

The new Competitiveness and Innovation framework Programme (CIP) is proposed to become one of the main Community measures contributing to generating economic growth and creating more jobs. It will bring together into a coherent framework specific Community support programmes and relevant parts of other Community programmes in the fields most critical to boosting European productivity, innovation capacity and sustainable growth, whilst also addressing complementary environmental concerns. The CIP will complement rather than duplicate the other relevant actions, and those conducted by Member States.

 

 

 


OVERVIEW

 

CIP brings together several existing EU activities that support competitiveness and innovation. As such it will be more visible and comprehensible for the public. It will also ensure continuity of programmes with a proven and successful track record. Many of the components of CIP are familiar.
 

The Three specific programmes under CIP

 

Entrepreneurship and Innovation programme
ICT Policy Support Programme
Intelligent Energy Programme

 

Each of these programmes will pursue its own objectives, benefit its specific beneficiaries and answer to its own stakeholders. Each specific programme will establish its annual work programmes, which in turn will be submitted to a specific management committee composed of CIP participating countries’ authorities.

Entrepreneurship and Innovation Programme :

This programme will bring together activities that were previously dispersed over the Multiannual Programme for Enterprise and Entrepreneurship (MAP), activities for Industrial Competitiveness and elements of the existing LIFE-Environment programme. CIP will also build on innovation activities that have been successfully tested and developed under previous Research Framework Programmes.

It aims to help enterprises innovate by providing access to finance: sharing risks and reward with private equity investors and providing counter or co-guarantees to national guarantee schemes.

Through this programme, SMEs will also have simple, clear and efficient access to the EU – its legislation, programmes and opportunities via the business support networks, including a separate IPR helpdesk.

The conditions for innovation will be improved through better policies based on exchanges of best practices between member states and evidence (innovation trendchart, innobarometer, innovation scoreboard) targeted to:

improving the regulatory environment for enterprise and innovation

improving access to finance for SMEs in their start-up and growth phases and

helping SMEs navigate the single market, and channel feedback on businesses concerns to improve EU policy making.

ICT Policy Support Programme :

This programme will build on the aims of the e-TEN, Modinis and e-Content programmes in line with the new integrated strategy i2010 - European Information Society 2010.

The ICT programme will:

stimulate the new converging markets for electronic networks, media content and digital technologies

test solutions to the bottlenecks that delay wide European deployment of electronic services

support the modernisation of public sector services that will raise productivity and improve services.

Actions under the ICT-policy support programme will

underpin regulatory and research actions of the Commission to stimulate emerging digital economy based on the convergence between network services, media content and new electronic devices

provide a bridge between research investment and wide adoption, by providing a testing ground for pan-European electronic services in both the public and private sectors

reinforce European cultural and linguistic identities by support for the production and distribution of European digital content

assist the development of an open and inclusive European Information Society through stimulating innovative approaches to inclusion, quality of life and public services.

Intelligent Energy-Europe Programme :

The Intelligent Energy-Europe Programme will encourage the wider uptake of new and renewable energies and improve energy efficiency, and shall foster compliance with our energy regulatory framework. The programme aims at accelerating action in relation to the agreed EU strategy and targets in the field of sustainable energy, increasing the share of renewable energy and further reducing our final energy consumption. It includes actions to:

increase the uptake and demand for energy efficiency

to promote renewable energy sources and energy diversification, and

to stimulate the diversification of fuels and energy efficiency in transport.

The programme will also help to increase the level of investment in new and best performing technologies and bridge the gap between the successful demonstration of innovative technologies and their effective introduction to the market to achieve mass deployment. Furthermore, it will strengthen the administrative capacity both to develop strategies and policies and to implement existing regulations.


NEW ACTIONS in CIP

 

CIP will add a new risk capital instrument (the High Growth and Innovative Company Facility - “GIF2”) to the existing instrument fostering SME start-ups. This is aimed specifically at innovative and high growth SMEs, which in Europe face a lack of capital at their most crucial growth phase. GIF2 will leverage private capital to create a bridge over this “valley of death” (as it has become known) for companies seeking between € 200,000 € 2.5 million. A significant proportion of resources will be dedicated to supporting SMEs developing or using environmental technologies. This is new and innovative in its non grant-based approach; nevertheless it will follow the successful model of the existing market-based EU financial instruments in its delivery via the European Investment Fund and professional venture capital funds including funds set up by business angels.
 

An instrument for securitisation of bank loan portfolios will free up further SME loan capacity amongst smaller and regional banks, which are the typical interface for family businesses. This is important to develop the availability of proximity financing for more traditional small businesses.
 

Euro Info Centre and Innovation Relay Centre networks will be developed to offer one-stop-shops for services in support of business and innovation. Their role in providing feedback for developing EU policy will be enhanced, as will their role in improving SME access to EU programmes in particular the framework programmes for research.
 

A scheme to support the cooperation between national and regional programmes for business innovation (BISS) will increase the opportunities for SMEs to benefit from creativity, know-how and market opportunities in other EU Member States, without having to go through the EU administrative processes (pilot project). This new scheme will allow tailoring trans-national programmes to specific regional or sectoral technology and innovation needs. It aims to give an incentive to regions to support investment in innovation by enterprises, which is essential for more competitiveness in a knowledge-based economy.
 

The Intelligent Energy Programme will place its emphasis on the mass replication of new and renewable energy sources and energy efficient technology, and in the faster implementation of the regulatory framework in the sustainable energy field.
 

 In order to help Member States drive forward administrative and economic reforms, our “open method” policy development tools will be complemented through twinning activities helping Member States and regions to learn from examples of good practice.
 

LINKS WITH OTHER EU PROGRAMMES AND OBJECTIVES

 

The CIP is one of a series of flagship programmes that will define the Barroso Commission’s actions from 2007. They will work in parallel and complement each other. CIP will complement major initiatives such as the cohesion activities, the research activities of the framework programme for research, and the EU programme for lifelong learning.

 

Some examples:

CIP will help SMEs access the 7th Framework Programme for Research and Technological Development and will leverage venture capital for innovative enterprises to help them bring their research results to market

CIP will identify and analyse examples of excellence which can be adapted and replicated in order to make regional interventions more effective in meeting our cohesion goals

CIP will help meet environmental goals by promoting sustainable approaches
Details About CIP

 

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