Report: Agreement on new €3.6 billion Competitiveness and Innovation Programme (CIP) - EC Press Release, 1 June 2006

Website: ec.europa.eu/enterprise/enterprise_policy/cip/index_en.htm

Between 2007 and 2013, some 350 000 SMEs will receive EU support to invest in all forms of innovation and growth. On 1 June 2006, the European Parliament adopted the first "Competitiveness and Innovation Framework Programme" (CIP). It will support actions that develop the capacity of enterprise and industry to innovate, with a budget of € 3.6 billion in the next seven years. It will also boost energy efficiency and renewable energy sources, environmental technologies and a wider take-up and innovative use of information and communication technology (ICT). The Austrian Presidency has signalled that the Council is also likely to support the CIP programme making it the first to be adopted in a series of programmes under the new financial perspectives. It represents a coherent and integrated response to the Lisbon objectives of growth and jobs from 2007-2013.

Jorgo Chatzimarkis, Rapporteur for the CIP of the EP committee on Industry, Research and Energy, said: "Bringing CIP to take-off in a first reading agreement is the sunrise for innovation in Europe. CIP includes new ideas, less administrative burden, a broader scope of innovation and meanwhile manages to include the existing and well running programme parts."

Commission Vice-President Gόnter Verheugen, responsible for enterprise and industry policy, said: "The CIP brings together a range of European actions into a single comprehensive programme, We have a clear objective: increasing European competitiveness and innovation. This is a direct response to the call of the Lisbon mid-term review for simpler, more visible and more targeted EU action to boost growth and jobs."

The CIP has the following objectives:

• to foster the competitiveness of enterprises, in particular SMEs;
• to promote all forms of innovation including eco-innovation;
• to accelerate the development of a sustainable, competitive, innovative and inclusive Information Society;
• to promote energy efficiency and new and renewable energy sources in all sectors including transport.

Whilst eco-innovation will be a transversal theme of the whole programme, CIP is composed of three specific programmes:

1. Start up and growth of SMEs: the "Entrepreneurship and Innovation Programme" with a budget of € 2.17 billion including € 430 million to promote eco-innovation, will facilitate SMEs access to finance, better integrate the existing networks of business support services (EuroInfoCentres and Innovation Relay Centres) and support innovation activities (INNOVA, Pro-Inno etc). More than € 1 billion will be devoted to boosting the highly successful financial instruments managed by the European Investment Fund (EIF), which co-invest in venture capital funds (covering early stage and expansion stage), and provide co-guarantees on loans.
2. Information and communication technologies: the "ICT Policy Support Programme", with a budget of € 730 million, will contribute to competitiveness, growth and jobs through stimulating a wider adoption and more efficient take up and better use of ICT. In particular, it will include support for pilot actions using innovative ICT-based services of public interest, for the development of digital content and for enhancing the security of, and trust and confidence in, ICT and its applications.
3. Increased use of renewable energy and reduced energy consumption: the "Intelligent Energy-Europe Programme" with a budget of € 730 million will support energy efficiency, new and renewable energy sources, and technological solutions to reduce greenhouse gas emissions caused by the transport sector.

Studies have shown the high added value in EU support for loan guarantees, with each euro from the EU budget resulting in a loan volume of € 72. In average every Venture Capital backed company maintains or creates more than 50 jobs. Success stories such as Skype Technologies SA have drawn attention to the impact of EU support for venture capital.

To find similar reports, click on a keyword below:
Competitiveness and Innovation Framework Programme 2007-2013 : Energy Efficiency : Intelligent Energy - Europe 2003-2006 : Intelligent Energy - Europe 2007-2013 : Renewable Energy Sources & Systems : Sustainable Transport

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