Mobilising private and public investment for recovery and long term structural change: developing Public Private Partnerships

The Seventh Framework Programme for Research introduced a new type of European public-private partnership at programme level: the Joint Technology Initiative (JTI) based on Article 171 of the EC Treaty. This new instrument was created to promote European research in fields where traditional instruments are not sufficient.

The experience of the five existing JTIs as they become autonomous and fully operational will enlighten the approach to creating further research PPPs.

PPPs in the research field are oriented towards coordinating public and private investment into generating new knowledge and technological breakthroughs. The outputs are therefore less predictable and tangible than for the procurement of infrastructure and services, but potentially enormous.

These JTIs will soon become operationally autonomous and the new instrument responds to a need that the industrial research community has highlighted. At the same time, the partners express the view that the instrument could be implemented more effectively if the set-up and operational procedures were simplified and the legal and administrative framework better tailored to PPPs operating close to the market.

The Commission therefore intends to explore alternative models that could lead to a more streamlined process for setting up and implementing public-private partnerships in European research.

The Commission will consider all options in reviewing the legal framework and the financial rules.

Moreover, contributions from the main EU research and innovation programmes (FP7, CIP) directly to PPPs can only be made through grants or public tenders. This is a limitation where the most efficient form of cooperation would be an investment. To improve investment in innovation, the Commission will explore options to allow PPPs to make investment decisions that include Community funds.

Address the specific challenges of JTIs and financing for innovation by

• Moving the current JTIs rapidly to autonomy and examining the lessons learnt, while at the same time exploring options for streamlining the legal and administrative framework applicable to JTIs
• Taking a strategic perspective with JTI leaders and other stakeholders to identify what the specific obstacles are and how they can best be addressed. A report including policy recommendations will be presented in the coming months.
• Working with the EIB group and other stakeholders to see how the financial instruments could be strengthened in order to improve finance for innovation.