Introductory text

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 173(3) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee^f1,

Acting in accordance with the ordinary legislative procedure^f2,

Whereas:

The Europe 2020 strategy for smart, sustainable and inclusive growth assigns a prominent role to the European Institute of Innovation and Technology ("the EIT") which contributes to a number of flagship initiatives.

During the period from 2014 to 2020 the EIT should contribute to the objectives of the "Horizon 2020 - The Framework Programme for Research and Innovation" established by Regulation (EU) No 1291/2013^f3 of the European Parliament and of the Council ("Horizon 2020") by integrating the knowledge triangle of higher education, research and innovation.

In order to ensure a coherent framework for participants in Horizon 2020, Regulation (EU) No 1290/2013 of the European Parliament and of the Council^f4 ('Rules for Participation') should apply to the EIT.

The rules concerning the management of intellectual property rights are defined in the Rules for Participation.

The rules concerning the association of third countries are defined in Horizon 2020.

The EIT should foster entrepreneurship in its higher education, research and innovation activities. In particular, it should promote excellent entrepreneurial education and support the creation of start-ups and spin-offs.

The EIT should directly engage with national and regional representatives and other stakeholders from across the innovation chain, generating beneficial effects on both sides. In order to render such dialogue and exchange more systematic, an EIT Stakeholder Forum should be established, bringing together the wider community of stakeholders around horizontal issues. The EIT should also carry out information and communication activities targeting relevant stakeholders.

The EIT should promote an appropriately balanced participation between the different actors from the knowledge triangle involved in the Knowledge and Innovation Communities ("KICs"). Furthermore, it should promote strong participation from the private sector, in particular micro-/small and medium-sized enterprises ("SMEs").

The scope of the EIT contribution to the KICs should be defined and the origins of the KICs’ financial resources clarified.

The composition of the EIT bodies should be simplified. The functioning of the EIT Governing Board should be streamlined and the respective roles and tasks of the Governing Board and the Director should be further clarified.

New KICs, including their priority fields and the organisation and timing of the selection process, should be launched on the basis of modalities defined in the Strategic Innovation Agenda following an open, transparent and competitive process.

The KICs should broaden their educational activities to enhance the skills base across the Union, by providing professional and other appropriate training courses.

Cooperation on the organisation of monitoring and evaluations of the KICs between the Commission and the EIT is required in order to ensure coherence with the overall Union-level monitoring and evaluation system. In particular, there should be clear principles for monitoring the KICs and the EIT.

The KICs should seek synergies with relevant Union, national and regional initiatives.

In order to ensure broader participation of organisations from different Members States in the KICs, partner organisations should be established in at least three different Member States.

The EIT and the KICs should develop outreach activities and disseminate best practices, including through the Regional Innovation Scheme.

The criteria and procedures for the financing, monitoring and evaluation of the activities of the KICs should be adopted by the EIT prior to launching the KIC selection process.

The EIT Triennial Work Programme should take into account the Commission’s opinion concerning the EIT’s specific objectives, as defined in Horizon 2020, and its complementarities with Union policies and instruments.

The EIT, being under Horizon 2020, will be part of the mainstreaming of climate change expenditure as defined in Horizon 2020.

The evaluation of the EIT should provide timely input for the evaluation of Horizon 2020 in 2017 and 2023.

The Commission should strengthen its role in monitoring the implementation of specific aspects of EIT activities.

This Regulation lays down a financial envelope for the entire duration of Horizon 2020 which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management^f5, for the European Parliament and the Council during the annual budgetary procedure. The financial contribution for the EIT should be provided from Horizon 2020.

Contrary to initial expectations, the EIT Foundation will not receive a direct contribution from the Union budget, and the Union discharge procedure should therefore not apply to it.

For reasons of clarity, the Annex to Regulation (EC) No 294/2008 of the European Parliament and of the Council^f6 should be replaced by a new Annex.

Regulation (EC) No 294/2008 should therefore be amended accordingly,

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