Expert Panel Proposes Comprehensive Reform of EU Research and Innovation Funding – Align Act Accelerate Report

The report outlines several recommendations, including establishing two independent councils to oversee research and innovation projects, drastically increasing the programme’s budget, and streamlining bureaucratic processes.

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Key to their vision is the creation of an Industrial Competitiveness and Technology Council and a European Societal Challenges Council, which would assume most of the upcoming Framework Programme, provisionally named FP10. These new bodies would function independently of the Commission, marking a significant shift in how EU research funding is managed.

In addition, the experts propose an ambitious budget increase, recommending a jump from the current €93.5 billion to €220 billion, to address Europe’s waning global competitiveness. The report highlights the need for military-civilian “dual-use” innovation, stronger global cooperation (including with China), and reduced Commission bureaucracy to enhance the efficiency of its research and innovation agencies.

These radical proposals, come at a time of growing discussions within the EU on overhauling its research and development (R&D) strategy. Some Commission officials are already contemplating even more dramatic changes, such as merging all R&I funds into a broader competitiveness fund in the next long-term EU budget for 2028–2034.

This expert panel, formed in December 2023 and comprising 15 experts from academia and industry, is expected to significantly influence the Commission’s proposal for FP10, which will be unveiled in mid-2025. Their suggestions also include testing some of these ideas in the final years of the current Horizon Europe programme.

Key Recommendations

1. Align R&I with EU Strategic Priorities
   The advisory group endorses integrating research and innovation policies with broader EU strategic goals, citing recent reports by Enrico Letta, Ursula von der Leyen, and Mario Draghi. The group emphasises establishing a Research and Innovation Union, advancing the Green Deal, and promoting disruptive innovation as key priorities.
2. Boost Europe’s Global Competitiveness
   Europe’s underinvestment in R&D is a central concern, with EU public and private RD&I spending at just 2.2% of GDP—far below the 3% target. The report argues for a robustly funded FP10 to reverse Europe’s declining competitiveness while stressing that EU funding cannot replace the lack of national investment.
3. Focus on Four Interconnected Areas
   The advisors recommend a budget of at least €220 billion for FP10 to support all high-quality proposals, far exceeding the €200 billion already requested by research advocates. They suggest concentrating funding on four areas: competitive excellence, industrial competitiveness, societal challenges, and fostering a strong R&I ecosystem.
4. Establish an Experimental Unit
   A proposed experimental unit within the Commission’s R&I department would test new funding methods and evaluation procedures, including those modeled on the US Advanced Research Projects Agencies (ARPAs). This unit would explore using generative AI to streamline grant processes and improve efficiency.
5. Strengthen Research Excellence
   The group recommends doubling the budget of the European Research Council (ERC) and significantly increasing funds for the European Innovation Council (EIC). These bodies, known for fostering cutting-edge research and innovation, should remain independent and free from political influence.
6. Create an Industrial Competitiveness Council
   Drawing lessons from the ERC and EIC, the experts propose an independent council to increase private sector engagement in the Framework Programme. This new body would focus on industrial competitiveness and involve high-level industry leaders in its governance.
7. Form a Societal Challenges Council
   A new council would oversee research in areas such as public health, biodiversity, and security to address societal issues not directly linked to industrial innovation. The body would include various experts from academia, policy, and industry.
8. Build a Strong EU R&I Ecosystem
   The panel calls for measures to stem the brain drain from Europe to the US by improving research infrastructure and career prospects. It also advocates consolidating “Widening” programmes to boost innovation in less-developed EU regions.
9. Radically Simplify Bureaucracy
   Another major recommendation is to simplify administrative processes. The report suggests a “trust first” system for grant applications, which would reduce red tape and reliance on external consultants, who currently absorb significant costs.
10. Leverage Public Procurement to Drive Innovation
    The experts also call for the EU to use public procurement to stimulate innovation, particularly in areas like decarbonisation, security, and healthcare. They recommend adopting models from initiatives like the US DARPA to support the creation of new technology markets.
11. Adopt a Pragmatic Approach to International Collaboration
    In light of geopolitical challenges, the report urges the EU to take a more nuanced approach to scientific cooperation with non-EU countries, particularly China and the US, avoiding unnecessary restrictions while maintaining security.
12. Embrace Dual-Use Technologies
    Finally, the group recommends incorporating military-civilian “dual-use” technologies into the Framework Programme, given their growing importance across various sectors. They advise against over-regulating this area, allowing for broader innovation potential.

While ambitious and redical, the report’s recommendations offer a roadmap for reshaping Europe’s research and innovation landscape in the coming years. Adopted, they could signal the most significant transformation in EU R&D policy since the Framework Programme’s inception in 1984.

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