Competitiveness and Innovation Framework Programme

Competitiveness and Innovation Framework Programme
Name	Competitiveness and Innovation Framework Programme
Abbreviation	CIP
Established	2007
Dissolved	2013
Region	European Union
Budget	€3.6 billion
Administered by	European Commission

Competitiveness and Innovation Framework Programme

The Competitiveness and Innovation Framework Programme was an instrument of the European Union designed to support enterprise competitiveness, innovation, and information society adoption across member states between 2007 and 2013. It coordinated actions among institutions such as the European Commission, European Investment Bank, European Parliament, Council of the European Union, and national agencies to complement initiatives like the Framework Programme (EU) and the Cohesion Policy.

Overview

CIP built on precedents including the Multiannual Financial Framework (2007–2013), the Lisbon Strategy, the Bologna Process indirectly through skills, and complementary measures to align with the Europe 2020 strategy. It engaged actors such as the European Small Business Act, Organisation for Economic Co-operation and Development, World Bank, International Monetary Fund, and regional entities like the Committee of the Regions and the European Committee for Standardization. Operational links extended to programs and bodies including EUREKA, the European Research Area, Eurostat, European Investment Fund, and national promotional banks such as KfW and BNP Paribas Fortis.

Objectives and Scope

CIP aimed to foster small and medium-sized enterprises (SMEs), stimulate entrepreneurship networks such as Enterprise Europe Network, promote energy efficiency through ties with International Energy Agency agendas, and accelerate information and communication technologies uptake with reference to actors like Cisco Systems, IBM, and Microsoft. It sought to improve market conditions via standards interactions with International Organization for Standardization, support smart growth resonant with European Central Bank monetary policies, and assist competitiveness in sectors resembling automotive industry, telecommunications, and renewable energy clusters around firms like Siemens, Renault, Nokia, and Vestas.

Program Structure and Components

CIP comprised three main strands tied administratively to directorates such as the DG Enterprise and Industry and DG Information Society and Media: the Financial Instruments strand implemented in cooperation with the European Investment Bank and European Investment Fund; the Entrepreneurship and Innovation Programme connecting to European Business Angels Network and InnovFin-style credit lines; and the Information and Communication Technologies Policy Support Programme interfacing with stakeholders like ETSI, ITU, SAP, and Google. Complementary actions involved networks such as European Cluster Observatory, Eurochambres, BusinessEurope, and thematic partnerships with research centers like Fraunhofer Society, CNRS, and Max Planck Society.

Funding and Budget Allocation

CIP operated within the EU budget framework, allocating approximately €3.6 billion distributed across instruments including grants, guarantees, and equity-type investments administered with the EIB and EIF. Funds supported initiatives in member states, candidate countries such as Turkey and Croatia, and associated countries like Norway and Iceland, while coordinating with regional funds from European Regional Development Fund and national programmes implemented by agencies including Enterprise Ireland, Bpifrance, CDP (Cassa Depositi e Prestiti), and Scottish Enterprise. Budget lines targeted SME access to finance, innovation support similar to Marco Polo Programme logistics pilots, and ICT policy support linking to projects by Ericsson, Philips, and Atos.

Implementation and Governance

Governance involved the European Commission units, an advisory High Level Group on Competitiveness and Growth style body, and operational partnerships with the European Investment Advisory Hub, COSME successors, and national contact points such as Finnvera and Fomento de Construcciones y Contratas. Implementation relied on calls for proposals evaluated by panels with representatives from European Court of Auditors-informed procedures, peer reviews akin to Peer Review in OECD practices, and monitoring frameworks influenced by Performance Reserve mechanisms and Structural Funds reporting. Administrative oversight referenced rules comparable to the Financial Regulation and interacted with legal instruments such as Treaty on European Union and Treaty on the Functioning of the European Union.

Impact, Outcomes, and Evaluation

Evaluations by bodies reminiscent of the European Court of Auditors and independent consultants reported on metrics like SME job creation, innovation uptake, and ICT diffusion, with outcomes compared to benchmarks from OECD Innovation Strategy and World Economic Forum indices. CIP-supported projects contributed to cluster development in regions including Bavaria, Île-de-France, Lombardy, and Catalonia, and informed successor programmes such as COSME and the Horizon 2020 simplification measures. Case studies drew on examples involving Siemens-linked pilot projects, Telefonica-supported broadband trials, and energy efficiency retrofits in cohorts tied to Johnson Controls and Schneider Electric.

Criticisms and Challenges

Critiques from stakeholders, think tanks like Bruegel, Centre for European Reform, and parliamentary committees highlighted issues parallel to debates over structural funds absorption, administrative complexity noted by European Court of Auditors, and uneven territorial impact across New Member States including Poland, Romania, and Bulgaria. Challenges included coordination with Common Agricultural Policy priorities, assessment alignment with Lisbon Treaty objectives, and leveraging private finance amid macroeconomic constraints influenced by European sovereign debt crisis episodes involving Greece, Ireland, and Portugal. Observers called for clearer links to market actors such as Venture capital, Business angels, and institutions like European Bank for Reconstruction and Development to improve scalability.

Category:European Union programs