• H2020
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Luxinnovation, the National Agency for Innovation and Research, discusses the RDI landscape in Luxembourg, its role as the national contact point for Horizon 2020, and the opportunities offered by the programme.

The implementation of an efficient research, development and innovation (RDI) policy is a key objective of the Government of Luxembourg which, in keeping with the objectives laid out by the Europe 2020 strategy for smart, sustainable and inclusive growth, has set itself the goal of increasing RDI-related expenses to 2.3-2.6% of gross domestic product, as well as making the development of the European Research Area an important priority of its current Presidency of the Council of the European Union.

The construction of the ‘City of Sciences, Research and Innovation’ in Belval is clear evidence of Luxembourg’s commitment to RDI. This ambitious, near 20-year project intends to convert an old industrial site in the south of the country into a thriving hub of life, work and culture with the realisation of some 25 buildings dedicated to education, research and innovation. It is hoped that the city will help to increase collaboration between the public and private sectors by encouraging the co-ordination of research activities and promoting researchers’ cross-sector mobility. A number of research organisations are already based there, including the Luxembourg Institute of Science and Technology (LIST), the Luxembourg Institute of Socio-Economic Research and, as of July, Luxinnovation, the National Agency for Innovation and Research.

Speaking to Portal, Luxinnovation outlines the recent growth of the country’s RDI landscape, its own role as national contact point for Horizon 2020, and how the framework programme is opening up opportunities for collaboration between sectors and across borders.

How would you assess the RDI landscape in Luxembourg at present?

On the whole, Luxembourg enjoys a high level of socioeconomic development and is open to the outside world – economically and culturally. Both the business and research sectors have succeeded in attracting talent from all over Europe and beyond.

The country’s RDI landscape as we know it today is still relatively young, however. Whilst public research funding and the support of innovation-led entrepreneurship are today national priorities aimed at diversifying the Luxembourg economy, it is only over the past few decades that a real national innovation system has been developed and consolidated. The first public research centres were established in 1987 and the first framework law for public research adopted in the same year; the Luxembourg National Research Fund (FNR) was set up as the country’s main funder of research activities in 1999; and the University of Luxembourg was established in 2003, representing a major step forward.

Investment in public research has since been continuously rising, and further developments are on the horizon. For example, a new interdisciplinary centre for contemporary history is scheduled to open its doors at the university in 2016, and a medical school is currently under discussion.

All public research organisations, as well as Luxinnovation and the FNR, are governed by multiannual performance contracts which set the global objectives of each organisation as part of the national strategy.

Luxembourg also has a strong tradition of private sector research. The country is home to major R&D centres of a number of internationally renowned companies, including Goodyear, DuPont de Nemours, CERATIZIT and Tarkett, among others, and in 2012 the private sector represented two-thirds of total national R&D expenditure, as well as almost two-thirds of staff involved in R&D.

Focusing on a coherent strategy that interlinks all players in the innovation landscape is just as important as adequate funding. As a small economy, Luxembourg can only thrive if it specialises in certain future-oriented sectors. National research priorities were therefore defined for the first time in 2007, and they have since been reflected in the funding priorities of the FNR as well as in the activities of the Luxembourg Cluster Initiative established in 2002 and managed by Luxinnovation. Current priorities include, among others, innovative materials, biomedicine, internet security and clean technologies.

There is also potential for further enhancing the links and collaborations between public and private research and establishing new public private partnerships.

The World Economic Forum ranked Luxembourg 19th out of 144 countries in its 2014-15 Global Competitiveness Report; how is the country looking to maintain its success internationally?

For a small country such as Luxembourg, international collaboration is essential. Despite the proactive research and innovation policy, critical mass is still lacking at the national level in some areas, which means that co-operation across borders is indispensable.

Making Luxembourg’s research capabilities known and renowned at an international level thus remains a priority. The two interdisciplinary centres of the university – the Luxembourg Centre for Systems Biomedicine and the Interdisciplinary Centre for Security, Reliability and Trust – are encouraging examples that demonstrate considerable growth and a rapidly growing international recognition, but it is important that all actors concerned pull together to achieve high level research expertise and establish competitive international partnerships.

With this aim, recent key developments include:

- The merger of two major research centres in 2015 to create LIST, thereby consolidating research efforts in priority areas. This landmark decision shall, in the future, contribute to raising the centre’s international profile. Other major research centres have changed their names to reflect a more global and future-oriented perspective; and

- In parallel, a new pole for research and innovation is being created in Belval – the former centre of the coal and steel industry that is now being transformed into a modern hub bringing together several research organisations, including the University of Luxembourg, Luxinnovation, the FNR and the national incubator Technoport.

Luxinnovation is Luxembourg’s national contact point for Horizon 2020 – what does this encompass?

Luxinnovation, the National Agency for Innovation and Research, has played a central role in the national innovation system since its foundation just over 30 years ago and has acted as national contact point since the Sixth Framework Programme. It was assigned to this role by the Ministry for Higher Education and Research, with which it maintains a close working relationship.

As in other countries, the NCP’s core business is to provide bespoke advisory and proposal services. Luxinnovation provides information, advice and support to innovative start-ups, established companies and public research organisations, as well as working closely with the government and other actors involved in stimulating RDI. Notably, it advises companies wishing to apply for RDI support provided by the government.

We advise applicants throughout the whole process from defining the project idea to finding partnerships and submitting proposals to Horizon 2020. A core team of four covers large parts of the programme and relies on thematic input from other Luxinnovation colleagues with expertise in specific fields.

There is also a constant need to advertise Horizon 2020 to new target groups. We do this by organising info sessions, meetings, conferences and training sessions, as well as by speaking at various RDI-related events. In 2014, our team organised about 20 information events, attracting approximately 1,000 participants. This is a clear sign that there is considerable interest in EU funding.

How does Luxinnovation aim to optimise the framework programme for the benefit of the country?

Horizon 2020 funding allows Luxembourg actors to realise RDI projects in our priority fields and gain new knowledge, expertise and exploitable project results.

Whilst the funding is precious for the progress of our RDI activities – and Luxembourg is certainly interested in obtaining an adequate ‘financial return’ from Horizon 2020 as a country – it is not necessarily the first advantage that should be highlighted. Horizon 2020 provides excellent opportunities to expand one’s international network and benefit from the knowhow of one’s partners, which might be even more interesting. This is a very useful tool for meeting our objectives of boosting our international presence and recognition.

The multidisciplinary and multiplayer teams that Horizon 2020 projects help to create shouldn’t be neglected either. European projects bringing together teams from various research disciplines are often better suited to tackling modern societal challenges, and can be a fertile ground for new ideas and innovation. One often hears of a ‘domino effect’ that is set into motion, whereby initial efforts to join a Horizon 2020 consortium may well lead to unexpected collaborations down the line, and in Luxembourg we have seen not-for-profit citizen associations embark on projects with industrial or research partners.

Whilst the direct impact of Luxinnovation’s activities to promote Horizon 2020 might be difficult to measure, official figures indicate that our work has had positive effects. A total of 73 participations from Luxembourg have so far been accepted for funding in Horizon 2020, corresponding to €22m and a success rate of 18%. In view of the harsh competition, these results are more than encouraging.

But we are sure that there is still untapped potential. Our aim is not to persuade newcomers to join Horizon 2020 projects no matter what, but to spot actors who could benefit from the programme with some initial help from us. There are companies with adequate profiles that have been wary of Horizon 2020 or else unaware of its opportunities. Luxinnovation’s mission is to give them the best possible chance of success.

How is Luxinnovation encouraging cross-border and cross-sector collaboration in the field of RDI, and how is Horizon 2020 helping or hindering this?
Encouraging collaboration across national and sector borders is at the heart of the agency’s mission.

Luxinnovation manages the Luxembourg Cluster Initiative, which brings together major players in six key sectors – automotive components, bio-health, eco-innovation, ICT, materials and production technologies, and space technologies. The clusters aim to encourage collaboration between members, as well as spotting opportunities for co-operation across different clusters. Another priority is to help cluster members find partners and gain market share abroad.

The agency also frequently participates in economic missions overseas with the objective of helping Luxembourg actors to set up business, research or innovation partnerships and to attract new businesses to Luxembourg.

Luxinnovation is, together with our national partners, an active member of the Enterprise Europe Network and is also involved in several other pan-European networks.

Moreover, the agency encourages the establishment of public private partnerships. The R&D aids provided by the Ministry of the Economy, which are promoted by Luxinnovation, include a specific bonus for projects that are carried out in collaboration between a public and a private organisation or an SME and a larger company. We advise on the project setup and on potential partners.

Horizon 2020 is of course a major tool to help Luxembourg organisations establish themselves in international networks. As national contact point, we are well connected with our homologues all over Europe, which allows us to stay up-to-date – and is often useful for spotting partnerships under preparation where Luxembourg could fit in.

Looking forward, what more would you like to see the EU doing to support innovation in Luxembourg and in Europe more widely?

The strategic orientation of the 2016-2017 Horizon 2020 programming period is surprisingly well aligned with Luxembourg’s priorities.

For example, manufacturing, internet and ICT-based technology, or the Circular Economy, are both EU and national priorities.

However, Luxembourg is in quite an ambivalent position as far as European RDI policy is concerned. On the one hand, the country has been able to establish itself as a respectable player in international RDI in many ways. On the other hand, Luxembourg is still defined as a so-called ‘widening’ country and shares many concerns with not-so-well-performing European member states that struggle to generate critical mass, to attract talent or to be internationally visible. In that respect, Luxembourg supports EU efforts within programmes such as Horizon 2020’s ‘Spreading Excellence and Widening Participation’ or working groups that aim at encouraging submissions from all European countries, at the European Research Council, for example.

At the same time, national efforts have to match EU policies. Smaller countries such as Luxembourg have to make special efforts to participate in European sector-specific networks, for example, or to integrate major Horizon 2020 projects in the transport, environment or energy sectors.

Luxinnovation

The National Agency for Innovation and Research

www.luxinnovation.lu

www.horizon2020.lu

This article first appeared in issue 8 of Horizon 2020 Projects: Portal, which is now available here.