DG R&I launched initiative to develop financial tools for innovation procurement

In the context of the policy initiatives on innovation procurement under the New European Innovation Agenda, the Directorate-General for Research and Innovation (DG R&I) in the European Commission has allocated an advisory assignment to the European Investment Bank (EIB). The InvestEU Programme is the EU’s programme that stimulates innovation through financing provided by banks and other types of institutional and private investors, backed by EU budget guarantees. The assignment is implemented by the InvestEU advisory hub of the EIB and has a duration of 12 months (March 2024 - March 2025).

Innovation procurement is underutilised in Europe because public procurers often find it too risky to undertake innovation procurements with their regular procurement budgets. They also face difficulties in using existing financial products (such as standard bank loans) for innovation procurements. The aim of the assignment is therefore to explore the potential for creating a new, easy-to-use financial product that financial investors under the InvestEU programme could offer to public procurers across Europe to de-risk innovation procurements. The new financial product could take the form of loans, guarantees, performance bonds, or other alternatives, such as insurance, equity ventures, or risk-sharing funds, among others.

Public procurers and suppliers are invited to participate in a survey collecting information to design this new financial product: Find more information about the scope of the new financial instrument and share your views here on how to best de-risk innovation procurements and what type of financial instrument is needed. The information you provide in the survey will be treated confidentially (it will not be published) and will be assessed by the EIB and the EC DG R&I.

What’s next? If the assignment successfully designs new financial instruments, they could be piloted with support from the EU’s Horizon Europe research and innovation programme. They could also potentially be considered for wider roll-out under the next EU Multiannual Financial Framework budget from 2028 onwards, subject to ongoing budget discussions with EU Member States on the future EU budget.