Norwegian organisations can compete for NOK 950 billion in research and innovation funding

By our EU team

A dedicated innovation council, the European Innovation Council (EIC), has also been established to accelerate innovation in Europe and help more companies commercialise and grow.

Norway's participation in Horizon Europe, the world's largest research and innovation programme, creates significant opportunities for Norwegian businesses. The results from Horizon 2020, the EU's previous research and innovation programme, which ran from 2014 to 2020, show that Norway has achieved strong returns through the green transition, value creation, employment and competitiveness across the country.

Horizon Europe offers many relevant initiatives and calls for Norwegian companies. Both Pillar II and Pillar III provide a wide range of opportunities, and you can apply for funding either independently or together with European partners. Through the EIC Accelerator, small and medium-sized enterprises can apply for grants and equity investment to test, commercialise and scale new and innovative solutions. You can apply independently, without business partners. In practice, the competition for funding is like a European championship for innovative companies. We see Norwegian companies performing exceptionally well, securing more funding than Norway's population and economy would suggest. Could this be a sign that the pace of innovation in Norwegian business is increasing?

In 2020, Norwegian small and medium-sized enterprises received NOK 270 million in grants – 5.8 per cent of all funding – and NOK 455 million in equity through the EIC Accelerator. The option to request an equity investment through the EIC Fund was introduced in October 2019 and has been included in five calls for proposals. In total, Norwegian companies have been offered NOK 531 million in equity (7.3 per cent of all funding).

Figure: Distribution of equity through the EIC

Another major opportunity for businesses is collaborative projects close to market. These bring together a wide range of stakeholders to work on large, complex projects. For example, universities, research institutes, small and medium-sized enterprises, larger industrial companies and the public sector often join forces. Calls for proposals tend to be more specific and aim to address major societal challenges, such as carbon emissions. The largest projects may receive up to NOK 250 million in funding.

We see that these projects are important to Norwegian businesses for reasons that go far beyond funding. They often create new value chains, and taking part in a project can significantly increase your opportunities for future sales and exports. There are several examples of major projects under the previous programme, Horizon 2020, where Norwegian participants received substantial funding. In renewable energy, for example, Offshore Wind Cluster received NOK 290 million to test floating offshore wind technology in Rogaland. EU funding has also been crucial to developing new transport solutions. The hydrogen-powered ferry that will operate on the Finnøy route outside Stavanger is funded mainly through the EU's Horizon 2020 programme. 

Through Norway's participation, the Stavanger-based Norled Group, together with Kongsberg Maritime and the Maritime CleanTech cluster, has received NOK 50 million to build the world's first ferries powered by liquid hydrogen. Other long-term projects include CityXchange, in which Trondheim Municipality and Limerick in Ireland received NOK 192 million to develop more sustainable urban communities. These projects can have far-reaching benefits for residents who depend on ferry transport, businesses and local communities, while delivering significant environmental gains. The projects are the result of collaboration between Norwegian and European organisations.

In the EU's preliminary proposal for its 2021–2027 long-term budget of EUR 1,074 billion, 30 per cent is to be earmarked for climate and environmental measures. Building on our strong energy sector, Norwegian research communities and businesses have specialist expertise, technology and solutions that are increasingly in demand in the EU. Tackling climate challenges is about both developing knowledge and putting it to use through innovative solutions. The impact is greatest when knowledge is shared and more people can adopt the solutions. This is what the EU's research and innovation programmes help achieve. And while winning is exciting, the most important thing is not that Norwegian organisations succeed in European competitions, but the impact of Norway's participation: businesses and jobs across the country, and solutions that help address some of the greatest challenges of our time.