Regulation 2021/819 - European Institute of Innovation and Technology (recast) - Main contents

EN

Official Journal of the European Union

L 189/61

Regulation (EC) No 294/2008 of the European Parliament and of the Council (3) has been substantially amended (4). Since further amendments are to be made, that Regulation should be recast in the interests of clarity.

The periodic independent evaluations of the European Institute of Innovation and Technology (EIT) and the experience in applying Regulation (EC) No 294/2008 demonstrate that substantial changes are necessary to further improve the EIT model and its underlying processes. Moreover, the interim evaluation and ex ante impact assessment of the EIT have identified a number of areas for improvement, inter alia the funding model of the Knowledge and Innovation Communities (KICs), the integration of the KICs in local innovation ecosystems, the openness and transparency of the KICs and monitoring by the EIT. This Regulation also offers the opportunity to address those aspects.

Member States are primarily responsible for sustaining a strong European industrial, competitive and innovative base. However, the nature and scale of the innovation challenge also require action to be taken collaboratively at Union level.

The EIT is established to complement existing Union and national policies and initiatives by fostering the integration of the knowledge triangle – higher education, research and innovation – across the Union.

The EIT should contribute to reinforcing the innovation capacity of the Union and Member States in order to tackle major challenges faced by society, thereby contributing to sustainable Union economic development and competitiveness.

The EIT, through the KICs, should aim to strengthen innovation ecosystems across the Union in an open and transparent manner. In order to achieve that objective, the EIT should facilitate and enhance networking, integration and cooperation and promote synergies between different innovation communities across Europe. The EIT also aims to deliver on the Union strategic priorities and contribute to the realisation of Union objectives and policies, including those referred to in the communications of the Commission of 11 December 2019 on the European Green Deal, of 27 May 2020 on the EU budget powering the recovery plan for Europe (Recovery Plan for Europe), of 19 February 2020 on a European strategy for data, of 10 March 2020 on an SME Strategy for a sustainable and digital Europe and of 10 March 2020 on a New Industrial Strategy for Europe, and those related to achieving the Union’s strategic autonomy, while retaining an open economy. Furthermore, the EIT should contribute to tackling global challenges, including the United Nations Sustainable Development Goals (SDGs) by following the principles of the 2030 Agenda for Sustainable Development (the ‘2030 Agenda’) and the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (5) (the ‘Paris Agreement’), and to achieving a net-zero greenhouse gas economy by 2050 at the latest. The transition will be possible only through a boost in research and innovation, which underscores the need to reinforce favourable conditions and investments in enhancing Europe’s knowledge base and research and innovation capacity, in particular in green, climate-friendly technologies and innovations.

The EIT should enhance the openness of the KICs in order to strengthen collaborative links and create synergies between different innovation communities in Europe, thereby facilitating geographical diversity and the talent circulation.

The priority fields and financial needs of the EIT for a period of seven years, covering the relevant multiannual financial framework (MFF), should be laid down in a Strategic Innovation Agenda (SIA). The SIA should be aligned with Horizon Europe – the Framework Programme for Research and Innovation (Horizon Europe), established by Regulation (EU) 2021/695 of the European Parliament and of the Council (6), including with regard to reporting, monitoring, evaluation and other requirements set out in that Regulation, and should take into account the strategic planning of Horizon Europe. The SIA should establish and foster synergies with other parts of Horizon Europe, other relevant Union programmes of the MFF and other relevant Union, national and regional initiatives, policies and instruments, in particular with those supporting research and innovation, education and skills development, sustainable and competitive industry, entrepreneurship and regional development. Given the importance of the SIA for Union innovation policy and the expected socio-economic impact on the Union, the SIA should be adopted by the European Parliament and by the Council on the basis of a Commission proposal. That Commission proposal should be based on a contribution provided by the EIT. That contribution should be made available to the European Parliament and to the Council.

The crisis resulting from the outbreak of COVID-19 has caused major disruptions to Member States’ healthcare and economic systems. Overcoming the social, economic, environmental and technological impacts arising from the crisis will require the collaboration of Union institutions, bodies, offices and agencies. The EIT and the KICs should respond with flexibility to existing as well as new and unexpected challenges and priorities, and should be able to adopt measures and initiatives to provide appropriate support to their ecosystems. In particular, the EIT and the KICs should contribute to the innovation efforts that are needed to tackle the impact of the COVID-19 crisis, in accordance with the priorities of the European Green Deal, the Recovery Plan for Europe, the New Industrial Strategy for Europe and the SDGs, while ensuring synergy with other Union initiatives and partnerships.

In accordance with Regulation (EU) 2021/695, the activities of the EIT should address strategic long-term challenges, in particular in trans- and inter-disciplinary areas including the development of innovative non-technological solutions as a necessary complement to technology focused innovation activities. In so doing, the EIT should promote regular dialogue with civil society, research organisations, innovation centres, small and medium sized-enterprises (SMEs), higher education institutions (HEIs) and representatives of industry.

The EIT should, through the KICs, give priority to the transfer of its higher education, research and innovation and entrepreneurial activities to the business context and to their commercial application and support the innovation and entrepreneurial capacity of HEIs and the creation and development of innovative businesses, in complementarity with the European Innovation Council (EIC), as well as other relevant parts of Horizon Europe, and the InvestEU Programme established by Regulation (EU) 2021/523 of the European Parliament and of the Council (7).

The EIT should operate through excellence-driven Institutionalised European Partnerships of HEIs, research organisations, companies, including SMEs and public companies, as well as local authorities, social enterprises, relevant not-for-profit organisations and other stakeholders. Given the innovative nature of certain enterprises in relation to the goods or services that they offer, their organisation or the production methods that they employ, the promotion of social entrepreneurship and a closer engagement of SMEs and social enterprises that ensures their active participation should be pursued. Those partnerships should aim to become financially sustainable by mobilising funds from other public and private sources and to attract and engage the widest possible range of relevant new partners. They should be selected and designated as KICs by the Governing Board, in accordance with the priority fields and timetable set out in the SIA, taking into account the priorities as set out in the Horizon Europe strategic planning, addressing emerging global and social challenges. They should be selected on the basis of a competitive, open, transparent and excellence-based process, in accordance with this Regulation and with the criteria for the selection of European Partnerships set out in Regulation (EU) 2021/695. The first such KIC, to be launched as soon as possible in 2022 or 2023, should relate to Cultural and Creative Sectors and Industries and the second such KIC, to be launched in 2026, should relate to the Water, Marine and Maritime Sectors and Ecosystems.

Taking into account the specificity of the KICs, it is necessary to provide for special minimum conditions to form a KIC, derogating from the rules for the participation in and dissemination of Horizon Europe. Similarly, specific rules on ownership, access rights, exploitation and dissemination may be necessary for KIC added-value activities, where appropriate.

The Governing Board should steer and monitor the activities of the EIT and be responsible for the selection, designation, financing, monitoring and evaluation of the activities of the KICs in accordance with Regulation (EU) 2021/695 and the SIA. When appointing the members of the Governing Board, the Commission should ensure a balanced representation of those with experience in the fields of higher education, research, innovation or business, as well as gender balance and geographical coverage, with excellence as a guiding principle.

The EIT should organise continuous monitoring and periodic external evaluations of the output, results and impact of each KIC, including their progress towards financial sustainability, cost-efficiency and openness to new members. Those evaluations should include interim reviews covering the first three years of the partnership agreement and the three years following any extension, comprehensive assessments conducted before the end of the seventh year of the partnership agreement, and final reviews conducted before the end of the partnership agreement. The Governing Board should take corrective measures in respect of the KICs when appropriate.

The EIT should regularly inform the Member State Representatives Group (MSRG) of the performance, achievements and activities of the EIT and the KICs, the results of their monitoring and evaluation, and their performance indicators and corrective measures. The MSRG should advise the Governing Board and the Director on strategically important issues and should advise and share experience with the EIT and the KICs. The EIT should organise the meetings of the MSRG.

In order to contribute to the competitiveness and reinforce the international attractiveness of the European economy and its innovation and entrepreneurial capacity, the EIT and the KICs should be able to attract partner organisations, researchers and students from across the Union, including from the Union’s outermost regions, and beyond, such as by encouraging their mobility.

Relations between the EIT and the KICs should be based on partnership agreements and grant agreements, which will set out the rights and obligations of the KICs and the EIT’s performance-based financial contribution to the KICs. In order to limit the administrative burden on the KICs and ensure more long-term planning resources and activities, the EIT should conclude multiannual grant agreements of up to three years with the KICs, or, where considered to be more appropriate, annual grant agreements. By way of derogation from Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (8) (the ‘Financial Regulation’), the EIT should be able to establish such a partnership agreement for an initial period of seven years and, subject to a positive performance and positive outcomes of the interim review and of the comprehensive assessment of the KIC, extend it for a further period of up to seven years. After the expiry of the partnership agreement, the EIT and the KIC may conclude a memorandum of cooperation with the aim of maintaining active cooperation.

There is a need to support higher education as an integral, but often missing, component of the knowledge triangle. Participating HEIs and vocational education and training providers should award degrees and diplomas through the KICs in accordance with national rules and accreditation procedures. Partnership agreements, grant agreements and memoranda of cooperation between the EIT and the KICs should provide for those degrees and diplomas also to be labelled as EIT degrees and diplomas. In addition, the EIT should strengthen the promotion of the EIT-labelled degrees and diplomas in order to increase their recognition outside the EIT Community and extend their use to lifelong learning programmes, vocational training, skilling, re-skilling and up-skilling programmes. Through its activities and work, the EIT should, in accordance with Directive 2005/36/EC of the European Parliament and of the Council (9), help promote mobility for students, researchers and staff as well as provide opportunities for lifelong learning, mentoring and coaching.

Appropriate provision should be made to guarantee the liability, openness and transparency of the EIT. Appropriate rules regulating its governance and functioning should be laid down in the Statutes of the EIT.

The EIT should have legal personality and, in order to guarantee its functional autonomy and independence from national authorities and external pressures, it should administer its own budget whose revenue should include a contribution from the Union.

It is expected that industry, the financial and service sectors will contribute significantly to the budget of the KICs. The KICs should, in particular, aim to maximise the share of contributions from private sources and from income generated by their activities and to pursue and achieve financial sustainability, at the latest before the expiry of the 15 years of EIT financial support. The KICs and their partner organisations should publicise the fact that their activities are undertaken in the context of the EIT and that they receive a financial contribution from the general budget of the Union. Furthermore, transparency of the funding should be increased by providing publicly available information on which projects are funded and on the allocation of the funding.

The Union budgetary procedure should be applicable to the Union financial contribution chargeable to the general budget of the Union. The auditing of accounts should be undertaken by the Court of Auditors in accordance with the Financial Regulation.

The EIT should make best efforts to facilitate a smooth transition between MFF periods, in particular for ongoing activities.

The revenue of the EIT should include the contribution from the Union provided from the financial contribution from Horizon Europe. That revenue should be able to include contributions from other private and public sources.

The EIT is a body set up by the Union within the meaning of Article 70 of the Financial Regulation and should adopt its financial rules accordingly. Consequently, Commission Delegated Regulation (EU) 2019/715 (10) should apply to the EIT.

The EIT should adopt a consolidated annual activity report, outlining the activities conducted and results of the operations in the preceding calendar year. The EIT should also adopt a single programming document, based on the SIA, in accordance with its financial rules, outlining its planned initiative in terms of annual and multiannual programming and allowing the EIT to respond to internal and external developments in the fields of research, society, technology, higher education, innovation and other relevant areas. That single programming document should be transmitted to the European Parliament and to the Council for information.

Since its creation, the EIT has benefited from the expertise of its staff. However, due to the legal framework applicable under Regulation (EC) No 294/2008, some of those staff contracts have expired without the possibility of renewal. To avoid such a situation in the future, and given the importance of human expertise for the success of EIT activities, it is in the EIT’s best interests to make every effort, within the applicable legal framework, to attract and retain qualified staff.

It is appropriate that the Commission initiate independent, external evaluations of the operation of the EIT, including the activities managed through the KICs, in particular with a view to preparing the SIA. Those evaluations should examine how the EIT fulfils its mission and objectives and cover the activities of the EIT and the KICs. They should assess the Union added value of the EIT, the impact across the Union and the impact of the Regional Innovation Scheme (RIS) activities, the openness, effectiveness, efficiency, outreach activities, communication, visibility, dissemination of results, the relevance of the activities pursued and whether they are consistent with and complement relevant Union and national policies, including any synergies with other parts of Horizon Europe. Those evaluations should feed into the Horizon Europe evaluations carried out by the Commission in accordance with Regulation (EU) 2021/695.

The EIT should make best efforts to streamline the terminology related to the structure of each KIC, with the purpose of further simplifying and enhancing the recognisability of the EIT.

In order to contribute to tackling disparities in innovation in Europe, the EIT should, in particular through the RIS, as further set out in the SIA, support the innovation capacity of countries and regions, aim to strengthen innovation ecosystems to tackle global challenges and integrate new partner organisations in the KICs.

The KICs, acting as an innovation facilitator, should consider Member States’ smart specialisation strategy priorities and enhance their innovation capacity by fully reflecting regional capacities and strengths, opportunities, weaknesses, as well as local actors and their activities and markets.

It is essential to promote strong synergies between the EIT and the EIC. The KICs should stimulate the creation of innovative businesses in close synergy with the EIC, while avoiding duplication, and EIT beneficiaries should be able to apply to the EIC instruments for support additional to the services provided by the KICs. In particular, start-ups with a high growth potential supported by KICs should have simplified and thereby faster access to EIC actions in accordance with the relevant provisions of Regulation (EU) 2021/695 in order to help them scale up rapidly, while the EIC beneficiaries should benefit from support schemes provided by the EIT. In order to avoid silos and promote synergies and collaboration, the EIT and the EIC should envisage reciprocal and systematic exchanges of information. The Governing Board should be able to invite members of the EIC Board to its meetings as observers where relevant.

In order to ensure the continuity of the activities of the EIT and the KICs in compliance with the relevant provisions of Regulation (EU) 2021/695, this Regulation should enter into force as a matter of urgency and certain provisions thereof should apply, with retroactive effect, from 1 January 2021.

Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can rather, for reasons of scale and transnationality, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union (TEU). In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

‘innovation’ means the process, including its outcome, by which new ideas respond to societal, economic or environmental needs and demand and generate new products, processes, services, or business, organisational and social models that are successfully introduced into an existing market or that are able to create new markets and that provide value to society;

‘Knowledge and Innovation Community’ or ‘KIC’ means a large-scale Institutionalised European Partnership, as referred to in Regulation (EU) 2021/695, of higher education institutions, research organisations, companies and other stakeholders in the innovation process in the form of a strategic network, regardless of its legal form, based on joint mid- to long-term innovation planning to meet the EIT challenges and contribute to attaining the objectives established under Regulation (EU) 2021/695;

‘co-location centre’ means a physical hub, established in an open and transparent manner, which promotes links between and active collaboration among knowledge triangle actors and acts as a focal point for knowledge exchange and through which the KICs’ partners are able to access facilities and the expertise needed to pursue their common objectives;

‘RIS hub’ means a physical hub, established by a KIC and forming part of its structure, in a Member State or in an associated country targeted by the RIS that serves as focal point for the KIC’s activities and for the mobilisation and involvement of local knowledge triangle actors in the activities of the KIC;

‘partner organisation’ means a legal entity which is a member of a KIC and may include, in particular, higher education institutions, vocational education and training providers, research organisations, public institutions, public or private companies, financial institutions, regional and local authorities, foundations and not-for-profit organisations;

‘research organisation’ means a public or private legal entity which undertakes research or technological development as one of its main objectives;

‘higher education institution’ or ‘HEI’ means a university or any type of higher education institution which, in accordance with national law or practice, offers degrees and diplomas in particular at master’s or doctoral level, regardless of its denomination in the national context;

‘EIT Community’ means the EIT and the active community of individuals and legal entities which benefited or benefit from the EIT support or financial contribution;

‘Strategic Innovation Agenda’ or ‘SIA’ means an act setting out the priority fields and the strategy of the EIT for future initiatives, the EIT’s capacity to generate the best innovation added-value, the EIT’s objectives, key actions, mode of operation, expected results and impact, as well as an estimate of the resources needed for the period of Horizon Europe and the MFF;

‘Regional Innovation Scheme’ or ‘RIS’ means a scheme fostering the integration of the knowledge triangle and the innovation capacity of countries (and regions in those countries) that are classified as ‘moderate’ or ‘modest’ innovators in the European Innovation Scoreboard as referred to in the SIA and of the outermost regions within the meaning of Article 349 of the Treaty on the Functioning of the European Union (TFEU), in particular by attracting and integrating new partners into the KICs and bridging regional disparities, thereby mitigating the innovation divide;

‘stakeholder forum’ means a platform open to representatives of Union institutions, national, regional and local authorities, organised interests and individual entities from business, higher education, research, associations, civil society and cluster organisations, as well as other interested parties from across the knowledge triangle;

‘KIC business plan’ means a document annexed to the grant agreement covering a period of up to three years, describing the KIC’s objectives, the manner in which they are to be achieved, the expected results, the planned KIC added-value activities and the related financial needs and resources, including the actions aiming to achieve financial sustainability and increase the KIC’s openness to new partners from across the Union;

’KIC added-value activities’ means activities carried out by partner organisations in accordance with the KIC business plan, contributing to the integration of the knowledge triangle of higher education, research and innovation, including the establishment, administrative and coordination activities of the KICs, and contributing to the overall objectives of the EIT;

‘cross-KIC activities’ means activities that aim to enhance cooperation and synergies between KICs, foster a more inter-disciplinary approach and create a critical mass among KICs to tackle topics of common interest;

‘memorandum of cooperation’ means an agreement between the EIT and a KIC, aiming to keep the KIC as an active member of the EIT Community after the expiry of the partnership agreement, and which includes the conditions for access to EIT competitive calls for some specific activities and transnational activities with a high Union added value;

‘financial sustainability’ means a capacity of a KIC to finance its knowledge triangle activities independently of contributions from the EIT.

on the extension or termination of the EIT’s partnership agreements with the KICs, as referred to in point 6 of Section 3 of Annex I;

on the conclusion of a memorandum of cooperation with each KIC, as referred to in point 6 of Section 3 of Annex I; and

on strategically important issues to the EIT other than those referred to in points (a) and (b), sharing experience with regard thereto.

identify, in accordance with the SIA, its main priorities and activities, and implement them in accordance with the applicable provisions of Regulation (EU) 2021/695;

ensure openness to and raise awareness among potential new partner organisations and encourage their participation in its activities, in particular SMEs and emerging centres of excellence, across the Union, including through the RIS, by building on existing networks of information and structures;

select and designate KICs in accordance with Article 9 and set out the KICs’ rights and obligations by means of partnership agreements and grant agreements, supervise and provide the KICs with appropriate support and strategic guidance by appropriate quality control measures, continuous monitoring and periodic external evaluation of their activities in accordance with Article 11, and take corrective measures where appropriate;

steer the implementation of the RIS, including through the implementation of RIS hubs by the KICs;

ensure an appropriate level of coordination and facilitate communication and thematic cooperation between the KICs and launch calls for cross-KIC activities and shared services;

ensure the widespread implementation of EIT-labelled degrees and diplomas by KICs, strengthen their promotion outside the EIT Community and extend them to lifelong learning programmes;

promote the dissemination of best practices for the integration of the knowledge triangle, including among the KICs and across the Union, inter alia through the RIS, in order to develop a common innovation and knowledge transfer culture, and to encourage the openness of KICs to new members through outreach activities;

promote the wide dissemination, communication and exploitation of the results and opportunities emerging from the EIT Community in order to increase the awareness, visibility and knowledge of the EIT across the Union, as well as to encourage participation in EIT Community activities;

support the KICs in the development of an effective financial sustainability strategy for the mobilisation of funds from other public and private sources;

foster excellence in higher education, research and innovation, in particular by promoting the KICs as excellent innovation partners;

promote multidisciplinary approaches to innovation, across all sectors, including through the integration of technological, social and non-technological solutions, sustainability and climate neutrality by design, organisational approaches, focus on entrepreneurship and new business models;

ensure synergies and complementarities between the activities of the EIT and other Union programmes, where appropriate, in accordance with Regulation (EU) 2021/695;

foster the discussion and exchange and dissemination of expertise and knowhow between KICs with regard to innovative intellectual property rights models, with the aim of promoting knowledge transfer and dissemination, both within the context of the KICs and more widely across the Union;

provide the necessary support and foster synergies with the KICs to develop innovative solutions;

organise regular meetings, at least every two years, of a stakeholder forum to share and discuss the activities of the EIT, its experiences, best practices and contribution to Union innovation, research and education policies and objectives, as well as other Union policies and objectives when relevant, and to allow stakeholders to express their views;

organise meetings of the MSRG, at least twice a year, independently from the meetings of the stakeholder forum;

facilitate the establishment of EIT Community shared services facilities;

encourage the networking, over time, of the RIS hubs and co-location centres in Member States in order to facilitate their cooperation within the EIT Community and with the local innovation ecosystems;

monitor the implementation of activities to be undertaken by the KICs for the development of the entrepreneurial and innovation capacity of their member organisations, in particular HEIs, vocational education and training providers, SMEs and start-ups and their integration in innovation ecosystems, throughout the Union and in line with the knowledge triangle approach;

design, in cooperation with the Commission and after consulting the KICs, launch and coordinate a pilot initiative supporting the innovation and entrepreneurial capacities of higher education institutions and their integration in innovation ecosystems (pilot higher education initiative), which is to be implemented by the KICs.

innovation activities and investments with Union added value, including facilitating the creation of innovative start-ups and the development of innovative businesses in complementarity with the EIC and the InvestEU Programme, fully integrating the higher education and research dimensions to attain a critical mass and stimulating the dissemination and exploitation of results;

innovation-driven research, experimentation, prototyping and demonstration in areas of key economic, environmental and societal interest and drawing on the results stemming from Union and national research, with the potential to strengthen the Union’s competitiveness at international level and find solutions for the major challenges faced by European society, including those relating to health and the digital market;

education and training activities in particular at master’s and doctoral level, as well as professional training courses, in areas with the potential to meet future European socio-economic and socio-ecological needs and which expand the Union’s talent base, promote the development of innovation-related skills, the improvement of managerial and entrepreneurial skills and the mobility of researchers and students, and foster knowledge-sharing, mentoring and networking among the recipients of EIT education and training activities, including those that are EIT-labelled;

actions as part of the pilot higher education initiative to better integrate HEIs in innovation value chains and ecosystems and bring them together with other key innovation players from the knowledge triangle and thereby improve their innovation and entrepreneurial capacity;

outreach activities and the dissemination of best practices in the field of innovation with a focus on the development of cooperation between higher education, research and business, including the service and financial sectors, and, where relevant, public and third sector organisations;

RIS activities, fully integrated in the KICs’ multiannual strategy and linked to the relevant smart specialisation strategies as defined in point (2) of Article 2 of Regulation (EU) 2021/695 in order to strengthen innovation capacity and to develop sustainable innovation ecosystems with a view to decreasing the disparities and divide in innovation performance across the Union;

to seek synergies and complementarities between KIC activities and existing Union, national and regional programmes, in particular the EIC, other European Partnerships and missions of Horizon Europe, as appropriate;

to mobilise funds from public and private sources, in particular seeking to raise an increasing proportion of their budget from private sources and from income generated by their own activities, in accordance with Article 18;

to provide, on request, information on research and innovation outputs and results, and related intellectual rights, developed pursuant to the activities of the KICs, and on the relevant inventors.

establish internal transparent governance arrangements which reflect the knowledge triangle of higher education, research and innovation;

ensure and promote their openness through clear and transparent accession and exit criteria, including through open calls, to potential new partner organisations across the Union that add value to the partnership;

establish internal rules, including codes of conduct, that ensure their functioning in an open and transparent manner;

establish and implement their business plans;

establish and implement strategies for achieving financial sustainability.

the minimum conditions to form a KIC are set out in Article 9(3) and (4) of this Regulation;

specific rules on ownership, access rights, exploitation and dissemination may apply for KIC added-value activities, where appropriate.

the outcome of the interim review referred to in the first subparagraph of paragraph 2; and

the outcome of a comprehensive assessment referred to in paragraph 3.

their relevance to the Union’s global challenges;

their Union added value and relevance with regard to the objectives of the EIT;

the achievement of their objectives;

their efforts to coordinate their activities with other relevant research and innovation initiatives;

their capacity to ensure openness to new members;

their achievements in attracting new members from across the Union;

their compliance with good governance principles;

their efforts and results in designing and implementing gender-sensitive measures and activities; and

their capacity to develop sustainable innovation ecosystems and the achieved level of financial sustainability.

rights and obligations linked to the continuation of the knowledge triangle activities as well as the maintenance of the KIC’s ecosystem and network;

conditions for the use of the EIT brand and participation in EIT Awards and in other initiatives organised by the EIT;

conditions for the participation in higher education and training activities including the use of the EIT label for education and training programmes and relations with the EIT Alumni Community;

conditions for participation in EIT competitive calls for some specific activities, including cross-KIC activities and shared services;

conditions for additional support from the EIT for transnational coordination activities among the co-location centres with a high Union added value.

award joint or multiple degrees and diplomas, reflecting the integrated nature of the KICs, which may also be awarded by a single HEI or vocational education and training provider;

disseminate best practices on horizontal issues;

promote and publicise the EIT label in their training and diplomas;

develop different strategies with the aim of promoting effective cooperation with innovation ecosystems and businesses and fostering an entrepreneurial mind-set;

create programmes focusing on lifelong learning and certification;

pay special attention to gender balance and gender-sensitive approaches, in particular in areas where women continue to be underrepresented, such as information and communications technology, science, technology, engineering and mathematics;

take into account:

contributions from partner organisations, forming a substantial source of funding;

voluntary contributions from Member States, associated countries or other third countries or public authorities within those Member States or countries;

contributions from international bodies or institutions;

revenue generated by the KICs’ own assets and activities and royalties from intellectual property rights;

capital endowments;

bequests, donations and contributions from individuals, institutions, foundations or any other bodies established under national law;

the financial contribution from the EIT;

financial instruments, including those funded from the general budget of the Union.

a statement of the major priorities and planned initiatives of the EIT and the KICs;

an estimate of financing needs and sources;

an estimate of the staffing needs arising from new tasks;

appropriate qualitative and quantitative methods, tools and indicators for monitoring the activities of the EIT and the KICs, using an impact-oriented and performance-based approach;

other components as laid down in its financial rules.

1.

The Governing Board shall be composed of 15 members, appointed by the Commission, in a transparent manner, providing a balance between those with experience in the fields of higher education, research, innovation or business. That appointment shall be made following an open call for expressions of interest. The term of office of the members of the Governing Board shall be four years. The Commission may extend the term of office once by a two-year period on the proposal of the Governing Board.

In appointing the members of the Governing Board, the Commission shall make best efforts to ensure a balanced representation of those with experience in the fields of higher education (including vocational education and training), research, innovation and business, as well as gender and geographical balance and an appreciation of the higher education, research and innovation environment across the Union.

Where necessary, the Governing Board shall submit to the Commission a shortlist of candidates for the purposes of the appointment of a member or members. The shortlisted candidates shall be selected on the basis of the outcome of a transparent and open procedure initiated by the EIT.

The Commission shall appoint the member or members in accordance with the procedure laid down in the first, second and third paragraphs and inform the European Parliament and the Council of the selection procedure and of the final appointment of those members of the Governing Board.

In the event that a member is unable to complete his or her term of office, a substitute member shall be appointed by the procedure set out in the first, second and third paragraphs in order to complete the incapacitated member’s term of office. A substitute member who has served for a period of less than two years may be reappointed by the Commission for an additional term of four years at the request of the Governing Board.

The Commission shall appoint three additional members to the Governing Board to reach the number of 15 by 29 November 2022. The members of the Governing Board appointed before 28 May 2021 shall complete their non-renewable term of office.

In exceptional and duly justified circumstances, in particular in order to maintain the integrity of the Governing Board, the Commission may, on its own initiative, terminate the term of office of a member of the Governing Board.

2.

The members of the Governing Board shall act in the interests of the EIT, safeguarding its mission and objectives, identity, autonomy and coherence, in an independent and transparent manner.

3.

The Governing Board may invite a Member of the EIC Board or other stakeholders to attend their meetings as observers.

4.

The Governing Board shall, when executing its responsibilities, act under the supervision of the Commission in implementing the EIT’s mission and objectives set out in Article 3.

1.

The Governing Board, in exercising its responsibility for steering and monitoring the activities of the EIT and the KICs, shall take strategic decisions. In particular, it shall:

2.

In addition to the strategic decisions referred to in point 1, the Governing Board shall take the following procedural and operational decisions necessary for the fulfilment of its tasks and the activities of the EIT. It shall, in particular:

3.

The Governing Board shall take decisions in accordance with the Staff Regulations of Officials of the European Union and the Conditions of Employment of Other Servants of the Union, laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68 (1) (referred to as the ‘Staff Regulations’ and the ‘Conditions of Employment’, respectively), relating to the EIT staff and the conditions of its employment. In particular, it shall:

1.

The Governing Board shall elect its Chairperson from among its members. The term of office of the Chairperson shall be two years, renewable once.

2.

The representative of the Commission shall participate in the meetings of the Governing Board, without the right to vote, but his or her agreement shall be required in cases referred to in point 5. He or she shall have the right to suggest points on the agenda of the Governing Board.

3.

The Director shall participate in the meetings of the Governing Board, without the right to vote.

4.

The Governing Board shall adopt decisions by simple majority of members having a right to vote.

However, decisions under points (1)(a), (b), (c), (d), and (n) of Section 2 and points (2)(e) and (j) of Section 2, as well as decisions under point 1 of this Section shall require a majority of two thirds of the Governing Board’s members having the right to vote.

5.

Decisions of the Governing Board under points (1)(c), (e), (g), (h), (j) and (m), point (2)(c) and point (3)(a) of Section 2 shall require the agreement of the Commission, expressed by its representative in the Governing Board.

6.

The Governing Board shall seek the opinion of the MSRG before adopting decisions concerning the extension or termination of the partnership agreements with the KICs in accordance with points (1)(h) and (k) of Section 2, and on the conclusion of the memorandum of cooperation in accordance with point (1)(g) of Section 2.

The opinion referred to in the first paragraph shall not be binding on the Governing Board. It shall be issued without undue delay and in any event not later than two months after it has been requested.

7.

The Governing Board shall meet in ordinary session at least four times a year and in extraordinary session when convened by its Chairperson or at the request of at least one third of all its members or the representative of the Commission.

1.

The Executive Committee shall assist the Governing Board in the performance of its tasks.

2.

The Executive Committee shall consist of five members, including the Chairperson of the Governing Board, who shall also chair the Executive Committee. The four members other than the Chairperson shall be chosen by the Governing Board from among its members, providing a balance between those with experience in the fields of higher education, research, innovation or business. The term of office of the members of the Executive Committee shall be two years, renewable once.

3.

The Executive Committee shall prepare the meetings of the Governing Board in cooperation with the Director.

4.

The Governing Board may request the Executive Committee to supervise and monitor the implementation of decisions and recommendations of the Governing Board.

5.

The Executive Committee shall prepare the discussion of and adoption by the Governing Board on the draft EIT’s contribution to the Commission’s proposal on the SIA. In addition, the Executive Committee shall prepare the discussion of the Governing Board on the draft single programming document, the draft consolidated annual activity report, the draft annual budget and the draft annual accounts and the balance sheet before their submission to the Governing Board.

6.

Decisions of the Executive Committee shall be adopted on the basis of a majority of the members present. Each member shall have one vote.

7.

The representative of the Commission shall participate in the meetings of the Executive Committee, without the right to vote. The representative of the Commission shall have the right to suggest points on the agenda of the Executive Committee.

8.

The Director shall participate in the meetings of the Executive Committee, without the right to vote.

9.

The members of the Executive Committee shall act in the interests of the EIT, safeguarding its mission and objectives, identity, autonomy and coherence, in an independent and transparent manner. They shall regularly report to the Governing Board on the decisions adopted and tasks assigned to them by the Governing Board.

1.

The Director shall be a person with expertise and a high reputation in the areas in which the EIT operates. The Director shall be a member of staff of the EIT and shall be engaged as a temporary agent under point (a) of Article 2 of the Conditions of Employment.

2.

The Director shall be appointed by the Governing Board from a list of candidates proposed by the Commission, following an open and transparent selection procedure. For the purpose of concluding the contract with the Director, the EIT shall be represented by the Chairperson of the Governing Board.

3.

The term of office of the Director shall be four years. The Governing Board, acting on a proposal from the Commission that takes into account its evaluation of the Director’s performance and the EIT’s best interests as well as its future tasks and challenges, may extend that term of office once for a period of up to four years. A Director whose term of office has been extended shall not participate in another selection procedure for the same post.

4.

The Director shall be removed from office only upon a decision of the Governing Board, acting on a proposal from the Commission.

5.

The Director shall be responsible for operations and for the day-to-day management of the EIT and shall be its legal representative. The Director shall be accountable to the Governing Board and report to it on an ongoing basis on the development of the EIT activities and activities falling under his or her responsibility.

6.

The Director shall in particular:

7.

The Director shall perform any other tasks entrusted to him or her by the Governing Board and under its responsibility.

1.

The staff of the EIT shall consist of personnel employed directly by the EIT. The Staff Regulations, the Conditions of Employment and the rules adopted by agreement between the Union institutions for giving effect to them shall apply to the staff of the EIT. This point shall apply to staff employed by the EIT on 28 May 2021, regardless of the starting date of their contract of employment.

2.

National experts may be seconded to the EIT for a limited period. The Governing Board shall adopt provisions enabling seconded national experts to work at the EIT and defining their rights and responsibilities.