PPPs in the research field are oriented towards coordinating public and private investment into generating new knowledge and technological breakthroughs. The outputs are therefore less predictable and tangible than for the procurement of infrastructure and services, but potentially enormous.
The first five JTIs were set up as "Community bodies", according to Article 185 of the Financial Regulation, subject to rules and procedures, such as the Framework Financial Regulation for Community bodies, the staff Regulations and the Protocol on privileges and Immunities, which were conceived in the interest of minimizing risks for European public funds rather than facilitating co-investment with private partners in research in fast-moving markets. These JTIs will soon become operationally autonomous and the new instrument responds to a need that the industrial research community has highlighted. At the same time, the partners express the view that the instrument could be implemented more effectively if the set-up and operational procedures were simplified and the legal and administrative framework better tailored to PPPs operating close to the market.
These concerns should be addressed properly to make sure that the existing JTIs deliver on their promises and do not hinder the interest of the private sector in new JTIs in fields where PPPs are necessary. The Commission therefore intends to explore alternative models that could lead to a more streamlined process for setting up and implementing public-private partnerships in European research. In the light of the first experience with JTIs and in view of setting-up new long-term PPPs, the Commission will consider all options in reviewing the legal framework and the financial rules (as well as the operational procedures) to provide a simple and cost-efficient model, based on mutual understanding, true partnership and risk sharing.
Moreover, contributions from the main EU research and innovation programmes (FP7, CIP) directly to PPPs can only be made through grants or public tenders. This is a limitation where the most efficient form of cooperation would be an investment. To improve investment in innovation, the Commission will explore options to allow PPPs to make investment decisions that include Community funds.