This new instrument will help to make more financing available for promoters of research & innovation projects, which often face more difficulties than traditional business sectors in accessing finance, due to the relatively high levels of uncertainty & risk inherent to their activity. The RSFF, part of the EU's 7th Research Framework Programme (FP7) & EIB’s programme for Research & Innovation, will partially cover the financial risks assumed by the EIB when financing this type of activity. The contribution of €1 billion each from FP7 & the EIB will therefore unlock billions of additional financing in this area.
"Europe needs to find ways to boost investment in research, particularly from private companies" said European Science and Research Commissioner Janez Potocnik. "The Risk Sharing Finance Facility is one of the most exciting new ideas in the EU's 7 th Research Framework Programme, and through co-operation with the EIB will unlock billions of new investment for research, development & innovation in Europe."
“RSFF is the demonstration of a very effective cooperation between two EU Institutions to support European competitiveness," said EIB President Philippe Maystadt. "By targeting higher risk financing in support of research & innovation projects, the facility will in an efficient way complement the existing support instruments including national & EU grants as well as market debt and equity funding”.
This major initiative is launched simultaneously in Hamburg and Luxembourg. The Agreement was signed in parallel by EU Science & Research Commissioner Janez Potocnik during the 4 th European Conference on Research Infrastructures (ECRI 2007) in Hamburg and by EIB President, Philippe Maystadt, during the annual meeting of the EIB Board of Governors in Luxembourg. ECRI 2007 also saw the launch of the European X-ray Free-Electron Laser (XFEL), identified in the European Strategy Forum for Research Infrastructures (ESFRI) roadmap . This truly European research infrastructure, supported by 13 partner countries, will be a world leading facility for the production of intense, short pulses of X-rays for scientific research in a wide range of disciplines.
The Risk-Sharing Finance Facility
If the EU is to reach its target of investing 3% of its GDP in research, it is vitally important to boost private sector investment in R&D. An important pre-condition to achieving this is mobilising financial markets. However, financial markets and financial institutions are often reluctant to back research intensive companies or research projects due to the relatively high levels of uncertainty and risk inherent to their activity compared to more traditional business areas. The Risk-Sharing Finance Facility (RSFF) is a direct answer to these challenges. Its objective is to improve access to debt financing for promoters of research & innovation investments by sharing the underlying risks between the EU & the EIB. This risk-bearing instrument will cover, through capital allocations & provisions, the risks born by EIB when lending directly to the promoter, or when guaranteeing loans made by financial intermediaries (e.g. banks in Member States & Associated countries). Together, both institutions will provide up to €2 billion for the period 2007-2013 (up to €1 billion each). These contributions will translate into billions of additional financing available to innovative companies & the research community as a whole.
Initially, RSFF is likely to benefit mostly medium & large innovative companies & large scale research undertakings such as European or national Research Infrastructures. However, RSFF will also be open to private & public entities of any size and ownership promoting eligible RDI activities, including SMEs, research organisations & Public-Private Partnerships contributing to FP7 objectives.
European Research Infrastructures
Research Infrastructures play a crucial role for the promotion of knowledge and technology in Europe, bringing together a wide diversity of scientists & disciplines. In 2006, ESFRI published its roadmap identifying 35 priority EU-scale infrastructures required in key scientific areas. For a total estimated cost of €14 billion, these major infrastructures will require a coordinated approach from national, private and other sources of funding. The RSFF could boost the emergence of these new research facilities.
Michael H. Wappelhorst | alfa
Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
University of Maryland researchers contribute to historic detection of gravitational waves and light created by event
On August 17, 2017, at 12:41:04 UTC, scientists made the first direct observation of a merger between two neutron stars--the dense, collapsed cores that remain...
Seven new papers describe the first-ever detection of light from a gravitational wave source. The event, caused by two neutron stars colliding and merging together, was dubbed GW170817 because it sent ripples through space-time that reached Earth on 2017 August 17. Around the world, hundreds of excited astronomers mobilized quickly and were able to observe the event using numerous telescopes, providing a wealth of new data.
Previous detections of gravitational waves have all involved the merger of two black holes, a feat that won the 2017 Nobel Prize in Physics earlier this month....
Material defects in end products can quickly result in failures in many areas of industry, and have a massive impact on the safe use of their products. This is why, in the field of quality assurance, intelligent, nondestructive sensor systems play a key role. They allow testing components and parts in a rapid and cost-efficient manner without destroying the actual product or changing its surface. Experts from the Fraunhofer IZFP in Saarbrücken will be presenting two exhibits at the Blechexpo in Stuttgart from 7–10 November 2017 that allow fast, reliable, and automated characterization of materials and detection of defects (Hall 5, Booth 5306).
When quality testing uses time-consuming destructive test methods, it can result in enormous costs due to damaging or destroying the products. And given that...
Using a new cooling technique MPQ scientists succeed at observing collisions in a dense beam of cold and slow dipolar molecules.
How do chemical reactions proceed at extremely low temperatures? The answer requires the investigation of molecular samples that are cold, dense, and slow at...
Scientists from the Max Planck Institute of Quantum Optics, using high precision laser spectroscopy of atomic hydrogen, confirm the surprisingly small value of the proton radius determined from muonic hydrogen.
It was one of the breakthroughs of the year 2010: Laser spectroscopy of muonic hydrogen resulted in a value for the proton charge radius that was significantly...
17.10.2017 | Event News
10.10.2017 | Event News
10.10.2017 | Event News
20.10.2017 | Information Technology
20.10.2017 | Materials Sciences
20.10.2017 | Interdisciplinary Research