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
Blockchain Set to Transform the Financial Services Market
28.09.2016 | HHL Leipzig Graduate School of Management
Paper or plastic?
08.07.2016 | University of Toronto
Terahertz excitation of selected crystal vibrations leads to an effective magnetic field that drives coherent spin motion
Controlling functional properties by light is one of the grand goals in modern condensed matter physics and materials science. A new study now demonstrates how...
Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.
"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...
In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.
A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...
By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.
"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...
COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.
In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...
14.10.2016 | Event News
14.10.2016 | Event News
12.10.2016 | Event News
24.10.2016 | Earth Sciences
24.10.2016 | Life Sciences
24.10.2016 | Physics and Astronomy