The European Innovation Council (EIC), operating under the EU’s Horizon Europe initiative, is set to allocate €1.4 billion in 2025 to foster deeptech research and promising startups across the continent. With a focus on bolstering European technological sovereignty, this substantial funding aims to support pivotal sectors such as digital, clean tech, and biotech. The EIC’s commitment reflects the EU’s broader strategy to strengthen its innovation ecosystem and reduce dependencies on external technologies.
In recent years, the EIC has progressively increased its funding, with the newly adopted work program for 2025 adding €200 million to the previous year’s budget. This boost is part of a broader effort to address critical funding gaps in the tech sector. The introduction of the Strategic Technologies for Europe Platform (STEP) scale-up scheme exemplifies this effort, as it seeks to channel resources into strategic technology development. Historically, the EIC’s initiatives have focused on similar objectives, with ongoing support for startups and research projects through substantial financial backing and the promotion of cross-sector collaboration.
How Will STEP Scale-Up Scheme Impact Tech Development?
The STEP Scale-up scheme is designed to significantly impact tech development by providing €300 million in 2025, with a projected increase to €900 million by 2027. This initiative aims to financially empower companies with high growth potential by offering investments from €10 million to €30 million initially, and eventually reaching up to €150 million with private co-funding. By targeting emerging fields like AI and future mobility, the scheme endeavors to attract private co-investment, thereby facilitating robust growth and innovation within these sectors.
What Are the Key Features of the EIC Work Programme 2025?
The EIC Work Programme 2025 comprises three primary funding components to drive innovation. The EIC Pathfinder allocates €262 million for multidisciplinary research, supporting early-stage technology with grants of up to €4 million. The EIC Transition scheme, with €98 million, translates research into market opportunities through follow-up projects with grants up to €2.5 million. Meanwhile, the EIC Accelerator dedicates €634 million to aid startups and SMEs in scaling innovations, providing both grants and equity investments to support growth trajectories.
Iliana Ivanova, Commissioner for Innovation, Research, Culture, Education, and Youth, emphasized the EIC’s role, stating,
“The European Innovation Council has emerged as a gamechanger in EU support to breakthrough innovation. In 2025, it will boost EU deep tech with even more resources, amounting to €1.4B from Horizon Europe, our research and innovation programme.”
This statement underscores the EIC’s pivotal contribution to fostering a resilient innovation ecosystem in Europe.
The European Innovation Council was established in March 2021, drawing from a pilot initiative started in 2018. It aims to promote technological advancements and innovation within Europe, managing a budget exceeding €10 billion for the 2021-2027 period. Through its funding mechanisms and programs like the EIC Trusted Investors Network, the EIC has been instrumental in driving investment in strategic tech sectors, enhancing access to venture capital, and encouraging co-investment in deeptech innovations.
The EIC’s strategic approach to funding continues to influence the tech landscape in Europe significantly. By prioritizing strategic tech sectors and providing various financial instruments, it aims to nurture a dynamic environment for innovation. The STEP regulation, effective from March 2024, further enhances this flexibility. As the EIC progresses with its initiatives, it remains committed to building a sustainable and competitive tech ecosystem in Europe, which is vital for driving economic growth and technological autonomy.
