EUROCLUSTERS 2024 Call for Europe’s Recovery

Importance of Clusters for the Economy

Clusters are essential to the European Union’s industrial strategy. They bring together businesses, research institutions, and other economic actors along value chains, fostering collaboration and innovation. By connecting different sectors and regions, clusters enhance the competitiveness of companies, particularly SMEs, and drive the green and digital transitions. Furthermore, they play a critical role in the resilience of Europe’s industrial ecosystems, helping businesses respond to disruptions and build sustainable value chains.

As highlighted in Mario Draghi’s report on The Future of European Competitiveness, clusters are pivotal in creating networks of innovation, connecting universities, startups, and large companies, which lead to dynamic industrial structures and successful commercialization in high-tech sectors. These synergies within clusters are key to Europe’s competitiveness in the global market.

Objective of the Call

The EUROCLUSTERS 2024 call aims to support strategic, cross-sectoral, and trans-European projects that promote innovation, strengthen economic resilience, and accelerate the transition to a green and digital economy. The initiative is part of the EU’s broader strategy to foster sustainable growth and enhance the global competitiveness of its industrial ecosystems.

Priorities (Strands)

The call is divided into two main strands:

• Strand 1: Focuses on value chains related to net-zero technologies and critical raw materials, supporting the manufacturing and scaling-up of technologies that are vital for achieving the EU’s climate goals.
• Strand 2: Addresses broader value chains outside of net-zero technologies, focusing on other industrial ecosystems to improve resilience, sustainability, and integration into EU value chains.

Types of Activities

The EUROCLUSTERS 2024 call supports various types of activities aimed at fostering innovation, strengthening value chains, and enhancing the resilience of SMEs through the adoption of advanced technologies. These activities are categorized into two types: Mandatory Activities and Optional Activities. While Mandatory Activities must be included in every project proposal, Optional Activities can be selected to complement and expand the project’s scope based on the specific needs of the consortium.

Mandatory Activities:

These are the core activities that all projects must implement to achieve the objectives of the EUROCLUSTERS 2024 call. They focus on product innovation, business process transformation, and communication strategies to ensure the project’s visibility and success.

1. Product Innovation:
   Support the development and introduction of new-to-firm products or services that reduce dependency on critical inputs and technologies within the cluster’s value chain. This aims to enhance the competitive edge of the cluster by driving innovation at the product level.
2. Business Process Innovation:
   Foster the implementation of new-to-firm technologies that help SMEs transition to greener and more digital business processes. These innovations will increase resilience and competitiveness by enabling more sustainable and efficient operations.
3. Communication and Dissemination:
   Develop and implement a comprehensive Communication and Dissemination Plan to maximize the visibility of Eurocluster activities and outcomes. The plan should use a common brand identity provided by EISMEA to ensure coherence in messaging and leverage various communication channels to reach a wide audience.

Optional Activities:

These activities are not mandatory but can be included to broaden the impact and effectiveness of the project. They offer additional support to SMEs and help strengthen the overall ecosystem.

• Facilitate Joint Investments:
  Promote and support joint investments in critical innovation and production facilities that enhance the development and scaling of advanced technologies within the cluster.
• Support Digital Transformation and Green Technology Adoption:
  Assist SMEs in adopting digital solutions and green technologies, enabling them to modernize their operations, increase resource efficiency, and reduce environmental impact.
• Strengthen Value Chains:
  Foster partnerships between diverse industrial actors to strengthen value chains, enabling collaboration across sectors and regions, which is essential for improving resilience and sustainability.
• Provide Technical Assistance:
  Offer technical assistance to SMEs to help them adopt sustainable practices, improve resource efficiency, and enhance their overall environmental and economic performance.

Financial Conditions and Eligible Activities

• The call will finance activities directly linked to the innovation and adoption of new processes and advanced technologies for strategic autonomy.
• Cascade funding is allowed, where at least 75% of the grant should be directed as financial support to third-party SMEs.
• Non-eligible activities include the direct purchase and installation of advanced technologies.

Funding and Reimbursement Rates

The EUROCLUSTERS 2024 call provides financial support with the following reimbursement structure:

• 100% reimbursement for costs related to providing financial support to third parties (e.g., cascade funding for SMEs). This means that costs incurred for supporting SMEs through grants or similar mechanisms will be fully covered by the EU.
• 90% reimbursement for all other cost categories, including:
  • Personnel costs (salaries of staff working on the project).
  • Travel and subsistence.
  • Equipment (related to the project activities).
  • Subcontracting (external services or expertise required for project implementation).
  • Other direct operational costs linked to the project.

Key Points on Funding

• Cascade funding: At least 75% of the grant must be allocated to cascade funding for SMEs. Each SME may receive up to EUR 60,000 in financial support.
• Eligible costs: All costs must be directly related to project activities and necessary for achieving the project’s objectives.
• Co-financing: For cost categories reimbursed at 90%, beneficiaries will need to cover the remaining 10% from other sources, such as their own funds or external capital.

This funding structure ensures significant financial support while requiring some level of co-investment from project participants, particularly for non-SME support activities.

Minimum Consortium Eligibility Requirements

To be eligible, a consortium must:

• Include at least three legal entities (cluster organizations or innovation actors) from at least three EU Member States or SMP-COSME associated countries.
• Represent actors from different sectors and regions, ensuring geographical diversity and cross-sector collaboration.
• Ensure that at least 10% of supported SMEs come from regions different from those of the consortium partners.