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Research and innovation

About the Flagship

Funding for deep tech scale ups focuses on measures that will accelerate the growth of deep-tech start-ups in the EU.  Three actions under the funding for deep tech scale ups flagship are underway and one has not started yet.

Rebalancing debt-equity incentives

Completed
By December 2023

Transposal by Member States

From January 2024

Entry into force

On May 2022, the Commission put forward a proposal for a Directive on a debt-equity bias reduction allowance (DEBRA), aimed at encouraging companies to finance their investments through equity contributions rather than debt. Once adopted by the Council, the measure would allow businesses to realise more risk-bearing investments by increasing equity, instead of borrowing, making them more resilient.

Moreover, the proposal would encourage companies to decide more freely on their financial structure based on commercial considerations, rather than tax treatment. All non-financial corporations would be eligible for an allowance on new equity and small and medium-sized enterprises (SMEs) could receive a higher allowance compared to larger firms.

Listing Act

Completed
After March 2023

Feedback presented to the European Parliament and Council of the EU

2024

Publication of the act

In line with the objectives of the Commission’s 2020 Capital Markets Union (CMU) action plan, in December 2022 the Commission adopted a proposal for a Directive on a Listing Act. The measure would simplify and ease both initial and ongoing listing requirements for certain types of companies in order to reduce costs and increase legal certainty for issuers, while safeguarding investor protection and market integrity.

To allow certain founders and families to retain control post-listing, while raising a larger amount of funds and enjoying the benefits of going public, the Listing Act may also propose a minimum harmonisation of national legal regimes relating to dual class share structures across the EU.

The co-legislators have finalised the negotiations in Q1 2024 and the publication of the act is expected in the course of the year.

European Scale-Up Action for Risk Capital (ESCALAR)

Ongoing
March 2020 - June 2020
Q2 2023

Expansion of the scheme under the InvestEU Programme

Q4 2024 - Q1 2025

Signature with interested fund managers

Building on a successful pilot, the European Scale-Up Action for Risk Capital (ESCALAR) mechanism will be expanded under the InvestEU Programme to attract untapped sources of private capital.

A closed call for expression of interest under InvestEU closed on 31 January 2024. The EIF has set aside a minimum amount of EUR 300m of InvestEU Fund to deploy under the ESCALAR closed call. In response to the call, the EIF has received applications from 18 funds. The EIF investment managers are currently screening the proposals and first signatures under ESCALAR are expected between end of 2024 and Q1 2025.

Innovation gender and diversity index

Ongoing
Q1 2023

Start of selected projects

Q4 2024

First results expected

The EC will pilot an innovation gender and diversity index, which will include data on women and other less represented groups, including individuals with disabilities, in innovative start-ups and scale-ups, as well as amongst investors and funds investing in such companies. 

The project is advancing, with the first results expected by the end of 2024.

EIT Women2Invest Programme

Completed
Q1 2023

Selected women carrying out internships

2023

Second call for expression of interest open

2024 - 2025

Additional groups will be selected

The Women2Invest Programme is an action that will be implemented through annual calls. It aims to support women with STEAM university studies to start their careers in venture investment by training them and matching them with investors.

Two groups of 131 beneficiaries from 25 European nationalities have already followed 8-week internships in VC funds under the programme. Additional groups will be selected in 2024-2025.

 

Member States and Associated Countries actions supporting the New European Innovation Agenda

At the Competitiveness Council in December 2022, following the adoption of Council Conclusions on New European Innovation Agenda (NEIA), the Commission launched a call to governments to announce actions in support of the NEIA. This announcement was based on the understanding that full support and engagement from the Member States and Associated Countries is needed to ensure the implementation of the NEIA. 

The actions were gathered through the EIC Forum, a group of Member States and Associated Countries' public authorities and bodies in charge of innovation policies and programmes, with the aim of promoting coordination and dialogue on the development of the Union's innovation ecosystem.