The European Innovation Council to invest €1.4 billion in 2025

The European Innovation Council (EIC) will support innovative projects in the field of Europe’s strategic technologies, allocating a budget of €300 million through a new call, STEP scale-up. This is the main new feature in the 2025 work programme published by the EIC this Tuesday. As part of Pillar III of the Horizon Europe programme for the 2021-2027 period, the EIC combines research in emerging technologies with the acceleration of SMEs, startups, and scale-ups through funding for innovative projects. The funds linked to the newly created Strategic Technologies for Europe Platform (STEP) are included in the EIC Work Programme 2025 total budget, which reaches €1.4 billion.

Far from being a new programme, STEP coordinates, strengthens, and directs 11 different funding sources managed or co-managed by the European Commission, aimed at innovative projects that reduce the EU’s reliance on third countries. In this way, SMEs, startups, and spin-offs participating in the EIC could receive between €10 million and €30 million in equity investments to accelerate the development and market launch of their products or services. These investments are designed to boost funding rounds of between €50 million and €150 million, with a multiplier effect of at least three times the EIC’s investment.

“The EIC’s commitment to strategic technologies through the STEP platform represents a major step towards consolidating technological autonomy in Europe,” says Sara Mateo, Head of the European Projects Entrepreneurship area at Zabala Innovation. “This financial support will enable our startups and SMEs to compete in an increasingly challenging global market,” she adds.

EIC Work Programme 2025 : other new features

The EIC’s 2025 work programme, like its predecessor, includes three main funding instruments: Pathfinder, Transition, and Accelerator, which cover all stages of technological readyness level (TRL). Beyond introducing funds linked to STEP and dedicated to the development of digital, clean, and resource-efficient technologies (including net-zero emission technologies) as well as biotechnologies, the programme includes other new features.

For EIC Transition, a greater number of applicants will be invited to the interview phase with the jury during the evaluation process. All proposals that meet evaluation thresholds but do not receive funding will be awarded the Seal of Excellence. “This is a label that will facilitate access to the business acceleration services offered by the EIC,” Mateo notes.

Regarding the EIC Accelerator, the maximum investment component has been reduced from the previously planned €15 million to €10 million. Investments exceeding this threshold will be available through the aforementioned STEP funds. The new programme also clarifies that proposals related to nuclear energy applications are eligible for the EIC Accelerator, provided they have completed TRL 5 elements. Short application evaluations will be grouped monthly, with results provided within four to six weeks after submission.

Cutting-edge technologies and transformative innovations

The EIC’s objective is to identify, develop, and scale cutting-edge technologies and disruptive innovations that contribute to the EU’s green and digital transition policies and ensure strategic autonomy in critical technologies for the future.

Pathfinder, one of the EIC’s flagship programmes, supports research teams at early stages of scientific and technological development, focusing on radically new technologies with the potential to revolutionise markets and create new opportunities across Europe. This approach allows researchers to explore pioneering ideas and build the scientific foundation necessary for future disruptive advances in diverse sectors.

Transition, another key pillar of the EIC, focuses on validating and maturing technological innovations beyond proof of concept in the lab. This programme assists SMEs, startups, and organisations in moving these technologies towards specific commercial applications, fostering the creation of teams with a blend of scientific and business talent to transform research efforts into viable commercial projects. Transition enables promising ideas to find a pathway to the market.

Lastly, the EIC Accelerator targets startups and SMEs aiming to bring innovative products or business models with global transformational potential to market. This programme supports companies seeking rapid scale-up and requiring substantial funding, despite their high risk level deterring private investors. The EIC thus backs projects that promise not only growth but also the creation of new markets and disruption of existing ones.

The European Innovation Council will present its EIC 2025 work programme in an online event on 5 November 2024, from 9:30 a.m. to 4:45 p.m.