The EU promotes Euroclusters for a more resilient economy

The European Commission has launched Euroclusters, a call under the Single Market Programme (SMP Cosme) aimed at strengthening cluster networks across Europe. By providing funding to these groups of businesses and institutions, the initiative seeks to enhance SME resilience through the adoption of advanced technologies and innovative processes, accelerating the transition to a greener and more digital economy. Open since 15 October, the call boasts a €42 million budget and will close on 5 February 2025.

“Euroclusters aims to reinforce Europe’s strategic autonomy by building a resilient, sustainable, and digital economy,” says Itsasne Murua, a consultant in the Regions and Cities Department at Zabala Innovation. “It presents a crucial opportunity for European clusters to secure funding, which can then be cascaded to small and medium-sized enterprises (SMEs).”

Euroclusters fits within the broader vision of the New Industrial Strategy for Europe and its updated version, published in May 2021. These strategies aim to modernise the continent’s industrial ecosystems and enhance their capacity to respond to global crises such as the COVID-19 pandemic and supply chain disruptions.

The call is divided into two key areas:

• Zero-emission technologies and critical raw materials, including initiatives to secure sustainable supplies of key technologies, expand manufacturing capacity, and recycle strategic raw materials.
• Value chains outside the first area, covering other sectors equally important to European competitiveness.

Up to 16 projects are expected to be funded, with a maximum budget of approximately €2.6 million per project. Selected clusters must allocate at least 75% of their funding to SMEs through open calls for cascade funding.

The strategic role of clusters

“Clusters are concentrations of interconnected businesses and institutions located in specific geographic areas that share resources and knowledge,” explains Murua. This structure enables SMEs to collaborate with key actors such as research centres, technology parks, and public bodies, fostering stronger and more competitive value chains.

“The Euroclusters call highlights the ability of clusters to act as catalysts for change. They not only connect companies but also create a direct impact on local and regional ecosystems,” Murua adds. “In doing so, they drive strategic sectors like zero-emission industries and critical raw materials recycling, which are essential for the green transition.”

The call is designed to maximise SME participation. SMEs, which make up over 99% of businesses in the European Union, will have access to funding through specific calls launched by Euroclusters. This funding will enable them to adopt advanced technologies and enhance their global competitiveness.

In addition to funding, the call emphasises worker training and skills development to improve workforce capabilities and attract new talent. Simultaneously, it promotes the internationalisation of SMEs, helping them access global supply chains and markets.

Euroclusters also plays a key role in supporting major European Commission initiatives, such as the Green Deal Industrial Plan, which includes the Critical Raw Materials Act and the Net-Zero Industry Act. Furthermore, it aligns with the European Economic Security Strategy, designed to bolster the EU’s autonomy in strategic sectors and reduce reliance on external players.

“The combination of these objectives makes Euroclusters a cornerstone of Europe’s economic future,” says Murua. “The green and digital transitions are essential, but Europe must also ensure it can lead these processes internally, without depending on third countries for critical raw materials or key technologies.”

Euroclusters call, a chance for European leadership

The Single Market Programme, under which Euroclusters operates, has a total budget of €4.2 billion for the 2021-2027 period. Its purpose is to ensure the European single market reaches its full potential, providing businesses, especially SMEs, with the tools they need to thrive in a rapidly changing global environment.

The significance of the single market, which has facilitated the free movement of goods, services, and people within the EU for nearly three decades, is reinforced by initiatives like Euroclusters. These initiatives not only address post-pandemic recovery but also lay the groundwork for a more resilient and sustainable economy.

“The success of Euroclusters will depend on strategic and collaborative planning. It is not just about securing funding but about transforming Europe’s industrial ecosystems,” Murua concludes.