Keys to success in the Interregional Innovation Investments (I3) Instrument

The Interregional Innovation Investments (I3) Instrument has become one of the European Union’s initiatives specifically designed to foster innovation through cooperation between regions. Funded by the European Regional Development Fund (ERDF), it aims to harness the strengths of different regional ecosystems to encourage joint investment and strengthen European value chains.

For companies, public authorities, clusters, research organisations, innovation agencies and other regional stakeholders, I3 opens up opportunities for collaboration and funding with a strong interregional dimension. But which projects are actually a good fit for this instrument? Who can participate? What requirements must proposals meet, and what funding opportunities are available?

We explore the key aspects of I3 and answer the most frequently asked questions to understand how this European instrument works and what opportunities it offers.

What is the Interregional Innovation Investments (I3) Instrument?

The Interregional Innovation Investments (I3) Instrument is an ERDF-funded instrument that supports interregional cooperation in innovation. It uses Smart Specialisation Strategies (S3) to connect regional strengths, strengthen European value chains and support innovation projects moving towards scale-up, commercialisation and investment. I3 includes three strands covering interregional investment and regional capacity building.

What is the difference between I3 Strand 1, Strand 2a and Strand 2b?

The three strands address different project needs:

• Strand 1 – Interregional innovation investments: supports interregional investment projects based on shared or complementary Smart Specialisation priorities, with the aim of strengthening European value chains and bringing mature innovations towards demonstration, market uptake and scale-up.
• Strand 2a – Regional value chains in less developed and transition regions: supports interregional investments that create or strengthen value chains by integrating less developed and transition regions into European value chains, with concrete and sustainable roles for these regions.
• Strand 2b – Capacity building: supports less developed regions and their innovation ecosystems in strengthening institutional and organisational capacity, improving investment readiness, mobilising companies and preparing future interregional investment projects under I3 Strand 1 or 2a and other EU programmes.

Which organisations can participate in I3 projects?

I3 brings together innovation actors from the quadruple helix, including companies and SMEs, public authorities, research and academic organisations, clusters, innovation agencies and other ecosystem organisations. The exact eligibility requirements and consortium composition depend on the strand and the specific call.

Can SMEs participate in I3 projects?

Yes. SMEs have a central role in I3 investment projects, particularly in the deployment, demonstration, market uptake and scale-up of innovative solutions. The investment strands also provide for financial support to third parties (FSTP), and in the 2026 calls the maximum support per SME through FSTP was increased to €100,000.

What technology readiness level (TRL) is required for I3?

For the investment strands, I3 business and investment cases start from a minimum technology readiness level (TRL) 6. The focus is therefore on mature innovations that can progress towards demonstration, market uptake, scale-up and commercialisation.

Strand 2b follows a different logic and is a capacity-building strand rather than a technology-development call, so it is not defined around a minimum TRL.

How important are Smart Specialisation Strategies (S3) in I3?

S3 is a core element of the I3 Instrument. Investment projects under Strands 1 and 2a should build on shared or complementary Smart Specialisation priorities and demonstrate how interregional cooperation strengthens value chains and regional innovation ecosystems. Strand 2b also uses S3 as a basis for building regional capacity and identifying future investment opportunities.

What is the expected role of regions and companies in an I3 project?

I3 is not only about combining technologies or organisations from different countries. Projects should demonstrate a clear interregional logic and explain how the participating regions and innovation ecosystems contribute to the targeted value chains.

In the investment strands, companies – particularly SMEs – are expected to play a clear role in deployment, market uptake and scale-up. Strand 2b places greater emphasis on public authorities, innovation intermediaries and ecosystem actors that can strengthen regional capacity and prepare future investment opportunities.

What are the main funding conditions under I3?

For Strands 1 and 2a, projects can receive grants of up to €10 million, with an EU contribution of up to 70% for eligible beneficiaries and up to 100% for Financial Support to Third Parties (FSTP), subject to the specific call conditions.

For Strand 2b, the 2026 call provided grants of normally €500,000 to €1.5 million, with a funding rate of 100%.

What is the minimum consortium structure for I3?

The consortium requirements differ by strand and should be checked against the relevant call.

Strands 1 and 2a require an interregional consortium covering eligible regions and countries, with specific requirements concerning the participation of less developed and/or transition regions.

For Strand 2b, the 2026 call required at least two independent legal entities representing two regional ecosystems from two different eligible countries, including at least one less developed region and one more developed region. The coordinator had to be established in a less developed or outermost region and meet specific eligibility conditions.

Is I3 suitable for a project that is still mainly focused on research and technology development?

Generally, no for the investment strands. I3 is intended for mature innovation and investment cases starting at TRL 6 or above, with a focus on demonstration, deployment, market uptake, scale-up and commercialisation.

Strand 2b is also not a research funding instrument: the 2026 call explicitly excluded funding for research per se and focused instead on capacity building, investment readiness, ecosystem development and preparation of future investment projects.

Can I3 fund future projects or investment opportunities that are not yet ready to apply?

Yes, but the appropriate strand matters. Strands 1 and 2a focus on mature interregional investment projects. Strand 2b is specifically designed to build the capacity of regional innovation ecosystems, strengthen investment readiness and identify future investment opportunities that can later develop into I3 Strand 1 or Strand 2a projects or other EU-funded initiatives.