Interregional Innovation Investments Strand 1 (I3-2025-INV1)

The Interregional Innovation Investments (I3) Instrument is a funding instrument under the European Regional Development Fund (ERDF) regulation (article 13) and supports interregional innovation projects in their scale-up and commercialisation phases. It helps overcome regulatory and market barriers, bringing projects to investment level. Through Smart Specialisation and interregional collaboration, I3 Instrument strengthens regional ecosystems, fosters sustainable investment connections, and accelerates market uptake of research results.

Expected impact at the closure of the project (non-exhaustive list):

• Innovative technologies tested and adopted by companies and public administration;
• Innovative solutions deployed improving businesses confidence, competences and means to digitalise and grow;
• Contribution to digitisation and health systems transformation, through various types of innovation and the supply of IT services;
• Uptake of technologically/economically reliable and viable solutions on the market;
• Deployment of new green and digital technologies fostering the growth of Europe’s manufacturing sector;
• Innovative technologies adopted by SMEs;
• Identification of possible sources of funding/funding mix, to cover the residual investment needs (public-private partnerships for the deployment of innovation, the collaboration with venture capitals, EIB group loans etc);
• Strengthening innovation diffusion channels;
• Reinforcing the capacity of regions to co-invest together, joining forces on common S3 investment priorities (interregional investments).

Long-term impact (non-exhaustive list):

• Increased companies’ productivity and efficiency;
• Improved user-friendly, accessible and interoperable public services;
• Improved level of digital skills;
• Improved EU innovation capacity and competitiveness
• Creating new market opportunities for EU companies;
• Making the EU industry more efficient and sustainable;
• Improved way of living and of doing business;
• Increased social and territorial cohesion as well as personal well-being;
• Improved education and vocational training systems (indirectly);
• Reinforcing/reshaping EU value chains whilst increasing EU competitiveness in global markets;
• Unlocking the innovation potential of EU regions/countries;
• Contributing to the European Green Deal objectives;
• Positive impact on environment, health, climate, social and economy;
• Economic growth and job creation
• Reinforcing/reshaping EU value chains whilst increasing the competitiveness of the EU in global markets.

It supports the scaling up and commercialisation of interregional innovation projects in shared (or complementary) Smart Specialisation (S3) areas, promoting innovation, diffusion, and the strengthening of EU and regional value chains through cooperation based on shared priorities and complementary capabilities. It helps innovation actors move from investment ideas to the implementation of projects grounded in mature business plans, supporting the demonstration, scaling up, and market uptake of mature innovations. The I3 Instrument fosters cooperation among less developed, transition, and more developed regions, with a particular emphasis on strengthening European value chains, especially through value chain development in less developed regions.

Thematically, the I3 Instrument addresses challenges in digital and green transitions and smart manufacturing and encourages links to the burning challenges identified in the New European Innovation Agenda and the critical technologies outlined in the Strategic Technology for Europe Platform (Regulation (EU) 2024/795).

An interregional investment involves the mobilisation of resources (such as time, money, and effort) across regions, with the aim of generating income or creating long-term value for those regions. It is a practical approach to developing innovation and utilizing research results to strengthen specific value chains.

Proposals to be submitted under this call for proposals could result from projects funded under the I3 Capacity Building Strand 2b or developed through cooperation within Thematic Smart Specialisation Partnerships. They may also be implemented under other regional and EU programmes, such as ERDF-funded national and regional or Interreg programmes, Horizon Europe, and the Digital Europe Programme. These projects will have the opportunity to scale up and move towards commercialization under the I3 Instrument.

In accordance with the 2021-2027 ERDF Regulation, the 2025-2027 I3 work programme covers the following key intervention areas and Strands:

Strand 1 focuses on financial and advisory support related to interconnected investments to de-risk projects and maximise the use of technologies and solutions developed in Europe. It aims to strengthen European competitiveness by supporting investments along the value chain and integrating innovators from less developed regions (LDRs) and transition regions (TRs) into existing value chains across Europe. This approach ensures that regions at different stages of development have equal opportunities to participate. The goal is to support innovation creation, focusing on technologies new to Europe or to the application sector.

Strand 2a focuses on financial and advisory support related to investments supporting the creation of new value chains in LDRs and improving the integration of actors in LDRs into existing pan-European value chains. This strand focuses on innovation diffusion, applying research results and adapting technologies to meet the needs of participants from LDRs.

Projects under Strand 1 and Strand 2a support innovation actors with investment ideas ready to be developed into mature business cases through a portfolio of complementary and interlinked investments across participating regions.

Partners are expected to collaborate in an integrated way in developing ideas, priorities and actions. Project actions must be carried out by partners in a cooperative way, ensuring that activities across regions are well-connected and aligned. Each work package should have clear links to the others in content and purpose to effectively achieve the project’s overall goals and enable its replication in other contexts.

Strand 2b strengthens regional innovation ecosystems in LDRs and TRs, building capacity to develop and implement interregional business cases. It provides advisory support and skill development to help these regions scale innovation projects.

Objectives

Strand 1 of the I3 instrument seeks to increase the competitiveness and the resilience of EU value chains on the basis of interregional cooperation and shared smart specialisation areas.

The objective of the I3 Instrument Strand 1 call for proposals is to support interregional innovation investments by offering consortia of innovation actors from the quadruple helix ecosystems the necessary financial and advisory support to bring their innovations to a mature level, ready for commercialisation and scale-up, while bridging and reducing the innovation divide in Europe with a strong cohesion policy focus of integrating all regions and in particular the less developed regions into European value chains.

Thereby, applications under this call seek to facilitate:

• the development of already existing or the creation of new interregional and cross-border value chains and a better connection between regional innovation ecosystems;
• the collaboration between innovation actors, especially SMEs, from less developed regions and innovation actors, especially SMEs, from more developed regions, contributing to cohesion policy objectives;
• the support of innovation actors with investment ideas that are ready to be developed into mature business cases;
• the identification of new regional technological domains and market opportunities with the EU priorities and bridging the gap between the supply and demand sides to help innovation ecosystems overcome market failures.

I3 Instrument business investment cases start with a minimum TRL 6 and have the ambition to facilitate demonstration and to accelerate market uptake and commercialisation. The development of the business and investment cases is facilitated by the regional innovation ecosystems with companies in the lead.

The support to be provided shall be (a) financial support, through direct funding to consortium beneficiaries or through cascade funding/financial support to third parties (FSTP), and (b) non-financial support, such as business and investment planning, protection of IPR, certification, commercialisation, standardisation, tailored support for the integration of KETs/deep tech in production processes, support in testing, demonstration and piloting new solutions.

At the end of the project implementation, all involved regions and partners should have a clear perspective on how to exploit and build on the I3 project results, including through the broad introduction of new products, services, or production processes.

2.2 Themes and priorities

Applications under this call for proposals must address one of the following thematic priorities:

1. Digital transition or

1. Green transition or

1. Smart manufacturing

Each project application under this call must address one thematic priority.

1. Digital transition

Digital technologies present an enormous growth potential for Europe. This thematic priority targets investments in businesses and public administrations (notably in the part related to the innovation sector) with regards to the digital transition. Projects will unlock the potential for digital growth, deploying innovative solutions that improve accessibility and efficiency of services (both for businesses and citizens) while bridging the digital divide and contributing to the cybersecurity.

This thematic priority encourages applications in one or more or a combination of the following investment areas (non-exhaustive list):

a. Digital economy innovation

• The deployment of innovative solutions for businesses digitalisation and digital services, including the use of artificial intelligence (AI) and its innovative application and/or integration into strategic sectors as per the Competitiveness Compass;
• ICT up-take in SMEs applied to traditional and emerging sectors; B2B; B2C; Customer to Customer, including infrastructures and services (digital innovation hubs, living labs, etc.);
• Demonstration of innovative digital technologies in view of the commercialisation of research results and a better integration in EU value chains;
• User driven innovation and valorisation of traceability and big data;
• Companies reinforcing EU cybersecurity value chain and protecting from hacking, ransomware and identity theft;
• Investments in innovative solutions in technology that will increase the security and resilience of communication, transport and digital networks;
• “Digital based” open innovation, supporting entrepreneurial discovery processes and cooperation between academia and businesses in the framework of smart specialisation;
• Digital skills for companies adopting innovative digital technologies (upskilling and reskilling) in the framework of investments relevant for Smart Specialisation.

b. Digital transformation of public administration and public services

• New or significantly upgraded services for e-government, including the take-up of Europe wide interoperable services which improve the efficiency of services delivered by public administrations to citizens, companies and other public bodies by using information and communication technologies such as artificial intelligence;
• Investments in innovative solutions for cybersecurity; investments in innovative solutions helping administrations to make services user-friendly, accessible and more interoperable. Those investments might include the demonstration of the validity of new digital technologies in view of the large-scale adoption of new IT systems.
• E.g. technologies for digitalisation in the health care system.

1. Green transition

Turning climate and environmental challenges into opportunities for competitiveness in Europe is the ambition of the green transition, as outlined in the Clean Industrial Deal and the Competitiveness Compass. Both these initiatives have the goal to make Europe a resource-efficient and competitive economy, while reducing EU reliance on fossil fuels. The EU has set targets to reach climate-neutrality by 2050. This framework can drive competitiveness, as it gives certainty and predictability to companies and investors alike. This will be achieved by nurturing competitive manufacturers who drive decarbonisation through innovation, create quality jobs and contribute to our open strategic autonomy, fully respecting and applying the principle of technological neutrality for Member States as appropriate. This thematic priority intends to support innovative value chain investments, to boost our competitiveness through green technology with a focus on energy-intensive industries and the clean-tech sector as per the Clean Industrial Deal.

It also intends to provide support to interregional investments in resilient and sustainable food systems and agriculture, clean energy, green industry, energy-efficient buildings and renovation, sustainable mobility and eliminating pollution.

This thematic priority encourages applications in one or more or a combination of the following investment areas (non-exhaustive list):

• Innovative investments in decarbonisation, reducing greenhouse gas emissions and contributing to improve air quality, health and well-being;
• Investments in circularity, including but not limited to the management of natural resources, including the use of recycled materials, especially construction materials, plastics and textiles, to stimulate demand for secondary markets raw materials;
• Innovative business investments related to smart, sustainable/efficient transport solutions and/or alternative fuels;
• Business investments in renewable energy and energy efficiency to make industry more sustainable;
• Business investments related to energy efficiency in buildings;
• Business investments related to a sustainable blue economy, contributing to the coastal protection;
• Business investments in circular economy to replicate and scale up successful circular economy solutions, which can generate EU added value;
• Investments in bioeconomy, efficient and sustainable agriculture and forestry, innovation in marine/ maritime and inland water sustainable solutions.
• Investments in sustainable business models and alternative modes of production and consumption (e.g. leasing, repair, modular design, industrial symbiosis…).
• Innovative investments in SMART cities;

1. Smart manufacturing

This thematic priority focuses on improving the delivery of new or improved products, processes or services in the manufacturing industry and fostering competitiveness, strategic autonomy and a circular economy approach, as outlined in the Competitiveness Compass and the Clean Industrial Deal. In the context of advanced manufacturing; knowledge and innovative technologies are used to produce complex products and improve processes to lower waste, pollution, material consumption and energy use. Robotics, 3D and 4D printing, artificial intelligence as well as high performance computing for modelling are important elements in advanced manufacturing.

This thematic priority supports interregional innovation investments for the uptake of new or improved manufacturing solutions, as well as for supporting industry to face the challenge of digitalisation and to promote the shift towards a more environmentally sustainable production (zero pollution ambition for a toxic-free environment). This thematic priority encourages applications in one or a combination of the following investment areas (a non-exhaustive list):

• Demonstration processes, i.e. helping new industrial products to reach the market faster or having more efficient and sustainable processes adopted by the industry.
• Valorisation of research results and practical applications for innovation diffusion. This might include the active involvement of ecosystems and the co-creation process with stakeholders and end-users.
• Connecting or making complementary use of testing and demonstration facilities at interregional level. In this framework, synergies with circularity hubs are encouraged.
• Improving the use of natural resources and the reuse of materials, promoting circularity models (de- and remanufacturing) and investments in carbon neutrality. Specific implementation (including funding) strategies, ensuring the participation of all stakeholders (industry, SMEs, local authorities, educational institutions and civil society).
• Implementation of interregional demonstration cases to test and replicate the results.
• Innovation diffusion and involvement of SMEs in EU value chains.
• Innovative investments in advanced materials.

Projects selected under this call for proposals will be implemented through an investment portfolio approach, where beneficiaries (including the SMEs) as well as SMEs as third parties performing tasks complementing the main project investments activities (see below section on financial support to third parties – FSTP) can play a role in specific segments of EU value chains. Within a specific thematic/technological area of cooperation, the project portfolio might be composed of several investment-ready sub-projects that address one or several bottlenecks in a value chain identified in the application. These sub-projects are necessary to test and demonstrate the validity of technologies/solutions and accelerate innovation uptake, thus increasing the competitiveness of EU value chains.

The proposal must clearly describe the progress from innovation towards commercialisation and upscaling that is expected as a result of the project and its investment portfolio.

The proposal must also provide an outline of an exploitation plan that sets out the expected way forward following the completion of the project, in particular, if the new products/processes or services supported by the I3 Instrument are not yet ready for the market.

Target investments can be both tangible and intangible investments in the form of one or more of the following activities:

• Financial support for producing plans and arrangements or designs for new, altered or improved products, processes or services such as demonstrating, testing and piloting activities by companies, large-scale product validation and market replication (new to Europe and new to the application sector);
• Adaptation of existing prototypes (i.e., by combining two or more key enabling technologies) and tailoring them to the companies’ needs for the demonstration in a real environment (ex-novo prototyping is not eligible);
• Development of portfolios of projects for close-to-market investments that deploy new or improved technologies or processes;
• Activities directly aiming at producing plans, arrangements or designs for new, altered or improved products, processes or services (adaptation to the companies’ needs). This can include testing, demonstration, piloting, large-scale product validation and market replication;
• Activities connecting or making complementary use of testing and demonstration facilities to accelerate market uptake and scale-up of innovative solutions in shared smart specialisation areas;
• Innovation services for the development of the business investment interconnecting value chains;
• Test beds and complementary activities needed to improve regulations, standards and/or to remove barriers and bottlenecks to innovation;
• Activities bringing innovative ideas and new products to the market;
• Advisory support for investment (developing or implementing interregional business and “go to market” investment plans in specific value chains).