The Interregional Innovation Investment Initiative (I3) is a key instrument established under the Regulation of the European Regional Development Fund, Article 13, for the period 2021-2027. This ambitious program aims to foster innovation and collaboration between various regions within the European Union (EU), with a special emphasis on the integration of less developed regions into the wider innovation ecosystem. The initiative has a wide geographical coverage, with Spain, Italy and the Netherlands emerging as main participants. These countries have demonstrated a strong commitment to harnessing innovation as a catalyst for regional development and economic growth, setting a strong example for other EU nations.

The awarding body has introduced several new elements to improve its impact and ensure equitable participation between the regions. One of the key changes is a stronger focus on less developed regions. This approach aims to increase the meaningful participation of beneficiaries in these areas by allocating substantial financial resources to them. In this way, the initiative seeks to reduce the innovation gap between more and less developed regions. Another significant change is the alignment with smart specialization strategies (Smart Specialization Strategies S3).

The initiative aims to reduce bureaucratic obstacles, allowing coordinators to confirm the alignment of all participants with these strategies. This simplification is expected to facilitate more agile and efficient collaboration between participants. The evaluation and adjudication procedure has been simplified to focus more on the "relevance" criterion. This means that proposals will be quickly assessed, with a particular emphasis on their alignment with specific aspects of the I3 initiative, such as strengthening EU value chains and integrating less developed regions. Objectives and Axes The I3 initiative has several general objectives. The main recipients are small and medium-sized enterprises (SMEs), with a strong emphasis on fostering cohesion.

The initiative aims to promote the creation and diffusion of innovation, strengthen regional and EU value chains, and support interregional innovation investments. In addition, it seeks to demonstrate, commercialize and scale mature innovations. To achieve these objectives, the I3 initiative is structured in specific axes. Axis 1 supports investments in interregional innovation projects. Axis 2a focuses on the development of value chains in less developed regions, while Axis 2b is dedicated to capacity building for the development of value chains in these regions. Budget and Project Maturity The total budget for the I3 initiative from 2021 to 2027 is 490 million euros. This substantial funding supports projects at different stages of technological readiness, classified under Technological Readiness Levels (TRL). Projects with technologies in TRL 6 (technology demonstrated in a relevant environment) or TRL 7 (system prototype demonstration in an operational environment) focus on development and demonstration. Projects with technologies in TRL 8 (complete and qualified system) or TRL 9 (real system tested in an operational environment) are focused on business and investment development. Specific Objectives and Thematic Priorities The specific objectives of the I3 initiative are adapted to each axis. For Axis 1, the objectives include increasing the competitiveness and resilience of EU value chains, developing or creating new interregional and cross-border value chains, and improving connections between regional innovation ecosystems. In addition, the initiative seeks to enhance collaboration between innovation actors, especially SMEs, using smart specialization strategies as a coordinating principle. Axis 2a focuses on supporting innovation actors in the development of mature business cases and the creation of new value chains in less developed regions. It also aims to bridge supply-demand gaps in innovation ecosystems and facilitate technology transfer and innovation diffusion.

Thematic priorities for both axes include supporting projects related to the green transition, smart manufacturing and digital transition. These areas of focus are critical to driving forward-looking and sustainable innovation across the EU. Eligible Activities and Support Activities eligible for both strands include the commercialization and scaling of innovative ideas and products, the establishment of testbeds and demonstration facilities, and the validation and testing of innovations in real-world environments.

The initiative provides both financial support and advice. Financial support includes direct funding to consortium beneficiaries and, optionally, cascading funding to third parties. Advisory support covers areas such as intellectual property rights, standardization, certification and networking activities to facilitate market penetration and the introduction of innovative technologies and solutions. Composition of the Consortium and Award Criteria The composition requirements of the consortium ensure diverse and inclusive participation.

For Axis 1, the participation of at least five independent legal entities from five different regions in at least three eligible countries is required, with at least two entities coming from less developed regions. For Axis 2a, the participation of at least three independent legal entities from three different regions in at least two eligible countries is required, with a strong involvement of less developed regions. The consortium coordinator must be a public body or an entity entrusted by national or regional governments to develop or implement innovation and investment actions for SMEs.

Proposals are assessed according to relevance, quality, cost-effectiveness and impact. Relevance is assessed according to how well the proposal matches the objectives of the initiative, including the participation of less developed regions. Quality is assessed according to the expertise of the consortium and project teams, as well as methodological soundness. Cost effectiveness considers budget adequacy and value for money. Impact assesses long-term benefits, dissemination strategies, potential for replication and sustainability of results after EU funding ends. Conclusions The I3 initiative is a significant step towards promoting innovation and cohesion between EU regions.

By focusing on less developed areas and supporting smart specialization strategies, the initiative aims to build robust interregional value chains and raise the EU's overall innovation capacity. Through its comprehensive support and approach to equitable participation, the I3 initiative is poised to drive sustainable and inclusive growth across Europe.

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