The European Commission’s Implementation Dialogue on EU Funding and Regional Competitiveness, held in September 2025, brought together a diverse group of participants from across Europe to exchange views on how EU funds can better support innovation, competitiveness, and regional development
The event brought together representatives from enterprises, universities, research institutes, and project consortia that are actively engaged in European funding programmes.
A platform for exchange and collaboration
Participants included organisations from across the EU, such as Charleroi Entreprendre (Belgium), Crowd Policy (Greece), Lumel (Poland), DLR (Germany), OSA Spain, DeremCo + Batmass (France, Spain, Slovenia, Italy), IN-MOB (Italy, Slovenia, Belgium, Portugal), and others.
Together, they shared practical experiences from projects funded through key EU mechanisms, including the European Regional Development Fund (ERDF), the Strategic Technologies for Europe Platform (STEP), Smart Specialisation Strategies (S3), and the Interregional Innovation Investment Instrument (I3).
This representation facilitated a productive dialogue focused on identifying best practices, highlighting bottlenecks, and discussing ways to ensure that EU funding more effectively enhances competitiveness, particularly for small and medium-sized enterprises (SMEs).
Progress on Simplification
A clear message from participants was that simplification efforts are paying off, particularly through the introduction of Simplified Cost Options (SCOs) and Financing not linked to costs (FNLC).
These mechanisms have made processes more manageable, reduced the bureaucratic workload, and accelerated payments to beneficiaries. Many participants encouraged the EU to expand these simplified options further to make funding even more accessible for smaller organisations.
The I3 instrument was singled out as a convenient and approachable entry point for innovation and regional collaboration. Its low administrative threshold and intense focus on research and innovation make it an essential tool for less developed regions seeking to scale up their competitiveness.
Regional competitiveness
Discussions also touched on the effectiveness of Smart Specialisation Strategies (S3) in helping regions identify and build on their economic strengths.
Participants recognised S3 as a key driver of regional competitiveness, while noting that its implementation could be more consistent across Member States. The relatively new STEP initiative was seen as a promising means of channelling investment toward strategic technologies, enhancing Europe’s industrial and technological sovereignty.
Areas for further improvement
Despite progress, several challenges remain. Many businesses still find EU funding calls confusing and time-consuming, with bureaucracy and national gold-plating as major obstacles. Participants called for continued efforts to simplify procedures and for greater alignment between different funding instruments to avoid overlaps and inefficiencies.
Another recurring theme was the need to bridge the gap between innovation and market access. Stakeholders are encouraged to provide more substantial support in translating research results into tangible market outcomes and to focus more on impact and results rather than merely procedural compliance.
Committing to future improvements
The European Commission reaffirmed its commitment to making EU funding more accessible, faster, and better targeted. Ongoing simplification measures introduced through the mid-term review of cohesion policy are expected to ease access to funds for businesses and regions alike.
The dialogue closed on an optimistic note, with participants and policymakers agreeing on the importance of building on current progress to create a more effective, responsive, and innovation-driven funding environment.
