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Horizon Europe: The RHOMOLO ex-ante assessment

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Abstract

In 2018 the European Commission has published its proposal for its future research and innovation (R&I) programme, Horizon Europe, a €100 billion programme that will succeed Horizon 2020.Horizon Europe is designed around three pillars: support researchers and projects (Open Science), pursue industrial leadership related to societal issues (Global challenges), and boost market-creating innovation (Open Innovation). The RHOMOLO dynamic CGE model has been used for policy simulations to estimate the economic impact of Horizon Europe. The analysis compares three alternative policy designs to a scenario without the policy: Continuation, in which Horizon Europe is implemented similarly to the previous Horizon 2020; Centralisation, in which the programme is reinforced by centralising at the EU level a third of the national competitive-based project funding; and Decentralisation, in which the programme is implemented at the national level. The RHOMOLO simulations suggest that Horizon Europe can contribute to higher aggregate GDP and employment, with considerable potential regional heterogeneity.

Suggested Citation

  • Martin Christensen & Andrea Conte & Simone Salotti, 2019. "Horizon Europe: The RHOMOLO ex-ante assessment," JRC Research Reports JRC115437, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc115437
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC115437
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    1. Martin Christensen, 2018. "Assessing the regional socio-economic impact of the European R&I programme," JRC Working Papers on Territorial Modelling and Analysis 2018-05, Joint Research Centre.
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    Cited by:

    1. Damiaan Persyn & Jorge Diaz-Lanchas & Javier Barbero & Andrea Conte & Simone Salotti, 2020. "A new dataset of distance and time related transport costs for EU regions," JRC Research Reports JRC119412, Joint Research Centre.

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    More about this item

    Keywords

    rhomolo; region; growth; impact assessment; modelling; R&D; R&I; Horizon Europe; Horizon 2020; investment;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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