The Strategic Technologies for Europe Platform (STEP) enhances EU industrial competitiveness by focusing on developing critical technologies for a sustainable, competitive future. It tests new strategic measures and strengthens EU industrial policy.
STEP Scope
STEP focuses on projects in the development and manufacturing stages in three sectors (e.g., digital technologies and deep technology innovation, clean and resource efficient technologies, and bio technologies) relevant to the green and digital transitions. The Guidance Note on the scope of STEP elaborates on certain provisions of the STEP Regulation to facilitate implementation.
More detailed information on STEP scope can be find under the section Targeted investment areas.
STEP conditions
To qualify as critical under the STEP framework, a technology must meet one of the two conditions stated below. These two conditions are not cumulative in the assessment of criticality.
Authorities in charge of the programmes falling within the scope of the STEP Regulation should set specific criteria to meet the above conditions in their funding processes (e.g., calls for proposals) and accordingly must assess compliance with these conditions in the evaluation of the submitted projects.
- Innovativeness: bring to the internal market an innovative, emerging, and cutting-edge element with significant economic potential.
- The technology should exhibit at least two of the following three characteristics: innovative, emerging, or cutting-edge.
- Additionally, the technology must demonstrate significant economic potential by having a substantial impact on development or manufacturing, addressing various Union markets, and generating positive spillover effects across Member States.
- Strategic Dependencies: contribute to reducing or preventing the strategic dependencies of the Union.
- The technology should meet several of the following factors: enhancing Union industrial and technological leadership, supporting critical infrastructures, increasing manufacturing capacity (only where a strategic dependency has been identified), strengthening security of supply, and promoting positive cross-border effects within the internal market.
Associated services
Under the STEP Regulation include specialised services that are both critical for and specific to the development and manufacturing of the final products within the STEP sectors. These services enhance content and efficiency, such as cleanroom services for semiconductors, cloud/edge computing, high performance computing, testing and experimentation, cybersecurity, space based IoT and connectivity, PNT services, real-time monitoring, and clinical trial management. Such associated services are eligible to receive funding under STEP as standalone projects.
Ancillary services like IT, advisory, or legal activities may only be supported if they are inherent to the investment cost of a STEP project and comply with applicable Union instrument or Fund rules; they do not qualify as standalone STEP projects.
Support to skills development
Developing and manufacturing critical technologies in the EU will not be possible without a sizeable skilled workforce. The objective is to mobilise all players (Member States authorities, including at regional and local levels, education and training providers, and industry) to identify skills needs, and quickly develop and deploy education and training programmes at large scale.STEP is complementary to the broader European Skills Agenda and other skills-specific sector initiatives such as those developed by the EU Pact for Skills, or by the European Skills Agenda Centres of Vocational Excellence.
STEP targets particularly the skillsets relevant to the development and manufacturing of critical technologies. To give some concrete examples: for digital tech, STEP targets developing cybersecurity and data analytics skills; in the realm of clean and resource efficient technology, STEP seeks to support skills’ projects in advanced battery technology and renewable energy system maintenance, in addition to other relevant engineering skills.
Skills development under STEP initiatives complements the European Net-Zero Industry Academies, established under the NZIA, and aiming to equip our workforce with the skills needed to ensure a net-zero future for Europe.
State aid
The Commission may consider the following types of State aid compatible with the internal market, on the basis of Article 107(3)(a) and (c) of the Treaty on the Functioning of the European Union:
- State aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment, and to promote the development of the regions referred to in Article 349 of the Treaty;
and
- State aid to facilitate the development of certain economic areas in the European Union.
These types of State aid are known as regional aid.
The primary objective of State aid control in the field of regional aid is to ensure that aid for regional development and territorial cohesion does not to an undue extent adversely affect trading conditions between Member States. In particular, it aims at preventing subsidy races that may occur when Member States seek to attract or retain businesses in assisted areas of the EU, and to limit the effects of regional aid on trade and competition to the minimum necessary.
The objective of regional development and territorial cohesion distinguishes regional aid from other forms of aid, such as aid for research, development and innovation, employment, training, energy or for environmental protection, which pursue other objectives of economic development under Article 107(3) of the Treaty. In some circumstances, higher aid intensities may be allowed for those other types of aid when granted to undertakings established in assisted areas, in recognition of the specific difficulties they face in these areas.
The Commission is working to maximise synergies between the rules of selected EU instruments, such as the Innovation Fund, and the State aid rules to ensure a more streamlined process. For instance, by further aligning criteria and ensuring that the decision on State aid is taken at the same time as the funding decision, provided a complete notification by the Member State occurs in due time.
The Guidelines on regional state aid set out the conditions under which regional aid may be considered to be compatible with the internal market. They also set out the criteria for identifying the areas that fulfil the conditions of compatibility under Article 107(3)(a) and (c) of the Treaty. The Regional Aid maps 2022-2027 provide the overview of the selected regions per Member State that will be used to assess the compatibility of all notifiable regional aid awarded or intended to be awarded.
The European Commission has amended the Guidelines on Regional State Aid to allow Member States to grant higher amounts of regional aid for investment projects under the Strategic Technologies for Europe Platform (STEP), aiming to boost critical technologies and economic resilience across Europe. This amendment permits :
- increased aid by up to 10 percentage points for 'a' areas and
- 5 percentage points for 'c' areas.
The changes help support investments in less advantaged regions by adjusting the maximum State aid allowed based on updated regional maps.
STEP stakeholders
The development and manufacturing of strategic technologies in Europe involve a wide range of stakeholders, including governments, regulatory bodies, industry leaders, research institutions, and the public. The STEP Task Force is the STEP one-stop-shop ensuring the coordination and cooperation among these stakeholders to address the complex funding challenges and opportunities presented by strategic technologies.
- STEP Task Force centralises and publish information on open and upcoming calls across EU spending programmes contributing to STEP objective;
- Advises on the best ways to apply for EU funding and on the possibilities to combine financial support;
- Liaise with other existing structures such as the Net-Zero Europe Platform and exchange information about financial needs, bottlenecks and best practices for strategic projects across the EU;
- Fosters contacts across STEP investment areas, making particular use of existing industrial alliances, networks and structures;
- Promotes ‘STEP Seal’ to increase the funding opportunities across programmes for a given project;
- Organise info sessions and meetings in view of creating necessary support from the private sector towards STEP objectives (capacity building, exchange of best practices and outreach actions).
- Interface with the STEP Task Force and inform about STEP relevant national calls for proposals;
- Ensures central coordination, monitoring, and reporting on the STEP projects;
- Ensures the link between the central, governmental steer and the projects promoters/ final recipients and play a central role in the consultation/identification process;
- Promotes investments opportunities at national level and ensure that all relevant information regarding the STEP reaches all stakeholders in a timely manner;
- Advises businesses about sources of finance relevant to their needs (e.g. loans, guarantees, equity), pointing to the STEP Portal;
- Connects companies with networks on European, national or regional level like for example business angel networks, start-up communities, etc.
- Universities, research centres, and think tanks conduct cutting-edge research, train the next generation of technology experts, and provide expertise to both public and private sectors.
- Industrial associations and advisory bodies across Europe serve as important advisors to European institutions and EU Member States. They provide expertise and insights on a wide range of industrial issues, including trade, investment, innovation, and sustainability. By engaging with policymakers at both the European and national levels, these associations play a crucial role in shaping policies and regulations that support the competitiveness and growth of European industries. Additionally, they promote collaboration and knowledge-sharing among their members, fostering partnerships and innovation within the industrial sector.
- Financial institutions, including the European Investment Bank, actively participate in the STEP implementation by providing advisory services to promoters. These services assist in navigating project development complexities, offering support with project planning, feasibility studies, risk assessment, and financial structuring. The goal is to ensure that projects align with EU priorities, while promoting financially sound, environmentally sustainable, and socially responsible initiatives.
- Private investors also play a crucial role in supporting strategic technologies in Europe. In addition to providing capital, they offer expertise and valuable networks, aiding companies in overcoming challenges and accelerating growth. This private financing complements public funding, bridging the funding gap and fostering a competitive and dynamic technology ecosystem within the Union.
Documents
This non-binding Guidance Note aims to provide practical support in implementing the STEP Regulation, making it easier to navigate its key provisions. While some legislation provisions were rephrased for clarity, the Note does not alter the rights and obligations outlined in the STEP Regulation. To determine if a project is eligible for a specific funding opportunity under the Regulation, project promoters shall refer to the rules of the relevant programme which continue to apply, since STEP is not a new funding instrument but works through existing programmes.
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