The influence of the European H2020 Programme on the development of regions: the multiplier impact of eu funding in the regions under Horizon 2020 in NUT III – Algarve – Portugal

Abstract

The partnership agreement established between the European Union and the member countries for the application of the European Structural and Investment Funds (ESIF), in the period between 2014 and 2020, is reaching its final phase. This study analyzes the multiplier impact on regional investment, of European funds made available for the Algarve - NUTS III region, under the H2020 program, until March 2020 and aims to answer the following questions: a) What is the amount invested in the regional economy for each euro of support allocated by the EU through the H2020 program. b) What is the percentage distribution of community support versus investment per area of intervention? 956 projects were supported which represented a total investment of 467,671,827.76 euros, having been supported with community funds in the amount of 249,966,698.38 euros, which represents a support of 53.4%, that is, for each euro support from the European Union, 1.87 euros were invested in the Algarve region. It can be concluded that, in the framework of Horizon 2020, and according to the data available until March 31, 2020, 956 projects were support. Considering that the initial objectives of the European Union foresaw support of 318,676,488.00 euros providing a global investment in the region of 437,289,055.00, that is, each euro of support should generate a regional investment of 1.37€, we can conclude that the Algarve Region has already exceeded the estimated investment value for the region by 30 million euros. We still need to apply more than 68 million EU grants.