Horizon Europe: How Every €1 Invested is Generating up to €11 in Economic Gains

Published: May 22,

In a time when governments and institutions are scrutinizing public spending more closely than ever, the European Union’s Horizon Europe programme is standing out as a model of investment impact. According to a new interim evaluation released by the European Commission, this flagship research and innovation programme is delivering exceptional returns — up to €11 in GDP gains for every €1 invested.

And that’s just the economic impact. The societal value, from better healthcare to cleaner mobility and cutting-edge science, is equally transformative.

What Is Horizon Europe?

Launched in 2021, Horizon Europe is the EU’s main tool to fund research and innovation. With a €93.5 billion budget running until 2027, the programme supports ambitious projects across climate, health, digital technologies, space, energy, and more. It's not just about science for science’s sake — it's about solving real-world problems and strengthening Europe’s global competitiveness.

The Numbers That Matter

The latest evaluation, conducted at the programme’s halfway point (January 2025), offers some striking figures:

• 15,000+ projects funded to date, worth over €43 billion

• Up to €11 in GDP gains per euro invested by 2045

• Up to €6 in direct societal benefits for EU citizens

• 80% of European Research Council (ERC) projects led to major breakthroughs

• 35 Nobel Prize winners have been supported by EU research programmes since 1984

This isn’t just high-level strategy. These investments are turning into fuel cell buses in European cities, new antibiotics, and AI tools that help researchers tackle everything from climate modelling to drug discovery.

Innovation That Attracts Investment

A standout success is the European Innovation Council (EIC) Fund. Designed to support startups and scaleups, the EIC has proven its value: every €1 invested by the EU has attracted over €3 in private capital. That’s a powerful vote of confidence from the market — and a clear indication that Horizon Europe is enabling businesses to grow, scale, and compete globally.

Closing the Innovation Gap

Horizon Europe is also taking strides to reduce regional disparities in innovation. The share of projects involving so-called ‘Widening’ countries (those with lower R&I performance) has risen to 58%, up from 47% in the previous Horizon 2020 programme. This shows progress toward a more inclusive European Research Area.

Cutting Bureaucracy, Boosting Efficiency

Administrative complexity has long been a barrier for smaller organisations and new applicants. The EU has responded with lump sum grants, which streamline project funding and eliminate complicated financial reporting. These grants have already saved up to €63 million in administrative costs, benefiting SMEs and first-time applicants in particular.

What’s Next?

Building on this strong interim evaluation, the European Commission will take several next steps:

• Further simplify the application process and project management

• Accelerate support for high-potential startups and scaleups

• Strengthen the translation of research results into market-ready innovation

• Align future work with the upcoming Startup and Scale-up Strategy and the European Innovation Act

These actions aim to make Horizon Europe not just successful, but transformational.

A Word from the Commissioner

“Horizon Europe is delivering on its promise to drive innovation and strengthen Europe’s competitiveness,”— Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation

Zaharieva emphasized the importance of making EU research funding simpler, more focused, and more transformative — a commitment that aligns closely with the programme’s evolving priorities.

Why It Matters

In a world of tight budgets and mounting global challenges, Horizon Europe proves that smart public investment in research pays off — not just in labs and startups, but in hospitals, classrooms, and cities across the continent.

From Nobel Prize-winning breakthroughs to real-world solutions in public transport and digital health, Horizon Europe is more than a programme — it’s Europe’s innovation engine.