Horizon Europe Pillar III: Innovative Europe Guide

comparison 2026-07-31 · 4 min read
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Pillar III of Horizon Europe is called Innovative Europe, and it exists to support and connect innovators across the continent1. It focuses on breakthrough and disruptive innovation, plus getting innovative solutions onto the market1.

If you are asking whether this pillar fits your project, the short answer is: it depends on your stage. Pillar III channels most of its money through the European Innovation Council, built on the earlier Enhanced EIC pilot from Horizon 202013.

What the European Innovation Council covers

The European Innovation Council acts as a one-stop shop for European innovators3. It runs two main instruments.

The Accelerator instrument bridges the financing gap between late-stage innovation work and market take-up, helping breakthrough, market-creating innovation scale up3. The Pathfinder instrument builds on the earlier FET Open scheme and backs future and emerging breakthrough technologies3.

Pillar III also positions Europe as a world leader in transferring science into innovative companies, stimulating both the creation and the spread of breakthrough innovations4. It addresses innovation performance, innovation transfer, and innovation scale-up together4.

How Pillar III connects to other Horizon Europe strands

Pillar III does not work alone. European Innovation Ecosystems acts alongside the European Innovation Council, the European Institute of Innovation and Technology, and other innovation activities across Horizon Europe2.

The goal is more connected, efficient innovation ecosystems that help companies scale up and encourage cooperation among national, regional, and local innovation actors2. This work supports all three key strategic orientations of the Horizon Europe strategic plan, and it backs the New European Innovation Agenda, particularly its second and third flagships2.

The European Institute of Innovation and Technology also receives support under this pillar7. So does the broader European innovation landscape7.

Where the funding has actually gone

Since 2021, the European Innovation Council has awarded most of Pillar III's innovation funding to start-ups, accounting for €3.72 billion out of €4.80 billion spent5. That is a large share going to a single funding channel.

Germany, France, Spain, and the Netherlands have each secured more EU funding for Horizon Europe innovation projects since 2021 than the 15 Widening countries combined5. Those Widening countries sit mostly in central and eastern Europe and underperform in innovation, with typically lower participation in EU research and innovation projects5.

Overall, the Innovative Europe pillar funded 2,380 projects, involving 6,062 participants5. Germany secured a fifth of the funding, with France and Spain each receiving around 13 percent5.

Comparing Pillar III to picking a funding route

Here is a comparison of the main routes within Pillar III.

RouteWhat it fundsBest fit
EIC AcceleratorBridges late-stage innovation to market take-up3Scaling companies with market-creating innovation3
EIC PathfinderFuture and emerging breakthrough technologies, following the FET Open model3Early-stage, high-risk research3
European Innovation EcosystemsConnects national, regional, and local innovation actors2Ecosystem-building and cooperation2
European Institute of Innovation and Technology supportEnhances the overall innovation landscape7Institutional innovation capacity7

Pros and cons of Pillar III funding

On the plus side, Pillar III fosters all forms of innovation, including breakthrough innovation and market deployment of new solutions7. It also builds on a track record: the Enhanced EIC pilot in Horizon 2020 already proved the model before Pillar III scaled it up1.

On the downside, funding concentration is a real issue. Four countries have out-earned fifteen Widening countries combined since 20215, which points to an uneven funding gap across the EU5.

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Sources

  1. Innovative Europe - Innovate UK Business Connect
  2. European Innovation Ecosystems - Research and innovation
  3. Horizon Europe: Pillar 3 - Innovative Europe | ESE
  4. Pillar Three | Horizon Europe NI
  5. EISMEA - Data Corner: Horizon Europe funding points to persistent EU ...
  6. UKRO Factsheet - Pillar III: Innovative Europe - UKRO
By the EU Reporting Team · Published