Australia has secured access to the world’s largest research and innovation program, with a landmark agreement signed in Brussels today giving Australian researchers, universities and industry access to the European Union’s €95.5 billion Horizon Europe initiative from January 2027.
Group of Eight Chief Executive Vicki Thomson said the agreement came at a critical time for Australia’s future prosperity and global competitiveness.
“As countries compete to lead the industries and technologies that will drive prosperity, productivity and security, Horizon Europe gives Australia a seat at the table where the world’s most important scientific discoveries, technological breakthroughs and industrial innovations are conceived, developed and scaled.”
The agreement, formalised by Australia’s Minister for Industry and Innovation, Hon Tim Ayres, and European Commissioner for Startups, Research and Innovation, Ekaterina Zaharieva, opens the door to new partnerships, investment opportunities and research collaborations across Europe and beyond.
Ms Thomson said Australia’s association with Horizon Europe represented the most significant advance in Australia’s international research engagement in decades.
“Today’s signing should be viewed as a launch pad, not a one-year experiment. Research partnerships need time and industry needs certainty. The problems we are trying to solve – climate change, clean energy, health security, advanced technologies and economic resilience require sustained collaboration over many years.
“The task now is to establish Australia as an indispensable research and innovation partner for Europe over the long term, ensuring we remain part of Europe’s next research framework.”
“Australia is a world-class research nation and punches massively above its weight. We have just 0.3 per cent of the world’s population but produce around 3 per cent of its scientific research publications, but no nation can solve the world’s biggest problems or build every critical technology alone.
“Horizon Europe gives Australia access to trusted partners in the technologies that will shape both our economic future and our national security. It connects Australia to high-trust, global research and innovation networks that will strengthen our research capability in national priority areas including health, advanced manufacturing, critical technologies, clean energy, agriculture, space, digital innovation and supply chain security.”
The Go8 played a pivotal role in securing the agreement through decade long advocacy and a sector-leading financial contribution.
“The Go8 Board committed to match the Australian Government’s contribution to the joining fee because this is about much more than universities getting access to European research funding – it’s about Australia getting access to ideas, technology, investment and partners we simply can’t generate on our own.”
“Participation in Horizon Europe will fast-track commercialisation, create high-value jobs, strengthen sovereign capability and connect Australian businesses and researchers to the world’s most ambitious innovation networks. It will help Australia develop the technologies and industries that drive future productivity, sustainability and economic growth rather than simply importing them.”
Ahead of today’s signing, the Go8 and European Australian Business Council (EABC) convened an Australian-EU Innovation and Industry Roundtable in Brussels with Minster Ayres, bringing together senior government, research and industry representatives to explore how Australia can maximise the benefits of Horizon Europe and hit the ground running as an associated country.
“Australia’s future prosperity will depend not only on what we extract or produce, but on our ability to develop, access and apply new knowledge, technologies and skills,” said Ms Thomson.
Contact: Vicki Thomson, Group of Eight Chief Executive on +61 447 742 910
BACKGROUNDER
Australia and Horizon Europe: what the agreement means
What is Horizon Europe?
Horizon Europe is the European Union’s flagship research and innovation program and the largest pooled international research program of its kind. The current program runs from 2021 to 2027 and has a total budget of approximately €95 billion (A$155 billion). It funds collaborative projects that bring together universities, research institutes, businesses, governments and other organisations.
It is designed to support research and innovation at a scale that individual countries often cannot achieve alone.
Horizon Europe has three principal pillars:
- Excellent Science, including frontier research and researcher mobility.
- Global Challenges and European Industrial Competitiveness, known as Pillar II.
- Innovative Europe, supporting innovation and commercialisation.
Australia is associating with Pillar II.
How much has it cost Australia to join?
The precise contribution is determined under the association agreement and may be subject to adjustment. Australia’s association contribution is expected to be approximately A$40 million for 2027.
What has the Go8 contributed?
The Go8 has committed to contribute up to 50 per cent of Australia’s association contribution, capped at A$20 million. The contribution is a one-off co-investment intended to help secure Australia’s participation in 2027.
It does not buy the Go8 preferential access to funding. Horizon Europe remains a competitive program, with applications assessed on their merits.
The Go8 contribution helps unlock access for the wider Australian research and innovation system, including eligible:
- universities;
- public research organisations;
- research institutes;
- businesses and industry participants;
- small and medium-sized enterprises; and
- other organisations participating in international consortia.
When does Australian participation begin?
Eligible Australian organisations are expected to be able to participate as associated-country entities in Pillar II calls from 1 January 2027 under transitional arrangements. This means they will be able to apply to relevant 2027 calls while the full treaty approval and ratification processes are completed.
The current Horizon Europe framework finishes at the end of 2027. Australian participation in 2027 will position the country for engagement with the European Union’s next research framework, expected to begin in 2028.
This is why the Go8 has stressed that participation should not be treated as a one-year experiment.
What will Australian researchers and businesses be able to access?
Association will change Australia’s status from a third-country participant to an associated country for Pillar II.
At present, Australian organisations can join many Horizon Europe projects but generally must finance their own participation unless a special funding exception applies. Association will provide successful eligible Australian applicants with routine access to program funding.
Australian participants will be able to:
- apply directly for Pillar II funding;
- receive funding when successful;
- coordinate and lead international project consortia;
- form large-scale partnerships with European and other associated-country organisations;
- obtain project-based access to major international research infrastructure;
- participate earlier in the formation of research and industry consortia;
- work with European businesses and innovation networks on translation and commercialisation; and
- retain researchers and intellectual property in Australia while participating in international programs.
Being able to lead consortia is particularly important. Australian organisations will no longer be limited to joining projects developed elsewhere. They can help define projects, assemble international partners and shape major research proposals.
What does Pillar II include?
Pillar II is titled Global Challenges and European Industrial Competitiveness. Across the full 2021-2027 program, it accounts for more than €53 billion in funding.
It is organised around six clusters including Health, Culture, Creativity and Inclusive Society, Civil Security for Society, Digital, Industry and Space, Climate, Energy and Mobility, and Food, Bioeconomy, Natural Resources, Agriculture and Environment.
Which other countries are associated with Horizon Europe?
In addition to the 27 European Union member states, Horizon Europe includes a substantial group of associated non-EU countries.
Countries associated to Pillar II include:
- Australia
- Canada
- New Zealand
- Japan
- South Korea
This means Australian researchers and businesses will be connected not only to Europe, but to a much wider network of research-intensive and trusted international partners.
Why does this matter to Australian households?
Horizon Europe can sound remote from everyday life, but its purpose is to turn international research into practical economic and social benefits.
Better and faster health outcomes
Australian participation can accelerate access to international clinical research, new medical treatments, vaccines, diagnostic technologies and digital-health tools.
For households, this can mean:
- earlier access to new treatments;
- better prevention and diagnosis;
- more resilient health systems; and
- stronger Australian medical and biotechnology industries.
More affordable and reliable energy
Horizon Europe funds research into renewable energy, batteries, storage, energy efficiency, hydrogen and low-emissions industrial processes.
The potential household benefit is:
- technology that reduces energy costs;
- more reliable energy systems;
- cleaner transport and industry; and
- Australian participation in new energy industries and supply chains.
Stronger food and agricultural systems
Australian researchers will be able to collaborate on drought resilience, agricultural productivity, food security, water management and environmental protection.
This can help:
- farmers manage climate and biosecurity pressures;
- reduce food-production risks;
- protect food supply;
- support regional employment; and
- moderate longer-term pressure on food prices.
More secure supply chains
Research collaboration can strengthen Australian capacity in critical minerals, advanced manufacturing, semiconductors, space, cybersecurity and advanced computing.
That matters because households and businesses depend on reliable access to medicines, energy technologies, communications, transport, food and essential manufactured goods.
High-value jobs and new Australian industries
Horizon Europe connects research with industry, investment and commercialisation.
Successful Australian participation can:
- bring international research and development investment to Australia;
- help Australian businesses join global innovation supply chains;
- support new companies and commercial spin-outs;
- retain skilled researchers and innovators in Australia; and
- create well-paid jobs in science, engineering, manufacturing, technology and related industries.
Getting more value from Australian research spending
Australia does not have to build every piece of research infrastructure or fund every required capability alone. By pooling resources with Europe and other associated countries, Australia can participate in larger projects, use international facilities and datasets, and leverage its own investment across a much larger system.