Horizon Europe is the EU's framework programme for research and innovation for 2021 to 2027 and the largest single research funding pot in the world. Originally endowed with €95.5 billion, the budget was adjusted to €93.5 billion with the revision of the multiannual financial framework in early 2024[1]. For the German Mittelstand the programme is both attractive and demanding: large sums and visibility on one side, low success rates and considerable effort on the other. This guide sets out both soberly and points to the deeper analyses for the detail.
What is Horizon Europe?
Horizon Europe is the successor to Horizon 2020. It generally funds collaborative projects — consortia of companies, universities and research institutions from several member states — and, through individual instruments, single applicants as well. For German applicants the National Contact Points (NKS) at the DLR project management agency are the first port of call for programme information and application advice[9][8].
Unlike national programmes, the emphasis is on European added value: projects have to demonstrate cross-border cooperation, societal impact and a contribution to the Union's policy goals. That makes Horizon Europe a strategic instrument for mid-sized companies with an international exploitation perspective, and an unsuitable one for purely national product development.
Programme structure
Horizon Europe is organised into three pillars plus a cross-cutting area[1]. Pillar I, "Excellent Science", covers the European Research Council (ERC), the Marie Skłodowska-Curie Actions and research infrastructures. Pillar II, "Global Challenges and European Industrial Competitiveness", is divided into six clusters: health; culture, creativity and inclusive society; civil security; digital, industry and space; climate, energy and mobility; and food, bioeconomy and natural resources. Pillar III, "Innovative Europe", contains the European Innovation Council (EIC). On top comes the cross-cutting area "Widening participation and strengthening the European Research Area".
Two routes matter most for mid-sized companies. The EIC Accelerator is aimed at individual, highly innovative SMEs and start-ups and combines a grant with equity. The Pillar II clusters address themed collaborative projects. There are also five missions — on climate adaptation, cancer and climate-neutral cities among others — that bundle thematically focused calls[1].
Success rates, realistically
The much-quoted success rate of around 17 per cent is an aggregate average across all instruments and years, and tells you little for planning an application[4][3]. For comparison: under Horizon 2020 the rate was around 12 per cent. What matters is the spread by instrument. For the EIC Accelerator the overall success rate in the October 2024 cut-off was just under 6 per cent, the result of a multi-stage procedure in which only a small share of applicants reach the jury interview[5]. In individual 2024 Pillar II calls the rate fell to around 5 per cent[2].
Another figure from the interim evaluation is striking: seven out of ten applications rated "excellent" are rejected for lack of budget[3]. So the low rate is less a quality filter than a funding problem. For SMEs the picture is friendlier than often assumed: their success rate was 19.9 per cent, above the programme average and well above the 12 per cent under Horizon 2020[6]. The full breakdown of rates by instrument is covered in the article Horizon Europe: what the 17% success rate really means.
Effort versus return
The interim evaluation surveyed the administrative burden systematically for the first time. The median and mode of administrative costs are 6 to 10 per cent of the project budget; 48 per cent of respondents report more than 10 per cent, and around one in ten more than 20 per cent[2]. 32 per cent of participants find Horizon Europe more burdensome than Horizon 2020; just under half see no difference[2][7].
One driver of the burden is the sheer density of rules: the Annotated Grant Agreement in version 2.0 of 1 April 2025 runs to around 810 pages with 59 articles and 20 annexes[6]. On top of that, the real effort sits not in the application but in running the project and evidencing it across the whole term: reporting duties, amendment requests, audit preparation. Why many participants find Horizon Europe more burdensome than its predecessor is analysed in the article Horizon Europe: more burdensome than H2020.
When it's worth it
Horizon Europe is worth it for mid-sized companies with three characteristics. First, a genuine research core: the project has to go beyond product development and deliver a scientific and technical contribution to knowledge with European relevance. Second, an international exploitation perspective: companies already active in European markets and networks gain strategic value from the consortium that goes beyond the funding. Third, the capacity to carry a months-long application and delivery process: realistically 15 to 18 months pass from the topic being published to the first money arriving, and the average time to grant was recently around 240 days[2].
For purely national, short-term R&D projects, ZIM and the Forschungszulage are usually the faster and safer route. Horizon Europe complements projects with a European dimension; it doesn't replace them. In the first three years, SMEs made up around a third of all participants, more than half of them first-time participants, with a funding volume of around €6.6 billion[6].
FAQ
What is the success rate? Around 17 per cent in aggregate, up from about 12 per cent under Horizon 2020. The rate varies widely by instrument: just under 6 per cent for the EIC Accelerator, 19.9 per cent on average for SMEs[6].
How large is the budget? Originally €95.5 billion for 2021 to 2027, adjusted to €93.5 billion with the MFF revision in early 2024[1].
Is Horizon Europe worth it for SMEs? For companies with a research core, an international exploitation perspective and the capacity for the process, yes. SMEs made up around a third of all participants[6].
How long does it take to get funding? Time to grant was recently around 240 days; realistically 15 to 18 months pass from the topic being published to the first money arriving[2].
The effort in Horizon Europe sits not in the application but in years of delivery and evidence. That is exactly where upsmart comes in: as an AI infrastructure for innovation management, the platform brings projects, documents and approvals together in one place, and we support reporting duties, drawdowns and audit preparation across the whole project term. Beyond consultants, who finish their work when the funding decision arrives.
- [1]Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon EuropeEuropean Parliament and Council, EUR-Lex · 2021Open source
- [2]Commission Staff Working Document — Interim Evaluation of the Horizon Europe Framework Programme (2021–2024), SWD(2025) 110 finalEuropean Commission, EUR-Lex · 2025Open source
- [3]Horizon Europe programme analysis — Monitoring, Evaluation and Impact AssessmentEuropean Commission, DG Research and Innovation · 2025Open source
- [4]Horizon Europe implementation — Key data for 2021-2022 (factsheet)European Commission, DG Research and Innovation · 2023Open source
- [5]EIC Accelerator — 71 companies selected in the most competitive funding round so far (October 2024 cut-off)European Innovation Council and SMEs Executive Agency (EISMEA) · 2025Open source
- [6]SME participation in Horizon Europe — Key figures in the first three years (July 2024)European Commission, DG Research and Innovation · 2024Open source
- [7]EU Grants — Annotated Grant Agreement (AGA), version 2.0 of 1 April 2025European Commission, DG Research and Innovation · 2025Open source
- [8]European Parliament — REPORT on the implementation of Horizon Europe in view of its interim evaluation, A10-0021/2025European Parliament, ITRE Committee · 2025Open source
- [9]Horizon Europe — portal page of the Federal Ministry of Research, Technology and SpaceFederal Ministry of Research, Technology and Space (BMFTR) · 2025Open source
- [10]National Contact Points for Horizon Europe — portal of the German NKS networkBMFTR / DLR project management agency · 2025Open source
- Horizon Europe: what the 17% success rate hides
- Horizon Europe more burdensome than H2020: the interim evaluation in detail
Horizon Europe: what the 17% success rate hides
Only 6% get through the EIC Accelerator. An average time to grant of 240 days, and only 77% within the 245-day limit. A year of your life per application, with the outcome wide open.
Horizon Europe more burdensome than H2020: the interim evaluation in detail
32% of participants find Horizon Europe more burdensome than H2020, and 48% report admin costs above 10%. What the EU documents itself.
From analysis into the application.
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