Horizon Europe is the EU’s flagship research and innovation programme, with a budget of €93.5 billion running from 2021 to 2027. It funds ambitious projects across sectors - from climate action and digital transformation to industrial competitiveness and space innovation. More than just supporting scientific excellence, Horizon Europe accelerates the development and adoption of solutions that drive real-world impact, contribute to the UN Sustainable Development Goals, and boost the EU’s long-term competitiveness and growth.
In our previous newsletter, we discussed strengthening Europe’s technological sovereignty through the Digital Europe Programme (DIGITAL). However, this is not the only initiative that provides a financial framework for cutting-edge projects. From climate change to digital transformation, and from industrial competitiveness to space exploration, the European Union’s Horizon Europe programme supports research and innovation across all sectors. With this article, we aim to provide an accessible overview of Horizon Europe’s structure and strategic objectives, and to highlight the funding opportunities available - particularly under Pillar II, Cluster 4: Digital, Industry and Space. At this stage, our goal is to inform and inspire our readers. Perhaps you are already working on an idea that could be supported through Horizon Europe programme we present here. If so, we can assist your company in navigating the process of accessing these funding streams.
Horizon Europe at a Glance
Horizon Europe is the EU’s key research and innovation programme to date, with a budget of €93.5 billion covering the period from 2021 to 2027. It succeeds Horizon 2020 and builds on its achievements, but with a more ambitious agenda that tackles climate change, helps to achieve the UN’s Sustainable Development Goals, and boosts the EU’s competitiveness and growth. The programme is designed not only to support scientific excellence, but also to accelerate the adoption of innovative solutions that can have a real impact on society, the economy, and the environment.
The structure of Horizon Europe is organized around three main pillars:
Pillar I - Excellent Science
Supports frontier research through the European Research Council (ERC), Marie Skłodowska-Curie Actions, and research infrastructures.
Pillar II - Global Challenges and European Industrial Competitiveness
Funds collaborative research addressing global challenges and strengthens European industrial capacity. It’s divided into six clusters, including health, culture, civil security, climate, and the focus of this article - Cluster 4: Digital, Industry and Space.
Pillar III - Innovative Europe
Boosts innovation by scaling up breakthrough technologies and supporting start-ups and SMEs via instruments like the European Innovation Council (EIC).
The Pillar Behind Europe's Green and Digital Shift
Pillar II – Global Challenges and European Industrial Competitiveness, which we will focus on in the rest of this article, is designed to address major global issues and contribute to achieving the Sustainable Development Goals aimed at enhancing quality of life and safeguarding the planet for future generations. At the same time, the calls under Pillar II support Europe's technological competitiveness by targeting complex challenges that often require cross-disciplinary approaches and coordinated efforts spanning from research to innovation.
Pillar II is divided into six thematic clusters, covering a wide range of areas from health and culture to civil security and climate action. Cluster 4, titled “Digital, Industry and Space”, focuses on strengthening Europe’s competitiveness and developing trusted technologies that position European industry as a global leader in key sectors. It aims to enable sustainable production and consumption within the planet’s ecological boundaries while maximizing benefits for all parts of society, across diverse social, economic, and territorial contexts. This cluster supports the development of a competitive, digital, low-carbon, and circular industry, ensures the sustainable supply of raw materials, advances next-generation materials, and lays the groundwork for innovation to address global societal challenges.
If you’re still with us, you’ve reached the core of this article - Cluster 4. Let’s take a closer look at its structure, which is further divided into ten specific Areas of Intervention, each targeting strategic sectors vital to Europe’s industrial and technological leadership. These include manufacturing technologies, key digital technologies such as quantum computing, and emerging enabling technologies. The cluster also prioritizes the development of advanced materials, artificial intelligence and robotics, and the next generation internet. Further focus areas include advanced computing and Big Data, circular industries, and low-carbon and clean industries. Lastly, the space sector, including Earth observation, plays a crucial role in supporting Europe’s autonomy and innovation in high-impact domains.
On 14 May 2025, new funding opportunities were published under the 2025 Work Programme of Horizon Europe Cluster 4: Digital, Industry and Space. These new calls open up fresh opportunities for companies across various sectors.
Destinations for a Future-Ready Europe
As mentioned earlier, under Pillar II of Horizon Europe, Cluster 4 focuses on Digital, Industry and Space, addressing some of the most pressing technological and industrial priorities for Europe. This cluster is designed to support the EU's twin transition - green and digital - by fostering innovation in areas critical to sustainable growth and global competitiveness. The 2025 Work Programme outlines six key “Destinations,” each aligned with the Strategic Plan and aimed at delivering long-term impact. These include the shift to climate-neutral, circular and digitised production; strengthening autonomy in key strategic value chains; advancing world-leading data and computing technologies; promoting digital and emerging technologies aligned with the Green Deal; securing open strategic autonomy in space-based infrastructure and services; and ensuring the human-centred and ethical development of digital and industrial technologies.
Destination 1: Achieving global leadership in climate-neutral, circular and digitised industrial and digital value chains
Destination 1 under this cluster focuses on achieving global leadership in climate-neutral, circular and digitised industrial and digital value chains. This includes the decarbonisation of energy-intensive sectors, the promotion of circular economy practices, and the integration of digital technologies in manufacturing. The goal is to transition from traditional production models to smart, connected, and environmentally responsible value chains. Calls for proposals in this area encourage collaboration between industrial partners, research centres, and technology providers, often involving consortia that cover the full innovation cycle.
Destination 2: Achieving technological leadership for Europe's open strategic autonomy in raw materials, chemicals and innovative materials
Destination 2 of Horizon Europe Cluster 4 focuses on strengthening Europe’s autonomy in critical raw materials, chemicals, and innovative materials. It supports the development of safe, sustainable, and circular solutions that are essential for the EU’s green and digital transitions. The programme promotes advanced materials with high performance and lower environmental impact, encourages the use of digital tools like digital twins and data spaces, and backs circular business models such as take-back schemes and product-as-a-service. Special emphasis is placed on supporting SMEs and building resilient, efficient value chains. By investing in this area, Horizon Europe aims to reduce Europe’s dependencies and reinforce its technological leadership.
Destination 3: Developing an agile and secure single market and infrastructure for dataservices and trustworthy artificial intelligence services
Destination 3 supports the development trusted data and AI Ecosystem across Europe. It focuses on technologies like blockchain, privacy-preserving solutions, and digital infrastructures that enable reliable data sharing across sectors. By advancing tools such as digital twins, virtual worlds, and edge computing, the programme aims to ensure fair, bias-free, and efficient use of data. It also fosters innovations in AI, robotics, and quantum technologies to strengthen decision-making, boost energy efficiency, and support critical areas like healthcare, smart cities, and manufacturing.
Destination 4: Achieving open strategic autonomy in digital and emerging enabling technologies
Destination 4 focuses on ensuring Europe’s open strategic autonomy in digital and emerging technologies. It supports key areas like semiconductors, quantum technologies, advanced computing, and photonics - critical for Europe's digital transformation and economic resilience. The programme promotes energy-efficient, sustainable innovation in chip design, cloud-to-edge infrastructure, and AI development, including generative AI under the GenAI4EU initiative. It also fosters next-generation virtual worlds, robotics, and smart devices, while strengthening Europe’s position in high-performance and quantum computing. This destination plays a vital role in securing Europe’s leadership in the global tech landscape.
Destination 5: Open Strategic Autonomy in Developing, Deploying and Using Global Space-Based Infrastructure, Services, Applications and Data
Destination 5 strengthens Europe’s role in space. From satellite navigation and Earth observation to space exploration and debris monitoring, space technologies support EU policies on climate, security, agriculture, and more. This destination promotes access to space, safe operations, advanced satellite services, and innovation in key areas like Galileo, Copernicus, and IRIS2. It also fosters industrial competitiveness, education, and international cooperation—ensuring that space remains a driver of economic growth, resilience, and scientific excellence in Europe.
Destination 6: Digital and industrial technologies driving human-centric innovation
Destination 6 promotes digital and industrial technologies that place people at the center of innovation. It supports trustworthy AI, immersive virtual worlds, and inclusive digital environments that improve work, education, and public services. The programme backs generative AI (GenAI), robotics, and advanced human-machine interaction, while also advancing Europe’s AI strategy through initiatives like GenAI4EU. It encourages ethical, bias-free design, lifelong learning, and social innovation, ensuring technology serves society while boosting competitiveness and strategic autonomy across sectors.
Who Can Apply for a Horizon Europe Funding?
Any organisation with the capacity to carry out project tasks - such as universities, research institutes, public bodies, SMEs, NGOs, or industry partners - can apply for Horizon Europe funding. Most calls require a consortium of at least three partners from three different EU or associated countries, with at least one partner from an EU member state. Some topics may require a multi-actor approach, involving diverse stakeholders and end-users. Eligible participants vary by topic area, ranging from law enforcement and emergency services in security-related calls to cultural institutions, farmers, civil society groups, and digital tech SMEs in others. Each project must appoint a coordinator to act as the main contact point with the European Research Executive Agency.
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💡TikoBits: Building a Future with the Right Partner at Every Step
Maybe all of this sounds complex - but that’s exactly where we come in. At Tiko Pro, we help you turn innovative ideas into funded success stories, even if those ideas are already in motion within your company. From the very first spark, we guide you through ideation sessions where raw concepts are shaped into strategic plans. We assess your project's fundability through detailed analysis and work closely with you to develop a compelling, impactful proposal. Our expert team offers personalised assistance throughout the application process, simplifying the complexities and ensuring every detail is handled with care. And once the application is submitted, we’re still by your side - supporting you with reporting, implementation, and long-term growth. With Tiko Pro, you’re not just applying for funding; you’re building a future with the right partner at every step.
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What About Amount of Funding?
Depending on the type of action, applicants can receive substantial funding through Horizon Europe. Research and Innovation Actions (RIA) typically cover up to 100% of eligible project costs, making them especially attractive for early-stage research and development. Innovation Actions (IA), which target more market-ready solutions, generally receive up to 70% funding for businesses. Projects should align with specific Technology Readiness Levels (TRLs): RIAs usually focus on TRLs 3-6, while IAs target TRLs 6-8, supporting the full journey from concept to near-market deployment.
As Horizon Europe continues to shape the future of research and innovation across the continent, now is the time to explore how your ideas can align with its strategic priorities. Whether you're a seasoned applicant or just beginning to explore EU funding, the opportunities within Cluster 4 and beyond are vast. At Tiko Pro, we’re ready to guide you through the process. Let’s unlock the potential of your innovation together.