Contribution of basic skills to productivity, innovation, competitiveness and economic growth

The Horizon Europe grant opportunity known as HORIZON-CL2-2026-01-TRANSFO-05 focuses on the role of basic skills in enhancing productivity, innovation, competitiveness, and economic growth. It is part of the Culture, Creativity and Inclusive Society call for the year 2026, with a total budget of 12 million euros available to fund three projects, each receiving between 3 million and 4 million euros. The call is set to open on May 12, 2026, and will close on September 23, 2026, with applications submitted in a single-stage process.

Eligible applicants include universities, research institutes, small and medium-sized enterprises, large companies, and innovative startups from EU Member States and Associated Countries. Non-EU entities may also participate under specific conditions. The funding will be provided as lump-sum grants, simplifying the financial management compared to traditional reimbursement methods.

The research aims to explore how foundational skills, such as literacy, numeracy, and digital competencies, contribute to economic outcomes. There is a particular emphasis on understanding gender, disability, and socioeconomic disparities in skills acquisition and labor market impacts. The initiative seeks to generate empirical evidence that supports policymakers in developing effective educational training systems and lifelong learning frameworks that enhance skills across diverse populations.

Projects must apply rigorous quantitative research methods with longitudinal perspectives to establish causal relationships between skill acquisition and economic performance. The call encourages collaboration among various educational stakeholders and suggests clustering with other related projects to enhance research outcomes.

The opportunity signifies a strategic investment by the EU to bolster human capital as a foundational element of competitive and resilient economies, addressing current demographic shifts and the demands of a transforming labor market.

This is a Horizon Europe call, specifically HORIZON-CL2-2026-01-TRANSFO-05, focusing on the contribution of basic skills to productivity, innovation, competitiveness, and economic growth. It falls under the Culture, Creativity and Inclusive Society 2026 call (HORIZON-CL2-2026-01). The action type is HORIZON-RIA (Research and Innovation Actions), utilizing a HORIZON Lump Sum Grant [HORIZON-AG-LS] Model Grant Agreement.

The call is forthcoming with a single-stage deadline model. The planned opening date is 12 May 2026, and the deadline for submission is 23 September 2026 at 17:00:00 Brussels time.

The expected outcomes of projects funded under this topic are:

1.  Providing policymakers with a more detailed understanding of the contribution of basic skills to the economy in the short and medium term, with a focus on their contribution to productivity and innovation, to sustain EU competitiveness and growth.
2.  Developing actionable advice about how, in a lifelong perspective, education and training systems can help foster basic skills.
3.  Promoting productivity, innovation, competitiveness and growth, including by reducing gender, disability and socioeconomic gaps in basic skills.

The scope of the call is as follows:

The 2025 European Commission’s Action Plan on Basic Skills identifies five basic skills: literacy, mathematics (including also financial literacy), science, digital and citizenship. Strong basic skill levels among young people and adults are key to sustaining EU productivity, innovation, competitiveness and growth, as also explained in the 2024 Draghi Report. Other key EU initiatives support lifelong learning as a driver for productivity, innovation, and economic growth, for instance the 2022 Council Recommendation encouraging the implementation of Individual Learning Accounts (ILAs) in Member States.

Evidence of a causal relationship between basic skills and productivity, innovation, competitiveness, and economic growth is still limited in Europe, both at microeconomic and macroeconomic levels, mostly due to scarce use of longitudinal data. This also applies to the interplay between the basic skills and other skills (such as socio-emotional skills) in promoting productivity, innovation, competitiveness and growth.

There is also a need for better evidence (including from SSH disciplines) on which education and training policies and practices at all levels (school education, vocational education and training, higher education, adult education) can be effective in reducing gender, disability and socioeconomic disparities in basic skill acquisition and in subsequent labour market outcomes. The research should also better explore the competences that learners need to learn effectively with AI-based tools. Additional evidence is required on how to increase female participation in STEM and how to address teacher shortages, as well as on how to address barriers faced by persons with disabilities.

Proposals should address those research gaps by applying rigorous quantitative methods with a longitudinal perspective for their analysis and could complement them with qualitative research methods. Proposals should also evaluate the inclusion aspect, and the costs associated with the policies or practices analysed. Cooperation with education and training stakeholders is encouraged. Clustering and cooperation with other selected projects under the call HORIZON-CL2-2024-TRANSFORMATIONS-01-10: “Effective education and labour market transitions of young people” and other relevant projects, as well as the Social Transformations and Resilience Partnership are strongly encouraged.

General conditions for participation include:

1.  Admissibility Conditions: The proposal page limit and layout are described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes and Part B of the Application Form. The page limit for Part B of the Research and Innovation (RIA) application using lump sum is 50 pages. A detailed budget table must be submitted using the template available in the Submission System.
2.  Eligible Countries: As described in Annex B of the Work Programme General Annexes. Specific provisions may exist for non-EU/non-Associated Countries, as detailed in the Horizon Europe Programme Guide.
3.  Other Eligible Conditions: As described in Annex B of the Work Programme General Annexes.
4.  Financial and operational capacity and exclusion: As described in Annex C of the Work Programme General Annexes.
5.  Evaluation and award: Award criteria, scoring, and thresholds are described in Annex D of the Work Programme General Annexes. Submission and evaluation processes are described in Annex F of the Work Programme General Annexes and the Online Manual. The indicative timeline for evaluation and grant agreement is also described in Annex F.
6.  Legal and financial set-up of the grants: Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021. The granting authority may object to a transfer of ownership or exclusive licensing of results up to 4 years after the action's end, as set out in Annex 5. Additional information is in Annex G of the Work Programme General Annexes.

Specific conditions are as described in the specific topic of the Work Programme.

Application and evaluation forms and model grant agreement (MGA) information:

*  Application form templates are available in the Submission System, including the Standard application form (HE RIA, IA).
*  Evaluation form templates will be used with necessary adaptations, including the Standard evaluation form (HE RIA, IA).
*  Guidance is provided in the HE Programme Guide.
*  Model Grant Agreements (MGA) include the Lump Sum MGA.
*  Call-specific instructions include a detailed budget table (HE LS) and guidance on lump sums.

Additional documents include:

*  HE Main Work Programme 2026-2027 – 1. General Introduction
*  HE Main Work Programme 2026-2027 – 5. Culture, Creativity and Inclusive Society
*  HE Main Work Programme 2026-2027 – 15. General Annexes
*  HE Programme Guide
*  HE Framework Programme 2021/695
*  HE Specific Programme Decision 2021/764
*  EU Financial Regulation 2024/2509
*  Decision authorising the use of lump sum contributions under the Horizon Europe Programme
*  Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
*  EU Grants AGA — Annotated Model Grant Agreement
*  Funding & Tenders Portal Online Manual
*  Funding & Tenders Portal Terms and Conditions
*  Funding & Tenders Portal Privacy Statement

The budget overview indicates that for the HORIZON-CL2-2026-01 call, which includes topics related to Democracy, Heritage, and Transformations, the opening date is 2026-05-12 and the deadline is 2026-09-23. Contributions range from approximately 3,000,000 EUR to 6,000,000 EUR, and the indicative number of grants varies from 1 to 4 depending on the specific topic.

Partner search announcements are available for those seeking partners to collaborate on this topic. LEARs, Account Administrators, and self-registrants can publish partner requests.

The submission system is planned to open on the date stated in the topic header.

This Horizon Europe call aims to bolster the understanding of how basic skills impact Europe's economy and society. It seeks research proposals that use rigorous methods to analyze the link between skills like literacy, math, science, digital competence, and citizenship, and factors like productivity, innovation, and inclusive growth. The goal is to inform education and training policies, reduce disparities, and ultimately enhance Europe's competitiveness. The call encourages collaboration among researchers, educators, and other stakeholders to develop practical solutions and strategies for improving basic skills across the population.

Eligible Applicant Types: The opportunity is open to various types of applicants as described in Annex B of the Work Programme General Annexes and the Horizon Europe Programme Guide. This suggests a broad range of eligible applicants, including but not limited to research organizations, universities, and other entities capable of conducting research and innovation activities. The specific types of eligible applicants are not explicitly listed in the provided text, but it is implied that the eligibility is broad and encompasses various legal entities involved in research and innovation.

Funding Type: The primary financial mechanism is a grant, specifically a lump sum grant, as indicated by the "HORIZON Lump Sum Grant [HORIZON-AG-LS]" mentioned under the 'Type of MGA' (Model Grant Agreement). The eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme.

Consortium Requirement: The text does not explicitly state whether a single applicant or a consortium is required. However, the encouragement of "Clustering and cooperation with other selected projects" and the availability of a "Partner Search" function suggest that collaborative projects involving multiple partners are encouraged, though not necessarily mandated. The use of "Actions" in the topic descriptions may imply that multiple parties are expected to take part in the project.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility is described in Annex B of the Work Programme General Annexes. The text mentions that "A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects," suggesting that while the primary focus is on EU and associated countries, there are mechanisms for some non-EU countries to participate.

Target Sector: The program targets the thematic area of "Culture, Creativity and Inclusive Society," as indicated by the call name "Culture, Creativity and Inclusive Society 2026 (HORIZON-CL2-2026-01)." Specifically, the topic focuses on the contribution of basic skills (literacy, mathematics, science, digital skills, and citizenship) to productivity, innovation, competitiveness, and economic growth. It also addresses education and training policies, AI-based tools, STEM, and barriers faced by persons with disabilities.

Mentioned Countries: The text refers to "EU" and "non-EU/non-Associated Countries." It also mentions the "Union of Skills" and refers to the 2025 European Commission’s Action Plan on Basic Skills, and the 2022 Council Recommendation encouraging the implementation of Individual Learning Accounts (ILAs) in Member States, indicating a focus on the European Union.

Project Stage: The expected maturity of the project is research and innovation actions (RIA) as well as innovation actions (IA) and coordination and support actions (CSA). This suggests that the program supports projects from the research phase through to demonstration and implementation of innovative solutions.

Funding Amount: The funding amounts vary depending on the specific topic within the call. For example, under the budget overview, individual topics such as HORIZON-CL2-2026-01-TRANSFO-05 have a total budget of 12,000,000 EUR and an indicative contribution of 3,000,000 to 4,000,000 EUR per grant. Other topics, such as HORIZON-CL2-2026-01-DEMOCRACY-09, have a total budget of 16,000,000 EUR and an indicative contribution of 3,500,000 to 4,000,000 EUR.

Application Type: The application type is an "open call" with a "single-stage" submission process, as indicated by the "single-stage" notation in the budget overview and the planned opening and deadline dates.

Nature of Support: The beneficiaries will receive money in the form of a lump sum grant.

Application Stages: The application process is single-stage.

Success Rates: The success rates are not explicitly mentioned, but the "Indicative number of grants" column in the budget overview provides some insight. For instance, a topic with a budget of 12,000,000 EUR might have an indicative number of 3 grants, while a topic with 4,500,000 EUR might have only 1 grant. This suggests that the success rate will vary depending on the topic and the number of expected applications.

Co-funding Requirement: The text does not explicitly mention a co-funding requirement.

Summary: This Horizon Europe call, part of the Culture, Creativity and Inclusive Society 2026 work program, aims to fund research and innovation actions that explore the contribution of basic skills to productivity, innovation, competitiveness, and economic growth within the European Union. The call encourages projects that provide policymakers with a better understanding of these relationships, develop actionable advice for education and training systems, and promote inclusive growth by reducing disparities in basic skills. The funding is provided as lump sum grants, and while collaborations are encouraged, the specific eligibility criteria and requirements are detailed in the referenced annexes and program guides. The call is structured around a single-stage application process with a deadline in September 2026, and the indicative funding per project ranges from approximately 3 million to 6 million EUR depending on the specific topic and action type.