What is Portfolio Approach in EU Funding?

What does the portfolio approach mean?

The portfolio approach is a specific selection and management method applied in certain European Union funding programmes. Unlike traditional evaluation models where projects compete purely on individual point scores, this approach considers how each project fits into a broader context. The goal of the grant provider is to construct a balanced portfolio of supported projects that complement one another and jointly address a defined strategic challenge.

Key objectives of the portfolio approach

• Risk diversification: Particularly for breakthrough technologies, multiple technological pathways toward the same goal are supported. If one approach fails, another may succeed.
• Creating synergies: Projects within a single portfolio can share insights, data, or infrastructure, thereby maximizing the total impact of invested public funds.
• Comprehensive problem-solving: It allows funding bodies to address multiple facets of complex societal or technological challenges rather than funding isolated, albeit high-quality, solutions.

Where is this approach applied?

This mechanism is most common in centralized research and innovation programmes such as Horizon Europe. It is prominently featured in the European Innovation Council (EIC), where projects are often grouped into thematic portfolios overseen by Programme Managers.

What does this mean for grant applicants?

For applicants, the portfolio approach introduces a critical factor to the evaluation process. A high-scoring project proposal may ultimately be rejected if its focus significantly duplicates a project already chosen for the portfolio, or if it does not fit the strategic puzzle of the specific call. When preparing an application, it is therefore crucial to study not only the evaluation criteria, but also the strategic targets and expected portfolio composition outlined in the relevant work programme.