The Innovation Deals (IDs) instrument, set up by the European Commission, help innovators facing regulatory obstacles by setting up agreements with stakeholders and public authorities. IDs are a voluntary cooperation between the EU, innovators, and national, regional and local authorities aimed at shortening the time between ideas and market uptake.

Through IDs, the Commission proactively helps national, regional or local authorities to identify and make use of existing flexibility in the EU legislative framework, or to implement specific legal provisions appropriately by providing in-depth analysis of the case.

IDs are only available for innovations that demonstrate wide applicability (potential market take-up), have recent, limited or no access to the market, are more effective or efficient in achieving EU policy objectives, and do not violate EU legislation or principles of EU law. IDs cannot deviate from the existing EU legislation, but may make use of the possible flexibility already allowed by different types of legislative acts. The rationale is that the proposed innovation should not infringe and/or jeopardise any environmental, social or competition principles. The IDs are not meant to lower existing standards or national legislation that is more ambitious than EU legislation.

Any innovator (i.e. physical or legal person who introduces new methods, ideas or product) or group of innovators can apply for an ID, which tries to introduce an innovative solution to the market, within the context of the circular economy, and encounters an EU regulatory obstacle that hinders the innovation or its upscaling. Ideally, applications for the scheme should be done in close cooperation with other stakeholders including, for example, sector associations and NGOs. Relevant national/regional/local authorities should also be involved.