Accessing Public Sector Funds for Innovation and R&D

Andrew BealeDirector, IP Wales®

IP Wales®

A £3.5m project (part funded by the European Union) to help SMEs within the Region become aware of IP; protect their IP assets; commercialise their IP assets.

Our Chairman – Lord Griffiths(Vice Chairman Goldman Sachs International)

50% grant funding

IP Wales has supported a total of 162 SME projects from 109 Welsh SMEs helping them to acquire the following assets:

Projects Patents Trade Marks Designs

Total 162 205 60 12

Patents

UK 53PCT 45EP 34USA 31Canada 10Australia 5Germany 4China 2France 2Italy 2Japan 2

New Zealand 2Norway 2Poland 2Spain 2Brazil 1Hong Kong 1India 1Ireland 1Israel 1Singapore 1South Africa 1

Total 205

Trade Marks

UK 23CTM 20USA 13Canada 2Australia 1New Zealand 1

Total 60

Registered Designs

UK 3USA 3CDR 2Australia 1Canada 1France 1 Germany 1

Total 12

Understanding innovation

The“Invention”

The“Market”

QualityHumanCapital

QualityProducts

InnovationRes

earc

h an

d Dev

elop

men

t Education Skills and Training

Supp

ort I

nfra

stru

ctur

e

Marketing

CultureM

anag

emen

t

Inte

llect

ual P

rope

rty

Finance and Resources

EU Funding Opportunites for SMEs (2007-13)

The March 2006 Aho Expert Group Report on ‘Creating an Innovative Europe’, which has been endorsed by EU Heads of State and the Commission, recommended trebling the present €10.6bn structural funds support to measures related to R&I.

In addition, Commission President Jose Manuel Barroso has emphasised that the EU needs to deliver results on innovation, and that EU regional policy is the primary instrument to do so.

Jose Manuel Barroso(Commission President)

EU Funding Opportunites for SMEs (2007-13)

The Commission Directorate-General (DG) for Regional Policy is under significant political pressure from the Commission President and EU heads of government to increase the number and impact of structural fund projects that will deliver increased innovation within companies under the Lisbon growth and jobs agenda (as refreshed in 2005).

Danuta Hubner(Commissioner for Regional Policy)

EU Funding Opportunites for SMEs (2007-13)

For the first time ALL Regions can apply for funding and the Commission will start to adopt Regional Innovation Plans from the end of 2006.

A European Innovation Scoreboard will be extended to the Regional level and the Commission will grade Regions on the following indicators:

• Number of science and technology graduates • Number of adults engaged in learning • Employment in hi-tech sectors/services • Gross and business expenditure on R&D • Number of patent applications

[A new European 25 cluster collaboration map has been commissioned for publication in 2007]

SME applications for EUProject funding

1. Need to focus on a relevant Priority with uncommitted expenditure.

2. Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants).

3. Will be PR obligations.

4. Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications for EUProject funding

SME applications for EUProject funding

1. Need to focus on a relevant Priority with uncommitted expenditure.

2. Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants).

3. Will be PR obligations.

4. Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications for EUProject funding

1. Need to focus on a relevant Priority with uncommitted expenditure.

2. Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants).

3. Will be PR obligations.

4. Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications for EUProject funding

1. Need to focus on a relevant Priority with uncommitted expenditure.

2. Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants).

3. Will be PR obligations.

4. Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications to benefitfrom EU funded projects1. Need to be focus on the Project Targets (see Scoreboard):

Jobs (but not job relevant)• Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary• Gross FTE safeguarded jobs in high/medium hi-tech

companiesPatents• Positive due diligence• Defensive due diligence

2. Need to be supported by a business strategy.

3. May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment.

4. May have PR obligations.

5. Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefitfrom EU funded projects

high technology companies means those in both high technology industries and

medium high technology industries.

high technology industries means those in the following sectors:pharmaceuticals SIC 24.4office machinery and computers SIC 30.0Aerospace SIC 35.3electronics-communications SIC 32.0

medium high technology industries means those in the following sectors:

scientific instruments SIC 33.0motor vehicles SIC 34.0electrical machinery SIC 31.0chemicals SIC 24.0 (exc.24.4)other transport equipment SIC 35.2, 35.4, 35.5non-electrical machinery SIC 29.0

High & Medium Hi-Tech Co’s

SIC Code No. Co.’s Co.’s TM Prediction Success

N/A 31

A 2 0 01

D 34 15 1,6,7,10,12,14,16,17,

30

5

F 3 1 37 0

G 5 5 35 0

K 30 12 35 2

M 1 0 41 0

N 1 1 44 0

O 2 2 36 0

SIC Code analysis was found to be irrelevant for 28% of our membership and potentially less than 20% accurate for the remainder. Using the Nice classification system was 3 times more accurate.

SME applications to benefitfrom EU funded projects1. Need to be focus on the Project Targets (see Scoreboard):

Jobs (but not job relevant)• Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary• Gross FTE safeguarded jobs in high/medium hi-tech

companiesPatents• Positive due diligence• Defensive due diligence

2. Need to be supported by a business strategy.

3. May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment.

4. May have PR obligations.

5. Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefitfrom EU funded projects1. Need to be focus on the Project Targets (see Scoreboard):

Jobs (but not job relevant)• Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary• Gross FTE safeguarded jobs in high/medium hi-tech

companiesPatents• Positive due diligence• Defensive due diligence

2. Need to be supported by a business strategy.

3. May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment.

4. May have PR obligations.

5. Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefitfrom EU funded projects1. Need to be focus on the Project Targets (see Scoreboard):

Jobs (but not job relevant)• Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary• Gross FTE safeguarded jobs in high/medium hi-tech

companiesPatents• Positive due diligence• Defensive due diligence

2. Need to be supported by a business strategy.

3. May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment.

4. May have PR obligations.

5. Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefitfrom EU funded projects1. Need to be focus on the Project Targets (see Scoreboard):

Jobs (but not job relevant)• Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary• Gross FTE safeguarded jobs in high/medium hi-tech

companiesPatents• Positive due diligence• Defensive due diligence

2. Need to be supported by a business strategy.

3. May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment.

4. May have PR obligations.

5. Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefitfrom EU funded projects1. Need to be focus on the Project Targets (see Scoreboard):

Jobs (but not job relevant)• Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary• Gross FTE safeguarded jobs in high/medium hi-tech

companiesPatents• Positive due diligence• Defensive due diligence

2. Need to be supported by a business strategy.

3. May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment.

4. May have PR obligations.

5. Will have obligations of evidence and documentation with the potential for claw-back.

Thank you for your attention and I hope your interest

Andrew BealeDirector, IP Wales®