ignite your sme instrument setsquared

Research and Innovation

SME support

under

HORIZON 2020

1

Alan Scrase

1st May 2014

The Analysis

Outcome of impact assessments

• Less than 50% of industrial partners use the publicly funded applied research projects strategically

• Only about 22% of SMEs participating in EU research programs are strategic innovators

• Most academics engage with industry to further their research rather than to commercialise their knowledge

• Results are not exploited because projects were not designed for exploitation

• There is a strong relationship between internationalisation and innovation, but SMEs are not aware of internationalisation support programmes.

• The information environment of (European) R&D programmes is unattractive and repelling to SMEs

Innovation Union Commitment n°7 Ensure stronger involvement of SME in future EU R&I programmes

* European Council 4 February 2011 Commission is invited to explore the feasibility of a Small Business Innovation Research Scheme

Concept and

Design

Why participate?

Horizon 2020

• To compete among the best European companies

• Visibility at European level

• Possibility to receive business/management coaching

• Networking possibility with investors and customer

networks

• Preferential treatment for subsequent financing (EU

Financial Instruments: loan and equity facilities)

6

SME support: integrated approach

Horizon 2020

SME instrument

7%

Collaborative projects

13%

Eurostars II Enhancing Innovation

Capacity Market-driven Innovation

Access to Risk Finance

20 % budgetary target in

LEITs & SC

'Innovation in SMEs'

7

Funding Gap (range: 1-3 M€)

Technology Readiness Level

?

IDEA business coaching and complimentary services MARKET

Concept & Feasibility

Assessment

Demonstration Market Replication

Research Development

Commercialisation

SME window EU financial facilities

Procurement

SME instrument

10

Phase 1: Concept and feasibility assessment

Phase 2: R&D, demonstration, market

replication

Input: Idea/Concept: "Business Plan 1"

(~ 10 pages) 10% budget

Activities:

Feasibility of concept Risk assessment

IP regime Partner search Design study

Pilot application etc.

Output: elaborated "Business plan 2"

Input: "Business plan 2" plus description of

activities under Phase 2 (~ 30 pages) 88% budget

Activities: Development,

prototyping, testing, piloting, miniaturisation,

scaling-up, market replication,

research

Output: "investor-ready Business plan 3"

Lump sum: 50.000 €

~ 6 months

No direct funding

Phase 3: Commercialisation

0.5-2.5 M€ EC funding

~ 12 to 24 months

Promote instrument as quality label for successful

projects

Facilitate access to private finance

Support via networking , training, information,

addressing i.a. IP management, knowledge

sharing, dissemination

SME window in the EU financial facilities (debt

facility and equity facility)

Possible connection to Procurement

10% success 30-50% success

Phase 3+coaching 2% budget

• Targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise

• Only SMEs will be allowed to apply for funding and support

• Single company support possible

• No obligation for applicants to sequentially cover all three phases; each phase open to all SMEs

• 70% funding (exceptions possible)

Main features

12

Article 18(2) Regulation

[…] a dedicated SME instrument that is targeted at all types of SMEs with an innovation potential, in a broad sense, shall be created under a single centralised management system and shall be implemented primarily in a bottom-up manner via a continuously open call […]

• Implemented centrally by one agency (EASME)

• Bottom-up approach within the frame of SC & LEIT

each SC & LEIT defines a broad topic

• Continuously open call with around 4 cut-off dates per year

• Draft Dates:

Implementation

13

2014 2015

Phase 1

18/06/2014

24/09/2014

17/12/2014

Phase 2

09/10/2014

17/12/2014

Phase 1

18/03/2015

17/06/2015

17/09/2015

16/12/2015

Phase 2

18/03/2015

17/06/2015

17/09/2015

16/12/2015

Evaluation: Remote evaluation throughout the process

Suggestion to abandon consensus meetings

Long feedback loops ("ESRs") slow down the process

Other eligibility conditions:

* established in EU or associated country * one application/project (phase 1 or phase2) at a time

Funding over 7 years:

ca. 5,200 Phase 1 projects (fixed lump sum of 50K€)

ca. 1,700 Phase 2 projects with an average size of 1.5 M€

(or 2550 of an average size of 1 M€;1250 of an average size of 2 M€)

14

Implementation

Area Topics &Budget

LEIT ICT Open Disruptive Innovation Scheme; 45 M€ per year,

Estimated projects per year: 90 phase 1, 26 phase 2

LEIT Nanotechnology

LEIT Advanced

materials &processing

LEIT Advanced

manufacturing

Accelerating the uptake of nanotechnologies, advanced materials or advanced

manufacturing and processing technologies by SMEs

21.8 M€ (2014), 23.8 M€ (2015)

Estimated projects: 43 phase 1 , 13 phase 2 (2014)

Estimated projects: 47 phase 1, 14 phase 2 (2015)

LEIT Biotech SME boosting biotechnology-based industrial processes driving competitiveness and

sustainability; 3.80 M€ (2014), 2.40 M€ (2015)

Estimated projects: 7 phase 1, 3 phase 2 (2014)

Estimated projects: 5 phase 1, 1 phase 2 (2015)

LEIT Space SME innovation in space applications, 8.5 M€ (2014), 8.75 M€ (2015)

Estimated projects: 17 phase 1, 5 phase 2 (2014)

Estimated projects: 18 phase 1, 5 phase 2 (2015)

SC1 Health Clinical validation of biomarkers and/or diagnostic medical devices (100% funding)

66.1 M€ (2014), 45 M€ (2015)

Estimated projects: 132 phase 1, <38 phase 2 (2014),

Estimated projects: 90 phase 1, <26 phase 2 (2015)

bigger projects envisaged for phase 2 (~5 M€)

Draft Topics

(2014/2015)

Area Topics &Budget

SC2 Bio-economy Resource-efficient eco-innovative food production and processing

9 M€ (2014), 17 M€ (2015)

Estimated projects: 18 phase 1, 5 phase 2 (2014)

Estimated projects: 34 phase 1, 10 phase 2 (2015)

Supporting SMEs efforts for the development - deployment and market replication

of innovative solutions for blue growth

6.8 M€ (2014), 7.4 M€ (2015)

Estimated projects: 13 phase 1, 4 phase 2 (2014)

Estimated projects: 15 phase 1, 4 phase 2 (2015)

SC3 Energy Stimulating the innovation potential of SMEs in a low carbon and efficient energy system

33.95 M€ (2014), 37.26 M€ (2015)

Estimated projects: 67 phase 1, 20 phase 2 (2014)

Estimated projects: 74 phase 1, 22 phase 2 (2015)

SC4 Transport Small business innovation research for Transport

35.87 M€ (2014), 38.96 M€ (2015)

Estimated projects: 72 phase 1, 21 phase 2 (2014)

Estimated projects: 78 phase 1, 23 phase 2 (2015)

SC5 Climate Boosting the potential of small businesses for eco-innovation and a sustainable supply

of raw materials; 17M€ (2014), 19 M€ (2015)

Estimated projects: 34 phase 1, 10 phase 2 (2014)

Estimated projects: 38 phase 1, 11 phase 2 (2015)

Draft Topics

(2014/2015)

Area Topics &Budget

SC6 IIIS no topic in 2014

Innovative mobile e-government applications by

SMEs, 4M€ (2015)

Estimated projects: 8 phase 1, 2 phase 2

SME business model innovation, 11 M€ (2015)

Estimated projects: 22 phase 1, 6 phase 2

SC7 Security Protection of urban soft targets and urban critical infrastructures

7 M€ (2014), 7.4 M€ (2015)

Estimated projects: 14 phase 1, 4 phase 2 (2014)

Estimated projects: 15 phase 1, 4 phase 2 (2015)

Total 254.82 M€ (2014) 266.97 M€ (2015)

Draft Topics

(2014/2015)

Phase 2 project estimated with an average of 1.5 M€ 2014 and 2015 represent 5% of the combined budgets of these areas, this will increase over time to 7%

The profile and competences of evaluators is highly important

Market Opportunity

company’s potential

achieving the envisaged results

Technical solution possible and better than existing ones

Excellence in innovation

Evaluation

Commercialisation potential and economic impact

Company's growth potential

Plus: EU added value

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Coaching and EEN support

EEN Initial

Assessment

Phase 1 Phase 2 Phase 3

Coaching (not part of EEN)

Regional

HR

…

SME Instrument

Support for Application

Support for EU project Management

Support for Access to Finance

Facilitation and Moderation

Coaching in practice

• Voluntary coaching offered in Phase 1 and Phase 2:

Phase 1 – 3 coaching days

Phase 2 – 12 coaching days

• Coaches will drive the performance of the organization by working with the senior management team

• Coach suggestion provided, but final selection by the SME

• Coach and SME to decide a coaching plan in Phase 1. A summary of coaching foreseen for Phase 2 will form part of application to Phase 2

• Coaching paid in addition to Phase 1 and Phase 2 contribution

SETsquared at University of Southampton

• Alan Scrase, Incubation Centre Manager a.scrase@soton.ac.uk

• 07825 761 652