estonian technology agency mr. tanel köösel
DESCRIPTION
Estonian Technology Agency. ESTONIAN TECHNOLOGY AGENCY Mr. Tanel Köösel. ENTERPRISE ESTONIA. Estonian Technology Agency. Estonian Trade Promotion Agency. Estonian Investment Agency. ENTERPRISE ESTONIA. Estonian Tourist Board. Estonian Regional Development Agency. - PowerPoint PPT PresentationTRANSCRIPT
ESTONIAN TECHNOLOGY AGENCYMr. Tanel Köösel
Estonian Technology Agency
ENTERPRISE ESTONIA
Estonian TechnologyAgency Estonian Trade
Promotion AgencyEstonian
Investment Agency
Estonian RegionalDevelopment Agency
Estonian TouristBoard
ENTERPRISE
ESTONIA
EAS South EstonianAgency
EAS Ida-ViruAgency
ACTIVITIES AND BUDGET OF ESTAG IN 2002
New products and technologies
Access to new knowledge
Surveys, support for technology
transfer
Increasing ofawareness
Development of competence
Estonian Technology Agency
ROLE OF ESTAG, ITS ACTIVITES AND IMPACT
ESTAGprovides funding and
consultationinitiatorco-ordinator
projects and programmesinternational co-operation
competitivenessprofitability
growth
new businessesnew enterprises
Research institutesand universities
Enterprises
Growth in exports, stronger industrial base, creation of new jobs, higher welfare
DATABASE
HIGH TECHNOLOGY ESTONIA
www.hightechestonia.com
HIGH TECHNOLOGY ESTONIA www.hightechestonia.com
GOAL
To introduce innovative Estonian
products, services and
technologies to potencial foreign
R&D partnerts and investors.
FINANCING AND DEVELOPMENT OF TECHNOLOGY-INTENSIVE COMPANIES
MONEY
TIME
Benefits from publicsector investments
Cash flow of a company
Financing for development of business and internationalisation (private investors, banks, KREDEX, ETPA, EIA)
Fundamental research (Estonian Science Fund, Science Competence Council)
R&D funding (grants, loans; ESTAG)
Funds for improvement of knowledge in business and finance (grants; ESTAG, ERDA)
Venture capital financing (seed, start-up; currently not provided by the state)
Venture capital financing (private)
Applied research (ESTAG)
Search and identification of new ideas for start-ups (ESTAG)
RESULTS OF R&D
Data on changes in turnover and export as well as employment is gathered on
all ESTAG projects at the initiation, launch and end.
VISION OF TECHNOLOGY DEVELOPMENT – MAPPING FUTURE TECHNOLOGY NEEDS
Related technologies
Break-throughtechnologies
Key technologies
1Y 3YRS 5YRS 7YRS
COMPANY´S GOALS
TEHNOLOGICALCAPABILITIES
MARKETNEEDS
Research3 - 10 years
10% of resources
Research3 - 10 years
10% of resources
Fundamental research1 - 20 years- Universities- Scientific institutions
Fundamental research1 - 20 years- Universities- Scientific institutions
Technology programmesTechnology transferApprox. 1 - 5 years- ESTAG - EU- Industry- Universities
Technology programmesTechnology transferApprox. 1 - 5 years- ESTAG - EU- Industry- Universities
Applied research andproduct developmentApprox. 1 - 2 years- Industry- ESTAG
Applied research andproduct developmentApprox. 1 - 2 years- Industry- ESTAG
RESOURCES
RISKS
Strategic choices2 - 5 years
30% of resources
Strategic choices2 - 5 years
30% of resources
Product development1 - 2 years
60 - 70% of resources
Product development1 - 2 years
60 - 70% of resources
RISKS
RESOURCES
INDUSTRY MODEL ACADEMIAMODEL
Time and sources of financing.Time and allocation of resources.
problems andresearch objects
co-operation
STRATEGIC BASIS FOR INDUSTRY – CO-OPERATION WITH ACADEMIA
ESTAG – DEVELOPER OF AND PROVIDEROF FINANCING FOR JOINT R&D PROJECTS
Foreign companies Estonian companies
Estonian universitiesR&D institutions
Foreign universitiesR&D institutions
R&D FINANCING COMPETENCE
JOINT PROJECTS FOR INTEGRATION OF“NEW” AND “OLD” ECONOMY
EXCHANGE INTEGRATION
oldeconomy
neweconomy
oldeconomy
neweconomy
Creation of high-tech companies, emergence of new markets and sectors,
growth.
Modernisation, development of existing markets and
present competitive advantages.
+
STRATEGIC ACTIVITIES OF ESTAG
Ensuring access to capital
Increasing of awareness
Co-ordination
and financing
of international
co-operation
programmes
Increasing of innovation capability
Development of competence
Development of infrastructure
R&D PROJECT FINANCING AT
ESTAG
R&D EXPENDITURE 1995-2006E, % OF GDP
0,00%
0,20%
0,40%
0,60%
0,80%
1,00%
1,20%
1,40%
1,60%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Estonian R&D Strategy 2002-2006
GOAL OF FINANCING
The ultimate goal of the projects financed by ESTAG is the
development of innovative technologies and application of
those in business.
0%
20%
40%
60%
80%
100%
1992 1993 1994 1995 1996 1997 2000
Fundamental research Applied research Experimental development
As a result,
efficiency and
performance of
the Estonian
business sector
will increase.
?
FINANCING OF R&D IN ESTAG
Feasibility
studies Development and
applied research
Product/process development and
preparation of production
R&D STRATEGY
Planning
Max Min
TECHNOLOGY RISK
% OF SUPPORT
Application
LOAN – 75%
75% GRANT 25%
GRANT – 75%
Production, marketing
FINANCING PRODUCTS OF ESTAG
THE FINANCING PRODUCTS OF ESTAG ARE INTENDED FOR:
– Execution of product development projects
– Execution of applied research
– Execution of feasibility studies
FINANCING PRODUCTS OF ESTAG INCLUDE:
– Loan for enterprises (product development - 75% of total cost of project)
– Grant for enterprises (product development - 25%)
– Grant for R&D institutions (applied research - 50%)
– Grant for feasibility studies (75%)
ESTAG FEASIBILITY STUDY GRANT
• The feasibility study grant is intended for use in the process of preparation for product development and applied research projects.
• The purpose of a feasibility study is to obtain information about the feasibility of a planned applied research or product development project and about the possible application of the project’s results. Feasibility studies are generally conducted over a short period and usually involve consultation by experts.
• Within the feasibility study project, ESTAG can finance the compilation of a business plan or the formulation of a technology strategy for the planned project, market and patent research, preparation of an international project, elaboration of the project plan and other activities related to the preparation of a project.
• ESTAG will cover up to 75% of a feasibility study´s costs (up to EEK 100,000). The total cost of a feasibility study can total up to 25% of the cost of the consecutive project.
SUPPORT FOR APPLIED RESEARCH AND PRODUCT DEVELOPMENT
CONDITIONS OF APPLIED RESEARCH GRANT• ESTAG can cover up to 50% of the total costs directly related to the project.
CONDITIONS OF PRODUCT DEVELOPMENT GRANT• Financing: ESTAG can cover up to 25% of the total costs directly related to the
project.
CONDITIONS OF LOAN• Financing: ESTAG can cover up to 75% of the total costs directly related to the
project.– Interest rate: 1-5% annually calculated on the basis of the loan balance– Term: up to 8 years– Grace period for the loan principle: up to 3 years– Collateral: in general no collateral is required
APPLIED RESEARCH PROJECT GRANT FOR RESEARCH INSTITUTIONS
• The grant for applied research projects is intended for financing applied research, the results of which can be used by Estonian industries for substantial improvement of existing or the development of new products, technologies and services.
• ESTAG can finance with a grant up to 50% of the total costs related to an applied research project. ESTAG may cover up to 75% of the costs related directly to a project, if the project is compatible with EU priorities for research and development, and the project involves international cooperation between several parties.
• ESTAG may cover up to 100% of the costs directly related to the project if the results of the project are available to all enterprises and individual persons on an equal basis and the project is executed for industrial purposes and in co-operation with enterprises.
TARGET AREAS OF ESTAG SUPPORT
= Target area of ESTAG support = Strategic direction
Development oftechnology SMEs
Large companies
Research institutions,universities
Development oftechnology
Research(applied research)
Pilot projects
Product development
Market entry
INITIATION AND DEVELOPMENT OF PROJECTS
II p
has
e
Gate
Preliminary analysis Result
Detailed research
Developmentof product/service
Testing ofproduct/service
Presentation and anchoring of
product/serviceon the market
Initialresearch
III p
has
e
N-p
has
e
I ph
ase
Gate Gate Gate
DECISION-MAKING AFTER EACH PHASE
Criteria Output
Ended projects
Continuingprojects
Haltedprojects
Assessment
Aggregateevaluation
MarketingOrganisation
and management
FinancingProduct andtechnology
EVALUATION OF PRODUCT DEVELOPMENT PROJECTS IN ESTAG
5 MYTHS ABOUT APPLYING FORFINANCING
REALITY
Financing of a project is determined by its quality not by its
field.
MYTH 1
Only projects in the currently “fashionable” fields (e.g.
genetics and IT) are financed.
REALITY
Decision on financing is based on the aggregate rating of a
project. In case important aspects of a project (e.g.
financing, co-operation, management) are not elaborated,
the aggregate rating will be low.
MYTH 2
In order to get financed, it is enough to elaborate the
scientific/technological side of the project, the rest is not
important.
5 MYTHS ABOUT APPLYING FORFINANCING
REALITY
The goal of the projects financed by ESTAG is application
of the results in business.
MYTH 3
The goal of the project can be e.g. an article in a scientific
publication, practical application of results is not
important.
5 MYTHS ABOUT APPLYING FORFINANCING
MYTH 4
Applied research means that the area of research is
determined. What will be the result and whether there will
be a result at all will be seen sometime later.
REALITY
The exact definition of results which the applied research will
be pursuing is a precondition for receiving ESTAG
financing.
It may be reasonable to change the aims in the course of the applied research
project! Changes in the project plan are done in co-operation with the Agency.
5 MYTHS ABOUT APPLYING FORFINANCING
REALITY
A financing application flooded with specific terms will not
enhance the likelihood of receiving financing.
MYTH 5
Financing application and project plan can be submitted in
any form.
5 MYTHS ABOUT APPLYING FORFINANCING
EUREKA
EUREKA IS A PAN-EUROPEAN CO-OPERATION NETWORK:
• For promotion of market-oriented, industrial R&D
• For development of international co-operation
• For development of co-operation between the industry and R&D institutions
EUREKA:
• Co-finances international R&D projects in all European states (also in Israel, Turkey and Russia)
• Co-ordinates cluster projects, which help to foster co-operation in R&D between SMEs and large companies
• Co-ordinates R&D co-operation networks which function in a similar way to technology programmes
ESTIRC
• Enables to find technological solutions suitable to the needs of companies and scientific institutions.
• Mediates technological solutions developed in companies and scientific institutions to foreign markets.
• Assists in all questions related to development of technology.
• Helps to increase awareness among companies and scientific institutions about EU technology and development programmes and encourages to participate in those.
Estonian Technology Agency
TO BRING YOUR IDEAS TO LIFE!
• Consultation– Evaluation and development of ideas
• Co-financing– Co-financing of projects
• Partners– Estonian enterprises
– Foreign enterprises
– Scientific organisations
– International programmes (EUREKA, IRC etc.)
THANK YOU!
Estonian Technology Agency11 Roosikrantsi Str, Tallinn 10119Tel. +372 627 9700Fax +372 627 9427e-mail: [email protected]
Estonian Technology Agency
http://www.estag.ee