Research and Innovation

Research and Innovation

ODI / SME instrument

ICT 2013Vilnius November 2013

Viorel PecaPierre Marro

DG CONNECT / Innovation

Barriers to participation (study on non participation of SMEs in FP7)

The following were identified as either strong or weak barriers for ICT-SMEs as a whole, regardless of FP7 participation:Resources: Dedicating time and human resources to proposal

preparations

Information: Awareness/access to preceding documents and to FP7 information days

Time: Current time-to-project and Long projects

Support: Getting feedback on project ideas

Financials: Partial reimbursement of project expenses, EU accounting arrangements and the required reporting capacity

Business: Participating in research project outside the company’s main business interest

• From the questionnaires and interviews 6 key messages were identified:• SMEs want more quality information• Fit the Rhythm of SMEs• Making life simpler for SMEs• Flexibility fosters creativity and innovation• Getting closer to private investors and the

market• Attracting new participants

Overview of Key Messages (study on non participation of SMEs in FP7)

Why ODI (Open Disruptive Innovation)

Triggered by Vice President Neelie Kroes speech (25/09/2012):

"First, remember that great innovation isn't about keeping the status quo: it's about challenging it. It's radical, disruptive, and sometimes non-linear – especially for emerging technologies.

So let's make space for that in Horizon 2020.

Here's what I want to do. I want to try out support for truly open, disruptive innovation in ICT. Allocating perhaps 5% of funds to create an open, agile, responsive funding instrument. Starting an experiment to support creativity and innovation."

It is one of the answers to the issues that you raised in FP7.

Open in scope and in time and in 2014-2015 dedicated to SMEs.

SME support: integrated approach

Horizon 2020

SME instrument7%

Collaborative projects

13%

Eurostars IIEnhancing Innovation

CapacityMarket-driven Innovation

Access to Risk Finance

20 % budgetary target in LEITs & SC

'Innovation in SMEs'

5

OpenDisruptive Innovation

Growth phase

(SpeedUp Europe)

Access to Finance

Start-up phase

(StartUp Europe)

CONTEXT

H2020 ICT thematic

areas

SME instrument?

IDEA business coaching throughout the project MARKET

Phase 1: Concept & Feasibility

Assessment

Phase 2: Demonstration

Market ReplicationR&D

Phase 3: Commercialisation

50 k€

6 months

0,5 to 2,5 M€1 – 2 years

Eg: Access to risk finance

Procurement

SME window EUfinancial facilities

Phase 1: Concept and feasibility

assessment

Phase 2: R&D, demonstration,

market replication

Input: Idea/Concept: "Business Plan 1"

(~ 10 pages)

Activities:Feasibility of concept

Risk assessmentIP regime

Partner searchDesign study

Pilot applicationetc.

Output: elaborated "Business plan 2"

Input: "Business plan 2" plus description of activities under Phase

2 (~ 30 pages)

Activities:Development,

prototyping, testing, piloting,

miniaturisation, scaling-up, market

replication, research

Output: "investor-ready Business plan 3"

Lump sum: 50.000 €

~ 6 monthsNo direct funding

Phase 3: Commercialisation

Typically 1-2,5 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 PPC (and PPI?)

Phase 3 & coaching = 2% budget

8

SME instrument

9

Coaching and EEN support

EEN Initial

Assessment

Phase 1 Phase 2 Phase 3

Coaching

Regional

HR

…

TO/T

R

EU F

unds

SME Instrument

Support for Application

Support for EU project Management

Support for Access to Finance

Facilitation and Moderation

Volumes and funding (overall ~2,8 B€ over 2014-2020)

5,200 Phase 1 projects

1,700 Phase 2 projects*

Phase 3 project

s50 k€ lump sum 1 to 2,5 M€ Access to risk finance

*Average size of 1.5 M€

Or 2550 projects of 1 M€, 1250 of 2 M€…

10% 88% 2% coaching

Phase 1Phase 2Phase 3

11

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

• Combination of demonstration and market replication encouraging the involvement of end users/potential clients, research as appropriate

• Only SMEs allowed to apply for funding

• Single company support possible

Main features

• Simple rules and procedures

• Continuous open call with 3-4 cut-off dates per year

• No obligation for applicants to sequentially cover all three phases; Each phase open to all SMEs; however SME strongly encouraged to go in phase1

• Bottom-up approach, each SC & LEIT themes defines a broad topic

• Central implementation through Executive Agency

Main features (2)

Evaluation

1. Remote evaluation whole process

2. Suggestion to abandon consensus meetings

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

4. Evaluation criteria focus :

• Excellence

• Impact

• Quality and efficiency of the implementation

5. Competences of evaluators is important

Award criteriaExcellence:

-Soundness of the concept, including trans-disciplinary considerations;

-Progress beyond the state of the art.

 

 

Impact:-Enhancing innovation capacity and integration of new knowledge;

-Strengthening the competitiveness and growth of companies by developing innovations meeting the needs of European and global markets;

 -Effectiveness of the proposed measures to communicate the project, disseminate and/or exploit the project results, and appropriate management of IPR.

Quality of the implementation:

-Competences, experience and complementarity of the individual participants, as well as of the consortium as a whole;

-Appropriateness of the management structures and procedures, including risk management.

 

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Based on various surveys (EVCA, EIM, NESTA), it is estimated that about 1 to 6 % of all SMEs belong to the target group, i.e. 200,000 to 1.2 million SMEs.Without restrictions it is estimated to receive 10,000 to 15,000 SME applications for Phase 1 every year.This number is limited in case of topic oriented calls

Measures to "reduce" applications:1. Only one application per company (in both phases)2. This implies: no possibility to apply for Phase 1 during the

submission and/or implementation of a Phase 2 project and vice versa.

3. Advice by the support network(s)4. SMEs should be encouraged to enter the scheme in Phase

1

Demand

Open Disruptive Innovation - ICT LEITImplementation: SME instrument

Budget: 90M € for 2014-15

Funding: lump sum 50k€ phase1; 0.5 to 2.5 M€ phase2; 70% of eligible costs

Scope: No restriction on ICT area

Focus on "Disruptive ICT innovation"= Innovative ICT concept, product or service applying new sets of rules, values and models which ultimately disrupt existing markets

Cut off dates(TBC!):indicative 18/06/2014; 24/09/2014; 17/12/2014 for phase 1; Oct/Dec. for phase 2 (opening 01/03/2014)