Open Disruptive Innovation SME instrument

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The EU Commission, Horizont 2020 program, supporting research & innovation proposes a new funding instrument for innovative SMEs. This presentation introduces the instrument and provides information on the way it will be used in the context of ICT priority.

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<ul><li> 1. ODI / SME instrument ICT 2013 Vilnius November 2013Viorel Peca Pierre Marro DG CONNECT / InnovationResearch and Innovation</li></ul> <p> 2. 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 projectsSupport: 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 companys main business interest 3. Overview of Key Messages (study on non participation of SMEs in FP7) 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 4. 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. 5. Horizon 2020SME support: integrated approach 20 % budgetary target in LEITs &amp; SC 'Innovation in SMEs'Collaborative projectsSME instrument13%7%Eurostars IIEnhancing Innovation Capacity Market-driven InnovationAccess to Risk Finance 5 6. Open Disruptive InnovationCONTEXT H2020 ICT thematic areasStart-up phase (StartUp Europe)Growth phase (SpeedUp Europe)Access to Finance 7. SME instrument ? ProcurementPhase 1: Concept &amp; Feasibility AssessmentPhase 2: Demonstration Market Replication R&amp;DPhase 3: CommercialisationSME window EU financial facilities50 k 6 monthsIDEA0,5 to 2,5 M 1 2 yearsbusiness coaching throughout the projectEg: Access to risk financeMARKET 8. SME instrument Phase 1: Concept and feasibility assessmentInput: Idea/Concept: "Business Plan 1" (~ 10 pages) Activities: Feasibility of concept Risk assessment IP regime Partner search Design study Pilot application etc.Output: elaborated "Business plan 2"Phase 3 &amp; coaching = 2% budgetPhase 2:R&amp;D, demonstration, market replicationPhase 3:CommercialisationInput: "Business plan 2" plus description of activities under Phase 2 (~ 30 pages)Promote instrument as quality label for successful projectsActivities: Development, prototyp ing, testing, piloting, miniaturisation, scalin g-up, market replication, researchSupport via networking , training, information, a ddressing i.a. IP management, knowledg e sharing, disseminationOutput: "investorready Business plan 3"Facilitate access to private financeSME window in the EU financial facilities (debt facility and equity facility) Possible connection to PPC (and PPI?)Lump sum: 50.000 Typically 1-2,5 M EC funding~ 6 months~ 12 to 24 monthsNo direct funding8 9. Coaching and EEN support Phase 1Phase 2Phase 3RegionalEENHRInitial AssessmentEU FundsTO/TRFacilitation and Moderation SME Instrument CoachingSupport for ApplicationSupport for EU project ManagementSupport for Access to Finance 9 10. Volumes and funding (overall ~2,8 B over 2014-2020) 10%2% coaching88%5,200 Phase 1 projects1,700 Phase 2 projects* 1 to 2,5 M50 k lump sumPhase 1 Phase 2 Phase 3Phase 3 projects Access to risk finance*Average size of 1.5 M Or 2550 projects of 1 M, 1250 of 2 M 11. Main features 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 12. Main features (2) 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 &amp; LEIT themes defines a broad topic Central implementation through Executive Agency 13. 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 : ExcellenceImpact Quality and efficiency of the implementation 5. Competences of evaluators is important 14. Award criteria Excellence:Impact:Quality of the -Soundness of the -Enhancing innovation capacity implementation: concept, including and integration of new trans-disciplinary knowledge; considerations; -Strengthening the -Progress beyond competitiveness and growth of the state of the art. companies by developing innovations meeting the needs of European and global markets;-Competences, experience and complementarity of the individual participants, as well as of the consortium as a whole;-Appropriateness of -Effectiveness of the proposed the management measures to communicate the structures and procedures, project, disseminate and/or exploit the project results, and including risk management. appropriate management of IPR. 15. Demand 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 16. Open Disruptive Innovation - ICT LEIT Implementation: SME instrument Budget: 90M for 2014-15Funding: 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) </p>

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