Research and Innovation

Research and Innovation

Brussels, 12 November 2013

Types of ActionFocus on Innovation Actions

and the SME Instrument

Forms of funding

• Grants− Direct financial contribution by way of donation in order to

finance an action• Prizes

− Financial contribution given as reward following a contest(recognition or inducement prizes)

• Procurement− Supply of assets, execution of works or provision of

services against payment• Financial instruments

− Equity or quasi-equity investments; loans; guarantees; other risk-sharing instruments

Types of actions supported by grants

• Research and innovation actions• Innovation actions• Coordination and support actions• SME instrument• ERANET Co-fund• Pre-commercial procurement (PCP) Co-fund• Public procurement of innovative solutions (PPI) Co-fund

Disclaimer : legally not binding

Supporting innovation and activities close to users and markets

•Innovation Actions

Innovation activities as part of other types of actions

In 'main' Work Programme actions - In Public-Private Partnerships and Public-Public Partnerships - In EIT Knowledge and Innovation Communities

Demonstrating and piloting activities in . Research and Innovation Actions. SME Instrument . PCP Co-fund. Financial instruments: debt and equity . …

Primarily with activities such as demonstrating and piloting, first market replication…

Innovation Actions …

• 'Innovation Action' means an action primarily consisting of activities directly aimed at producing plans and arrangements or designs for new, altered or improved products, processes or services.

• For this purpose they may include prototyping, testing, demonstrating, piloting, large-scale product validation and market replication.

… Innovation Actions …

• A ‘demonstration or pilot’ aims to validate the technical and economic viability of a new or improved technology, product, process, service or solution in an operational (or near to operational) environment, whether industrial or otherwise, involving where appropriate a larger scale prototype or demonstrator.

… Innovation Actions …

• A ‘market replication’ aims to support the first application/deployment in the market of an innovation that has already been demonstrated but not yet applied/deployed in the market due to market failures/barriers to uptake. 'Market replication' does not cover multiple applications in the market of an innovation

that has already been applied successfully once in the market.

‘First’ means new at least to Europe or new at least to the application sector in question

Often such projects involve a validation of technical and economic performance at system level in real life operating conditions provided by the market

• An Innovation Action may include limited research and development activities.

… Innovation Actions

•Funding rate Grant limited to max 70% of total eligible costs (direct + indirect) Grant may reach max 100% of total eligible costs for non-profit legal entities

•Weighting of evaluation criteria To determine the ranking, the score for the Impact criterion will be given a

weight of 1.5 Prioritisation of ex aequo proposals done first on the basis of the score for

Impact, and then on that for Excellence

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 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)88% budget

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

1-3 (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?)

10% success 30-50% success

Phase 3 = 2% budgetSME Instrument

• 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)

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SME instrument: main features

SME Instrument: 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 the societal challenges and enabling technologies each SC & LEIT defines a broad topic

• Continuously open call with cut-off dates

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