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Company Guidelines to assist in the completion of a Research & Development (R&D) Fund application

Note: before completing an application you should contact and discuss the application in detail with your Development Adviser.

Introduction These guidelines are intended to assist in the completion of the application form for Research & Development funding from Enterprise Ireland. The R&D Fund supports company innovation in services, products and processes. It is open to existing and potential Enterprise Ireland and Údarás na Gaeltachta clients that are manufacturing and/or internationally traded service companies. Full details of the R&D Fund are specified in the Reference Document available on the Enterprise Ireland website.

The Fund is focused on established companies which are planning to undertake their first R&D projects and those which are significantly developing their existing R&D activity.

This is a competitive Fund. The approval limit of the R&D Fund Committee is €450,000. Larger

applications (applications which involve total support level of greater than €450,000) may also be made using the R&D Fund applications and guidelines but will be considered for approval by the Investment Committee (of Enterprise Ireland).

Overview of the Application

The application has 3 separate elements. A Business Plan Summary document (Microsoft Word format)

focussed on outlining the business plan and the project(s) for which support is being sought. Total length should be kept to a max. of 8 pages. Guidelines for the completion of the document are in Part A below.

A R&D Fund Project Details and Costs Workbook (Microsoft Excel format) which captures the details and the costings for the proposed project(s). Guidelines for the completion of the spreadsheet are in Part B below.

A Financial Data Sheet (FDS) (Microsoft Excel format). This summarises the financial track record and projections for the company. The guidelines to assist in the completion are included in the FDS Excel document itself. If you need assistance completing the FDS, please contact your Development Adviser.

1 of 14Company Guidelines – R&D Fund. Document version of 23rd Dec 2009.

Additional InformationRequired

Additional information is required to assist in the assessment of your application, such as:

FDS The company’s most recent audited and management accounts (P&L

and Balance Sheet) should be forwarded with the application. Detailed group structure (if applicable). Full company financial projections. Cashflow projections.

For Technical Assessment purposes you are required to attach the following documents at the time of application: A project(s) plan showing key tasks, milestones and the resources

(people and equipment) required to implement the R&D project(s). Outline of project(s) organisation and project(s) management process. CVs of key R&D personnel (one paragraph per person).

For a full list of the additional information required, please refer to the checklist at the end of the Business Plan Summary document.

All applications will be subject to assessment by Enterprise Ireland. Additional information in support of your application may be requested in the course of this assessment.

Submission of Applications

When the application has been completed it, (the Business Plan Summary, R&D Fund Project Details and Costs Workbook and the Financial Data Sheet) along with the additional information required, should be emailed to the DA and the CSU Unit at:

[email protected]

The call close for each monthly tranche is 5.30pm on the last working day of each month.

If you don’t have soft copies of the company’s audited and management accounts, please send hard copies of the accounts to:

The CSU Unit, Enterprise Ireland,The Plaza,East Point Business Park, Dublin 3.

Please note, for successful applicants, only eligible expenditure incurred after the call close date for which the application is submitted will be considered for funding by the approval committee.


mailto:[email protected]

Part A: Business Plan Summary

1. Applicant Company Details1.1.Company Details

Please supply all details as requested. Please give exact registered company name. Where the Company trading name is

different please state both names.

1.2.Declaration by Authorised Officer of the Applicant

Please complete the declarations as requested by deleting the YES/NO prompt as appropriate and entering the name of the Authorised Officer of the applicant company.

2. Company Profile Prompts/questions are provided in each section and should be used as a guide to ensure

all relevant information is captured. Where the question is not relevant or applicable it should be omitted. In some sections, where necessary, some additional points are noted. Please be concise and avoid repetition. Prompts/questions should be deleted from the completed form.

2.1.Company Overview Max length ½ page. The aim of this section is to provide a short profile of the applicant company. Include

any connected or related companies.

2.2.Company Ownership Max length ½ page. Please list the shareholders, outline the group structure and the relevant experience of

any external shareholders and directors. Where the company is part of a group, please give details of the group structure. Please include all shareholders on the shareholding (capitalisation) table on a fully-

dilute basis i.e. table to include any existing/proposed options (including any Employee Share Option Programmes (ESOPs)), convertible loan stock and/or share warrants in issue.

2.3.Future impacts to share ownership Max Length ½ page. What changes are planned to the company ownership?

2.4.Directors/Promoters Remuneration Max length ¼ page. Please detail all remuneration to the directors/promoters either directly or indirectly.


3. Business Strategy3.1.Market and Product/Service

Max Length ¾ page. This section should clearly identify the basis of the market opportunity and sustainable

competitive advantage. Market description should include estimates of market size and growth rates. Where

targeting a market which does not yet exist, please explain why you believe it will exist, how big it is expected to be and the basis of this belief.

Describe your competition and how they might react to your company’s activities in the market.

3.2.Business Model Max Length ¾ page. Describe how you bring/will bring your product/service to market now and/or in the

future. Use the prompts in the application form as a guide. This section should clearly explain the pricing strategy, route to market, the sales cycle

and the revenue cycle. Include detail on any marketing alliances or sales channels that have already been

agreed. Discuss the main gaps relating to sales and marketing.

3.3.Operations (including Research & Development) Max Length ¾ page. Please outline the business operations under the three headings Product/Service, R&D

and Skills Capability. Use the prompts in the application form as a guide.

3.4.Management Max Length ½ page. It may be appropriate to provide an outline organisation chart showing key personnel

and their responsibilities. Include detail on any plans to strengthen the management or Board over the period of

the plan.

3.5.Key Strategic Issues Max Length ¼ page. Describe the key strategic issues that the company is facing.

4. Proposed Development Plan Max length ¾ page. Please outline the proposed actions in this development plan and how they will

contribute to the strategic objectives of the company and the economy. Outline the risks and milestones associated with the actions. The focus here should be on the specific projects for which EI support is sought. A clear outline of each individual project should be included referencing for each

individual project its objective(s), level of innovation, risks associated with completion and the strategic contribution (commercial and technical) to the overall strategy of the company.


5. Finance Max Length ¼ page. Please explain any unusual items in the financial information provided in the FDS.

5.1.Historic Trading Position Max length ¼ page. Please outline how the company has performed against its targets over the previous 3

years in relation to sales, exports, profitability and productivity and the reasons for any variances.

5.2.Forecast Trading Position Max length ¼ page excl. tables. Please comment on the expected trading position specifically in relation to the

development plan(s) that will be implemented and how these will lead to the achievement of the sales and profit projections.

Please fully complete the sales pipeline spreadsheet.

5.3.Sources of funding Max length ¾ page. Please identify the intended sources of funding. Use the prompts in the application form as a guide.

6. Benefits of and need for EI support Max Length ½ page. Anticipated economic benefits could include, for example, some of the following:

increase in sales, exports, jobs, R&D spend, sales from commercialised R&D where they result from the project(s) proposed.

See the prompts in the application form.


Part B: R&D Fund Project Details and Costs Workbook

7. Notes on the ‘Summary’ Worksheet

The cells have been colour coded as follows:o Cells in Yellow are to be filled in by the applicant company.o Cells in Orange contain formulas and are calculated automatically and so do note require

an entry.o Cells in Blue are for EI use only, please ignore them.

Programme Start Date and Duration

A programme duration of 3 years is normally accepted as the maximum allowed.

Number of Projects

Use the drop down menu to choose the number of individual projects being submitted in the proposal.

Summary of Total Expenditure

This table is automatically completed by figures taken from the individual ‘R&D Project’ worksheets.

EI Grant Rate The applicable grant rate is based on the type of project and the size of the company [Small/Medium/Large Enterprise] as outlined below.

A Small Enterprise is defined as an enterprise that has fewer than 50 employees and, has either an annual turnover and/or an annual Balance Sheet total

not exceeding €10m.

A Medium Sized Enterprise is defined as an enterprise that has between 50 employees and 249 employees

and, has either an annual turnover not exceeding €50m or an annual

Balance Sheet total not exceeding €43m.

In either case, if the enterprise is more than 25% owned by one or more enterprises or itself has a holding of more than 25% in any other enterprise, it will be necessary to consult the full definition in the Official Journal (For the full definition, see the "“Official Journal of the European Commission (L 124/36) 20th May 2003 - Commission Recommendation of 6th May 2003 concerning the definition of micro, small and medium sized enterprises". 2 )

Excluded from the holding company threshold in the above definition are public investment corporations, venture capital companies and institutional investors provided that they do not exercise control. However, an enterprise cannot be considered as meeting either definition if 25% or more of the capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public bodies.


http://intranet/GuideToSupportingClients/pdf/l_12420030520en00360041.pdf



Note - If a company is part of a group the employee, turnover, annual balance, sheet and ownership limits apply to the group.

A company that exceeds the upper limits of the Medium Sized Enterprise is automatically classed as a Large Enterprise.

The maximum R&D grant that a company can receive is €450,000. Companies with projects in excess of this amount will be evaluated on a case by case basis by the Enterprise Ireland Investment Committee using a similar approach and grant rates as the R&D Committee.

The maximum percentage grant rates are given in the table below:

Maximum Funding Rates*Small Co.

Medium Co.

Large Co.

Innovative Projects that are technically challenging and involve significant risk

Max Project funding 45% 35% 25%Innovative Projects where there is collaboration** between two companies

Max Project funding

+15%

50%

+ 15%

50%

+15%

50%

* Note the funding rate for R&D Centres is assessed on a case by case basis and applicants should consult with their Agency Development Adviser/Executive to assess what the relevant rate would be.

* Collaboration – In a collaboration project, at least two partners participate in the design of the project, contribute to its implementation and share the risk and the output of the project.

8. Notes on ‘R&D Project’ Worksheet(s)

8.1. General Notes Companies should fill out a Worksheet for each individual project. Separate projects should only be used where the R&D is clearly different and there is a

separate team working on the project. Separate projects do not make sense where there are separate phases or feature releases of the same basic product, or where essentially the same R&D team are doing all of the work over the same time period.

The guidelines below apply for all worksheets. Where the application relates to the funding of a physical R&D Centre rather than a discrete

R&D project then please fill out the R&D Centre Capital Costs Worksheet. Note the funding rate for R&D Centres is assessed on a case by case basis, please consult with your Agency Development Adviser/Executive to assess what the relevant rates would be.

The cells have been colour coded as follows:o Cells in Yellow are to be filled in by the applicant company.o Cells in Orange contain formulas and are calculated automatically.o Cells in Blue are for EI use only, please ignore them.

8.2. Project Description

Project Title Give a short title for the project.

Project Number

Give the project a number (1-6).


Project Start Date and Duration

Please insert project start date and duration. A project duration of 3 years is normally accepted as the maximum

allowed.

Purpose of Project

Give a one sentence summary of the project.

(Technical) Objectives

List the expected outcomes of the work programme. Keep to 100 words or less.

(Technical) Description

Describe the technical work programme. Avoid repetition of information given in the technical objectives

section. Keep to 300 words or less.

Project Type(N/A for R&D Centre)

Click on the “Please select Project type” and use the drop down menu to choose the most relevant type.o Producto Process, oro Combined Process and Product Development.

Project Scope(N/A for R&D Centre)

Click on the “Please select scope” and use the drop down menu to choose the most relevant answer.

See definitions below. Use the pull down menu to pick the most relevant project type based on the following definitions.

Project Type DefinitionProduct Platform A platform product is one which will likely generate

a family of new products/process.New Product/Process

Substantially new product/process based on original research.

Major Upgrade Significantly enhanced existing product/process.Defensive Redesign

A redesign of product/process for compliance with Specific (inter) national standards, or in response to competitors.

Routine Upgrade An upgrade based on technology changes within the sector.

Level of Innovation(N/A for R&D Centre)

Use the pull down menu to pick the most relevant level of innovation using the following definitions.

Innovation Level

Definition

Very High Highly inventive, patentable.High Significant level of inventiveness, function oriented

possibly patentable.Medium Modest level of inventiveness, possibly patentable.Modest Routine redesign, feature orientated.Low “Me too” copy.

Under the Comment, justify your rating in 200 words or less taking into account the following


o How the proposed level of technology compares with current activity within the company?

o Whether the technology has been developed elsewhere?o Is it new to the world or new to the company?o What are the technical uncertainties?

Level of Technical Risk(N/A for R&D Centre)

Use the pull down menu to pick the most relevant level of technical risk using the following definitions.

Risk Level DefinitionVery High Company is developing a totally new and advanced

technology.High Major advances to existing products.Medium Good prospects for success, e.g. upgrade involving new

functions.Modest Risks are low, reasonable developments (e.g. new

features) to existing products/processes.Low Little real development work taking place e.g. modest

upgrades. Under the Comment, justify your rating in 200 words or less taking

into account the following:o Steps taken to address intellectual property issues. o Patent research for infringement of existing technologies, technical

novelty, prior art etc.

Collaboration (if any)(N/A for R&D Centre)

Comment on any proposed formal collaboration with another R&D partner. (See section 3 above for definition of Collaboration.)

8.3. Project PlanningIn order to assess the achievability of the project as part of the technical due diligence, please attach the following: A project(s) plan showing key tasks, milestones and the resources (people and equipment)

required to implement the projects. Outline of Project organisation and project management process CVs of key R&D personnel (one paragraph per person)

Note that for small projects, the Gantt chart provided in the spreadsheet can be used.

8.4. Salary Costs for Project R&D

Employee Name

Enter the full name of the employee. If not known at this stage, use “TBC”.


Role on Project

Enter job role e.g. project manager, software developer, researcher etc.

Category Click on “Select” and use the pull down menu to select the correct category – Existing (already in the company R&D team), New hire or Redeployed (moved into R&D for this project).

Annual Salary

Salary costs for personnel e.g. researchers, technicians and other supporting staff to the extent employed on the project are eligible.

The annual salary figure eligible is normally limited to a maximum of €80,000 (exclusive of employer’s PRSI contributions).

The salary costs of the Managing Director (MD) or Chief Executive Officer (CEO) is not eligible with the exception of Small Enterprises (see definition on page 7) where a maximum 30% MD or CEO time may be eligible where it is deemed to be critical to the project.

For Small and/or Medium Sized Enterprises a portion of the cost of the loan of qualified personnel seconded to the applicant company is eligible. Up to a maximum of 50% of salary costs, for up to three years, in addition to agreed recruitment costs incurred by the Company, are eligible. Secondment describes the temporary employment of a person by the applicant company for an agreed period of time after which the person has the right to return to his/her previous employer. The maximum salary on which this % is based will be determined by the Approving Committee. The person may be seconded from a research organisation or a large enterprise to the SME company, and the seconded person must be employed in a newly created function, must work on research, development and innovation activities and must have been employed for at least two years in the research organisation or large enterprise.

Note that pensions and bonuses are not eligible as salary costs. Note that the costs of administration, finance and marketing are

covered under the 30% overhead allowed. The overhead is calculated automatically and added to the salary costs in the Summary Table.

No. Annual leave days

Enter the correct number of annual leave days.

Daily Cost This is automatically calculated by using the annual leave days and annual salary figure.

The calculation subtracts the number of weekends (104) and the number of bank holidays (10) as well as the annual leave in making the calculation.

The available hours is based on a rate of 7.8 hours per day.

High Level Project Days & Number of Days Per Task

Enter the high level task name e.g. Requirements specification, high level design, develop module xyz, etc.

Enter the number of days each employee will spend on each individual task.


8.5. Capital Equipment Costs for Project R&D

Equipment Enter the category of equipment e.g. developer PCs, oscilloscopes, etc. Note that support for specific equipment items is subject to the following criteria being met: o That the equipment items are essential for the successful

completion of the R&D programme described in the application. o That the equipment will not be useable in a production process or

any other commercial operation of the company.o Eligible costs of instruments and equipment are limited to the extent

and for the period they are used in the research project. If such instruments and equipment are not used for their full life within the research project, only the depreciation costs corresponding to the life of the research project as calculated on the basis of good accounting practice are considered as eligible.

Support for structures will not be provided other than in the context of substantial R&D projects which will utilise the accommodation created as a specific research facility. In such cases the R&D Capital Costs worksheet should be completed.

Support for structures should not exceed more than 40% of the any application to the R&D Fund.

Description and Purpose

Give a short description of the equipment and what it will be used for.

No. of Units and Unit Cost

Enter the number of units and the price per unit. Quotations should be obtained.

Indicate if quotations have been obtained or give a reason as to their absence.

8.6. Materials Costs for Project R&D

Materials Enter the category of materials. This can include prototype tooling e.g. copper, API, sensors or ingredients in the case of food R&D, etc.


Give a short description of the materials and what they will be used for.

Expected Cost

Enter the most accurate costings available. Quotations should be obtained.


8.7. Travel and Subsistence Costs for Project R&D

Destination Enter the destination.


Purpose of Trips

Give a short description of why the trip is necessary e.g. attend a particular conference, conduct Beta trials with customers etc.

Note travel and subsistence for Consultants should be included in their daily rate (and not charged separately here).

No. Trips, No. People,Days per Trip & Expected Cost

Fill in the best estimate of how many trips are expected to take place, for how many people and for how long.

Note the following limits apply to travel and subsistence expenses: Ireland

Economy Air/Rail Fares Mileage 60 Cents/Km Economy Car Hire Subsistence*, 24 hr period, €150 per Day Subsistence*, Day rate, €60

Overseas Economy Air/Rail Fares Mileage 60 Cents/Km Economy Car Hire Subsistence*, 24 hr period, €200 per Day Subsistence*, Day Rate €60

*For all out of pocket expenses including, hotels, meals, taxis, local fares, incidentals etc.

Subsistence can only apply where a person is absent on business at a location more than 8 kilometres (overnights 80km) from their work base

8.8. Technical Consultancy / Contractual Research Costs for R&D

Consultant Enter the name of the consultant or contractor

Purpose of Consultant/Contractor

The cost to the company of availing of consultancy input from third parties is eligible in so far as it relates to the technical aspects of the development project. Costs can be included for:

o Certification and testing costs as part of the product/service development,

o Input from technical consultants, o External consultant to help implement the R&D project.o Design Costs - Industrial design costs are normally considered

an eligible cost as part of an overall development project. The company must be able to make a clear distinction between the proposed design input and the normal routine design activity of the company (which are ineligible for support). The use of designers, either internal or external to the company, will be covered in these cases in so far as they relate to a specified


Number of Days and Daily Rate

R&D programme. Costs of contractual research (outsourcing) technical

knowledge/patents bought or licensed from outside sources at market prices, where the transaction has been carried out at arm’s length and there is no element of collusion involved.

Give a short description of the role of the consultant and the expertise being provided e.g. functional food expert providing specialist technical advice in new nutritional drinks product.

Consultants daily rate should be inclusive of all travel and subsistence expenses. A maximum eligible daily rate limit of €900 applies to first 20 days. Where a consultancy contract exceeds 20 days a reduced maximum fee of €700 applies for every day thereafter up to 40 days after which a reduced rate of €600 applies.


8.9. Certification and/or Clinical Trial Costs for Project R&D

Item Enter the cost item.


Give a short description of the cost and how it is linked to the project. Funding towards market led research/consumer focus panels/clinical

trials (phase I and II) are eligible provided that the results will be used to develop the product/process as part of the R&D project and will not be used solely for consumer reaction to products. Projects focused solely on market led research/consumer focus panels/consumer reaction to products are not eligible.

Expected Cost

Enter expected cost.

8.10. Technology Licensing / Acquisition Costs for Project R&D

Item(N/A for R&D Centre)

Enter the cost item.


Give a short description of the cost and how it is linked to the R&D. Companies applying for funding for Technology Acquisition should have

carried out their due diligence and identified the technology they wish to acquire.

The applicant company should also know the details of the licence agreement between the two companies and details of the costs involved should be outlined as part of the application.

The technology acquisition must be a component of an R&D project and its costs should not exceed 50% of the total cost of the project.


Technology Acquisition Projects where there is no development work required are not eligible under the R&D Fund.

Eligible Expenditure:o Licence cost - Down-payment and an agreed number of

phased payments for the purchase of a licence over a maximum period of two years.

o Purchase of patents over the same period. Ineligible Expenditure: The following costs will not be eligible

o Patent Filing in relation to the Technology Acquisition.o Royalty Payments to the licensor which provide for commercial

manufacture or use of products or processes based on IP. o Professional fees to cover technical, commercial and legal due

diligenceo Licences associated with the sales of products/services that restrict

sales to within the Irish market.

Expected Cost


8.11. Patenting Costs for the Project

Item(N/A for R&D Centre)

Enter the cost item. Costs relating to the preparation, filing and validating of a patent

application as well as costs incurred in renewing the application before the patent/right has been granted are eligible as well as translation and other costs incurred in order to obtain the granting or validation of the right in other appropriate countries.

Patent costs cannot exceed more than 20% of the overall project cost.


Give a short description of the cost and how it is linked to the project

Expected Cost



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