SME support under Horizon 2020 how to make it work

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1 SME support under Horizon 2020 how to make it work Olivier Brunet Unit Regional dimension of innovation Directorate General Research &Innovation European Commission

2 The Multiannual Financial Framework : Commission s proposals of 29 June 2011 Key challenge: stabilise the financial and economic system while taking measures to create economic opportunities 1. Smart & inclusive growth ( 491bn) Education, Youth, Sport Connecting Europe Cohesion Competitive Business SMEs Horizon Sustainable growth, natural resources ( 383bn) 3. Security and citizenship ( 18.5bn) 4. Global Europe ( 70bn) 5. Administration ( 62.6bn) Total: 1,025bn

3 SME, entrepreneurs, innovation at the core of EU2020 strategy HORIZON 2020 COSME Regional funds

4 Starting from SME needs Cutting red tape Access to finance (public/privat) Knowledge, expertise, skills, information Innovation management Networks, cooperation partners Access to customers/markets Access to «platforms/facilities/infrastructures» Visibility and recognition

5 SME support: why Europe? Union-wide spill-overs and market opportunities through targeting societal challenges and promoting international cooperation: SMEs that are internationally active report higher employment growth than non-active SMEs* Being internationally active strongly related to higher turnover growth* Strong relationship between internationalisation and innovation* SMEs are not aware of internationalisation support programmes* *Study by EIM Business & Policy Research, Netherlands, for the European Commission (released July 2010) 5

6 Optimising our support Attractive programme for key innovation actors : innovative SMEs with growth potential EU support for bridging the gap to the market Stimulating entrepreneurial approaches/innovation throughout the programme as well as better links academia industry SME in the driving seat Higher quality of networks Adopting a more risk taking approach for dealing with projects Faster and better understandable procedures and processes

7 SME and innovation strategies A Swiss study estimated that less than 50% of the industrial partners used the publicly funded applied research projects strategically.(source: C. Meier platinn, CH) Only about 22% of SMEs participating in EU research programs are strategic innovators. Most scientists work together with industry to advance their research, and very hard to commercialize their knowledge. mentoring and coaching 7

8 Horizon 2020 Shared objectives and principles Societal Challenges Health, demographic change and wellbeing Food security, sustainable agriculture, marine and maritime research, and the bioeconomy Secure, clean and efficient energy Smart, green and integrated transport Climate action, resource efficiency and raw materials Inclusive, innovative and secure societies EIT Industrial Leadership Leadership in enabling and industrial technologies Access to risk finance Innovation in SMEs Excellent Science European Research Council (ERC) Future and Emerging Technologies (FET) Marie Curie Actions Research infrastructure Common rules, toolkit of funding schemes

9 Activities for SMEs in Horizon 2020 All forms of R&D and all forms of innovation, towards exploitation and commercialisation SME participation in collaborative R&D or innovation projects (all three priorities) SME instrument (budget from all societal challenges as well as from the LEITs) Innovation in start-ups, spin-offs and young companies (Eurostars and other measures) Access to risk finance (debt and equity facility) Exchange and mobility of researchers involving SMEs (Marie Curie actions) Links for access to procurements

10 Strategic positioning Transnational cooperation logic Horizon 2020 Collaborative Research Target: R&D topics Eurostars Target: R&D intensive SME Horizon 2020 SME instrument Target: Business innovation motivated SMEs R&D driven projects National & regional programs Market opportunity driven projects Cooperation logic at regional or national level

11 SME instrument? Concept & Feasibility Assessment Demonstration Market Replication R&D Commercialisation SME window EU financial facilities Idea to concept, risk assessment, technological & commercial feasibility Demonstration, prototyping, testing, market replication, scaling up, miniaturisation, research Quality label for successful projects, access to risk finance, indirect support IDEA continued support throughout the project MARKET

12 SME instrument main features Targeted at all types of innovative SMEs Only SMEs allowed to apply for funding (single company support possible) Competitive Market-oriented, EU dimension Bottom-up while addressing societal challenges and/or key enabling technologies Grant-based staged funding

13 The organisation of a mentoring scheme Central EC management (e.g. Exec. Agency) Network of innovation Agencies (e.g. TAFTIE) Investors Networks (e.g. EBAN, EVCA) Industry Sector Plaforms (Associations, Clusters) Specialist support for SMEs Coaching/ Mentoring Networks Coaching «strategic innovation» Coaching «financing» EEN SME/ Start up Coaching «technological innovation»

14 Proposed funding (million euro, ) Leadership in enabling and industrial technologies (ICT, nanotechnologies, materials, biotechnology, manufacturing, space) Access to risk finance Leveraging private finance and venture capital for research and innovation Innovation in SMEs Fostering all forms of innovation in all types of SMEs complemented by (expected 15% of societal challenges + LEIT) and 'Access to risk finance' with strong SME focus

15 Links to COSME Horizon 2020 and COSME are complementary programmes to generate growth and jobs Different focus: Horizon 2020 = innovation driven growth COSME = support to create favourable business environment and competitiveness Closely coordinated, for instance: Integrated financial instruments (debt and equity), with facilities in both programmes serving complementary objectives Enterprise Europe Network set up under COSME, but support to SMEs for EU funding

16 Next steps Ongoing: Parliament and Council negotiations on the basis of the Commission proposals Ongoing: Parliament and Council negotiations on EU budget (including overall budget for Horizon 2020) Mid 2012: Final calls under 7th Framework Programme for Research to bridge gap towards Horizon 2020 Mid 2013: Adoption of legislative acts by Parliament and Council on Horizon /1/2014: Horizon 2020 starts; launch of first calls

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