Horizon 2020 financial instruments and the SME Instrument

Transcription

1 EU Access to Finance Days Prague, 6 March 2014 Horizon 2020 financial instruments and the SME Instrument Martin KOCH, Policy Officer DG Research and, Unit B3 "SMEs, Financial Instruments and State aid" Research and 1

2 What is Horizon 2020? Framework funding programme for all EU research & innovation-related activities ( )* A core part of Europe 2020, Union & European Research Area: - Responding to the economic crisis to invest in future jobs and growth - Addressing people s concerns about their livelihoods, safety and environment - Strengthening the EU s global position in research, innovation and technology * Total budget amount of EUR 77 billion (in current prices)

3 Horizon 2020 support for SMEs: integrated approach 20 % budgetary target in LEITs & SC* Collaborative projects 13% SME instrument 7% ' in SMEs' Eurostars II Enhancing Capacity Market-driven Access to Risk Finance *= EUR 8.65 billion (in current prices) of direct SME support, incl. approximately EUR 3 billion to be allocated to the SME Instrument over the period

4 "Access to risk finance" in HORIZON 2020 Part of the Horizon 2020 budget (3.69%) will not be provided through grant funding but in the form of risk-sharing (for loans and guarantees) and by providing risk finance (equity) Goal: Stimulate more investment in research and innovation, notably by the private sector Addressing financing gaps: Intervention only if there are financing gaps in the R&I delivery chain (notably due to high risk) Building a bridge from R&D to : Effective and costefficient way to complement grant funding under Horizon 2020 and translate R&D results to the market Demand-driven approach ("first come, first served") 4

5 Access to risk finance: Financial instruments Objectives: Facilitate access to finance for (1) RDI-driven/ innovative SMEs & small midcaps and (2) ambitious RDI projects carried out by a variety of recipients (companies, stand-alone projects etc.) Around EUR billion in total (net of administrative costs) for market-driven financial instruments One Debt instrument; one Equity instrument; accompanying measures At least 1/3 of the budget shall support RDI-driven SMEs and small midcaps Implementation through banks, funds and other intermediaries at European level (European Investment Bank, European Investment Fund) and national/ regional level 5

6 Financial instrument for debt: Loans and guarantees for RDI investments: Loans and guarantees for investments in Research & ; targeted at midcaps, larger companies, research institutes, stand-alone projects, PPPs, other entities; particular approach for innovative midcaps; loan amounts above EUR 7.5 million Loan guarantee facility for SMEs & small midcaps: Loan guarantee facility for loans to research-intensive and innovative SMEs & small midcaps; loan amounts between EUR 25,000 to 7.5 million SME Initiative (under development): Joint Guarantee Instrument for loans to (innovative) SMEs and small midcaps; 6

7 Financial instrument for equity: Early stage finance for innovative enterprises (notably seed and start-up companies); limited growth-stage finance also possible (successor to GIF-1) Pilot facility for technology transfer (under development) to bring R&D results from public research organisations and universities to the market (licensing; creation of spin-off companies) Accompanying measures: Technical and financial assistance (of EIB); improving investorreadiness of start-ups, SMEs and small midcaps; piloting coinvestment by Business Angels; prizes for best practices in R&I finance etc. 7

8 How to access Horizon 2020 Risk Finance Loans Loan guarantees Equity Mainly Midcaps and large corporates* SMEs/Midcaps: Loan guarantee up to 25 m SMEs and small midcaps SMEs and small midcaps Financial intermediary* Financial intermediary* Financial intermediary** EIB EIB EIF EIF *Bank or a financial institution selected on the basis of the call for expression of interest that signed an agreement with the EIF **Fund selected on the basis of a call of expression of interest that signed an agreement with the EIF *All entities will be eligible also PPPs, universities, research infrastructures etc., provided they can borrow 8

9 Links to other EU programmes: 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 but close coordination (for instance): Complementary 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 9

10 The new SME instrument: Main features The new SME instrument provides grants to innovative SMEs (no "financial instrument" under Horizon 2020's Access to Risk Finance part) 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 Three-phase approach: Concept, demonstration and commercialisation Each phase accessible to all SMEs, at any time from the moment calls are open (quarterly cut-off dates for phases 1 and 2) 70% funding via an EU grant (exceptions possible)

11 Phase 1: Concept and feasibility assessment Input: Idea/Concept: "Business Plan 1" (~ 10 pages) 10% budget Activities: Feasibility of concept Risk assessment IP regime Partner search Design study Pilot application etc. 10% success 30-50% success Output: elaborated "Business plan 2" Grant: lump sum ~ 6 months Phase 2: R&D, demonstration, market replication 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: "investorready Business plan 3" Grant: M EC funding ~ 12 to 24 months Phase 3: Commercialisation Promote instrument as quality label for successful projects Facilitate access to private finance Support via networking, training, information, addressing i.e. IP management, knowledge sharing, dissemination SME window in the EU financial facilities (debt facility and equity facility) Possible connection to Procurement No direct Funding

12 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 4 cut-off dates per year: Phase 1 Phase 2 Phase 1 Phase 2 18/06/ /10/2014 [18/03/2015 [18/03/ /09/ /12/ /06/ /06/ /12/ /09/ /09/ /12/2015] 16/12/2015] 12

13 Horizon section/access-risk-finance section/innovation-smes SME Techweb Financial Instruments RSFF RSI EU Access to Finance -

14 Thank you very much for your attention! Research and 14