H ODI / SME instrument
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1 H ODI / SME instrument Brussels, 14th February 2014 Marina Manzoni Marina.Manzoni@ec.europa.eu DG CONNECT / Innovation
2 Presentation The concept of Innovation The SME instrument in H2020 ODI implemented through the SME instrument Implementation process and evaluation Proposals key features
3 SME instrument Horizon 2020 Innovation in H2020 Horizon 2020 will support all forms of innovation, including innovation that results from research and development (R&D) activities or from other activities, such as finding new uses or combinations of existing technologies or developing new business models or new ways of interacting with users. While innovation is generally understood as the commercial introduction of a new or significantly improved product or service, innovations can also be for non-commercial applications such as for better public services or for addressing social needs ('social innovation')." [Ref: 3
4 SME instrument Horizon 2020 Innovation Actions? Innovation Actions "'Innovation action' means an action primarily consisting of activities directly aiming 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" [Ref. H2020 Rules for Participation] 4
5 SME instrument Horizon 2020 What do we mean by Innovation? WHAT = The process of turning research outputs (new discovery, tool, application) into Commercial and or Social Value From voice tele-transmission -> Telephony WHY = Objectives: Supporting and enabling the development and wider deployment of: New Services, working methodologies, production/delivery/business models, new dynamics for innovative ecosystems/communities/stakeholders alliances HOW = Different types of Innovation: Open Innovation, linear/non-linear innovation, incremental/radical in innovation, disruptive innovation, social innovation etc. For each of them H2020 provides dedicated instruments 5
6 Evaluation criteria Different aspects of innovation are embedded in each of the 3 evaluation criteria used for selecting projects The same criteria will be used to evaluate: 'Research and Innovation' actions (100% funded) 'Innovation' actions (70% funded) SME actions (70% funded) Investors (VCs, BAs) and market experts will be secured for panels evaluating proposals. Criteria will be interpreted by evaluators within the context of the topic addressed by the proposal, taking into account the WP text, the type of action and the nature of the proposed activities.
7 In concrete terms. 'Excellence' criterion (excerpt) Extent that proposed work is ambitious, has innovation potential, and is beyond the state of the art 'Impact' criterion (excerpt) Enhancing innovation capacity and integration of new knowledge; developing innovations meeting the needs of European and global markets; and, where relevant, by delivering such innovations to the markets 'Quality & efficiency of the implementation' (excerpt) Appropriateness of the management structures and procedures, including risk and innovation management. Note: For 'Innovation' actions the score for 'impact' will be weighted by a factor of 1.5
8 Presentation The concept of Innovation The SME instrument in H2020 ODI implemented through the SME instrument Implementation process and evaluation Proposals key features
9 SME support in H % budgetary target in LEITs & SC 'Innovation in SMEs'
10 Funding Gap (range: 1-3 M )
11 ? SME instrument Phase 1: Concept & Feasibility Assessment Phase 2: Demonstration Market Replication R&D Procurement Phase 3: Commercialisation SME window EU financial facilities IDEA business coaching throughout the project MARKET
12 Phase 3 = 2% budget 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" 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. Output: "investorready Business plan 3" 0,5-2,5 (5) 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.a. IP management, knowledge sharing, dissemination SME window in the EU financial facilities (debt facility and equity facility) Possible connection to PPC (and PPI?) No direct funding
13 Main features 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) 13
14 Presentation The SME instrument in H2020 ODI implemented through the SME instrument Implementation process and evaluation Proposals key features
15 SME instrument Horizon 2020 What do we mean by Disruptive Innovation? Disruptive innovation encompasses any innovative concept, product and service that create new markets by applying new sets of rules, values and models which ultimately disrupt and/or overtake existing markets by displacing earlier technologies and alliances. 15
16 ODI in WP ICT 37 in WP LEIT ICT: Specific Challenge: To provide support to a large set of early stage high risk innovative SMEs in the ICT sector. Focus will be on SME proposing innovative ICT concepts, products and services applying new sets of rules, values and models which ultimately disrupt existing markets - Nurture promising innovative and disruptive ideas (-> Phase1) - Support prototyping/validation/demonstration in real world conditions (-> Phase2) - Help for wider deployment or market uptake (-> Phase3) Proposed projects should have a potential for disruptive innovation and fast market up-take in ICT In particular it will be interesting for entrepreneurs and young innovative companies that are looking for swift support to their innovative ideas The ODI objective will support the validation, fast prototyping and demonstration of disruptive innovation bearing a strong EU dimension
17 Disruptive innovation A few examples of successful disruptive applications/solutions: Digital photography Mobile phones /smart phones Skype ipad
18 Presentation The SME instrument in H2020 ODI implemented through the SME instrument Implementation process and evaluation Proposals key features
19 Implementation 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 (2 to) 4 cut-off dates per year: Applications starting in March 2014 CUT OFF DATES 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] 19
20 Implementation Eligibility conditions: One for-profit SME or a consortium of for-profit SMEs Established in EU Member States or associated countries No concurrent submission or implementation with another Phase 1 or Phase 2 project Planned time-to-grant: 3 months (Phase1) 6 months (Phase2) 20
21 Presentation The SME instrument in H2020 ODI implemented through the SME instrument Implementation process and evaluation Proposals key features Q&A
22 KEY QUESTIONS to be answered: WHY? -> Industrial/economic/social challenge to be overcome -> Business opportunity (internal/external) WHAT? -> Proposed solution (app/tool/product, method, model, service) From WHERE to WHERE? Starting Point -> SoA => Intended solution/outcome -> USP => Why me wrt others? -> Expected impact Measurable = Quantitative & Qualitative Internal/own Company External=Econ./social/envir./R&D advance/fram. conditions
23 HOW? -> Methodological Approach -> Innovation Management With WHOM/WHAT? -> Who is Involved = target constituencies, stakeholders, authorities -> Standards, markets, regulations, etc. WHEN -> Time horizon/time to market HOW MUCH? -> Budget, resources, When drafting a proposal remember: THE ULTIMATE AIM OF THE PROJECT IS TO COME TO A REALISTIC BUSINESS PLAN = > What's needed for Commercialisation? -> Market study, further adaptation, financial, resources, alliances, Regulatory/Framework Conditions
24 Be AMBITIOUS in your ideas Be REALISTIC in your calculations Be CLEAR & SIMPLE in your presentation Be S.M.A.R.T. RISK IS ALLOWED! FAILURE IS ACCEPTED
25 More information H2020 Participant Portal: SME instrument in participant portal: s/h2020/ftags/sme_instrument.html#c,topics=flags/s/sme/1/1&+callde adline/desc H2020 on line manual (submission templates to come) : de.html ODI FAQs: Call for experts: ex.htm
26 ODI/SME Instrument THANK YOU Any Question?
27 H ODI / SME instrument Brussels, 14th February 2014 Pierre.Marro@ec.europa.eu Marina.Manzoni@ec.europa.eu DG CONNECT / Innovation
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