5. Overview of SME support in Horizon 2020
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1 5. Overview of SME support in Horizon 2020
2 How A popular view: important is research From to innovation/commercial use What is wrong or 'not appropriate in our context'? for innovation? Start-up not existing company Funding Gap (range: 1-3 M )
3 SMEs' options to innovate and build 'competitiveness' In-house Open Collaboration options university clients suppliers' Innovation opportunities Process Product Business model Value chain Has been supporte d so far Business model and value chain innovation are 'disruptive' and have larger growth potential for the economy
4 Key EU support for SME innovation Flagship R&DI programme of the Innovation Union Overall budget - 77bn Positioning 3 pillars Excellence in science 3 ways for SMEs within Horizon 2020 & Eurostars Horizon 2020 ( ) Industrial leadership (LEITs) 6 key technologies SME Instrument Societal challenges Collaborative projects EUREKA Eurosta rs II Collabo ration among SMEs and with R&D provide rs EUREKA / Eurostars intergovernmental cooperation (incl.ch, KOR, CAN) with EU participation / contribution Total bn to 2020 Special rules for 'coordinated funding' between ESIF & H2020 EU Structural and Investment Funds (national / regional implementation) Structural funds Overall budget 325 bn Innovation priorities and budget specific to each region
5 R&D 3 opportunities in H2020 How to direct companies? Horizon 2020 collaborative projects EUREKA Eurostars SME instrument Market opportunity Objective R&D by topics - 6 Key technologies / Societal challenges Applied R&DI product development Business innovation - breakthrough EU Budget (bn ) 77 overall incl. up to 5,8 for SMEs (excl. Sme instrument) 0,3 (0,9-1,3 overall incl. Bugets by Member States) 2,8 (linked to Horizon 2020 umbrella) SMEs targeted -SMEswithcore business in R&D, as partner in large projects - SMEs which can provide an 'application environment' for R&D projects Research intensive SMEs (>10% turnover) Innovative SMES with an ambition to develop, grow and have an international impact Established SMEs with high growth potential
6 R&D 3 opportunities in H2020 How to direct companies? Horizon 2020 collaborative projects EUREKA Eurostars SME instrument Market opportunity Participants in the call Large consortia Small transnational groups Single company (but SME partners & sub-contracting possible) Call focus Issues to be addressed are defined Transnational R&D Existing market gaps to attract investors to radical innovation Key success factor Scientific excellence Technical excellence market prospects Innovation excellence create or shape new markets Application deadline & Evaluation typically a single deadline Several deadlines per year to start evaluations Continuous stream of evaluation (cut-off dates for award)
7 SME Instrument Package 'Champions league' for the most innovative European SMES Phase 1 Idea / Concept Feasibility assessment Phase 2 Innovation project Development / Product testing Phase 3 Access to markets and finance % Budget 2014/ % 88% 2% EC funding per project ,5-2,5Mio - Project duration ca 6 months Ca months - Voluntary Coaching (coach suggested by EEN, selected by SME) 3 days 12 days Support and networking to facilitate access to risk finance Other benefits What to do - application Business Plan 1 (10 pages) Recognition among the best European SMEs Visibility at European and global level Business Plan 2 + description of activities for project (30 pages) -
8 Equity investors Procurement Phase 3 Access to Loans An important role for the EEN to play! Large enterprises Geographic markets
9 Topics for 'SME instrument' 13 broad topics linked to societal challenges and 'technologies areas' Example: ICT /15: Open Disruptive Innovation Scheme The challenge is 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 service sapplying new sets of rules, values and models which ultimately disrupt existing markets. The objective of the ODI is threefold: - Nurture promising innovative and disruptive ideas; - Support their prototyping, validation and demonstration in real world conditions; - Help for wider deployment or market uptake. [ ] 9
10 SME instrument looks for Enterprises Companies with high growth ambition and potential Companies already on the market More convincing if they have a record of successful innovation AND Start-ups! Specific issue to finance phase 2 without steady revenues Ideas Ideas that relate to a published topic Ideas that 'shape new markets' Business ideas that develop into an ambitious business plan NOT: 'ideas for technology projects to enhance an existing product to be sold to the same customers'
11 Proposals phase 1 Initial estimate p1 per cut-off / / Actual 1st/2 nd Cut-off received eligible 3rd cut-off 12/ >50% 317 / / 178 evaluated above threshold funded
12 Proposals phase 2 Initial estimate p2 per cut-off 500 Actual 1st cut-off 580 received 571 eligible >50% 132 evaluated above threshold 60 funded
13 Evaluation 3 key questions Market potential and economic impact Market opportunity The company and the idea have to be here! Company's potential to achieve proposed results Solution is feasible and better than existing ones Company's growth potential Additional requirement for EU funding: EU added value to be demonstrated by the applicant Excellence in innovation
14 Horizon2020 Part 'Innovation in SME' 'Better innovation support services' Policy learning for a better innovation support - Peer learning of innovation agencies Innovation support services (i) from Europe to SMEs - IPR helpdesk (ii) By local organisations - Innovation management services in the EEN (iii) experimenting new approaches - Clusters as animators of new value chains for collaborating SMEs 'EU contribution to EUREKA/Eurostars' Intergovernmental cooperation to create synergies between national funding schemes for SME innovation projects Montenegro is not yet member of EUREKA 14
15 15
16 'Project types' in Horizon2020 rules 'normal' Research or Innovation projects General rules apply: (i) Minimum 3 partners (ii) Funding rate 100% for research projects / 70% for innovation projects (but 100% for not-for-profit entities in innovation projects) Coordination and support actions 100% funding and single partner allowed But 'peer learning innovation agencies' 3 partners SME instrument Only SMEs can be partner Single partner is possible Phase 1: lumps sum Phase 2: innovation action = 70% funding 16 Some more project types exist, which are however not relevant for SME. So they are not include here!
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