SME innovation in Horizon2020

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1 SME innovation in Horizon2020 Zoltán Horváth DG Enterprise and Industries European Commission 16th of January 2014

2 Support to SME innovation projects in Horizon2020

3 CIP 3,6bn Competitiveness 2,4bn COSME 1,1bn Financial instruments 1,4bn FP7 R&D 54bn R&D 77bn HORIZON 2020 R&DI * Innovation Policy Challenge 'Innovative Society' SME innovation support LEIT 'Innovation in SME' Eco innovation 'Market replication projects' 'SME instrument' Intelligent Energy Europe Energy Challenge Information Society LEIT A commitment to innovation, research, development Only programmes that increase substantially in volume

4 Increasing amounts for SME innovation Total 6,8bn for SMEs Total 8,9bn for SME 15% = 4,8bn Programme 'Cooperation' FP7 = 54bn Programme 'capacities' Research for SME Incl. Eurostar 1,3bn 20% = 8,6bn Including SME instrument 2,8bn I Scientific Excellence HORIZON 2020 = 77bn II Leadership in emerging and industrial technologies (LEIT) + III Societal challenges + Eurostars 0,3bn CIP 3,6 SME projects (market replication ~0.7) Specific for SME (mia ) Base for agreed SMEtarget

5 What's new in Horizon2020? 1. Supports activities closer to the market 'more innovation' 'procurement for innovation' demonstration activities 2. Orients research, development and innovation towards 'societal challenges' and key technologies 3. Tries to integrate - and limit - support to SMEs innovation in these priorities

6 Take home - More resources for SMEs in bn (+30%) under Horizon2020 compared to FP7/CIP - Target for participation in 'big' projects 'driven by science' up from 4.8bn to 5.8bn (+20%). - SMEs' interest driven projects are supported by: The SME instrument 2.8bn replacing "Research for SME" and "Market replication" (so far ~2.0bn) EUREKA/Eurostars volume 1.2bn (up from 0.4bn) 0.3bn (Horizon2020) + 0.9bn (participating countries)

7 ? SME instrument design Phase 1 Concept & Feasibility Assessment Phase 2 Demonstration Market Replication R&D Pre-commercial procurement Commercialisation SME window EU financial facilities Idea to concept, risk assessment, technological & commercial feasibility Demonstration, prototyping, testing, market replication, scaling up, miniaturisation, research IDEA continued support services throughout the project Access to risk finance, indirect support MARKET ~50.000, lump sum Up to 2.5mio, (likely ~1mio] 70%

8 SME instrument topics (2014/15) LEIT ICT /2015 [ 90mio] Open Disruptive Innovation Scheme NMP /2015 [ 45.6mio] Accelerating the uptake of nanotechnologies advanced materials or advanced manufacturing and processing technologies by SMEs BIOTEC /2015 [ 6.2mio] SME boosting biotechnology-based industrial processes driving competitiveness and sustainability SME-SPACE /2015 [ 17.25mio] SME instrument Societal challenges PHC /2015 [ 111.1mio] Clinical research for the validation of biomarkers and/or diagnostic medical devices [100%; up to 5mio] SFS /2015 [ 26.0mio] Resource-efficient eco-innovative food production and processing SIE /2015 [ 71.2mio] low carbon and efficient energy system IT /2015 [ 74.83mio] Small business innovation research for Transport SC /2015 [ 36.0mio] Eco-innovation and a sustainable supply of raw materials + 4 other topics total [ 37.4mio]

9 Which option for whom? Horizon 2020 Collaborative Research Orientation: R&D topics Eurostars Target: R&D intensive SME SME instrument Target: Business innovation motivated SMEs in the Societal Challenges / technology areas R&D driven projects - SMEs that have R&D services as core business; as partner in large projects - SMEs that can provide an 'application environment' for R&D results - Research intensive SMEs (>10%turnover) for concrete product development in transnational cooperations - SMEs & entrepreneurs with 'scalable', new business ideas in priority areas and capability to implement ambitious business plans Market opportunity driven projects

10 Convincing proposals Horizon 2020 Collaborative Research Orientation: R&D topics R&D driven projects - Calls describe issues to address - Who participates? Large consortia - What counts? Scientific excellence - Evaluation is done once (deadline!) Eurostars Target: R&D intensive SME - Call describes possibility to do transnational R&D - Who participates? Small transnational groups - What counts? Technical excellence market prospect - Evaluation is done often (no-deadline!) SME instrument Target: Business innovation motivated SMEs in the Societal Challenges / technology areas Market opportunity driven projects - Call describes existing gap to attract investors to radical innovation - Who participates? Single company (partners optional) - What counts? Realisable economic impact - Evaluation is done often (no deadline)

11 Take home - The SME instrument is linked to Societal challenges and LEIT areas. Topics within the challenges are mostly broad. - SME instrument proposals are selected based on 'business plans' and the expected economic impact. - Single company support is possible by the SME instrument but the project has to show European added value. - Ideas outside societal challenges / LEIT can only be supported by EUREKA / Eurostars

12 Who supports if you have an idea? The 'National Contact Points' for the different parts of Horizon But not specialists in SME instrument The 'Enterprise Europe Network' is a specialist in SME opportunties but might lack depth in technology areas The two shall cooperate closely for your benefit

13 Innovation in SME The workprogramme 2014/15

14 INNOVATION IN SME STRATEGIES AND PRIORITIES

15 Specific market failures and barriers to SME innovation: 1. Access to innovation funding 2. Lack of innovation management capacity 3-5. IP management; lack of innovation friendly procurement; Networking and partnering capacity 'Innovation in SME' addresses these and other failures: by developing and testing better approaches and tools for SME innovation support, by providing very specific support services directly to SMEs, by reshaping the provision of grants to SME innovation: SME instrument & EUREKA/Eurostars

16 Strategic elements Innovation in SME Support to EUREKA / Eurostars Providing direct innovation support services to SME if specific to Horizon 2020 Developing high quality innovation support Capitalising performing ecosystem & connecting to innovation partners Make 'Innovation policy learning' a demand and needs driven process Understand business innovation better

17 18% Cluster facilitated projects 48% Eurostars

18 ACTIONS IMPLEMENTED BY CALLS FOR PROPOSALS

19 Cluster facilitated projects for new industrial value chains INNOSUP 1 Call for proposals Deadline 30/4/2015 (stage 1) ~24.9mio projects expected Topic builds on the experience of measures under Europe INNOVA under CIP and on studies from the European Cluster Observatory, such as on emerging industries. Develop new business models and foster the development of emerging industries across the EU by better capitalising on the innovation potential of SMEs. Cluster organisations or other SME intermediaries are invited to facilitate crosssectorial and cross-border collaboration and to channel innovation support to SMEs. Value chain innovation will be demonstrated in close-to-market conditions integrating many SMEs and through a systemic approach.

20 European IPR helpdesk IPorta 2 higher quality IP advisory INNOSUP 2 & INNOSUP 3 Calls for proposal Deadline 02/04/2014 (only stage 1 for IPorta 2) ~7.5mio project each expected Other info: INNOSUP 2 should take into account and be adapted based on the results of its ongoing external evaluation INNOSUP 2 (European IPR Helpdesk) - support in the management, diffusion and/or valorisation of intellectual assets and in bringing technologies to the market, including and specifically to participants of Horizon 2020 and COSME projects, as well as SMEs involved in cross-border commercial activities. INNOSUP 3 IPorta2 assist NIPOs to design and provide better services to SMEs, including providing information on the business use of European level rights.

21 European Label for innovation voucher programmes INNOSUP 4 Call for proposal Deadline 02/04/2014 (stage1) ~0.9mio project expected Topic builds on Riga-Declaration (2011) by programme managers calling for collaboration framework on European level Enhanced transnational-collaboration of innovation voucher programmes provides opportunities for SMEs to explore collaboration with foreign R&D&I institutions. Managers of regional and national innovation voucher programmes are invited to develop a collaboration framework. A labelling scheme shall reward programmes treating foreign, European service providers equal to natives.

22 Peer learning of innovation agencies INNOSUP 5 Call for proposal Open, no deadlines from 01/05/2014 ~0.4mio 2014; 1mio 2015 Numerous projects supported by lump sums 15' /50' Based on recommendation of national innovation agencies in 'INNO Partnering Forum' (2012) Agencies / ministries designing and implementing SME innovation support programmes shall rely on peers when needs and opportunities arise. Innovation agencies have jointly developed 2 formats for peer learning: (1) EFQM based quality management for service delivery and (2) twinning+ for programme design. EFQM assessment with peers will be supported with 15'; joint activities leading to a 'Design Options Paper' with 50'.

23 Capitalising the full potential of online collaboration for SMEs INNOSUP 6 Call for proposal Deadline 10/3/2015 (stage 1) 1.5mio projects expected Established service formats for 'brokerage' of contacts become outdated with maturing social networks. SMEs and innovation agencies do not yet make full use of new opportunities. Develop and test new service designs for assistance to SME to fully capitalise opportunities for online collaboration for SMEs. Define skills and qualifications needed for staff at innovation agencies to assist SMEs better in social networks for innovation. The outcome will influence design of future services in the EEN and lead to the development of new services provided on webplatforms where innovative SME collaborate globally.

24 Professionalisation of open innovation management & measuring open innovation INNOSUP 7 & 8 Call for proposal Deadline 21/01/ mio (Action 7) 0,3 min (Action 8) 1 project per action to be financed Evidence collection of open-innovation use by SMEs in view of identifying best management approaches and success factors (Innosup 7). EU-wide diffusion of success stories of SMEs using open innovation combined with practical management modules to directly apply the lessons learnt (Innosup 7). Development of quantitative tools to present evidence and impact of open-innovation in SMEs (Innosup 8)

25 Mobilizing the SME instrument coaching community INNOSUP 9 Call for proposal Deadline 12/03/2014 0,7 mio project to be financed Awareness rising for coaching opportunities in the context of the SME instrument among practitioners. Community building, networking, knowledge exchange in the SME instrument coaching community Ensure consistent delivery of SME instrument coaching through exchange of best practice coaching engagements and sharing state of the art coaching practices.

26 ACTIONS NOT IMPLEMENTED BY CALLS FOR PROPOSALS SHORT PRESENTATIONS NOT INCLUDING SUPPORT TO ENTERPRISE EUROPE NETWORK, IMP³ROVE ACADEMY, FRAMEWORK CONTRACTS AND EXPERTS' COST REIMBURSEMENT

27 Business Innovation Observatory+ No.5 Call for tender 2.2 mio (2015) 2 contracts expected Builds on Business Innovation Observatory, financed by CIP-EIP (2012). Broad understanding of innovation for SME innovation strategies + innovation support. Analyse business innovation trends in SMEs, based on case studies. Policy recommendations for the scaling up of business innovation trends and for the mutual learning. Awareness and training materials for innovation agencies.

28 Capabilities for design driven innovation in European SMEs No.4 Call for tender 2 mio (2015) 1 contract expected Based on Commission Action Plan for design-driven innovation (2013). Follow-up action to European Design Innovation Platform (financed under CIP 2013) Implementation of the Action Plan for designdriven innovation: - Create capacity to deliver support to SMEs for design-driven innovation. - Strengthen SMEs ability to use design as a strategic tool

29 Internationalisation of innovation in SMEs & innovation impulses from emerging economies No 3 (3) Public procurement (2015) 2.0mio (procurement) (3) To develop a toolbox for innovation and internationalisation agencies to assist SME in capturing innovation impulses from emerging economies. Tools owned by EU to be made available to EEN and MS support agencies. Very open, non-prescriptive format for procurement to be used. Commission proposes the use of the 'Competitive dialogue' procurement procedure