SME support under HORIZON 2020

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1 SME support under HORIZON 2020 Dr Bernd Reichert Unit "Small and Medium-Sized Enterprises" DG Research and Innovation Research and Innovation 1

2 The Analysis

3 Outcome of impact assessments Less than 50% of industrial partners use the publicly funded applied research projects strategically Only about 22% of SMEs participating in EU research programs are strategic innovators Most academics engage with industry to further their research rather than to commercialise their knowledge Results are not exploited because projects were not designed for exploitation There is a strong relationship between internationalisation and innovation, but SMEs are not aware of internationalisation support programmes. The information environment of (European) R&D programmes is unattractive and repelling to SMEs

4 Funding Gap (range: 1-3 M )

5 Innovation Union Commitment n 7 Ensure stronger involvement of SME in future EU R&I programmes * European Council 4 February 2011 Commission is invited to explore the feasibility of a Small Business Innovation Research Scheme

6 Concept and Design

7 Horizon 2020 Why participate? To compete among the best European companies "Champions league" with only very few winners, quality label based on a rigorous assessment Visibility at European level Possibility to receive business/management coaching Networking possibility with investors and customer networks Preferential treatment for subsequent financing (EU Financial Instruments: loan and equity facilities) 7

8 Horizon 2020 SME support: integrated approach 20 % budgetary target in LEITs & SC 'Innovation in SMEs' 8

9 SME instrument? Concept & Feasibility Assessment Demonstration Market Replication Research Development Procurement Commercialisation SME window EU financial facilities IDEA business coaching and complimentary services MARKET 9

10 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, research Output: "investorready Business plan 3" 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 Procurement No direct funding

11 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) 11

12 Implementation Article 18(2) Regulation [ ] a dedicated SME instrument that is targeted at all types of SMEs with an innovation potential, in a broad sense, shall be created under a single centralised management system and shall be implemented primarily in a bottom-up manner via a continuously open call [ ] Implemented centrally by one agency (EASME) Bottom-up approach within the frame of SC & LEIT each SC & LEIT defines a broad topic Continuously open call with around 4 cut-off dates per year Draft Dates: Phase 1 Phase 2 Phase 1 Phase 2 18/06/ /10/ /03/ /03/ /09/ /12/ /12/ /06/ /09/ /12/ /06/ /09/ /12/

13 Implementation Evaluation: Remote evaluation throughout the process Suggestion to abandon consensus meetings Long feedback loops ("ESRs") slow down the process Other eligibility conditions: * established in EU or associated country * one application/project (phase 1 or phase2) at a time Funding over 7 years: ca. 5,200 Phase 1 projects (fixed lump sum of 50K ) ca. 1,700 Phase 2 projects with an average size of 1.5 M (or 2550 of an average size of 1 M ;1250 of an average size of 2 M ) 13

14 Evaluation The profile and competences of evaluators is highly important Commercialisation potential and economic impact Market Opportunity Excellence in innovation Company's growth potential company s potential achieving the envisaged results Technical solution possible and better than existing ones Plus: EU added value

15 Coaching & Enterprise Europe Network (EEN) Support

16 Coaching and EEN support Phase 1 Phase 2 Phase 3 EEN Initial Assessment Regional HR SME Instrument Facilitation and Moderation Coaching (not part of EEN) Support for Application Support for EU project Management Support for Access to Finance 16

17 Coaching in practice Voluntary coaching offered in Phase 1 and Phase 2: Phase 1 3 coaching days Phase 2 12 coaching days Coaches will drive the performance of the organization by working with the senior management team Objectives: Enhance the commercial potential and impact of SME participation in the dedicated H2020 instrument Achieve tangible organizational change Leave a legacy, H2020 to become the stepping stone to sustainable high growth

18 Selection criteria for coaches Relevant business experience (running own company or top management for min 5 years) Track record in managing a range of business issues associated with periods of high growth: Strategic planning, Leadership and organisational development, New product development, market development and internationalisation strategy, Innovation management, IPR and IA, Financial management and investor readiness, Specialist sector knowledge. Proven experience in publicly funded innovation programmes / initiatives, Evidence of having done similar coaching work previously (at least three references or testimonials from Chief Executive/Managing Director, etc)

19 Enterprise Europe Network Aim: increase competitiveness and innovation capacity of European SMEs Integrated business and innovation support: EU's largest SME support network: 600+ org, 50+ countries Innovation + business support, technology transfer Matchmaking and tailor-made advice (for all SMEs) H2020: Capacity building / innovation management / Project support (Key Account Management) for beneficiaries Access to markets & EU programmes for SMEs Advice on EU legislation, SME feedback to EC

20 Fast Track to Innovation

21 Objectives: Fast Track to Innovation Horizon 2020 Increase the participation of industry, SMEs and first time applicants in Horizon 2020 Stimulate private sector investment in research and innovation Promote research and innovation with a focus on value creation and accelerate the development of technologies into innovative products, processes and services Means: Full-scale pilot running in 2015 and 2016 In-depth assessment as part of interim evaluation

22 Horizon 2020 FT2I pilot features (Art. 49e RfP) Proposals relating to any technology field under LEITs and Societal Challenges (bottom-up driven logic) Funding of innovation actions (close-to-market) Open to any legal entity - consortia of no more than 5 participants About 100 grant up to 3 million Permanently open call with three cut-off-dates per year Impact criterion given a higher weighting in evaluations Time-to-grant: 6 months

23 Thank you very much for your attention! Questions?

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