"Recent facts on finance for innovation and how EU-financial instruments help innovative SMEs".

Transcription

1 "Recent facts on finance for innovation and how EU-financial instruments help innovative SMEs". Jean-Noël Durvy, Director for Innovation Policy Geneva, 29 September 2009, Promoting Innovation-based Entrepreneurial Opportunities in the UNECE Region

2 Content Flash Eurobarometer and other recent findings on finance for innovative enterprises CIP Financial Instruments for innovation (venture capital)

3 Flash Eurobarometer Access to finance Commissioned by DG Enterprise and Industry, in cooperation with the European Central Bank (ECB). Measuring EU companies use of various sources of finance, assessing extent to which companies face difficulties in accessing finance etc. Conducted in EU member states, Croatia, Iceland and Norway. Results in short: Survey shows that access to finance of small business is difficult, as the availability of bank loans has deteriorated for almost half of them. Despite this, over 70% of SMEs got all or part of the bank loan they wanted, and only about 15% were fully rejected.

4 Size of innovative companies Numbers/percentages for companies which have introduced any innovative activity Total nr Non-innovative company% Innovative company% EU From 1 to 9 Employees From 10 to 49 employees From 50 to 249 employees More than 250 employees

5 Finance for innovative companies Numbers/percentages for companies which have introduced any innovative activity Total nr Non-innovative Innovative company% company% FINANCIAL SITUATION Improved Stayed the same Deteriorated Not classified FINANCING STRUCTURE Used only internal funds Used internal and external financing Used only external financing Did not use any source of financing Confirmation of importance of support instruments to ease external finance for innovative companies (see EU-Financial Instruments )

6 Innobarometer The May 2009 Innobarometer notes that in response to the crisis the segment of high-tech manufacturing firms was the most likely to have cut their innovation budget (24% of them).

7 CREST Survey on R&D investments Data on public R&D investments in 2009: 8 Member States (representing 58% of total spending) are increasing, 15 (representing 41%) are maintaining, while 4 (representing 1%) are reducing R&D planned budget. 9 Member States indicate increased or constant public budgets for Only Lithuania plans at this stage a decrease. However, 11 Member States indicate that no information is available, yet.

8 CREST Survey on R&D investments Public policies to support private R&D investments in 2009 Majority (22) of Member States (representing 90% of EU 27 R&D financed by business) have taken or reinforced measures to promote private R&D. 19 have launched public-private partnerships in key sectors. Only few indicated that they plan to enhance the use of structural funds for R&D investments in reaction to the crisis.

9 European Financial Instruments Improving SME access to finance and reducing market gaps. European Investment Bank (EIB) and European Investment Fund (EIF) SME-loans Mezzanine Guarantees Venture capital European Investment Fund (EIF) on behalf of the European Commission Competitiveness and Innovation Framework Programme (CIP) Guarantees Venture capital

10 The Entrepreneurship and Innovation Programme Total for Entrepreneurship and Innovative Programme: EUR 2,17 billion of which: Total for Community Financial Instruments for SMEs: EUR 1,13 billion of which: The High Growth and Innovative SME Facility two windows: EUR 550 mio The SME Guarantee (SMEG) Facility The Capacity building scheme (CBS) four windows: EUR 510 mio two windows: EUR 70 mio

11 CIP Financial Instruments How does it work? Competitiveness programme (CIP) financial instruments EU funding European Investment Fund (EIF) Other investors EIF selects its financial intermediaries based on competence. The criteria are public. Venture capital fund Guarantor Bank Potential applicants to apply directly to the EIF Venture capital investment in SMEs Lending to SMEs

12 Venture Capital Instruments in CIP (GIF) High Growth Innovative Companies Scheme (GIF) Early- and expansion-stage VC funds Co-investments in side-funds with business angels Eco-Tech equity window Capacity Building Scheme (Seed Capital Action and partnership with international finance institutions)

13 GIF principles GIF1 EARLY STAGE Commercially oriented / best market principles Minimum 50% of private investors Pari passu with private investors, catalytic effect INVESTMENT up to EUR 30 million GIF2 EXPANSION STAGE Innovative SMEs with high growth potential in their establishment or early stages < 10 years Innovative SMEs with high growth potential in their expansion stage Between 10% and 25% of total commitments. However, if a fund is mainly focused on eco-innovation, it can go up to 50%. Between 7,5% and 15% of total commitments. However, if a fund is mainly focused on eco-innovation, it can go up to 25%.

14 GIF Investments GIF Sector Focus 16 Funds, over EUR 1.1bn in Total Fund Sizes Cleantech 35% ICT 23% Generalist 22% Life Science 11% Technology Generalist 9%

15 Ancestor programmes G&E Initiative ( ) and MAP( /7 VC funds SME Guarantees Approved Total target fund investments size 309 million 1,933 million Approved Cap Total aggregate amounts loan amount 436 million 27,97 billion 39 FUNDS Nr of Portfolios of Financial Intermediaries 74 Nr of SMEs supported 483 Nr of guaranteed loans 420,000 Data as at 31 December 2007

16 Access2finance website

17 Web links Flash Eurobarometer, tpa_id=135&lang=en Policy on access to finance ndex/index_en.htm EU Financial Instruments europa.eu.int/comm/enterprise/entrepreneurship/financing/financial_instrument s.htm // European Investment Fund Competitiveness and Innovation Framework Programme European innovation policy

18 Thank you for your attention.