Financing innovation. Operational Programme Enterprise and Innovation for Competitiveness : Ing. Marcela Příhodová EU Funds Section, MIT

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1 Operational Programme Enterprise and Innovation for Competitiveness : Financing innovation Ing. Marcela Příhodová EU Funds Section, MIT 19. května 2014, Ostrava 14 October 2014, Prague

2 Operational Programme Enterprise and Innovation (OPEI) Global objective: to increase the competitiveness and innovation performance of the industry and services sector Allocation: billion EUR = cca 102 billion CZK With funds in excess of 102 billion CZK, which are available through the OPEI, the OPEI is becoming a key source of support for innovation in the Czech business sector for the period

3 Research, development and innovation in the OPEI Aid programme: ICT and strategic services Development of ICT and selected strategic services closely related to ICT. Innovation Implementation of innovation and the application of R&D outcomes in industry and trade. Potential Construction and expansion of existing facilities for R&D&I products and technologies. Cooperation and Prosperity Centred on the creation of infrastructure to promote cooperation, especially in reearch and development, education, internationalisation, knowledge transfer, etc.

4 OPEI brief summary OPEI allocation 3.12 billion = 86.7 billion CZK (ERDF contribution) Grant programmes: 25,700 registration applications received 19,400 full applications received, worth billion CZK (6.1 billion EUR; ERDF) 11,300 decisions issued, worth 84.8 billion CZK (3.1 billion EUR; ERDF) A total of over 50.1 billion CZK paid from the OPEI (1.8 billion EUR; ERDF)

5 Czech Republic in Global compet. Report (GCR) In order to be truly innovation driven economy, the Czech Republic has to maximise the use of innovation potential through ESIF Ranking of the Czech Republic in GCR

6 Weaknesses of the Czech Republic (WEF) = future objectives of MIT interventions major share of CZ not moving rapidly forward : pillars of Innovation and Maturity of business environment = paradoxically most important for overall index ininnovation driven economies Negative impact of individual pillars on the difference of the score of the CZ between periods and XII: Innovation 27 % VI: Goods Market Efficiency 10 % VI: Labour Market Efficiency 23 % XI: Maturity of business environment 28 % VII: Financial Markets 9 %

7 Strengths = the platform for further development of CZ We can build on Technical readiness and Infrastructure Positive effects of individual pillars on the difference of the score of the CZ between periods and II: Infrastructure 37% XI: Technical readiness 46 % V: Higher education 5 % IV: Primary schools 8%

8 MIT intervention focuses for CZ as innovation-driven economy model support for entrepreneurship using (not only new) knowledge to create innovations stimulating up-to-now limited demand for innovation in local business sector, eg. support of: quality services for owner-managerial structures of enterprises and starting entrepreneurs in using innovations, technology transferu, commercionalisation a internacionalisation of business products focus on collaboration and knowledge transfer between businessandr&dsector(verylowlevelatthemoment) creating financial, material, personal and other condition for the development of excellent research in connection to current stateoftheartinresearch,andtothedevelopmentpotentialin business sphere

9 MIT experience with operational programmes from 2004 OP EIC OPIE Emphasis on development support + the beginning of innovation aid OPEI Emphasis on innovation support + support for R&D in enterprises(potential), cooperation between the tertiary sector and industry Emphasis on the knowledge economy, R&D collaboration with innovative enterprises and the use of new forms of support

10 Operational Programme Enterprise and Innovation for Competitiveness (OP EIC) R&D&I PA 1 Developing research and development for innovation Infrastructure and services PA 2 Developing enterprise and competitiveness in SMEs Energy PA 3 Efficient energy management, development of energy infrastructure and renewable energy sources, promoting the introduction of new technologies in the field of energy management and secondary raw materials ICT PA 4 Developinghigh-speed accessnetworksto theinternet and information and communication technologies

11 Financial allocation to the OP EIC Total allocation to the OP EIC: billion CZK (4.3 billion EUR, ERDF contribution) Share of Priority axis allocation in total OP EIC allocation ( in %)

12 Shift of the themes from to Further reinforcement of current OPEI interventions: Technology transfer and cooperation of R&D sectors and innovative firms Shift from building the innovative infrastructure to its development and its effective use Emphasis on implementing higher-level innovations and non-technical innovations Improving synergies between the OP EIC and the OP RDE - cooperation between the MAs under leadership of GS for competitive companies, research, innovation, effective public administration, and employment and education Supporting technological foresight Strengthening the role of financial instruments Widening the available range of sophisticated advisory business services Supporting the internationalisation of Czech firms(smes) Further increasing energy efficiency and development of energy services New specialized ICT solutions with high value added and Data Centres

13 Shift of the themes from to What is new in the OP EIC? A greater emphasis on the use of the results of applied industrial R&D, their commercialization and on strengthening the strategic orientation of R&D in accordance with the principles of Smart specialization strategy(s3-strategy) New R&D activities Pre-Commercial Public Procurement and Proof-ofconcept More emphasis on the role of financial instruments - not only loans and guarantees, but also reinforced role of venture capital, seed-fond Energy innovation(eco-innovation) and secondary raw materials Energy transmission networks and higher energy safety High-speed access to the internet and modern communications services The main recommendation of the EC: Concentration activities of R&D -> fewer specific objectives in PA 1, cooperation with the OP RDE(see Synergies, complementarities, overlaps)

14 OPEI Pilot projects Knowledge Transfer Partnership Project support for a new type of partnership between the business and academic fields in the practical application of R&D outcomes Direct application of research findings and knowledge in an enterprise, which are of stratetic importance for its further development, with the participation of one or more qualified experts (e.g. graduates, doctoral students) and under the professional supervision of the university department Objective of the pilot project to test a functional partnership model and programme conditions in the Czech environment

15 OPEI Pilot projects CzechAccelerator Project supports the development of innovative Czech companies in developed foreign markets through consulting services focused primarily on the development of management experience and enhancement of marketing skills Consulting Programme of the Operational Programme Enterprise and Innovation calls since destinations 95 applicants, 39 accepted firms, 42 residencies 35 concluded partnerships or agreements on cooperation More than 1,700 hours of mentoring Hundreds of networking events attended More than 200 mentors 10 submitted patent applications or registered trademarks in the destinations Total cost - CZK 20,7 million

16 OPEI Pilot projects CzechEkoSystem Support of innovative Start-ups through granting of specific consultancy: Coaching transfering coache s know-how gained by personal experiences. Consultancy services complete advisory in the field of finance, law, management, HR etc. Support range: Coaching upto ,-czk(100%) Consultancy services up to ,- CZK (co-finaced by 20%) Statistics: Start November2011 Termination July 2015 Numberofcalls 3 Recived applications(total) 245 Supported applications(total) 118

17 The Seven gaps preventing innovation

18 Co-Incubation Center in Emerging Regime, Taiwan

19 OPEI example: Successful project in the COOPERATION CLUSTERS programme The Nanoprogres Cluster Established in: May 2010 Members: business entities, academic institutions and science & research centres (including 83% of SME members) Cluster focusing: Experimental development and applied research Development of nanofibers (NF) of core-shell type and their subsequent functionalization, fiberizing devices. Application of NF in tissue engineering and nanotechnologies Subsequent commercialization Bronze Label of the European Cluster Excellence 2013 Total eligible costs: 90,378,000 CZK(3,254k EUR) Aid approved: 20,615,000 CZK(742.2k EUR) Nanotechnology is a young but rapidly developing field that exploits the physical properties possessed by microscopic particles about one 800th the thickness of a human hair Czech Republic ranks among the world leaders in the area of R&D of nanofibres and nanomaterials

20 OPEI example: Successful project in the PROSPERITY programme Brno University of Technology (BUT) Professor List Science and Technology Park Construction of STP, guarantor: The Faculty of Electrical Engineering and Communication of BUT. Main activities focus on education science, research, development, art or other creative spheres. BUT specializes in automation and measurement technology, biomedical engineering and bioinformatics, microelectronics, telecommunications, teleinformatics and power engineering. STP has m2 of usable area. 757 m2 is used for research laboratories, 758 m2 is space for lease to different companies. Business Incubator offers rentable space, facilities and services, especially for young innovative and technology-oriented SMEs. Total eligible costs: 112,564,000 CZK(4,053k EUR) Aid approved: 84,423,000 CZK(3,040k EUR)

21 Indicative schedule of OP EIC preparation and implementation 14 July 2014: the government approved OP EIC 15July2014:OPEICsubmittedtotheECtoinitiateformalnegotiations 26 August 2014: EC approved Partnership Agreement as major document for the CzechRepublictoimplementEUcohesionpolicyinCZin October2014:ECsenttheircommentstoOPEIC Q3 2014: Reaction to EC comments Q42014:NegotiationsaboutOPEICwithEC December 2014: submitting OP EIC programmes of support to the government of the Czech Republic for approval Beginning of 2015: approval of OP EIC expected(according to information from EC) After OP EIC approval: regional seminars and workshops regarding OP EIC focusing on specific target groups(potential applicants and beneficiaries) End of Q1 2015: presumed date of publishing first calls to submit applications

22 Thank you for your attention