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FP7UKTechnology Strategy BoardDriving Innovation

FP7UK

Horizon 2020 -

SME Instrument

PAS 600 launch event - London

12th December 2013

Steve Bradley - EU National Contact Point for SME's


Strategic positioning:

R&D

driven

projects

Market

opportunity

driven projects

Cooperation logic at

regional or national level

Transnational

cooperation logic

Horizon 2020

SME instrument

Target: Business innovation

motivated SMEs

Eurostars 2

Target: R&D

intensive SME

Horizon 2020

Collaborative

Research

Target: R&D topics

National & regional programs


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 off-putting to SMEs


Activities for SMEs in Horizon 2020• All forms of R&D and all forms of innovation, towards exploitation and

commercialisation

• SME participation in collaborative R&D or innovation projects (all three

priorities)

• SME instrument (budget from all societal challenges as well as from the

Leading Enabling Industrial Technologies LEITs)

• Innovation in start-ups, spin-offs and young companies (Eurostars and

other measures)

• Access to risk finance (debt and equity facility)

• Exchange and mobility of researchers involving SMEs (Marie Curie

actions))


SME instrument main features

• Targeted at all types of innovative SMEs

• Only SMEs allowed to apply for funding (single

company support possible)

• Competitive

• Market-oriented, EU dimension

• Bottom-up while addressing societal challenges

and/or key enabling technologies

• Grant-based staged funding

FP7UKTechnology Strategy BoardDriving InnovationSME instrument

?

IDEA continued support throughout the project MARKET

Concept &

Feasibility

Assessment

Demonstration

Market Replication

R&DCommercialisation

Idea to concept,

risk assessment,

technological &

commercial feasibility

Demonstration,

prototyping, testing ,

market replication, scaling

up, miniaturisation,

research

Quality label for

successful projects,

access to risk

finance, indirect

support

SME window EU

financial facilities


Phase 1: Concept and feasibility assessment

Phase 2: R&D, demonstration,

market replication

Input: Idea/Concept: "Business Plan 1"

(~ 10 pages) 10% budget

Activities:Feasibility of concept

Risk assessmentIP regime

Partner searchDesign study

Pilot applicationetc.

Output: elaborated "Business plan 2"

Input: "Business plan 2" plus description of activities under Phase

2 (~ 30 pages)90% budget

Activities:Development,

prototyping, testing, piloting,

miniaturisation, scaling-up, market

replication, research

Output: "investor-ready Business plan 3"

Lump sum: 50.000 €

~ 6 months No direct funding

Phase 3: Commercialisation

1-3 (5) M€ EC funding

~ 12 to 24 months

Promote instrument as quality label for

successful projects

Facilitate access to risk 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 PPC (and PPI?)

10-15% success 40-50% success

Phase 3 & coaching = 2% budget


Evaluating SME instrument activities

There has to be a market

Easy to use/producefor the customer

and the firm

Technical solution

possible and better

than existing ones

Excellence in innovation

Commercialisation potential and economic impact

Company'spotential to achieve the envisagedresults

Plus: EU added value


Coaching and EEN support

EEN Initial

Assessment

Phase 1 Phase 2 Phase 3

Coaching

Regional

HR

…

SME

Instrument

Support for Application

Support for EU project Management

Support for Access to Finance

Facilitation and Moderation


What does "Access to risk finance" mean in the Horizon 2020 context ?

� Using part of the Horizon 2020 budget to stimulate more investment in research and

innovation not through grants but in the form of Financial Instruments:

o Debt finance

� Loan finance, i.e. risk-sharing loans to companies and for innovative projects

introducing new technologies

� Guarantees to financial intermediaries (commercial and development banks) that

provide loans to research- and innovation-driven SMEs and small mid-caps

o Equity finance

� Equity, i.e. venture capital for newly created companies exploiting R&D results


Next steps..

Sept /Nov: informal consultation of Member States –Draft work programmes agreed(WP)

End Nov: EU Parliament 18 – 21 Nov complete negotiations on EU budget 2014-20 (including overall budget for Horizon 2020)

Dec 2013: adoption of WP & publication of first calls 11th

December – call deadlines mid 2014

1/1/2014: Horizon 2020 starts..


Further information:• http://ec.europa.eu/europe2020/index_en.htm

• Europe 2020 is the European Union’s ten-year growth strategy. It is about more than just overcoming

the crisis which continues to afflict many of our economies..

• http://ec.europa.eu/research/innovation-union/index_en.cfm

• Europe' s future economic growth and jobs will increasingly have to come from innovation in products,

services and business models. .

• www.ec.europa.eu/research/horizon2020

• Horizon 2020 is the financial instrument implementing the Innovation Union a Europe 2020 flagship

initiative aimed at securing Europe's global competitiveness.

• http://ec.europa.eu/resource-efficient-europe/

• The flagship initiative for a resource-efficient Europe under the Europe 2020 strategy supports the shift

towards a resource-efficient, low-carbon economy to achieve sustainable growth.

• http://ec.europa.eu/research/participants/portal/

• the Participant Portal is the entry point for electronic administration of EU-funded research and

innovation projects, and hosts the services for managing proposals and projects throughout their

lifecycle.


National Contact Point:National Contact Point:National Contact Point:National Contact Point: Steve Bradley:Steve Bradley:Steve Bradley:Steve Bradley:[email protected]@betatechnology.co.uksteve.bradley@[email protected]

[email protected]

Beta Technology: Beta Technology: Beta Technology: Beta Technology: 01302 32263301302 32263301302 32263301302 322633

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