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Research and Innovation

Types of Action Focus on Innovation Actions and the SME Instrument. Brussels, 12 November 2013. Research and Innovation. Forms of funding. Grants Direct financial contribution by way of donation in order to finance an action Prizes

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Research and Innovation

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  1. Types of Action Focus on Innovation Actions and the SME Instrument Brussels, 12November 2013 Research and Innovation

  2. Forms of funding • Grants • Direct financial contribution by way of donation in order to finance an action • Prizes • Financial contribution given as reward following a contest(recognition or inducement prizes) • Procurement • Supply of assets, execution of works or provision of services against payment • Financial instruments • Equity or quasi-equity investments; loans; guarantees; other risk-sharing instruments

  3. Types of actions supported by grants • Research and innovation actions • Innovation actions • Coordination and support actions • SME instrument • ERANET Co-fund • Pre-commercial procurement (PCP) Co-fund • Public procurement of innovative solutions (PPI) Co-fund Disclaimer : legally not binding

  4. Supporting innovation and activitiesclose to users and markets • Primarilywithactivitiessuch as demonstrating and piloting, first marketreplication… • Innovation Actions Innovation activities as part of other types of actions • Demonstratingand pilotingactivities in . Researchand Innovation Actions. SME Instrument . PCP Co-fund. Financial instruments: debt and equity. … • In 'main' Work Programme actions - In Public-Private Partnerships and Public-Public Partnerships - In EITKnowledge and Innovation Communities

  5. Innovation Actions … • 'Innovation Action' means an action primarily consisting of activities directly aimed at producing plans and arrangements or designs for new, altered or improved products, processes or services. • For this purpose they may include prototyping, testing, demonstrating, piloting, large-scale product validation and market replication.

  6. … Innovation Actions … • A ‘demonstration or pilot’ aims to validate the technical and economic viability of a new or improved technology, product, process, service or solution in an operational (or near to operational) environment, whether industrial or otherwise, involving where appropriate a larger scale prototype or demonstrator.

  7. … Innovation Actions … • A ‘market replication’ aims to support the first application/deployment in the market of an innovation that has already been demonstrated but not yet applied/deployed in the market due to market failures/barriers to uptake. • 'Market replication' does not cover multiple applications in the market of an innovation that has already been applied successfully once in the market. • ‘First’ means new at least to Europe or new at least to the application sector in question • Often such projects involve a validation of technical and economic performance at system level in real life operating conditions provided by the market • An Innovation Action may include limited research and development activities.

  8. … Innovation Actions • Funding rate • Grant limited to max 70% of total eligible costs (direct + indirect) • Grant may reach max 100% of total eligible costs for non-profit legal entities • Weighting of evaluation criteria • To determine the ranking, the score for the Impact criterion will be given a weight of 1.5 • Prioritisation of ex aequo proposals done first on the basis of the score for Impact, and then on that for Excellence

  9. Phase 3 = 2% budget Phase 1: Concept and feasibility assessment Phase 2: R&D, demonstration, market replication Phase 3: Commercialisation SME Instrument No direct funding 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. Output: elaborated "Business plan 2" 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: "investor-ready Business plan 3" 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 PPC (and PPI?) 10% success 30-50% success Lump sum: 50.000 € ~ 6 months 1-3 (5) M€ EC funding ~ 12 to 24 months

  10. SME instrument: 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. SME Instrument: 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 the societal challenges and enabling technologies  each SC & LEIT defines a broad topic • Continuously open call with cut-off dates

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