5. Overview of SME supportin Horizon 2020

What is wrong –or 'not appropriate in our context' ?

Funding Gap(range: 1-3 M€)

A popular view:From research to innovation/commercial use

Howimportantis researchforinnovation? Start-up –

not existingcompany

SMEs' options to innovate –and build 'competitiveness'

OpenIn-house

clientsCollaborationoptions university

Product

Business model and valuechain innovation are'disruptive' and havelarger growth potential forthe economy

Business modelProcessInnovation

opportunities

Has beensupported so far

suppliers'

Value chain

Key EU support for SME innovation

SME Instrument

Industrialleadership

(LEITs)6 key

technologies

Eurostars II

Positioning

EU Structural and Investment Funds(national / regional implementation)

Horizon 2020 (2014-20)

Societalchallenges

Structural fundsOverall budget – 325 bn €2014-2020Innovation priorities and budget specific to each region

Flagship R&DI programme of the Innovation Union Overall budget - 77bn €

Collaborative projects3 ways for SMEs within Horizon 2020 & Eurostars

3 pillars

Collaboration amongSMEsand withR&D

providers

EUREKAEUREKA / Eurostars –intergovernmental cooperation (incl.CH, KOR, CAN) with EU participation / contribution Total €0.9-1.3bn to 2020

Special rules for 'coordinated

funding' between ESIF & H2020

Excellence in science

3 opportunities in H2020 –How to direct companies?

Horizon 2020 –collaborative

projects

EUREKA Eurostars

SMEinstrument

R&D by topics -6 Key technologies

/ Societalchallenges

Applied R&DI –product

development

Business innovation -

breakthroughObjective

R&D Market opportunity

- SMEs with corebusiness in R&D,

as partner in large projects

- SMEs which canprovide an 'application

environment' for R&D projects

Researchintensive SMEs

(>10% turnover)

Innovative SMES with an ambition to develop, grow

and have an international

impactEstablished SMEswith high growth

potential

SMEstargeted

77 overall incl. up to 5,8 for SMEs

(excl. Sme instrument)

0,3 (0,9 -1,3 overallincl. Bugets by

Member States)

2,8(linked to Horizon

2020 umbrella)

EU Budget2014-2020

(bn €)

Horizon 2020 –collaborative

projects

EUREKA Eurostars

SMEinstrument

Large consortiaSmall

transnational groups

Single company(but SME partners& sub-contracting

possible)

Participants in the call

R&D Market opportunity

Issues to beaddressed are

defined

Transnational R&D

Existing marketgaps to attract

investors to radical innovation

Call focus

Scientificexcellence

Technicalexcellence –

market prospects

Innovation excellence –

create or shapenew markets

Key successfactor

typically a single deadline

Several deadlines per year to start

evaluations

Continuous streamof evaluation

(cut-off dates for award)

Application deadline & Evaluation

3 opportunities in H2020 –How to direct companies?

'Champions league' for the most innovative European SMES

Phase 1Idea / Concept

Feasibilityassessment

Phase 2Innovation

projectDevelopment / Product testing

Phase 3Access to

markets and finance

50 000 € 0,5 -2,5Mio € -

ca 6 months Ca 12-24 months -

Business Plan 1(10 pages)

Business Plan 2 + description of

activities for project

(30 pages)

-

10% 88% 2% % Budget2014/2015

EC fundingper project

Project duration

What to do -application

3 days 12 daysSupport

and networking to facilitate access

to risk finance

VoluntaryCoaching –

(coach suggested by EEN, selected by

SME)

Recognition among the best European SMEsVisibility at European and global levelOther benefits

SME Instrument Package

Phase 3Access

to…

Equity investors

Loans

Geographicmarkets

Large enterprises

Procure-ment

An importantrole for theEEN to play !

Topics for 'SME instrument'

13 broad topics linked to societal challenges and 'technologies areas' Example:ICT 37 – 2014/15: Open Disruptive Innovation SchemeThe challenge is to provide support to a large set of early stage high risk innovative SMEs in the ICT sector. Focus will be on SME proposing innovative ICT concepts, products and service sapplying new sets of rules, values and models which ultimately disrupt existing markets.The objective of the ODI is threefold:- Nurture promising innovative and disruptive ideas;- Support their prototyping, validation and demonstration in real world conditions;- Help for wider deployment or market uptake. […]

9

SME instrument looks forEnterprisesCompanies with high growth ambition and potentialCompanies already on the market More convincing if they

have a record of successful innovation

AND Start-ups ! Specific issue to finance

phase 2 without steady revenues

IdeasIdeas that relate to a published topic Ideas that 'shape new markets'Business ideas that develop into an ambitious business plan

NOT: 'ideas for technology projects to enhance an existing product to be sold to the same customers'

Proposals phase 1

2 662 / 1 994

Actual 1st/2nd

Cut-off

received

2 602 / 1 917

eligible

317 / 237

evaluatedabove threshold

155 / 178

Initial estimate p1per cut-off

funded

2 500

3rd cut-off12/2014

2316 >50%

Proposals phase 2

580

Actual 1st cut-off

received

571 eligible

132 evaluatedabove threshold

60

Initial estimate p2per cut-off

funded

500

>50%

Evaluation – 3 key questions

Solution is feasible and better than

existing ones

Market opportunity

Company's potential to achieve proposed results

Market potential and economic impact

Excellence in innovation

Company's growth

potentialAdditional requirement for EU funding:

EU added value to be demonstrated by the applicant

The company and the idea have to be here!

Horizon2020 – Part 'Innovation in SME''Better innovation support services'

Policy learning for a better innovation support- Peer learning of innovation agenciesInnovation support services (i) from Europe to SMEs- IPR helpdesk(ii) By local organisations- Innovation management services in the EEN(iii) experimenting new approaches- Clusters as animators of new value chains for collaborating SMEs

'EU contribution to EUREKA/Eurostars'Intergovernmental cooperation to create synergies between national funding schemes for SME innovation projects

Montenegro is not yet member of EUREKA

14

15

'Project types' in Horizon2020 rules

'normal' Research or Innovation projectsGeneral rules apply:(i) Minimum 3 partners(ii) Funding rate 100% for research projects / 70% for innovation projects (but 100% for not-for-profit entities in innovation projects)

Coordination and support actions100% funding and single partner allowedBut 'peer learning innovation agencies' 3 partners

16Some more project types exist, which are however not relevant for SME …. So they are not include here!

SME instrumentOnly SMEs can be partnerSingle partner is possiblePhase 1: lumps sum 50.000Phase 2: innovation action = 70% funding