Horizon 2020 SMEs Overview - Confindustria Marcheconfindustria.marche.it/MTF/Content/eventi/H2020... · *= EUR 8.65 billion (in constant prices) of direct SME support, incl. approximately

Horizon 2020SMEs Overview

DG Research and Innovation

Laura Piani

Unit for "SMEs, Financial Instruments and State Aid" (B.3)

DG Research and Innovation

PolicyResearch andInnovation

What is Horizon 2020?

� Framework funding programme for all EU research & innovation-related activities (2014-2020)*

� A core part of Europe 2020, Innovation Union & European Research Area:

- Responding to the economic crisis to invest in future jobs and growth

- Addressing people’s concerns about their livelihoods, safety and environment

- Strengthening the EU’s global position in research, innovation and technology

* Total budget amount of EUR 79 billion (in current prices including inflation)


Three priorities

Excellent science

Industrial leadership

Societal challenges

Marie Skłodowska-Curie Actions

SME


Business-Oriented SME-friendly:

� strong challenge-based approach, allowing SME applicants to have considerable freedom to come up with innovative solutions

� Emphasis on innovation, with continuing support for R&D

� Less prescriptive topics, strong emphasis on expected impact

� A strategic approach, with two-year work programmes

� Focus areas bring together different technologies, along entire innovation chain

H2020 for SMEs

Integrated Approach to SME Support

20 % budgetarytarget in

LEITs & SC*

'Innovation in SMEs'**

*= EUR 8.65 billion (in constant prices) of direct SME support, incl. approximately EUR 3 billion to be allocated to the SME Instrument over the period 2014-2020 ** = EUR 616 million (in constant prices) in direct SME support via Eurostars-2, and in indirect support via innovation and market capacity building activities

SME Instrument7% ≈ €3 bn

Collaborative Projects13%

Eurostars II

Enhancing Innovation CapacityMarket-driven Innovation

Access to Risk Finance

GRANTS

INNOVATION CAPACITY BUILDING & VALUE

CHAIN DEVELOPMENT SUPPORT

FINANCIAL INSTRUMENTS

(DEBT, EQUITY) + ACCOMPANYING

MEASURES

GRANTS


Project Grant

Support

Figure 1: Horizon 2020's complementary measures for SME support

Innovation Capacity Building and

Value Chain Development Support Financial Instruments and Accompanying Measures HR Support

Horizon 2020 Pillar

Horizon 2020 Objective

Concrete Support Measures

Societal Challenges Collaborative Projects

SME Instrument

IndustrialLeadership

LEITsLeadership in Enabling and Industrial Technologies

Collaborative Projects

SME Instrument

Innovation in SMEs

Eurostars (II)

Networking and Support Actions

Access to RiskFinance

Debt Facility

Equity Facility

Accompanying Measures

Excellent Science MSCA Marie Skłodowska-Curie Actions

FET Collaborative Projects


Horizon 2020Grants for SMEs


R&D driven

projects

Market opportunity

driven projects

SME InstrumentTarget: Innovative SME

(min. 1 participant)

EurostarsTarget: R&D intensive

SME(min. 2 participants)

Collaborative Research

Target: R&D topics(min. 3 participants)

FTI (pilot)Target: value creation

(min. 3 participants)(max. 5)

SME Grant Support Horizon 2020


Simplified R&I Cooperation

� Implementation similar to Cooperation Programme under FP7. Collaborative Research & Innovation across Europe through transnational consortiums that consist of a minimum of threedifferent partners (legal entities) from three different EU member-states or countries associated to Horizon 2020.

� Same reimbursement rate for all*: Up to 100% of eligible cost (limited to maximum of 70% for innovation actions), 25% flat-rate for indirect costs

* Exception for non-profit organisations

SimpleHorizon 2020Collaborative Research



Open and Ambitious

� 13 % of the total combined budget for all societal challenges and the enabling and industrial technologies (LEITs) – or at least EUR 5.5 billion* – should be directly invested into collaborative research and innovation activities conducted by SMEs.

� The major initiatives that favor the involvement of SMEs include selection of SME-relevant topics, and coordination and support actions. SME participation is expected not to be uniform across the different priorities of Horizon 2020, but the ambition is clearly to enhance SME participation across the board.

� First statistics on SME participation to Horizon 2020 calls confirm the relative attractiveness of Horizon 2020 to SMEs: end of 2015, close to 20% of all participants to Horizon 2020 are SMEs (more than 27% in SC and LEITs, where they take over almost 24% of the budget).

* In current prices

Horizon 2020Collaborative Research



EUROSTARS-2 https://www.eurostars-eureka.eu/

� European joint programme initiative (public-public partnership),co-funded by 34 EUREKA countries & the EU (through Horizon 2020)

� Support for R&D-performing SMEs wishing to exploit promisingR&D results and bring new products or services to the market

� Transnational approach: collaboration of an R&D-performing SMEwith at least one other partner from another EUREKA country that isalso participating in Eurostars 2

� Bottom-up approach: SME defines the nature of the project; opento all technology areas

� Average project volume: EUR 1.4 million (upper limits in terms offunding depend on national funding bodies in respective EUREKAcountries)

� Funding rates vary between 35-100% of eligible costs depending onnational funding rules/ rates in countries participating in Eurostars 2

� Total budget: ca. EUR 1.2 billion; Eurostars 2-participating countrieswill contribute EUR 861 million, EU contribution of EUR 287 million(max.)

EUROSTARS-2Eurostars

Target: R&D intensive SME

(min. 2 participants)


Around € 2.8 billion allocated for the SME instrument (2014 -2020.

Commitment H2020:

"… A minimum of 7% of the total budgets of the specificobjective "Leadership in enabling and industrial Technologies(LEITs)"and the priority "Societal Challenges" will beallocated to the dedicated SME instrument averaged over theduration of Horizon2020".

SME Instrument Budget allocation (of combined budgets SC & LEITs)

=>2014-2015 = 5.30% (EUR 519,9 million)

=>2016-2017 = 7.53% (EUR 790,9 million)

SME Instrument:BUDGET

Horizon 2020SME Instrument

Target: Innovation in SME



BUDGET ALLOCATION:

SME Instrument Phase 1 proposals: lump sum of EUR 50,000.

The Work Programme foresees the following budgetdistribution:

� 10% of the budget for Phase 1

� 88% for Phase 2

� The remaining 2% is used for evaluators, the business coaching scheme and potential Phase 3 activities (from 2016).

The budgets are evenly distributed between the cut-off dates.





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 SC & LEIT

� each SC & LEIT defines a broad topic

• Single and continuously open call with around 4 cut-off dates per year (until end of H2020)




Implementation


The SMEI under H2020: Seamless Business Innovation Support from Mature Idea to Market

EU Grant of € 50,000 (lump sum)

EU Grant of € 500,000 to 2.5 million (indicative amount)

• No grant, but… • Coaching support• Market and Investment

Readiness support• Promotion / networking with

financiers & clients• … and more indirect support!


The SMEI: main features

• For all types of innovative SMEs (EU-28 + H2020 AC)showing a strong ambition to develop, grow andinternationalise

• Single company support possible

• From idea to market through three phases of continuoussupport

• No obligation for applicants to sequentially cover all threephases

• 70% funding (as a general rule)

• Mature ideas with a clear European dimension

• EU budget for 2016-2017: ca. EUR 750 million (> ca.EUR 500 million in 2014-2015)


Business Coaching

• Coaches will drive the performance of the organisation

• Coaches suggested by EEN, and selected by the SME

• Voluntary:

• Phase 1: 3 days

• Phase 2: 12 days

18





There has to be a market

Easy to use/producefor the customer

and the firm

Technical solution possible and betterthan existing ones

Excellence in innovation

Commercialisation potential and economic impact

Company's potential to achieve the envisaged results

Plus: EU added value

Evaluation

Horizon 2020 Award Criteria: 1. Excellence 2. Impact 3. Quality and efficiency of the implementation

Implementation / Work Programme 2016/2017

Topics Budgets (EUR million)

2016 2017

SMEInst-01-2016-2017: Open Disruptive Innovation Scheme 60.00 66.00

SMEInst-02-2016-2017: Accelerating the uptake of nanotechnologies

advanced materials or advanced manufacturing and processing technologies

by SMEs

31.83 35.32

SMEInst-03-2016-2017: Dedicated support to biotechnology SMEs closing

the gap from lab to market

7.50 7.50

SMEInst-04-2016-2017: Engaging SMEs in space research and development 11.37 12.60

SMEInst-05-2016-2017: Supporting innovative SMEs in the healthcare

biotechnology sector

35.00 45.00

SMEInst-06-2016-2017: Accelerating market introduction of ICT solutions

for Health, Well-Being and Ageing Well

18.00 12.50

SMEInst-07-2016-2017: Stimulating the innovation potential of SMEs for

sustainable and competitive agriculture, forestry, agri-food and bio-based

sectors

25.46 32.19

SMEInst-08-2016-2017: Supporting SMEs efforts for the development -

deployment and market replication of innovative solutions for blue growth

9.50 10.00

SMEInst-09-2016-2017: Stimulating the innovation potential of SMEs for a

low carbon and efficient energy system

46.00 50.00

SMEInst-10-2016-2017: Small business innovation research for Transport

and Smart Cities Mobility

57.57 61.23

SMEInst-11-2016-2017: Boosting the potential of small businesses in the

areas of climate action, environment, resource efficiency and raw materials

25.00 27.50

SMEInst-12-2016-2017: New business models for inclusive, innovative and

reflective societies

10.80 11.40

SMEInst-13-2016-2017: Engaging SMEs in security research and

development

15.37 14.67

Overall indicative budget 353.40 385.91

Cut-off dates Phase 1 Cut-off dates Phase 2

June 2014

Sep 2014

Dec 2014

Mar 2015

Jun2015

Sep2015

Nov 2015

Oct2014

Dec 2014

Mar2015

Jun 2015

Sep 2015

Nov 2015

N° of proposals received

2666 1944 2363 1569 2029 1861 2035 580 629 614 962 945 1090

Above threshold

317 237 320 251 342 336 316 132 180 233 357 373 425

Funded 155 178 259 149 128 122 175 60 74 37 44 33 30

% funded 6% 9% 11% 9,5% 17% 6,5% 8,5% 10,5% 12% 6% 4,5% 3,5% 2,75%

FUNDED ABOVE

THRESHOLD49% 75% 81% 59 % 37,5% 36% 55% 45% 41% 16% 12% 9% 7%

Success rates / Case in point:SME instrument

Phase 1 – a very fast uptake by SMEs

Stable number of proposals

About 15% of proposal above threshold

1340 funded projects67 mio total grants

8.15% funded => 55% of above threshold

- 500

1.000 1.500

2.000 2.500

3.000

June 2014

Sep 2014

Dec 2014

Mar 2015

June 2015

Sep 2015

Nov 2015

Feb 2016

155

178

259

149

128

122

175

174

162

59

61

102

214

214

141

125

2.285

1.680

2.008

1.288

1.676

1.525

1.719

1.628

60

27

35

17

12

12

22

32

Funded Proposals Proposals Below Budget Not Funded Proposals Non Eligible Proposals

• A consistent trend

• Overall results:

• 325 funded projects

• 541.74 mio total grants

• 6.05% of proposals funded =16% of above threshold

60 74 37 44 33 30

47

72

106 194 313 340 395

143

439 431

367 589 572 643 324

9 18 16 16 15 22 19

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct 2014 Dec 2014 Mar 2015 June 2015 Sep 2015 Nov 2015 Feb 2016

Funded Proposals Proposals Below Budget Not Funded Proposals

Non Eligible Proposals To be funded

Phase 2 – a consistent uptake by SMEs

Success rate per country over the years (1)

Nr of proposals

Number of SMEs

participating

Success rate Nr of

proposals

Number of SMEs

participating

Success rate

Albania 6 6 1 1Anguilla 2 2 2 2 50.00%Austria 185 195 11.28% 106 114 6.14%Belgium 215 223 8.07% 106 118 1.69%Bosnia and Herzegovina

11 11

Bulgaria 396 419 0.95% 89 101Croatia 140 150 2.67% 27 29Cyprus 71 73 4.11% 23 25 4.00%Czech Republic

189 198 2.53% 43 43 4.65%

Denmark 334 338 15.09% 195 227 8.37%Estonia 186 198 13.64% 93 103 6.80%Faroe Islands 4 4 25.00% 1 1Finland 391 411 9.73% 267 285 6.67%Former Yugoslav Republic of Macedonia

22 22 9 11

France 746 781 9.35% 590 633 5.37%Germany 1042 1083 9.05% 580 652 6.60%Greece 333 342 3.51% 166 177 2.82%

Hungary 742 782 3.20% 242 275 5.45%

Iceland 27 27 18.52% 17 17 5.88%

Ireland 235 236 14.83% 131 142 11.27%

Israel 307 309 12.94% 316 320 3.44%

Country

PHASE 1 PHASE 2

Success rate per country over the years (2)

Country

PHASE 1 PHASE 2

Nr of proposalsNumber of

SMEs participating

Success rate Nr of

proposals

Number of SMEs

participatingSuccess rate

Italy 3222 3595 7.26% 954 1276 4.23%

Latvia 143 145 2.76% 41 52 1.92%

Lithuania 126 127 8.66% 22 22 4.55%

Luxembourg 31 31 6.45% 13 13 7.69%

Malta 31 33 3.03% 22 22 4.55%

Moldova (Republic of)14 15 4 4

Montenegro 8 8

Netherlands 590 624 9.78% 359 395 6.84%

Norway 212 220 12.27% 90 108 8.33%

Poland 811 842 4.28% 144 157 3.82%

Portugal 401 409 7.33% 108 109 1.83%

Romania 168 180 0.56% 40 42

Serbia 70 71 4.23% 19 20 5.00%

Slovakia 198 204 3.43% 70 77

Slovenia 480 532 5.26% 122 153 7.84%

Spain 2598 2694 10.73% 905 1011 8.01%

Sweden 330 338 14.20% 256 266 7.14%

Turkey 297 299 3.01% 74 85 4.71%

Ukraine 23 24 4.17% 11 11

United Kingdom1449 1504 12.70% 789 915 6.78%

Virgin Islands (British)1 1


Unsuccessful proposals were:

• too much project focussed, not enough business opportunity oriented

• Description of company not convincing (why would this company succeed and not the competitor)

• No information on competing solutions

• Innovation content too low; product exists already on the market (just incremental improvement)

• Just ideas, no proof of existing commercialisation concept (TRL far too low)

• Just trying ones luck!

Lesson learned


27

THE SEAL OF EXCELLENCEFeatures

Funding threshold due to H2020 budget availability

Quality threshold:

Meriting Meriting funding

Rejected: not ready for funding

Funded� 'Seal of excellence' certifies

proposal of high quality, meriting funding

� Accompanying letter explaining how to get in touch with other funding bodies (like e.g. ESIF Managing Authorities in the Member States)

� Certificate digitally signed against fraud

Target population: excellent projects not funded by H2020

Pilot using the SME Instrument

� Single company� Small scale R&I actions� Close to market

� Clear benefits for regions / Member States:

� make the most of a unique, high quality evaluation process

� better use of resources� potential high local impact

Horizon 2020 evaluation:


CERTIFICATE


•Participant Portal http://ec.europa.eu/research/participants/portal/desktop/en/funding/sme_participation.html

� Calls for proposals� Horizon 2020 documents� Support services� Evaluation experts

•Reference documents

•https://ec.europa.eu/research/participants/portal/desktop/en/funding/reference_docs.html#h2020-call_ptef-pt

ACTION

Participate via…


HORIZON 2020:

• http://ec.europa.eu/programmes/horizon2020/en/area/smes

• http://ec.europa.eu/programmes/horizon2020/en/h2020-section/access-risk-finance

• http://ec.europa.eu/programmes/horizon2020/en/h2020-section/innovation-smes

• Seal of Excellence Website: http://ec.europa.eu/research/regions

• EASME – http://ec.europa.eu/easme/sme/

• SME Techweb – http://ec.europa.eu/research/sme-

techweb/index_en.cfm

• EUROSTARS-2 - https://www.eurostars-eureka.eu/

More Information

Research andInnovation

Thank you very much for your attention!

31

Documents

Horizon 2020 SMEs Overview - Confindustria Marcheconfindustria.marche.it/MTF/Content/eventi/H2020... · *= EUR 8.65 billion (in constant prices) of direct SME support, incl. approximately