Technology & Innovation Support for Companies

23 November 2006

Julie Cunnington SMARTCymru Programme Executive

Contents1. Context for technology & innovation

support2. Support for small/medium sized

companies3. Support for large companies4. Criteria for support5. Case studies

Technology & Innovation GroupInnovation is the principal key to the prosperity of companies in Wales.

The Technology & Innovation Group is devoted to helping innovators, businesses and academics in Wales succeed through the application, management and development of innovative ideas and new technologies.

Wales for Innovation

Underpinning this drive for technological improvement and inspired innovation is "Wales for Innovation", the Welsh Assembly Governments action plan for innovation.(£260m over 3 years)

AcademicI mpact

AcademicI mpact

I mprovedSupport

I mprovedSupport

EquippingPeople

EquippingPeople

High Growth Business

High Growth Business

Comms.Strategy

Comms.Strategy

ProsperityJ obs &Growth

ProsperityJ obs &Growth

AcademicI mpact

AcademicI mpact

I mprovedSupport

I mprovedSupport

EquippingPeople

EquippingPeople

High Growth Business

High Growth Business

Comms.Strategy

Comms.Strategy

ProsperityJ obs &Growth

ProsperityJ obs &Growth

The SMARTCymru aim…

Encouraging and supporting innovators to carry out and exploit research and development (R&D) that has real commercial potential

Who can access SMARTCymru?

SMARTCymru services are open to all eligible individuals and businesses who aim to create new products and processes through investment in technologically innovative R&D in Wales

….Including large companies

Support for small & medium sized companies

SME criteria

43 (£30.4m)

10 (£7m)

2 (£1.4m)

Balance Sheet Euro (m)

50 (£35.4m)

10 (£7m)

2 (£1.4m)

TurnoverEuro (m)

50-249

10-49

<10

Employee Count

Medium-Sized

Small

Micro

Data

43 (£30.4m)

10 (£7m)

2 (£1.4m)

Balance Sheet Euro (m)

50 (£35.4m)

10 (£7m)

2 (£1.4m)

TurnoverEuro (m)

50-249

10-49

<10

Employee Count

Medium-Sized

Small

Micro

Data

SMARTCymru – Innovation and R & D

ITC / WIN Technology review

TCF - Technical & Commercial Feasibility

Industrial Research

Pre Competitive Development

Exploitation Commercialisation

DD - Design & Development

CONCEPT

CONCEPT

WIN

Structured Devel. Plan

MARKET

MARKETINNOVATION ROUTE

R & D ROUTE

Tech

Inv. Tech

Collab.

SMARTCymru SME Funding

Phase Employees Funding Rate

Maximum Funding

Minimum Phase Cost

Duration

Feasibility < 250 75 % £15,000 £5,000 1- 6 months

Research < 250 60 % £60,000 £30,000 3 - 12 months

Development < 250 35 % £200,000 £60,000 6 – 24 months

Commercialisation < 250 50 % £20,000 £5,000 up to 12 months

Support for large companies

SMARTCymru Large Company Funding

Phase Employees

Funding Rate

Maximum Funding Duration

Industrial Research

>250 50 % Negotiable – budget dependent. Speak to

Julie CunningtonEU max is €5million grant

per combined project/€25million project

costs

Flexible

Pre-Competitive Development

> 250 25 % Flexible

In all cases, large company support

must be cleared through the team at

the earliest opportunity.

SMARTCymru Criteria

What we seek in a SMARTCymru

application Innovation Novelty, IPR, Technical

riskCompany Viable, able to support project

Significant presence in WalesMarket Exploitation, Business

PlanAdditionality Grant essential for project

Wider View Project good for Wales

SMARTCymru is:

• Unique in the UK - ‘Open for business’ anytime – non-competitive - Flexible and quick - Project specific - Pan-Wales - Single company support (not collaborative research) - Revenue costs based support

Salaries & additional overheadsConsultancy & sub-contractMaterials

SMARTCymru is NOT: • ‘Operating Aid’• Rescue aid• Capital equipment based• Linked to job creation in a formulaic way (though it is important)• European Objective 1 / 2 or Assisted Area dependant • Available for the routine or periodic changes to products, production lines, manufacturing processes, existing services and other operations in progress, even though such changes may represent improvement

Case Studies

SPIRAL SCRATCH: Background

• Spiral Scratch formed in 2002 as a Unilever spin out company

• Company originally set up in Merseyside – won “Campus Ventures” and Merseyside Innovation Award” in 2004

• Received SMART DTI grant in 2003

• Decided on move to OpTIC in 2005, to help take company further

Spiral Scratch: 3D camera

technology

SMARTCymru Support Phase 1: Technical & Commercial Feasibility

Assisted Spiral Scratch to investigate and assess technical and commercial viability of the new 3D camera technology

Spiral Scratch awarded £15k TCF grant July 05 (phase cost £21K)- to carry out• Initial market research• Patent checks• Validation of Intellectual Property Rights• Desk research

The resultant Technical & Commercial Feasibility Report (October 05) confirmed the technical promise, and identified games consoles such as Sony Playstation as the market to address

SMARTCymru Support Phase 2: Industrial Research

Spiral Scratch used the IR phase to develop the 3D camera technology, to produce a basic functional camera

Spiral Scratch awarded £57k IR grant December 05 (phase cost £94k)

• Technical design finalised• Basic device developed

Work completed July 06 - Spiral Scratch now in a position to demonstrate their camera system to Sony in December ’06. Company has decided to also produce supporting software for the camera, 3 engineers being recruitedVenture capitalist confidence in the company continuing to grow

SMARTCymru Support Phase 3: Pre-competitive Development

Spiral Scratch has just started their PCD phase, to develop a pre-production prototype of their games console 3D camera system

Spiral Scratch awarded £143K PCD grant October 06 (phase cost £410K) – the deliverables will be:

• Final prototype of the 3D camera• Associated control software for incorporation onto

games applications

Work will be completed October 07. 3D camera system, and games applications should then be available for consoles such as Sony Playstation 3. Company is looking to move to larger office/manufacturing facility in St Asaph business Park

SMARTCymru Support Phase 4: Exploitation

Spiral Scratch intend to use the Ex phase to help to introduce their new 3D camera product to market

Once the PCD phase is complete, Spiral Scratch can apply for up to a £20K grant, to support:

• Testing certification and/or registration• Licencing• Marketing• Promotion• Technology transfer

Case Study 2IRN – US-owned large company

• 1st project for £3.25m grant finished. • Project specific – developing new technology platform to develop advanced, variable power integrated circuits (ICs). • The project objectives were to acquire knowledge of this cutting-edge technology; and to use this knowledge to design and prototype ICs for energy-saving domestic applications. • Results include the safeguarding of 67 highly skilled jobs and

Julie Cunnington+ 44 29 2082 874207717 814197

Thanks / Diolch

Any questions?