UKRO Conference 18-06-15

Dr Jane Watkins SME National Contact Point for SMEs and Fast track to Innovation Pilot

Finding SMEs for Horizon 2020 Actions – How to Work with the Enterprise

Europe Network and the UK National Contact Point for SMEs?

Horizon 2020

• Topics for funding are much broader in scope

• Topics are less prescriptive innovation to come from the consortium

• Much more emphasis on use of results

• Uptake of results into products/processes/society requires non-academic partners, and frequently industrial partners

Why European Funding

And getting some money to help you do it

• Doing something you want to do

• Access to missing skills

• Achieving new things

• Obtaining a different viewpoint

• Sharing development costs

• Building broader networks

• Learning about others

• To underpin a product that you can sell

Key aspects • Business-led innovation

• Involvement of a range of organisations (industry, academic, public, end users)

• Market and commercial focus

• International collaboration to address European/international issues by combining different disciplines and expertise

• Propose innovative solutions to the defined challenges

• Flexibility to involve a range of disciplines to solve the challenges

• Opportunity to pilot and demonstrate solutions

Research-Driven Projects

Innovation-Led Projects

Near to market R&D Projects

Demonstration market

replication

Consortia – min 3 partners, 3

countries

1 additional non-UK partner

Single SME (also groups)

Prescriptive & Thematic Calls

Bottom-Up Projects – no

thematic focus

Thematic Calls, but flexible

projects

100% Funding 70% Funding 60% Funding 70% Funding

Value Varies Up to €360K Phase 1: €50k

Phase 2: €0.5 - 2.5m

Societal Challenges & Industrial Leadership

Eurostars **

SME Funding Opportunities under Horizon 2020 (and associated programmes**)

SME Instrument

Prescriptive & Thematic Calls

Consortia – min 3 partners, 3

countries

Value Varies

Fast Track to Innovation

5 from 5 countries, Min.

3 from 3

Bottom-Up Projects – no

thematic focus

Demonstration market

replication

70% Funding

Maximum 3m

Reimbursement rates

ONE PROJECT - ONE FUNDING RATE: for all participants & all activities

• Research actions - reimbursed up to 100%

• Innovation actions - reimbursed up to 70% (100% for non-profit organisations)

• Indirect costs - a flat rate of 25% of direct eligible costs

• No actual-indirect cost option, but…

• Large research infrastructures (LRI): allows overhead costs for infrastructures to be

claimed as ‘direct’ (Methodology and EU inspection required)

• Typical issues: ?

Reimbursement rates: See the Annotated model grant agreement – Article 5

Funding rates example:

FP7 (For SMEs, HEIs, RTOs)

Direct cost Indirect cost Total cost EU % reimbursement

EU contribution

60% flat rate for indirect costs

100 60 160 75% €120

Horizon 2020 (For all participants)

Direct cost Indirect cost Total cost EU % reimbursement

EU contribution

Research actions 100 25 125 100% €125

Innovation actions

100 25 125 70%* €87.5

RTD funded at 75%, management at 100%, demonstration at 50%

All activities funded at the same rate for all participants

*100% for non-profit organisations

• Eligible costs much the same as FP7 (personnel,

goods/services, consumables, durable equipment,

subcontracting, third party costs…)

SME self-assessment wizard

Based on organisational financial data and headcount

• Shareholders/shareholdings may affect status (non-autonomous) • Assessment optional and only required if participating in SME specific actions • Can’t apply for an SME action if entity not validated as SME in last 2 years • The wizard produces an instant result and summary of data • The wizard isn’t a model of clarity…

• Typical issues: status expired, no economic activity, applicants leave it too late, applicants believe they are SMEs but aren’t!

SME definition: http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf

Beneficiary register user manual: http://ec.europa.eu/research/participants/data/

support/manual/urf_sme_wizard_guidance.pdf

Phase 1 Grant support of €50,000 (lump sum) + coaching

Phase 3 Risk Finance

(Public/Private)

Concept & Feasibility Assessment

Demonstration Market Replication R&D

Commercialisation

Concept to Market-Maturity Market-Maturity to Market Launch

Proof of Concept Prove technical & commercial viability Explore IP regime Design Study Develop pilot application Risk assessment

Demonstrate Commercial Potential Prototyping Testing Piloting Miniaturisation Scaling-Up Application Development

Go-To-Market EU Quality Label Investment Readiness Training SME window in EU financial facilities (Debt & Equity) Link to Public Procurement Networks

Project: 6 Months Project: 12 – 24 Months

Ideas to Concept

Outcome: Elaborated Business Plan Outcome: Commercialisable Output Outcome: Market Success

TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9

Phase 2 Grant of €0.5m – 2.5m

70% funding + coaching

Specific Calls • BG-12-2015-1: Supporting SMEs efforts for the development - deployment and market replication

of innovative solutions for blue growth

• BIOTEC-5b-2015-1: SME boosting biotechnology-based industrial processes driving competitiveness and sustainability

• DRS-17-2015-1: Critical infrastructure protection topic 7: SME instrument topic: Protection of Urban soft targets and critical infrastructures

• ICT-37-2015-1: Open Disruptive Innovation Scheme (implemented through the SME instrument)

• INSO-10-2015-1: SME business model innovation

• INSO-9-2015-1: Innovative mobile e-government applications by SMEs

• IT-1-2015-1: Small business innovation research for Transport

• NMP-25-2015-1: Accelerating the uptake of nanotechnologies, advanced materials or advanced manufacturing and processing technologies by SMEs

• PHC-12-2015-1: Clinical research for the validation of biomarkers and/or diagnostic medical devices

• SC5-20-2015-1: Boosting the potential of small businesses for eco-innovation and a sustainable supply of raw materials

• SFS-08-2015-1: Resource-efficient eco-innovative food production and processing

• SIE-01-2015-1: Stimulating the innovation potential of SMEs for a low carbon energy system

• Space-SME-2015-1: SME Instrument

SME Instrument – KEY FEATURES

• Targeted at all types of innovative SMEs showing a strong ambition to grow (and to develop and internationalize)

• Only for profit SMEs allowed to apply for funding (single company support, but collaboration is certainly advisable)

• Competitive, EU dimension - only the best ideas pass

• Market-oriented, close-to-market activities (TRL 6): 70% co-funding

• Entrance in both Phase 1 and 2

• Embedded in societal challenges and key enabling technologies

• Evaluators: market perspective

• Time to grant*: 400 days in 2008 - > 150 days in 2014. For example those who submitted in June and were successful started their projects end of September early October.

Target Group • Innovative for-profit SMEs showing a strong ambition to develop, grow

and internationalise

• Single company support is possible or consortium of for-profit SMEs

• Highly competitive, market-oriented, EU dimension

• Other partners (research providers like universities and research institutes, large companies etc.) can be involved as third parties (subcontractors)

• SMEs need to be established in the EU-member states or associated countries

Learning from Experience

• Based on the previous proposals received, we have learned that the success rate in Phase 1 projects tends to be higher in those SMEs that have been established for 4 years or more - in fact, 70% of funded projects proposals came from companies that have been in the market for at least that amount of time.

• We have found that companies that have a staff of 6 or more employees account to two thirds of all projects that were funded up to now.

It is important for your success to know where you are going, to have a team that will help you get there, and know where you will fit in the market.

• Follows bottom-up logic (within SC and LEITs)

• One common call, permanently open, 3 cut-offs per year

• Time-to-grant 6 months

• Funds innovation actions (70%), grant up to €3 mn

• Allows consortia of min. 3, max. 5 members — mandatory industry involvement

• Impact criterion has higher weighting in evaluations

• Budget: €200 mn for 2015/2016 (100 + 100) — ca. 100 projects with average EU contribution of €2 mn

• Future of pilot (beyond 2016) only decided after full evaluation

Fast Track to Innovation Pilot Key Features

•- Mandatory industry involvement can consist in the following…:

• … either at least 60% of the overall budget of the proposal must be allocated to consortium partner(s) from industry

• … or the minimum number of industry participants must be 2 in a consortium of 3 or 4 partners, and 3 in a consortium of 5 partners.

-Proposals shall include a business plan (market development strategy)

-SMEs and first-time industry applicants particularly welcome

FTI Pilot Industry Involvement?

Existing

Contacts

Friends of

Existing

Contacts

Partner

search

Normally….

• Look to your own supply chain first

• Partner search facilities, Enterprise Europe

Network, Cordis etc)

• Go to brokerage events, European and national

conferences

• Join Knowledge Transfer Network

• Start early…

Most partnerships are formed on an individual basis with universities and companies, rather than as part of a broader ‘relationship with academia / industry,’ each with different starting points and aims

Finding Partners

Support available

• Knowledge Transfer Network: thematic expertise and knowledge, collaboration and networking opportunities (www.ktn-uk.co.uk)

• Enterprise Europe Network: basic and general information on Horizon 2020, coaching for the SME Instrument, local presence, international networking and collaboration (www.enterprise-europe.net)

• National Contact Points: specific information and support to Horizon 2020 applicants (www.h2020uk.org)

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Enterprise Europe Network

Help in accessing Horizon 2020 opportunities

• Enterprise Europe Network – generic local support

• Knowledge Transfer Network – thematic national support

• National Contact Points – dedicated experts providing specialist H2020 advice

• Innovate UK Brussels office

• Catapult centres

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KTN - Support for H2020 • Support UK based businesses in engaging with Europe and H2020

• Influence the funding priorities within H2020

by

• Working with NCPs and the EEN within the UK to optimise support to UK

companies

• Building on links with the European Commission, European Technology Platforms

(eg SusChem) and PPPs (e.g. BBI, SPIRE)

• Participate in projects where they support the KTN purpose and strategy

(eg Co-ordination & Support Actions)

• Identifying opportunities for collaborations across sectors and along value chains

How can the KTN help your business?

• We can complement the National Contact Points and the EEN by providing support in: – Consortium building – using our networks to find the right UK, and in

selected topics, EU partners that best meet the needs of a particular project;

– Providing sector specific advice –good understanding of business needs across all sectors;

– Advice on project construction and how to produce a compelling proposal;

– Advice on market opportunities and project impact – Advice on the implications of being part of a Horizon 2020 project,

particularly as Co-ordinator –they have done it;

NCP support

• Feedback to/from EC on work programmes

• Clarification of documentation and rules

• Guidance on choosing thematic priorities and instruments

• Scope queries with Project Officers

• Advice on administrative procedures and contractual issues

• Support with the application process (workshops and 1-2-1)

• Feedback on draft proposals

• Assistance with partner search

– through network support (EEN and KTN)

• Feedback on results

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Contact details

Dr Jane Watkins UK Horizon 2020 National Contact

Point for SMEs

Email:NCP-SME@innovateuk.gov.uk

• IF YOU WISH TO BE KEPT INFORMED ABOUT EUROPEAN HORIZON 2020 FUNDING OPPORTUNITIES PLEASE REGISTER YOUR INTEREST ON www.h2020uk.org