Establishing a standardised methodology to measure JEREMIE

impact

Álvaro Navarro

Innovation and Development Agency of Andalusia , Spain

Brussels, 20th May 2011

2

Index

Issues to measure the impact of JEREMIE

Benefits of an impact evaluation system

Issues of an impact evaluation system

Requirements for an efficient reporting system and impact evaluation

Proposal design of an impact evaluation system for JEREMIE

Reporting Approach of JEREMIE Andalucía

Set up

JEREMIE Andalucía

3

Issues to measure the impact of JEREMIE

Information delay Inefficient monitoring Matchless outcomes

Information delay Inefficient monitoring Matchless outcomes

Each region is developing (or not) their own procedures and reporting

No interfaces among regions No communication to EC

Each region is developing (or not) their own procedures and reporting

No interfaces among regions No communication to EC

From industrial society to information society No evaluation of efficient resources allocation and impact No guidelines / No standards established

From industrial society to information society No evaluation of efficient resources allocation and impact No guidelines / No standards established

CURRENT SITUATION

Need for a STANDARDISED REPORTING METHODOLOGY

4

Benefits of an impact evaluation system

Efficiency of resources allocation

Maximise effectiveness of funds

Maximise effectiveness of financial instruments

Strategy and operation alignment

Assess on how participants benefit from by means of JEREMIE

Redefine initial goals

Benchmarking of operational parameters and impacts

Optimize existing legislation

Monitoring and control

Design of more effective financial instruments

European Commission

Holding Funds

FinancialIntermediates

Impact evaluation

system

5

Issues of an impact evaluation system

Design Phase

Prolonged – long term outcomes Investment vs. Impact gap Outcomes misunderstanding / interpretation Counterfactual scenario

Issu

es

Implementation Phase

Contain a technically complex design

Hierarchies Users Languages Needs

Data access Who When How

Cost- Benefit ratio

6

Requirements for an efficient reporting system and proposal design of an impact evaluation for JEREMIE

Requirements of the modelRequirements of the model Proposal indicatorsProposal indicators

Concise, brief and with a minimum of homogeneity (but margin for customisation)

Clear data definition Parameterize for understanding Periodicity Deadlines

Size Structure

Data Requirements

Company Data

4 possible hierarchical levels: European Commission Holding fund Financial Intermediate Companies

Global involvement Qualified and committed team

Scope

Project Data

Amount

Financial Instrument Data

Investment Repayment Collateral

requirements

Impact Data

Stage Sector

Ratios

Employment Investment Innovation Regional Social…

Cost Guarantees Maturity

7

Reporting approach of JEREMIE ANDALUCIA

Investment Destiny Compatibility with other public grants Etc etc

Project DataProject Data

Sector Employees (number & gender) Individual /group company Age Size Situation Main financial figures

Company DataCompany Data

Financed amount Instrument Terms Cost Guarantees Leverage Maturity Covenants

Financial instrumentFinancial instrument

European Commission

Holding Fund

Andalusia

FinancialIntermediate 1

Companies

FinancialIntermediate 2

CompaniesCompaniesCompanies

CompaniesCompaniesCompaniesCompanies

8

Set up of an European impact evaluating and reporting system

9

APPENDIX

10

JEREMIE ANDALUCIA - IMPACTS

INVESTMENT

EMPLOYMENT

REGIONAL STRUCTURE

INNOVATION SYSTEMS

SOCIAL IMPACTS

Assets investment: current vs fixed

ROI / Leverage..

Economic sectors targeted

Duration.- Gender…

New productive networks through technological development

Job creation : direct vs indirect employment

Hi-tech impact

Sustainability

Technology transfer

New procedures development

Skills level of participants

International entrepreneur vs foreign investors

Talent attraction.- higher skills and competences

Private partners

Real vs substitution / Off shoring jobsCreation vs Maintenance

Andalusian business framework

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JEREMIE ANDALUCIA - STATUS

12/05/2011

3,2 31% 4,7 21% 2,6 39% 1,4 70% 3,7 27%

29 85% 9 56% 13 100% 2 15% 53 82%

14 41% 9 56% 1 8% 0 0% 24 37%

4 12% 2 13% 0 0% 0 0% 6 9%

SME ( nº / % )

Internationalization ( nº / % )

Andalucía attraction ( nº / % )

Investment / Net employment 15.838 € 26.083 € 12.702 € 442.000 € 18.497 €

512,86 €

Multiplier / Coinvestment %

Direct & net employment impact 5.449 1.845 161 4 7.459

0,88 € 2,12 €

IMP

AC

T

Induced Investment (MM) 278,57 € 226,54 € 5,23 € 2,52 €

137,97 €

Desinvestment (MM) 12,00 € 0,00 € 0,00 € 0,00 € 0,00 € 0,00 € 12,00 €

0,17 € 9,50 € 1.070,04 €

Approved amount (MM) 86,30 € 47,85 € 2,05 € 1,77 € 0,00 € 0,00 €

AM

OU

NT

Amount requested (MM) 645,18 € 348,57 € 16,88 € 49,73 €

Average Investment (MM) 2,54 € 2,99 € 0,16 €

4 332

Approval Ratio ( 2 / (2+3+4) ) 21% 36% 41% 29% 27%

4 0 0 101

TOTAL 189 80 45 13 1

65

(3) Denied 54 8 13 1 0 0 76

1 4 90

(2) Approved 34 16 13 2 0 0

ST

AT

US

(1) Analysis 30 36 13 6

(4) Desisted 71 20 6

TOTALFondo JeremieFondo Desarrollo

EmpresarialFondo Economía

SostenibleFondo Eficiencia

Energética

Fondo para Emprendedores

Tecnológicos

Fondo Generación de Espacios Productivos

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JEREMIE ANDALUCIA - STATUS

IDEA Monitoring system, collecting data for SMEs through FIs.

3 months

normal report

Gathering daily information on financial indicators of financed SMEs

6 months

operational

report

Gathering official semestrial information for financed SMEs (eg.

financial indicators, balance sheets, P&L, audit reports)

exceptional

reports

Concerning SMEs that the Fund manager deems they can be in risk