Interface Food & Drink Guidance Notes for Project ActivityJanuary 2016

Content

sContents...................................................................................................................................................

1. Background.......................................................................................................................................

2. Funding Products..............................................................................................................................

2.1. Feasibility Funding.................................................................................................................3

2.2. Proof of Principle Projects.....................................................................................................4

2.3. Competitions.........................................................................................................................4

2.4. Funding For Agricultural, Aquaculture and Fisheries Companies..........................................4

2.5. Common Interest Groups......................................................................................................5

2.6. Industrial Scholarships...........................................................................................................5

3. Company Eligibility...........................................................................................................................

4. Eligible Costs.....................................................................................................................................

5. Application Process – All applications...............................................................................................

5.1. How to submit an application................................................................................................7

5.2. Project Timescales.................................................................................................................7

5.3. Timing of calls........................................................................................................................7

5.4. Project Approval Criteria.......................................................................................................7

5.4.1. Impact............................................................................................................................7

5.4.2. Innovation......................................................................................................................8

5.4.3. Collaboration.................................................................................................................8

5.5. Evaluation..............................................................................................................................8

5.5.1. Feasibility Studies and Proof of Principle.......................................................................8

5.5.2. Masters and PhD Scholarships.......................................................................................9

5.5.3. Competition Projects...................................................................................................10

5.6. Appeals and Changes...........................................................................................................10

5.6.1. Appeals Process...........................................................................................................10

5.6.2. Changes to Approved Projects.....................................................................................10

5.7. Project Completion..............................................................................................................10

5.7.1. Feasibility/Proof of Principle/Competition..................................................................10

5.7.2. Scholarships.................................................................................................................10

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6. Claim Process..................................................................................................................................11

7. Financial Information......................................................................................................................11

8. State Aid implications.....................................................................................................................12

9. Confidentiality, Data sharing and Intellectual Property..................................................................13

9.1. Template contract...............................................................................................................13

9.2. Joined Up Government and Freedom of Information..........................................................13

Pre-Submission Background Information...............................................................................................14

Large Companies and Companies not registered in Scotland..........................................................14

Spinouts...........................................................................................................................................14

Policies....................................................................................................................................................15

Policy on Genetically Modified (GM) Organism research................................................................15

Policy on Sustainability....................................................................................................................15

1. BackgroundInterface Food & Drink (IFD) was established in 2011 by Scottish Funding Council with the overriding vision of improving the performance and global competitiveness of the Scottish food and drink industry and of increasing demand from the sector for the research provision of Scotland’s universities (HEIs). The objectives of Interface Food & Drink (IFD) are to:-

Foster an innovation culture within the food and drink industry Create and identify projects which are of sufficient scale in both ambition and size to have

economic impact, working with enterprise bodies, trade associations and industry bodies, and in alignment with the sector strategy set out by Scotland Food & Drink.

Facilitate a collaborative approach to problem solving for industry Have the Food and Drink sector use Scotland’s HEIs as an essential choice for research and

development

IFD, as approved and funded by the Scottish Funding Council (SFC), includes support for a series of collaborative projects for which all 17 partner HEIs are eligible to apply, in partnership with industry. The scheme is broad in nature and encompasses all disciplines of academia, from science and engineering to management and design, and companies from a wide range of sectors can apply as long as projects support the food and drink industry and the eligibility criteria outlined in this document are adhered to. IFD can provide differing levels of funding support for the following activities (see Section 2 for more detail):-

Feasibility Studies Proof of Principle projects One-year industry MSc fellowships; and Three-year industry PhD level fellowships/scholarships An annual competition

(NB: Please note that food and drink companies remain eligible to apply for SFC Innovation Vouchers; this process will be handled by the wider Interface team.)

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2. Funding ProductsInterface Food and Drink operates under an approved General Block Exemption Regulations scheme (as outlined here) as permitted by Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the common market in application of Articles 107 and 108 of the Treaty as published in the Official Journal of the European Union on 26 June 2014. For all IFD funding products the maximum funding intervention rate is normally 50% of total project costs (up to the maximum grant level), but where a project is very close to market or involves late stage experimental development of a product/process/service then the intervention rate may be lower. This is described in more detail in the section on State Aid. Where IFD decide that a project does not meet the requirements of the approved GBER scheme, the project may still be awarded a grant under de minimis aid subject to eligibility and approval by the panel, provided the applicant can demonstrate that this would not cause them to breach the de minimis limits.

Interface Food & Drink reserves the right to refuse any application, for any reason, and is not obliged to enter into a dialogue with the applying HEI to explain its decision. Interface Food & Drink reserves the right to turn down any application should it be deemed not to match the published criteria or overall purposes of the scheme. In some cases applicants may be asked for further information to clarify applications.

2.1. Feasibility FundingThis product can be used for projects aimed at early stage research assessing the potential of planned projects, the prospect for its ultimate success, or the acquiring of new knowledge and skills for the development of new products/processes and identifying the necessary steps to take the project to the next stage of development.

Companies of any size can apply for this funding product, but large companies will be required to submit a pro forma, outlining the reasons for requiring the grant, prior to submission of a full application (see Appendix 1 Pre-Submission Background Information). Common Interest Groups (CIGs) are eligible to apply for this funding as outlined here, but they should also refer to Section 2.5 for additional guidance. Companies from the Aquaculture and Fisheries sector should also refer to Section 2.4.

After successful application, a grant of up to £10,000 from SFC can be awarded towards the project costs. The grant must represent a maximum of 50% of the total eligible project costs. The remainder of the project costs must be met through a combination of cash and/or in-kind contributions as follows:

Applications from individual companies with no additional industrial collaborative partners are required to include a cash contribution toward the project costs of at least 25% of the value of the grant, with the rest provided in kind. This may be waived where the company is an SME and the risk of failure would prohibit the project being undertaken; or where the project is of clear mutual benefit to the wider sector. Please contact IFD to discuss if this is the case for your project.

Applications with two or more collaborating industrial partners (consortia and CIGs) are not subjected to a requirement to provide a cash contribution to the project, but it is strongly advised that they do so, particularly if the wider benefit of the research is limited. Collaborative applications with an industrial cash contribution will score higher during the appraisal process.

Where a company has been in receipt of an Innovation Voucher, a cash contribution equal to 30% of the value of the grant is required when applying as a single company, with the rest provided in kind. This may not be waived. The application must represent a recognisably distinct piece of work to that carried out for the Innovation Voucher (but can be related i.e testing feasibility of next steps or investigating other factors arising from IV project).

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Subsequent applications for a Feasibility Study by the same company/consortia/CIG must make a cash contribution towards to project cost equal to 50% of the value of the grant with the rest being made in kind. This can be waived for CIGs if the applicants can demonstrate why the previous Feasibility Study did not progress to the next stages and how the new application is different to the previous application.

It is expected that where possible, Feasibility Study applicants will pursue the next phase of study as outlined in the original application, either as a Proof of Principle or funded by another source. In cases where this does not occur, it is unlikely that further applications for IFD funding will be successful unless the applicants can justify why the next stages were not pursued. Please contact IFD to discuss further if your project falls in to this category.

2.2. Proof of Principle ProjectsThis product is aimed at research projects that build upon factors identified during feasibility investigations and facilitate the acquisition of new knowledge and skills for the development of new products/processes/services or for bringing about significant improvements in existing ones.

This funding product can also be used for late stage developmental research to develop new or improved products, processes or services, including conceptual definition, planning and documentation of these, but the intensity of the grant offered by IFD may vary depending on the scope of the project (further information given in Section 8 on State Aid). If you think your project falls in to this category please contact IFD to discuss further.

Companies of any size can apply for this funding product, but large companies will be required to submit a pro forma outlining the reasons for requiring the grant prior to submission of a full application. See Appendix 1 for more information. Common Interest Groups (CIGs) are eligible to apply for this funding as outlined here, but they should also refer to Section 2.5for additional guidance. Companies from the Aquaculture and Fisheries sector should also refer to Section 2.4.

After successful application, a grant of up to £25,000 from SFC can be awarded towards the project costs. The grant must represent a maximum of 50% of the total eligible project costs. The remainder of the project costs must be met through a combination of cash and in-kind contributions as follows: a cash contribution of 40% of the value of the grant with the rest being made up in kind.

2.3. CompetitionsCompetitively awarded grants may support feasibility studies, proof of concept/market and collaborative research & development projects. Proposals can be led by either Scottish universities or Scottish businesses (or food and drink trade bodies) but must involve both industry and academic partners. Competitions have requirements that are specific to each competition and these will be outlined in the application for each competitions, but the general requirements relating to the application process, reporting and claiming will apply. Therefore applicants should read both these and the specific competition guidelines in parallel.

2.4. Funding For Agricultural, Aquaculture and Fisheries CompaniesCompanies from the Agricultural, Aquaculture and Fisheries sector can apply for both Feasibility Funding and Proof of Principle Funding as defined in Sections 2.1and 2.2 respectively. As for all other sectors, after successful application, a grant of up to £10,000 for Feasibility Studies and £25,000 for Proof of Concept studies from SFC can be awarded towards the project costs. The grant

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must represent a maximum of 50% of the total eligible project costs, with the remainder being made up through a combination of cash and/or in-kind as described in Sections 2.1 and 2.2 respectively for Feasibility and Proof of Principle projects.

However additional special rules apply to companies from this sector. The project must be of interest to the sector or subsector of the companies involved. Interface Food & Drink is required to publish on its website the following information before the project starts:

That the aided project will be carried out

The goals of the project The approximate date of publication of results and its place of publication on the internet A reference that the results of the aided project shall be made available on the internet at

no cost

After project completion, the results of the project need to available on the internet from the end of the project, or when any results are given to the organisations involved, whichever is the sooner. The results shall be available for a period of 5 years.

2.5. Common Interest GroupsIFD has been particularly successful in establishing Common Interest Groups, where groups with a shared purpose can join resources to tackle a specific problem. Group members might be from the same industry sector, they might be from different sectors but share a manufacturing process; the issue might be one common across many sectors, e.g. waste, water, or other energy efficiency; there could be a market opportunity such as export, major multiples or premium markets.

IFD can support such groups by facilitating start-up, organising learning journeys to or from relevant academics, co-ordinating project applications and advising on relevant calls, such as TSB and Horizon 2020. The funding mechanisms detailed below are all appropriate for Common Interest Groups. Additionally there is funding for events and speakers.

Common Interest Groups are eligible to apply for either Feasibility Funding and/or Proof of Principle funding as described in Section 2.1 and 2.2 respectively. For either funding product, the grant award must at least be matched 100% by the Common Interest Group members collaborating on the project through cash and/or in-kind contributions, which should be shared amongst all industrial partners as appropriate. Companies of any size are eligible to be included in a CIG, but where a funding application from a CIG includes a company from the fisheries/aquaculture sector then the additional funding conditions outlined in Section 2.4 apply.

2.6. Industrial ScholarshipsFor the scholarships, preference will be given to applications that demonstrate cross-disciplinary approaches and/or programme of activity for a number of different companies in a particular region or sector across Scotland, such as those led by trade associations working on behalf of a number of companies or those that are cross-disciplinary in nature.

Masters (one year)Up to £10k, matched in cash by industry. Aimed at, but not restricted to, collaborative groups with a relatively short term problem to solve.

NB: Scholarships are not regarded as State Aid and therefore do not affect de minimis levels and do not come under GBER.

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3. Company EligibilityThe scheme is targeted at Small to Medium sized Enterprises (SMEs) registered in Scotland, but companies of any size and those out-with Scotland can be involved in applications for grant funding. Consortia/Common Interest Groups may include companies and HEIs from outwith Scotland. While the costs associated with HEIs out-with Scotland contribute towards the total project eligible costs, they are not eligible to receive funding from SFC/IFD to cover those costs. All projects, regardless of the location of consortia members, must be able to demonstrate that impact will be felt in Scotland, with clear impact and outcomes for both the HEI sector and for the Scottish economy.

Businesses that are solely engaged in primary production, the cultivation of crops and husbandry of livestock, are not eligible for support under de minimis regulations (please see Section 6.4 for further information regarding de minimis) unless they are able to show that they have the capacity to undertake R&D activity that will have a wider impact within the Agrifood sector, for example by selling the product/service to other businesses, not just for use on an individual farm. Applications from this sector must clearly demonstrate how the project outputs will be used in this wider way.

Large Companies, Companies not registered in Scotland and spin outs Larger companies, companies not registered in Scotland and University Spin Outs must submit a Pre-submission pro forma prior to submitting an application to justify the application for grant funding. For further information, see Appendix 1 Pre-Submission Background Information.

4. Eligible CostsCosts that are eligible to be counted as research and development projects costs are:

Personnel costs to the extent employed on the project Instruments and equipment to the extent used in the project. Where equipment is not used

for its full life, only the depreciation costs for the life of the project are eligible Costs of contractual research, knowledge, consultancy and equivalent services used

exclusively for the project Additional overheads and operating expenses (including materials, supplies and similar

products directly incurred as part of the project).

While the above are all counted as eligible project costs, the IFD/SFC grant can only be used to offset the eligible project costs incurred by the HEI partner. The grant is paid directly to the HEI partner upon completion of the project. Grant funds may not be used to cover the costs of:-

Standard training courses. Software purchases. Aid that would subsidise the cost of exports. Internships for students of knowledge institutions. Sales and marketing materials, whether hard or digital

Industrial cash contributions are counted as any cash expenditure by the industrial partner as part of the project. It does not include company staff time, overheads or salaries. These should be counted as in kind costs. Generally cash contributions should be paid to the HEI partner as part of the project, but costs paid to external parties as part of the project can be counted as cash contributions. A distinction between cash paid directly to the HEI and those to external parties should be made on the application form.

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5. Application Process – All applications

5.1. How to submit an applicationCompleted paperwork must be sent electronically to applications@interface-online.org.uk by the HEI and not the industrial partner.

5.2. Project TimescalesFeasibility Studies are expected to last between 3 and 6 months. Proof of Principle projects are expected to last between 6 and 12 months.

When selecting project start and end dates, take the following points into consideration: You should allow for 4 weeks from submission to approval by IFD’s evaluation panel when

determining your timescales. Please note that during holiday periods (especially July/August and Christmas) this process may take longer.

Consider the length of time to obtain internal sign off of paperwork and contracts within the university once the project has been approved.

Consider the length of time to obtain to obtain the necessary HR processes/recruitment of project staff should also be taken in to account when choosing dates.

Please ensure that the timescales for revisions, approvals and holidays have been taken into account in nominating start and finish dates.

5.3. Timing of callsIt is understood that industry preference is for open calls. All schemes are therefore open over the course of the year from the 1st June with a final submission date of 30th May the following year.

Table of Annual Submission Dates

Feasibility Studies and Proof of PrincipleFunding Calls Open Deadline for

applicationsDeadlinesubmission of finalreport/ invoice

Year Five 1st June 2015 30th May 2016 30th June 2016

ScholarshipsDeadline for Applications Deadline for Submission of Final

ReportsMSc PhD MSc PhD

Year Five 30/6/15 N/A 31/7/16 N/A

5.4. Project Approval Criteria

5.4.1. ImpactProjects which enhance the competitiveness of Scotland’s food and drink industry and can thereby lead to improved profitability, increased sales and/or new jobs will be deemed as having positive economic impact. Smaller companies are more likely to meet these eligibility criteria by working in collaboration with other companies or through trade associations.

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Impact is largely defined, in this context, as economic, but the term also applies to the HEI sector. If it is possible to demonstrate that there will be a significant impact on the universities, such as increasing their capacity in the food and drink sector, for example by introducing new fields of studies, attracting world class academics and/or by addressing areas of national significance such as climate change or sustainability, such projects may be considered for funding.

5.4.2. InnovationInnovation is difficult to define; in order to capture the innovative element, the application should identify what is being explored that is new and or different and/or what will change or be done differently as a result of this project? This key information must be included in the application, and the ‘innovation’ must be clear. It may include the application of existing technology in new areas.

5.4.3. Collaboration IFD was established to promote and encourage collaborations, not only between industry and universities, but also between groups of companies; this is seen as one of the most powerful ways to achieve impact, encourage best practice and to foster a culture of innovation. Projects which represent collaborations between groups of companies will score higher than individual company applications during the evaluation process. Applications should clearly identify how will the business engage with the HEI and why does the business want to work with the academic.

5.5. Evaluation

5.5.1. Feasibility Studies and Proof of PrincipleProjects will be assessed by the Interface Food & Drink Proposal Review Team (comprising: impartial industry representation from the Steering Group (e.g. Scotland Food and Drink, Scottish Enterprise and/or Highlands and Islands Enterprise) according to the following criteria:

Evaluation Criteria Maximum Score

Weighting

Feasibility Study Only –Is the next stage of research clearly set out?

10 10

Impact -There is a demonstrable potential to create impact (e.g. jobs, processes, products, sales)

10 6

Innovation - The project is exploring something new/different (at least to this sector) and/or has the potential to have innovative impact (something will change or be done differently as a result)

10 5

Does the project contribute to a culture of innovation (eg. evidence of close co-operation, adoption of new knowledge by the business, increase in HEI knowledge of F&D industry; diversifying engagement within the university)

10 5

Collaboration – This application represents a collaboration between a group of companies

10 7

There is sufficient evidence that the project requires academic input 10 5

Does it offer the possibility of developing longer term relationship with academia

10 2

Maximum Score 300 (400 for

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Feasibility Study)

Approval Scores:Proof of Principle >225 - UNQUALIFIED APPROVAL; 175-225 – May be approved if funding allows and all assessors are in agreement Feasibility Study >285 – UNQUALIFIED APPROVAL; 235 - 285 May be approved if funding allows and all assessors are in agreement

5.5.2. Masters and PhD Scholarships Projects will be assessed by the Interface Food & Drink Proposal Review Team (comprised of: independent academic representation from the HEI Members Group, impartial industry representation from the Steering Group (e.g. Scotland Food and Drink, Scottish Enterprise and/or Highlands and Islands Enterprise), and the Interface Food & Drink Co-ordinator) according to the following two sets of criteria. The first set must be met fully and are as outlined in the following table:

Yes NoIs the host academic institution one of the Network’s 17 partner HEIs in Scotland? Will the major impact/benefit of the proposed project be in Scotland (e.g. income, jobs, innovation, improved process, new product)? Is the applicant company demonstrably operating, or planning to operate, within the Scottish Food and drink industry?Is there clear evidence that the project is demand driven by industry?Is there clear evidence that industry match funding is both available and committed for the duration of the project?Is there significant potential for positive impact on the particular trade sector and/or company and the wider Scottish food and drink economy?Is there evidence that the project represents genuine collaboration within the industry and forms part of an on-going relationship?

The second set of criteria will be scored by the Interface Food & Drink Proposal Review Team according to the weightings below. The first criterion will be assessed only by the independent academic reviewer.

Maximum Score

Evidence of the compelling rigour of the research/quality of the research proposal and of the academic environment in which the research would be conducted

25

Clarity of the research challenge of the project, its objectives and the degree to which these are achievable

15

Clarity of the project plan; the plan should cover the duration of the scholarship and should include the way in which the outcomes will fit with the organisation’s longer term priorities.

10

The extent to which the proposed research contributes towards innovation for the applicant organisation and matches the industry partner’s objectives

25

The extent to which the proposed research will lead to benefits to the Scottish food and drink industry and to the Scottish economy

25

Total 100

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Approval Scores: > 80, unqualified approval < 80, > 65, possible approval if funding allows; would require full panel agreement

5.5.3. Competition ProjectsThe evaluation criteria and weightings for competition projects are outlined in the specific guidance that accompanies the competition application.

5.6. Appeals and Changes

5.6.1. Appeals ProcessThe collaborative agreement allows for appeals against project approval decisions taken by the PRT. Appeals will be directed to the Steering Group via the Steering Group chair. The Steering Group chair will circulate the appeal via e-mail to other members of the Steering Group with his/her comments on the appeal to facilitate speed of response. Steering Group members will respond to the Chair within one week of receiving such an e-mail. The Steering Group chair will then communicate the Appeal decision to the appellant within 5 working days. All such decisions will be final

5.6.2. Changes to Approved ProjectsOn occasion, the scope and/or timing of a project may require a change. Where it is anticipated that a delay of greater than four weeks will occur at any point during the project, a ‘Change Request Form’ should be completed and forwarded to the Project Co-ordinator, Helen@interface-online.org.uk . A copy of the form can be found using the following link. The Project Co-ordinator will aim to reply to such requests in a timely manner

5.7. Project Completion

5.7.1. Feasibility/Proof of Principle/CompetitionIt is anticipated that the company and HEI team will hold a final close out meeting to review the findings and recommendations arising from the study. This report will be helpful in assessing the scheme, impacts and outputs and potential lessons for future delivery. This information may also be included in reports to funders etc. A short final report will be completed by the HEI and the company. A pro forma is included in the application form. All final reports must be submitted to Interface using the address applications@interface-online.org.uk. The final report must clearly outline how the grant was spent e.g. academic time, materials etc.

The final report and invoice must be submitted to applications@interface-online.org.uk within 4 weeks of the project completion.

Following a review and approval of the final report by IFD, HEIs may then proceed to the Claims Process. After this time, IFD may consult with the HEI and company teams to produce a case study following the completion of projects based on non-confidential information. The case studies will be used to promote the benefit of the scheme to other organisations. Please be advised that the case study will be produced unless you opt out of this.

5.7.2. Scholarships The Interface Food & Drink Technology Translator (TT) will visit both the sponsor organisation and the relevant HEI to make an interim report at 6-monthly intervals. The Interface Food & Drink Co-

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ordinator will receive copies of any interim reports produced by the HEI which comment on the standard of research and supervision and the HEI will receive copies of the TT’s interim reports. Additionally, it is expected that all PhD scholarship students will submit an annual report giving a summary of progress achieved to that point and outlining the next areas of study.

Within 8 weeks of the end of a scholarship project, the HEI must submit the final report to the IFD Co-Ordinator. The final report must clearly outline how the grant was spent e.g. academic time, materials etc. Once this has been approved, the HEI may then proceed to the claim process.

6. Claim ProcessFor all project types, including scholarships, a Claim Form will be provided to all HEIs to ensure consistent recording and monitoring of spend, including time. This will also include the monitoring of the in-kind or cash contributions from businesses. After approval of the final report, HEIs must submit the claim form along with an invoice to the University of Aberdeen Finance Department (as indicated on the claim form) for payment within 30 days. Only allowed expenditure identified in the application process will be approved; any extraordinary expenses will be considered on a case by case basis but cannot be guaranteed to be approved.

Where a cash contribution is made to the project by the industry partner (eg the cash contribution required to be paid by the industry partner in respect of a Proof of Principle project), it is the responsibility of the HEI to invoice the company. This process should be highlighted in the HEI’s contract with the company. Evidence of payment by the industry partner must be included in the final report. A record of industrial in kind contributions must also be given in the claim form as indicated.

7. Financial InformationIn ensuring maximum value for the scheme to benefit a wide range of institutions and businesses, both company and academic partners are encouraged to include some cash contributions from the company in the proposal. Bids should demonstrate that they are value for money, and not simply be at the maximum grant level. The IFD/SFC grant is paid directly to the HEI and can only be used to offset the eligible project costs described in Section 3.0 incurred by the HEI partner.

The HEIs should use the application form to set out the exact costs of the activity (eg. staff time, materials, access to facilities etc). HEIs are not expected to conduct this activity at a loss and they should set out their rates accordingly. Full economic costing (FEC) will inform this process. Equally, HEIs are expected to be able to justify the costs; applications will be assessed for appropriateness and value for money.

A breakdown of the costs including staff costs for the actual work completed and other associated costs will be submitted with the final report and invoice. Eligible expenditure should be for activity explicitly set out in the approved application. It is the responsibility of the HEI that the day rates included for staff costs for both academics and company contacts time are appropriate for the skill-set/sector. A request to substantiate these rates with evidence of appropriateness may be made on submission of the application for European auditing purposes.

VAT which is recoverable, by whatever means, is ineligible, even if it is not actually recovered by the final beneficiary or individual recipient. Irrecoverable VAT can be claimed as an eligible cost provided the claim is substantiated by appropriate evidence from the organisation’s auditors or accountants. It is at the discretion of the individual HEI and their internal procedures that the proposed scheme of activity is classified research or consultancy.

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The grant is payable to the HEI and will be paid upon submission (and sign off) of a claim form, final report pro forma to applications@interface-online.org.uk , claim form and and invoice by the academic institution. Payments eligible for grant must have been incurred and defrayed by HEIs. Failure to submit the final report pro forma within 4 weeks of the nominated end date may result in the grant not being paid by SFC.

8. State Aid implicationsAlthough the Feasibility Study and Proof of Principle payments will be made to the HEIs, the partner organisations will be viewed as receiving financial benefit equal to the amount paid by SFC to the HEI. As a result, the assistance for Feasibility Studies, Proof of Principle and competition awards constitutes State aid as defined under Articles 87 and 88 of the Treaty of Rome and is being granted as ‘de minimis’ aid under Commission Regulation EC 1998/2006 (the "de minimis" aid regulation), unless they meet the requirements of IFD’s approved GBER Scheme (details can be found here ) .

European Commission rules prohibit any undertaking from receiving more than €200,000 ‘de minimis’ aid over any period of three fiscal years and any ‘de minimis’ aid granted over this limit may be subject to repayment, with interest. If the SME partner has received any ‘de minimis’ aid over the last three years (from any source) they should inform the higher education institution with which they intend to collaborate, and IFD, immediately with details of the dates and amounts of aid received. Furthermore, information on this aid must be supplied to any other public authority or agency asking for information on ‘de minimis’ aid for the next three years. De minimis aid cannot be given for export related activities, agriculture and fisheries, or aid favouring domestic goods over imports (in the case of fisheries and aquaculture, GBER should apply). For the purposes of the ‘de minimis’ regulation, award letters must be retained for 3 years from the date on the letter and produced on any request by the UK public authorities or the European Commission. (You may need to keep the award letter longer than 3 years for other purposes.)

Where a project meets the requirements of IFD’s approved GBER scheme then the grant award does not affect a company’s de minimis limit. Generally research projects funded by IFD will meet the requirements of this scheme and fall in to the category of Feasibility or Industrial Research as defined in Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the common market in application of Articles 107 and 108 of the Treaty (“GBER”) and the grant intensity rates outlined in these guidelines reflect this. However, there may be occasions where the project may meet the definition of Experimental Development as given in the GBER. In these circumstances the level of assistance that can be provided by IFD towards a project costs will be reduced and will vary depending on company size and the level of collaboration, details of which can be found here. Please contact IFD prior to submitting an application if you think your research falls in to this category to discuss the implications and potential grant intervention rate for your specific project.

IFD is able to offer grant to HEIs working with Agricultural companies on Research and Development projects under the conditions and in compliance with Regulation (EU) No 651/2014 as outlined in Article 2 of Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union.

The best place to refer to for state aid information is the BIS website for definitions and information, exemptions etc.

http://www.bis.gov.uk/policies/europe/state-aid/state-aid-rules/state-aid-regulations-and-frameworks

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http://www.stateaidscotland.gov.uk/state_aid/SA_MainView.jsp?pContentID=349&p_applic=CCC&p_service=Content.show&

You can also refer to the European Union online’s website:

http://ec.europa.eu/comm/competition/state_aid/reform/reform.html

If further clarification is required organisations should discuss this with Interface Food & Drink at the time of application to ensure the appropriate paperwork is completed.

9. Confidentiality, Data sharing and Intellectual Property

9.1. Template contractThe HEI and company applying for the award must consider confidentiality, data sharing and intellectual property prior to submitting their application. Confirmation that such agreements have been signed by all partners will be a condition of grant. Groups of companies coming together either in Common Interest or as consortium members for applications to TSB, Horizon 2020 for example, are also advised to come to agreement regarding these issues.

Levels of intellectual property generated will vary enormously from project to project. Applicants should evaluate the potential for generating intellectual property and enter into the appropriate agreement. It will be a condition of award that the SME is able to exploit any foreground intellectual property within their business sector.

To simplify the process of collaborating with a research partner, the Scottish university partners have agreed a series of downloadable, standardised legal agreements and documents including standard template for the company – HEI contract for an innovation voucher that will be agreed prior to project initiation. A sample copy can be downloaded from http://www.interface-online.org.uk/2218

9.2. Joined Up Government and Freedom of InformationThe Scottish Funding Council/IFD may share information about projects with the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise and any other appropriate organisation in the interests of developing and promoting IFD and its funding schemes.

Our funders, Scottish Funding Council, are subject to the Freedom of Information (Scotland) Act 2002 and as such may be requested to disclose information regarding the schemes it funds. Scheme members will be consulted before any decision to disclose information is taken. However, any refusal to disclose may be appealed to the Scottish Information Commissioner.

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Appendix 1

Pre-Submission Background Information

Large Companies and Companies not registered in Scotland

If the company is not registered in Scotland then additional information must be supplied prior to submission of an application. This information must include the following details:

Background to the company: what does the company do; what is its trading status? how the project will focus on the development of the Scottish element of the company’s activity;

The number of employees, remit, and website details The company’s presence and activity in Scotland How the funding will impact on the Scottish element of the company’s activity.

What will the funding allow the company to do that they cannot do by themselves i.e will the funding allow a material increase in the size, complexity or scope of project; total amount spent by the industrial partner; or speed of completion of the project?

Please send the information requested above to applications@interface-online.org.uk to confirm eligibility, prior to submission of a full application.

SpinoutsCompanies that have spun out from a HEI may apply for a Feasibility Study grant, but additional information must be supplied prior to submission of an application. This information must include the following details:

Does the HEI they spun out of, or any other HEI, have an equity share in the company, if so what is the level of equity? If the single or combined HEIs share is above 25% then the company is ineligible to apply.

Are any company staff still employed by a HEI (including seconded staff, those on sabbatical etc.)?

Is the company wholly spun out and independent of the host HEI or still hosted in the HEI facilities?

When did the company spin out from the HEI?

Is the support requested for a project that is distinctly different to the expertise of the academic team in the company?

Please send the information requested above to applications@interface-online.org.uk to confirm eligibility, prior to submission of a full application.

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Appendix 2

Policies

Policy on Genetically Modified (GM) Organism researchScottish Government policy on GM crops is clear:

The cultivation of GM crops could damage Scotland's rich environment and would threaten our reputation for producing high quality and natural foods. It would damage Scotland's image as a land of food and drink.

However, Interface Food & Drink backs scientific research which will benefit the food and drink industry within Scotland. Therefore, GM research which under contained conditions and representing experimental resource, rather than commercial cultivation can be supported.

In some circumstances, GM crop plants are produced and grown experimentally with the aim of identifying modifications that could produce new varieties with potentially beneficial characteristics for growers and consumers, such as drought resistance, salt tolerance, pest and disease resistance, improved yield or enhanced nutritional status and IFD recognises that growing experimental GM crops under realistic farming conditions may be a necessary part of this research. However, such field experiments are not commercial trials of potential crop varieties.

Policy on SustainabilityInterface Food & Drink has a clear policy of working closely with Scotland Food & Drink to ensure that its activity aligns with the sector strategy, as agreed by industry. Sustainability is of key importance to the sector strategy and therefore it is worthwhile stating SFD’s ambitions here:-

Overall, SFD wishes to “ensure that more businesses throughout the whole industry become economically and environmentally sustainable”.

Where relevant and possible, IFD projects should operate to SFD’s stated aims. –

a better return on assets and increased profitability• greater efficiency in the use of water and energy• a reduction of waste• greater use of recycled materials• less sent to land fill• more efficient use & management of natural resources now & in future• improved sharing of cross sector best practice across sectors, highlight exemplars• a strategy in place for resilience and vulnerability

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