open disruptive innovation sme instrument
DESCRIPTION
The EU Commission, Horizont 2020 program, supporting research & innovation proposes a new funding instrument for innovative SMEs. This presentation introduces the instrument and provides information on the way it will be used in the context of ICT priority.TRANSCRIPT
Research and Innovation
Research and Innovation
ODI / SME instrument
ICT 2013Vilnius November 2013
Viorel PecaPierre Marro
DG CONNECT / Innovation
Barriers to participation (study on non participation of SMEs in FP7)
The following were identified as either strong or weak barriers for ICT-SMEs as a whole, regardless of FP7 participation:Resources: Dedicating time and human resources to proposal
preparations
Information: Awareness/access to preceding documents and to FP7 information days
Time: Current time-to-project and Long projects
Support: Getting feedback on project ideas
Financials: Partial reimbursement of project expenses, EU accounting arrangements and the required reporting capacity
Business: Participating in research project outside the company’s main business interest
• From the questionnaires and interviews 6 key messages were identified:• SMEs want more quality information• Fit the Rhythm of SMEs• Making life simpler for SMEs• Flexibility fosters creativity and innovation• Getting closer to private investors and the
market• Attracting new participants
Overview of Key Messages (study on non participation of SMEs in FP7)
Why ODI (Open Disruptive Innovation)
Triggered by Vice President Neelie Kroes speech (25/09/2012):
"First, remember that great innovation isn't about keeping the status quo: it's about challenging it. It's radical, disruptive, and sometimes non-linear – especially for emerging technologies.
So let's make space for that in Horizon 2020.
Here's what I want to do. I want to try out support for truly open, disruptive innovation in ICT. Allocating perhaps 5% of funds to create an open, agile, responsive funding instrument. Starting an experiment to support creativity and innovation."
It is one of the answers to the issues that you raised in FP7.
Open in scope and in time and in 2014-2015 dedicated to SMEs.
SME support: integrated approach
Horizon 2020
SME instrument7%
Collaborative projects
13%
Eurostars IIEnhancing Innovation
CapacityMarket-driven Innovation
Access to Risk Finance
20 % budgetary target in LEITs & SC
'Innovation in SMEs'
5
OpenDisruptive Innovation
Growth phase
(SpeedUp Europe)
Access to Finance
Start-up phase
(StartUp Europe)
CONTEXT
H2020 ICT thematic
areas
SME instrument?
IDEA business coaching throughout the project MARKET
Phase 1: Concept & Feasibility
Assessment
Phase 2: Demonstration
Market ReplicationR&D
Phase 3: Commercialisation
50 k€
6 months
0,5 to 2,5 M€1 – 2 years
Eg: Access to risk finance
Procurement
SME window EUfinancial facilities
Phase 1: Concept and feasibility
assessment
Phase 2: R&D, demonstration,
market replication
Input: Idea/Concept: "Business Plan 1"
(~ 10 pages)
Activities:Feasibility of concept
Risk assessmentIP regime
Partner searchDesign study
Pilot applicationetc.
Output: elaborated "Business plan 2"
Input: "Business plan 2" plus description of activities under Phase
2 (~ 30 pages)
Activities:Development,
prototyping, testing, piloting,
miniaturisation, scaling-up, market
replication, research
Output: "investor-ready Business plan 3"
Lump sum: 50.000 €
~ 6 monthsNo direct funding
Phase 3: Commercialisation
Typically 1-2,5 M€ EC funding
~ 12 to 24 months
Promote instrument as quality label for
successful projects
Facilitate access to private finance
Support via networking , training,
information, addressing i.a. IP management, knowledge sharing,
dissemination
SME window in the EU financial facilities (debt
facility and equity facility)
Possible connection to PPC (and PPI?)
Phase 3 & coaching = 2% budget
8
SME instrument
9
Coaching and EEN support
EEN Initial
Assessment
Phase 1 Phase 2 Phase 3
Coaching
Regional
HR
…
TO/T
R
EU F
unds
SME Instrument
Support for Application
Support for EU project Management
Support for Access to Finance
Facilitation and Moderation
Volumes and funding (overall ~2,8 B€ over 2014-2020)
5,200 Phase 1 projects
1,700 Phase 2 projects*
Phase 3 project
s50 k€ lump sum 1 to 2,5 M€ Access to risk finance
*Average size of 1.5 M€
Or 2550 projects of 1 M€, 1250 of 2 M€…
10% 88% 2% coaching
Phase 1Phase 2Phase 3
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• Targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise (EU dimension)
• Combination of demonstration and market replication encouraging the involvement of end users/potential clients, research as appropriate
• Only SMEs allowed to apply for funding
• Single company support possible
Main features
• Simple rules and procedures
• Continuous open call with 3-4 cut-off dates per year
• No obligation for applicants to sequentially cover all three phases; Each phase open to all SMEs; however SME strongly encouraged to go in phase1
• Bottom-up approach, each SC & LEIT themes defines a broad topic
• Central implementation through Executive Agency
Main features (2)
Evaluation
1. Remote evaluation whole process
2. Suggestion to abandon consensus meetings
3. Long feedback loops ("ESRs") slow down the process
4. Evaluation criteria focus :
• Excellence
• Impact
• Quality and efficiency of the implementation
5. Competences of evaluators is important
Award criteriaExcellence:
-Soundness of the concept, including trans-disciplinary considerations;
-Progress beyond the state of the art.
Impact:-Enhancing innovation capacity and integration of new knowledge;
-Strengthening the competitiveness and growth of companies by developing innovations meeting the needs of European and global markets;
-Effectiveness of the proposed measures to communicate the project, disseminate and/or exploit the project results, and appropriate management of IPR.
Quality of the implementation:
-Competences, experience and complementarity of the individual participants, as well as of the consortium as a whole;
-Appropriateness of the management structures and procedures, including risk management.
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draft
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Based on various surveys (EVCA, EIM, NESTA), it is estimated that about 1 to 6 % of all SMEs belong to the target group, i.e. 200,000 to 1.2 million SMEs.Without restrictions it is estimated to receive 10,000 to 15,000 SME applications for Phase 1 every year.This number is limited in case of topic oriented calls
Measures to "reduce" applications:1. Only one application per company (in both phases)2. This implies: no possibility to apply for Phase 1 during the
submission and/or implementation of a Phase 2 project and vice versa.
3. Advice by the support network(s)4. SMEs should be encouraged to enter the scheme in Phase
1
Demand
Open Disruptive Innovation - ICT LEITImplementation: SME instrument
Budget: 90M € for 2014-15
Funding: lump sum 50k€ phase1; 0.5 to 2.5 M€ phase2; 70% of eligible costs
Scope: No restriction on ICT area
Focus on "Disruptive ICT innovation"= Innovative ICT concept, product or service applying new sets of rules, values and models which ultimately disrupt existing markets
Cut off dates(TBC!):indicative 18/06/2014; 24/09/2014; 17/12/2014 for phase 1; Oct/Dec. for phase 2 (opening 01/03/2014)