Supporting digital innovation for SMEs

ICT Innovation Vouchers

DG CONNECT

Helen Köpman

Unit: Innovation

ICT Innovation Vouchers

Opportunity: SMEs to use higher value-added ICT services

"Web-connected SMEs have 22% higher revenue growth compared to

SMEs with low or no use of the web"*

• ICT uptake has impact on productivity, growth of

businesses

• Improve micro and SMEs competitiveness with new products, services, processes and businesses models

*Boston consulting Group, 2012

ICT Innovation Vouchers - Definition

"Small credit lines provided by the regional authorities to micro, small and medium-sized enterprises (SMEs) to

purchase ICT services from service providers with a view to introducing ICT innovations in their existing business"

A broad definition of innovation: SMEs have to innovate every day to keep customers, expand their markets

Source: OECD Innovation Policy Platform, 2010

SMEs Going Digital - A Blueprint for ICT Innovation Vouchers

• Basic concepts

• Choices regional authorities need to make to successfully tailor the scheme

Regions to define details of the scheme

There is not a one-size-fits-all solution

• Based on analysis of the particular needs of the regions SMEs, identifying competitive advantage, setting strategic priorities, complementing the regional innovation landscape

Choice of the implementing body

• Regional or local intermediaries to the Managing Authority

Eligibility and quality of knowledge/service providers and eligibility criteria of applicants

• Free choice of providers, binding list, mixed approach

Regions to define details of the scheme

Rate of funding

• Fully funded or co-funding/in-kind contribution by SMEs

Voucher's redemption

• Upfront payment by SMEs or not

Start/duration of the scheme

Modalities of application & selection

Performance measurement & indicators

• Quantitative and qualitative indicators

Voucher process

1

•SMEs application

•Concrete plan to introduce ICT in their business model

2

•Project approval

•An ICT Innovation Voucher is provided by the implementing body

3

•Eligible Service Providers defined by Implementing Authority •SMEs purchase the ICT-related services eligible for funding

4 •Redemption of the Voucher

5

•Control mechanisms for measuring performance and monitoring effectiveness of the scheme implementation

(1) Application (Product Design 6.000 €)

(2) INFO approves the grant (Voucher)

(3) The service

is provided (4)

Payment of

the service

+

(5) Justification

(6) Transferring the

economic value of

the voucher

Approved Service

Provider

SME

How does the Innovation Voucher work?

900 €

(+ VAT of the

invoice)

5.100 €

From digital growth strategy to regional funding

• SMEs competitiveness as an investment priority within the regional digital agenda/smart specialization strategy

• Define specific ICT innovation voucher action in appropriate thematic objective and priority in the regional operational programmes

• Co-fund ICT innovation voucher schemes through the EU Structural and Investment Funds

Note that…

• Knowledge/service providers can be ICT related companies/public institutions from throughout the whole European Union

• Business-as-usual activities are not targeted (for instance, online advertising in a high Web SME)

• Regions can complement the ICT innovation voucher schemes with advising/coaching/ mentoring/networking support for the SMEs