H2020 Forms of funding, types of actions and general rules

1. H2020 Forms of funding, types of actions and general rules Ioannis Malekos DG CONNECT European Commission Ioannis.malekos@ec.europa.eu Nicosia, 2nd December 2013 Disclaimer : H2020 Regulations are not yet adopted by the legislator. Any information contained in this presentation is legally not binding

2. Single set of rules • Covering all research and innovation programmes, initiatives and funding bodies (eg what was FP7, CIP, ERA-NET,… but also EIT,…), but flexible to accommodate specificities where needed • Coherent with the rules contained in the Financial Regulation (FR) Disclaimer : legally not binding

3. Forms of funding • Grants • Direct financial contribution by way of donation in order to finance an action • Prizes • Financial contribution given as reward following a contest • Procurement • Supply of assets, execution of works or provision of services against payment • Financial instruments • Equity or quasi-equity investments; loans; guarantees; other risk-sharing instruments Disclaimer : legally not binding

4. GRANTS Disclaimer : legally not binding

5. Types of actions supported by grants • Research and innovation actions • Innovation actions • Coordination and support actions • SME instrument • Programme Co-fund • ERANET Co-fund • Pre-commercial procurement Co-fund • Public procurement of innovative solutions Co-fund Disclaimer : legally not binding

6. Research and innovation actions • Actions primarily consisting of activities aiming to establish new knowledge and/or to explore the feasibility of a new or improved technology, product, process, service or solution. • For this purpose they may include basic and applied research, technology development and integration, testing and validation on a small-scale prototype in a laboratory or simulated environment. Disclaimer : legally not binding

7. Innovation actions • Actions primarily consisting of activities directly aiming at producing plans and arrangements or designs for new, altered or improved products, processes or services. • For this purpose they may include prototyping, testing, demonstrating, piloting, large-scale product validation and market replication. Disclaimer : legally not binding

8. Coordination and support actions Actions consisting primarily of accompanying measures such as standardisation, dissemination, awareness-raising and communication, networking, coordination or support services, policy dialogues and mutual learning exercises and studies, including design studies for new infrastructure and may also include complementary activities of networking and coordination between programmes in different countries. Disclaimer : legally not binding

9. R+I, Innovation, CSA: example H2020, WP 2014-15, Leadership in enabling and industial technologies (LEIT) ICT19 -2015 : Technologies for creative industries, social media and convergence • ICT19.a : R+I, 18MEur: Research in new technologies and tools to support creative industries in the creative process from idea conception to production (…) • ICT19.b: Innovation, 21MEur: Demonstration of the viability of new technologies and validation of innovative solutions through large scale demonstrations, pilots or testing of use cases (…) • ICT19.c: CSA, 2MEur: support program activities, dissemination of results, events organisation, (…) • Deadline for all actions: 21/4/2015 Disclaimer : legally not binding

10. SME Instrument For single SMEs or SME consortia • Phase 1: Feasibility study verifying the technological/practical as well as economic viability of an innovation idea • Phase 2:Innovation projects that demonstrate high potential in terms of company competitiveness and growth underpinned by a strategic business plan. • Phase 2 proposals should be based on a strategic business plan either developed through phase 1 or another means Disclaimer : legally not binding

11. SME Instrument : example H2020, WP 2014-15, Leadership in enabling and industial technologies (LEIT) ICT37 : Open Disruptive Innovation scheme (implementedthrough the SME instrument) • 45MEur per year, 10% phase 1, 88% phase 2, 2% coaching • Opens 1/3/14 with multiple cut-off dates per phase, per year • Phase 2 proposals should be based on a strategic business plan either developed through phase 1 or another means • Open subject: “Proposed projects should have a potential for disruptive innovation and fats market up-take in ICT” Disclaimer : legally not binding

12. ERANET Cofund ERA-NET Cofund actions support public-public partnerships in their preparation, establishment of networking structures, design, implementation and coordination of joint activities as well as Union topping-up of a trans-national call for proposals. Disclaimer : legally not binding

13. Pre-Commercial Procurement (PCP) Cofund • PCP Cofund actions support the preparation, single joint procurement and implementation of contracts for research and development services and related additional coordination activities. • 'Pre-commercial procurement’ means procurement of research and development services involving risk-benefit sharing under market conditions and competitive development in phases, where there is a separation of the research and development phase from the deployment of commercial volumes of end-products Disclaimer : legally not binding

14. Public Procurement of Innovative Solutions (PPI) Cofund • PPI Cofund actions support the preparation, single joint procurement and implementation of contracts for innovative solutions and related additional coordination activities. • 'Public procurement of innovative solutions’ means procurement where contracting authorities act as a launch customer for innovative goods or services which are not yet available on a large-scale commercial basis. Disclaimer : legally not binding

15. PCP/PPI : example H2020, WP 2014-15, Leadership in enabling and industial technologies (LEIT) ICT8 : Boosting public sectorproductivity and innovation throughcloudcomputing services • ICT8.a : PCP, 9MEur: PCP for public sector cloud computing services. Proposals will define common requirements and terms of reference for future procurement of cloud computing services(…) • ICT8.b: PPI, 13MEur: Public procurement for innovative cloud computing solutions. Proposals will focus on organizing joint procurement of innovative cloud services by public authorities to better and more efficiently run their services, serve their communities, their citizens and local businesses(…) • Deadline for all actions: 21/4/2015 Disclaimer : legally not binding

16. Conditions for participation • Minimum conditions • For standard collaborative actions • At least, 3 legal entities, each established in different MS/AC • For SME Instrument, programme co-fund, CSA • 1 legal entity established in a MS/AC • For Fast Track to Innovation • Max. 5 participants • Additional conditions • To be set out in the Work Programme (i.e. number of participants, type of participants, etc.) Disclaimer : legally not binding

17. Eligibility for funding • Entities established in MS or associated countries or third country identified in the WP • Entities created under Union law • International European interest organisation • Other entities may receive funding if : • participation is essential or • such funding foreseen in bilateral arrangement between the Union and third country/international organisation Disclaimer : legally not binding

18. Call for proposals • Call for proposalsshallbeissued in accordance with the Financial Regulation and Rules of Application • Exceptions to call for proposals : • For CSAs and programme cofund actions to becarried out by entitiesidentified in the workprogramme • Rulesregarding joint calls withthird countries or international organisations Disclaimer : legally not binding

19. Evaluation of proposals • Award criteria • Excellence • Sole criterion for ERC frontier research actions • Impact • Higher weighting for innovation actions • Quality and efficiency in the implementation • Details, Weightings and thresholds to be laid down in WP • Evaluation to becarried out by independentexpert • Possibility of a 2 stage submission procedure Disclaimer : legally not binding

20. Scoring/weights/thresholds • Same: As in FP7 each criterion scored out of 5; individual threshold of 3; overall threshold of 10 • New: Unlike FP7, for Innovation Actions and SME instrument… • impact criterion weighted by factor of 1.5 • Impact considered first when scores equal Disclaimer : legally not binding

21. Selection criteria • Operationalcapacity (no specific provisions) • Operational capacitymeans that the applicants must have the professional competencies and qualifications required to complete the proposed action or work programme: it may be assessed on the basis of specific qualifications, professional experience and references in the field concerned. • Financial capacity • Onlycoordinator of actions equal or superior 500 kEUR, exceptspecific cases • No verification for public bodies , entitiesguaranteed by MS or AC and higher and secondaryeducation establishments

22. Process to grant and signature of GA • Time to Grant • From 9 (FR) to 8 months (Exceptions: ERC, complex actions, requested by applicants) • 5 months for informing applicants on outcome of scientific evaluation • 3 months for signature of GA = grant finalisation process • Remarks : • no changes of the composition of the consortium (removal or substitution needs to bedulyjustified) before signature of the grantagreement Disclaimer : legally not binding

23. Implementation of the action • Need to have the appropriate ressources • Third parties maybecalledupon : • Third parties carrying out work • Subcontractors • Third parties makingresourcesavailable • May involve PCP/PPI, but thiscannotbe the main aim of the grant Disclaimer : legally not binding

24. Consortium • Coordinator = principal point of contact with EU • Consortium agreement • compulsary (exception : see WP) • Rights and obligations • Internal organisation • Distribution of EU funding • IPR provisions • Internal disputes • Liability, confidentiality, indemnification Disclaimer : legally not binding

25. Simplified Funding Model • 1 reimbursement rate by action (same rate for all beneficiaries and all activities): • Up to 100% for Research and Innovation actions (+CSA) • Up to 70% for innovation (non-profit entities up to 100%) and programme co-fund actions. • WP to specify the reimbursement rate (e.g33% for ERA NET Cofund) • 1 method for calculation of indirect costs: • Flat rate of 25% of total direct costs, excluding subcontracting, costs of third parties and financial support to third parties • Funding of the action not exceed total eligible costs minus receipts Disclaimer : legally not binding

26. One project = One rate • Same rate for all beneficiaries and all activities in the grant. • The applicable rate will be defined in the Work Programme: • Up to 100 % of the eligible costs; • but limited to a maximum of 70 % for innovation projects (exception for non-profit organisations - maximum of 100%). (*) Research and technological development includes scientific coordination. (**) For beneficiaries that are non-profitpublic bodies, secondary and higher education establishments, research organisations and SMEs (***) The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on the premises of the beneficiary. (****) Including research for the benefit of specific groups (in particular SMEs) Disclaimer : legally not binding

27. 20% ? 60% ? Real ? Simplified? Unique method: 25 % flat-rate Aiming at simplifying project management and reducing recurrent errors. Combined with practical guidance for large research infrastructures on how costs can be accepted as direct costs. Single model: 25 % Flat Rate Disclaimer : legally not binding

28. New funding model: what impact on the EU contribution? Example: In FP7, around 90 % of the Universities and more than a half of the Research Organisations apply the 60 % flat-rate for indirect costs. For all these participants the impact on the EU contribution of the H2020 funding model will be favourable: Disclaimer : legally not binding

29. Eligible costs • General reference to eligiblity criteria laid down in the FR/RAP. • Specific provision regarding personnel costs, subcontracting and costs of third parties. • Cost categories mentioned in the GA. Disclaimer : legally not binding

30. Personnel costs (1) • Salaries + social security charges + other costs included in the remuneration arising from national law/employment contract • Additional remuneration up to 8000 EUR (per year) for non-profit legal entities • Actual worked hours • Evidence : normally through time recording system except for staff working full time on EU action Disclaimer : legally not binding

31. Personnel costs (2) • Actualcosts • Unit costs for • average personnel costs • Calculation based on the total actual personnel costs recorded in the participant's accounts • Provisions on productive hours • SME owner and natural person with no salary Disclaimer : legally not binding

32. Subcontracting • Subcontracts' costs may be eligible if • foreseen in Annex 1 of the grant agreement • Not foreseen in Annex 1 only "in duly justified cases that could not be clearly foreseen at the time of its entry into force" • WP may impose further requirements for subcontracting Disclaimer : legally not binding

33. Costs of third parties • Carrying out work, costs may be eligible if • Third party eligible for funding • Affiliated or legal link with a beneficiary • Identified in the GA • Abides by the rules (inter alia on costs eligiblity and control) applicable to the beneficary • Accepts – if requested by EU - Joint and severalliabilitywith the participant • Making resources available, costs may be eligible if conditions of the GA are met, Disclaimer : legally not binding

34. Controls and audits • Audit certificates • Only for final payments when total EU contribution claimed on the basis of actual costs +average personel costs ≥ 325,000 EUR • Certificateson the methodology • Optional certificates on average personnel costs • Ex-post audits • Audits limited to 2 years after payment of the balance Disclaimer : legally not binding

35. Guarantee Fund • Continuity of the system applied in FP7 : H2020 GF replaces and succeedes to the FP7 GF • Considered as sufficientguaranteeunder the FR • No additionalguaranteeor securitymaybeacceptedfrom participants or imposed on them • 5% contribution of the EU fundingretainedfrom the initial prefinancing • 5% contribution returned to participants at the end of the action Disclaimer : legally not binding

36. Intellectual Property Rights (IPR)–in a nutshell - Results • Ownership • Beneficiary generating the results • Joint-ownership in specific circumstances • Protection • If results capable of commercial/industrial exploitation • If no protected, EU may assume ownership • Exploitation • Best efforts obligation; WP may foresee additional obligations • Transfer and exclusive licences to a third country • EC may object (competitiveness, ethical principles, security) • Dissemination • Open access to scientific publications and under certain conditions to research data Disclaimer : legally not binding

37. IPR in a nutshell– Access Rights • For implementation • To background / results (royalty free) if needed • For exploitation • To background / results (under fair and reasonable conditions) if needed to exploit own results • Also applicable to affiliates established in MS/AC • For EU/MS • Non-commercial use and policy related purpose (under "Secure societies") • On a royalty-free basis • For third parties • Specific provisions for complementarybeneficiaries, access to researchinfrastructures, interoperability Disclaimer : legally not binding

38. PRIZES

39. Prizes • Prizes may be used to • Recognise pastachievements (“recognition prizes”), or • Induce futureactivities, (“inducement prizes”) • Prizes must comply with the principle of equal treatment and transparencyon the basis of procedures comparable to the ones applying to grants, with 2 exceptions: • Prizes may never be awarded without a contest • Prizes may not be fully outsourced to external contractors Disclaimer : legally not binding

40. Prizes – ExamplesH2020, WP 2014-15, Leadership in enabling and industial technologies (LEIT)Other actions : Inducement prizes • "Breaking the optical transmission barriers in the core network": exceeding 1Tb/s per channel on optical networks • "Collaborative sharing of specrtum": demonstrating methods providing empowerment of local user communities with decentralised spectrum management capabilities • Publication : expected Q3/2014 • Opening : expected Q4/2014 • Deadline : Exepcted Q4/2015 • Budget : 500KEur per prize Disclaimer : legally not binding

41. EXPERTS

42. Independent experts Evaluate, advise, assist on • Evaluation of proposals • Monitoring of actions • Implementation of H2020 • Implementation and design of R&I policyincludingpreparation of future programmes. • Evaluation of R&I Programmes Disclaimer : legally not binding

43. Independent experts (2) • Skills, experience and knowledge • Identification and selection on the basis of calls for applications • Balanced composition • Conflict of interest • Names published 1/year on website Disclaimer : legally not binding

44. Questions? • For more visit: • ec.europa.eu/research/horizon2020 Disclaimer : legally not binding