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THE ANDALUSIAN GLOBAL GRANT EXPERIENCE. Carlos Ruiz Beneyto Athens, 8 December 2005. 1. ANDALUSIA. 2. THE AGENCY. 3. ANDALUSIA GLOBAL GRANT. 1. 1. ANDALUSIA. 1. LOCATION. • Located at the Southern of Spain, south-western of Europe,. 1. IDENTIFYING MARKS. Area : 87,268 sqkm
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THE ANDALUSIAN GLOBAL GRANT EXPERIENCE Carlos Ruiz Beneyto Athens, 8 December 2005
1. ANDALUSIA 2. THE AGENCY 3. ANDALUSIA GLOBAL GRANT
1 1 ANDALUSIA
1 LOCATION •Located at the Southern of Spain, south-western of Europe,
1 IDENTIFYING MARKS • Area: • 87,268 sqkm • (17% of Spanish territory) • 812 kms of coast line • Population: • • More than 7 million inhabitants mostly in medium sized towns • Relatively youthful population
1 GNP. Distribution by economic sectors. 2003 Source: Regional Ministry for Economy. JUNTA DE ANDALUCIA. Agriculture Industry Construction Services
1 BUSINESS AND TECHNOLOGICAL STRUCTURE
2 2 THE AGENCY
2 WHAT IS AGENCIA IDEA • it is the Regional Development Agency of the Andalusian Regional Governement, created in 1987 • Since 2004: it is attached to the Regional Ministry of Innovation, Science and Enterprise it is called Agencia de Innovación y Desarrollo de Andalucía (IDEA) the main goal of IDEA is focused towards innovation
2 SUPPORT INSTRUMENTS AND MEASURES FOR ENTERPRISES • Strategic and financial support for enterprises • - Promotion of an entrepreneurial culture • - Pre incubation • - Incubation • - New business creation support with specific financial tools • Innovation • - Bringing new technologies closer to enterprises • - Technology transfer (enterprises – Universities) • - Financing R&D • - New Technology-based firms support • Strategic sectors support • - Promotion of clusters • Financial Engineering • - Venture capital funds and equity loans • - Interest-free loans • -Guarantees …
2 2 Andalusia Global Grant 2000-2006
Global Grant 2 • . • It belongs to the Integrated Operational Programme for Andalusia • (IOPA 2000-2006). • AGENCIA de Innovación y Desarrollo de Andalucía IDEA= • Intermediary body. • The procedures for the use of the global grant is the subject of an agreement between the managing authority and the intermediary body • Public Expenditure: 446,507 M €; ERDF: 333,096 M € • Its main objective is to support and promote regional SMEs
2 • ERDF GLOBAL GRANTS s. • 1991-1993 ( 78 Meuros) • 1994-1999 ( 308 Meuros) • 2000-2006 ( 446 Meuros)
2 THE ADVANTAGES OF GLOBAL GRANTS (I): s. • Extremely flexible instrument. • This instrument helps address actual SME needs, as it is extremely flexible in terms of both the decision-making process and the implementation of decisions. • Specialized instrument. • Indeed, the practical scope of global grants in Spain is specific and relates generally to SME support. In Andalusia and Murcia, global grants are the preferred ERDF instrument in the field of SME support services.
2 THE ADVANTAGES OF GLOBAL GRANTS (II): s. • Strong legal and financial stability. • Global Grants are defined in a contract that specifies the amount, duration and measures of financial support. • Flexible adaptation to entrepreneur needs. • Due to direct contact with all entrepreneurs, Global Grant managers can more easily know the entrepreneurial development needs and consequently they can introduce new and innovative support mechanisms even during the eligibility period.
2 THE ADVANTAGES OF GLOBAL GRANTS (III): s. • SF for SMEs publicity is more effectivewhen concentrated. • I.e., entrepreneurs can better notice the different fields covered by EU funds regarding company support. • The finance made available tointermediaries actually serves the attainment of the objective. • It provides strong leverage as well as a good example of public-private partnership.
2 Beneficiaries • s. • Enterprises, in particular SMEs • Intermediary organisations: • Venture Capital Funds and Societies • Mutual Guarantee Societies • Associations, Foundations and other organisations that provide services to andalusian SMEs.
2 Measures • 1. Industrial, commercial and services companies support: • Extension, modernisation and establishment of industrial business: entrepreneurship, ITCs, Clusters,... • Competitiveness improvement and Cooperation. • R+D+i • 2. Provision and adaptation of productive spaces and company services. • 3. Improvement of SMEs financial conditions.
2 Financial instruments • Measures 1 and 2: • Grants • Measure 3: • Reimbursable aids • Interest-rate subsidy • Support to Mutual Guarantee Schemas • Venture Capital • “CAMPUS instrument” • Other forms of finance
2 MANAGEMENT SYSTEM s. • Management system based on ISO 9001:2000. Quality system certificated in 1998: The quality system has a documentary set that translates the communitarian, national and regional legislation to the scope of the activity. It is understandable by all the personnel. Includes Procedures, specifications and targets. • Focused to processes : every process has one department in charge. • With Applications that assure the fulfilment of the procedures and historic knowledge of the expedients, and contains all the Communitarian Specifications about information of expedients , and Applications Programming interface that feed national databases of communitarian grants
REQUEST RISK OPERAT. PROPOSAL PURSUIT PRESENTATION PAYMENT RESOLUTION CHECKING Focussed to Processes 3 Interphase definition
INFORMATION AND PUBLICITY • Aids Programmes are published in the Official Journal of the Region • Edition of several informative brochures • Organization and participation in kick-off seminars and conferences. • Advertising (Press, …) • Commemorative plaques • Notification to beneficiaries
2 Global Grant: Figures. Status as of June 30, 2005 • . • Number of projects: 12,239 • Public spending: • Commitments: 392.77 M € • Payments: 289.44 M € • Total investment: 3,420.78 M € • New jobs created: 24,425
2 Global Grant: Figures. Payments and commitments
2 Global Grant: Figures. Financial evolution.
Global Grant: Figures by financial instrument 2
2 Factors of succes (I) • The Global grant is effective: public expenditures , employments and investments. • The Use of a group of instruments adapted to the needs of SMEs. • The Use of the Public-Private Partnership (PPP) in some financial instruments. • The combination with others tools for the regional development. • The quality system • - The participation of the whole organisation. • The experience and specialisation off the staff
2 Factors of succes (II) • (Some advice) • Increase the commitments at the beginning of the period in order to accomplish with the rule N+2 and with the objectives of the performance reserve. • At the end of the period, to commit more than 100 % in order to compensate the decrease of the payments caused by auditors or non accomplishment of projects.
Global Grant: Conclusion. 2 “In this respect, global grants (…) have the advantage of greater flexibility compared to any other instrument. They are therefore more in tune with the requirement to meet actual SME needs and appear to be an excellent means of delivering the measures required to reach the objective of improved competitiveness that will be at the heart of the ERDF policy in 2007-2013”. EURADA, 2004
Thank you for your attention Carlos Ruiz Beneyto +34 955030741 cruiz@agenciaidea.es www.agenciaidea.es Athens, 8 December 2005