LAPI Kick-Off 19/09/2008 Tallinn

1. Stefano Fontana European Commission DG RTD Research for the benefit of SMEs LAPI Kick-Off19/09/2008Tallinn

2. The programme: ‘Research for the benefit of SMEs’ The activities: ‘Research for SMEs’ ‘Research for SME Associations’ The programme

3. Research for the benefit of specific groups (in particular SMEs): Support for research projects where the bulk of the research and technological development is carried out by universities, research centres or other legal entities, for the benefit of specific groups, in particular SMEs or associations of SMEs. Efforts will be undertaken to mobilise additional financing from the EIB and other financial organisations. Funding scheme

4. A project that delivers proven results: Economical Impact on the SMEs Prototype Turnover New markets disclosed Growth in personnel Impact on society: Health Environment People’s life European dimension Access to new European markets Access to distribution channels in other countries Impact on European SMEs What is a successful project? TRANSACTION

5. Overall objective of Research for SMEs: providing financial support to SMEs to outsource research and technological development, with the view of acquiring intellectual property rights, preferably ownership, to the project results The relationship between SMEs and RTD-performers is a “customer-seller” relationship the real investment or cost incurred by SMEs includes a price they pay for the intellectual property rights and knowledge they wish to acquire Why the transaction ?

6. Described in Annex I of the FP7 Grant Agreement Reflects the terms of the agreement reached within the consortium on : the ownership of foreground the access rights to be provided to any SME participant the remuneration paid by it to a RTD-performer * * FP7 Grant Agreement - Annex III The transaction

7. … access rights shall be granted on a royalty-free basis, unless otherwise agreed by all participants before their accession to the grant agreement. However, RTD performers shall grant access rights to background on a royalty-free basis. Access Rights to Background

8. Dedicated work package 2.1.1 Description of project management structure and procedure 2.2 Appropriate allocation and justification of the resources to be committed 3.2 Appropriateness of measures envisaged for the dissemination and/or exploitation of project results, and management of intellectual property Where is the relevant information in the description of work ?

9. Who owns the foreground ? What conditions, if any, apply to access to background ? What is the price to be paid for ownership ? What is the cost/ benefit ratio ? Who is in charge of the exploitation strategy ? Who exploits the foreground ? Who benefits from exploitation ? Basic questionsAnalysis of the transaction

10. Transparency Completeness Commercial interest of the SMEs Basic principlesDescription of the transaction

11. Structure and content of the grant agreement Roles of players Financial matters Reporting Assessment of reports Reviews Amendments - Project implementation – some practical guidance

12. Grant agreement: Introduction with coordinators details and list of annexes Article 1 Accession to the grant agreement of the other beneficiaries Article 2 Scope Article 3 Duration and start date Article 4 Reporting periods Article 5 Maximum community financial contribution Article 6 Pre-financing Article 7 Special Clauses Article 8 Communication Article 9 Applicable law and competent court Article 10 Application of the grant agreement provisions Contractual Issues (1)

13. Contract Annexes: Annex I. Description of Work Annex II. General Conditions Annex III. Specific provisions related to “Research for SMEs” or “Research for SME Associations” Annex IV Form A – accession of beneficiaries to grant agreement (GA) Annex V. Form B – request for accession of a new beneficiary to the GA Annex VI. Form C – financial statement per funding scheme Annex VII. Form D – Terms of reference for the certificate on the financial statements and Form E – terms of reference for the certificate on the methodology Contractual Issues (2)

14. Role of Coordinator • Technical, administrative and financial management • Intermediary, contact with the Commission – single entry point • consolidates reports from participants and work packages • Submits all documents • Informs the Commission • Reports on use of financial resources • Receives all payments and transfers the appropriate amounts to each contractor • Oversees the project progress, makes proposals to adapt the project plan

15. Role of Consortium partners • Take all measures to ensure that the project is carried out according to the tasks assigned in the DOW • Inform the coordinator of any event which may affect project’s implementation and of any circumstances affecting • Communicate to the Commission via the coordinator by default , but exemptions possible (e.g. major problems conflicts etc.)

16. Role of the EC (project officer and other services involved) • Monitors the scientific, technological and financial execution of the project • Carries out assessment, analysis and approval of project deliverables

17. Financial issues– Budget, eligible direct costs • Eligible costs, upon condition that they are • Actual • Incurred during project duration • In accordance with usual accounting and management principles and practices • Recorded in the accounts of the beneficiaries • Used for the sole purpose of achieving the objectives of the project • Some ineligible costs (identifiable indirect taxes such as VAT, etc)

18. Financial issues: Indirect costs • No more cost models… • But need to choose methodology for indirect costs – for the whole of FP 7, per legal entity • Either actual costs • According to usual analytical accounting method • Or simplified method • Or flat rate : 20 % of direct eligible costs – minus subcontracting costs and resources made available by third parties not used on the premises of the beneficiary* • For CSA, upper limit of 7 % of direct eligible costs for the requested EC contribution • For non research projects, temporary flat rate for public bodies, R&D and higher education organizations and SMEs not “available” • Certification on the methodology, for indirect and staff costs : only an option for recurring beneficiaries

19. Financial issues: others • Prefinancing • Cash flow for duration of project • Includes 5% contribution to guarantee fund NB : retention of 10% until final payment • Subcontracting – to be justified • Only for limited tasks • Awarded ensuring best value for money • Beware possible IPR issues • subcontractor to be auditible • Audit certificates • Only for cumulative payments above 375 000 € per partner • For projects of 2 years or less, only with final report anyway

20. During the course of your project, you should submit: The DELIVERABLES identified in Annex I according to their timetable A Periodic report (within 60 days of the end of the RP): An Overview including a publishable summary of the progress of work including scientific and technical achievements, IPR management, milestones, deliverables and the differences, if any, between the work expected and that carried out Explanation of the use of resources Financial Statement (Form C) for each beneficiary and third party (if applicable) + audit certificate if appropriate summary financial report, consolidation based on Form C Reporting Requirements

21. Deliverables

22. Milestones

23. Use of resources

24. In addition to be submitted after the end of the project: Publishable final activity report (within 60 days after the end of the project) covering results, conclusions and socio-economic impact of the project A report covering the wider societal implications of the project in a form of a questionnaire involving: Gender equality actions Ethical issues Efforts to involve other actors and to spread awareness Plan for the use and dissemination of foreground IPR at the end of the project

25. Report on the distribution of the Community financial contribution between beneficiaries To be submitted 30 days after receipt of the final payement of the Community financial contribution Shows the final, cumulative distribution of funds made to each contractor over the entire duration of the project. Same format as the periodic report on the distribution of the Community’s contribution after the final payment from EC

26. Reports and deliverables should be submitted by electronic means Form C must be signed by the authorised person(s) within the beneficiary’s organisation, certificates on the finanacial statements must by signed by an authorising person of the auditing entity, and the originals shall be sent to the Commission Each periodic report shall be in the form of ONE single report in electronic format (pdf) and include, where applicable, a scanned copy of the signed pages (Forms C, audit certificates), the original sent in parallel by post. Format of the reports and trasmission modalities

27. to accept or reject the deliverables; to allow the project to continue without modification of Annex I or with minor modifications; to consider that the project can only continue with major modifications; to initiate the termination of the grant agreement or of the participation of any beneficiary according to Article II. 38 of the grant agreement; to issue a recovery order regarding all or part of the payments made by the Commission and to apply any applicable sanction. Assessment of periodic reports – decision..

28. Project reviews are carried out by the Commission with the support of one external expert appointed by the Commission The review will assess the degree of execution of the project work plan the degree of execution of the deliverables the necessity of the resources that the contractors have employed the management aspects of the project the plan for using and disseminating the knowledge Reviews

29. An amendement is a modification to the Grant Agreement. As a general rule is necessary whenever the GA has to be changed Removal/addition of beneficiaries/special clauses Change of Coordinator Partial Tranfer of Rights and Obligations Modification of Project Title/Acronym/duration and or start date Modification of Reporting periods Change of Community Financial Contribution Change of Banking or Contact Details Change of Pre-financing or contribution to the GF Modification of Annex I ….. In some rare cases the GA is modifiable without amendements if foreseen in Annex I (typical case is the budget tranfer between activities and between beneficiaries) Amendements: what?

30. Who: the coordinator (or other beneficiaries in case of change of coordinator) How: by written letter according to a model When: during the course of the GA Approval rejection within 45 days, otherwise is to be considered rejected (unless is regarding addition of a beneficiary) Amendements: who, how, when?

31. When a contract amendment brings a new partner/s in the consortium, the accession date of the new partner is NOT retroactive and should be at the earliest the date when the project coordinator informs either the PO or the LO about the identity of the new partner/s. Amendements: caveat

32. Dissemination • Refer to the support action activity in the workprogramme “Research for the Benefit of SME”, if possible • Use the FP7 logo on all publications • EC co-financing should be mentioned • Include contact details of your Project Officer on • all publications and websites •   Leaflets, brochures and websites should be send to • Project Officer before publication

33. Use the Knowledge within two years use or cause to be used the knowledge arisen from the project within two years. Should the contractors fail to do so, the Commission may disseminate the knowledge Keep confidentiality The Commission and the contractors undertake to preserve the confidentiality on information, documents, know-how that has been communicated to them in relation to the execution of the project could harm, interfere with or otherwise limit the effective protection of their intellectual property rights Keep all documentation for five years Contractors are required to provide data necessary for: The evaluation and impact assessment of funded activities Publications by the Commission in the form of anonymous statistics. For audits on all aspects of the proper execution of the contract (Commission, Court of Auditors, OLAF) Reviews of the actual implementation of the plans described in the final Plan for using and disseminating the knowledge Residual obligations

34. What the Commission can do for you Regular publication of success stories on the SME Newsletter Publication (paper and web) of a catalogue with short information about successful FP7 Projects per scientific area like health, agriculture, processes, environment… Publication (paper and web) on paper of the most successful projects of FP7 Successful communication

35. More information Research for the benefit of SMEs: http://cordis.europa.eu/fp7/capacities/research-sme_en.html SME TechWeb: ec.europa.eu/research/sme-techweb Get Support http://cordis.europa.eu/fp7/get-support_en.html