Research and Innovation

1. Types of Action Focus on Innovation Actions and the SME Instrument Brussels, 12November 2013 Research and Innovation

2. 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(recognition or inducement prizes) • 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

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

4. Supporting innovation and activitiesclose to users and markets • Primarilywithactivitiessuch as demonstrating and piloting, first marketreplication… • Innovation Actions Innovation activities as part of other types of actions • Demonstratingand pilotingactivities in . Researchand Innovation Actions. SME Instrument . PCP Co-fund. Financial instruments: debt and equity. … • In 'main' Work Programme actions - In Public-Private Partnerships and Public-Public Partnerships - In EITKnowledge and Innovation Communities

5. Innovation Actions … • 'Innovation Action' means an action primarily consisting of activities directly aimed 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.

6. … Innovation Actions … • A ‘demonstration or pilot’ aims to validate the technical and economic viability of a new or improved technology, product, process, service or solution in an operational (or near to operational) environment, whether industrial or otherwise, involving where appropriate a larger scale prototype or demonstrator.

7. … Innovation Actions … • A ‘market replication’ aims to support the first application/deployment in the market of an innovation that has already been demonstrated but not yet applied/deployed in the market due to market failures/barriers to uptake. • 'Market replication' does not cover multiple applications in the market of an innovation that has already been applied successfully once in the market. • ‘First’ means new at least to Europe or new at least to the application sector in question • Often such projects involve a validation of technical and economic performance at system level in real life operating conditions provided by the market • An Innovation Action may include limited research and development activities.

8. … Innovation Actions • Funding rate • Grant limited to max 70% of total eligible costs (direct + indirect) • Grant may reach max 100% of total eligible costs for non-profit legal entities • Weighting of evaluation criteria • To determine the ranking, the score for the Impact criterion will be given a weight of 1.5 • Prioritisation of ex aequo proposals done first on the basis of the score for Impact, and then on that for Excellence

9. Phase 3 = 2% budget Phase 1: Concept and feasibility assessment Phase 2: R&D, demonstration, market replication Phase 3: Commercialisation SME Instrument No direct funding Input: Idea/Concept: "Business Plan 1" (~ 10 pages) 10% budget Activities: Feasibility of concept Risk assessment IP regime Partner search Design study Pilot application etc. Output: elaborated "Business plan 2" Input: "Business plan 2" plus description of activities under Phase 2 (~ 30 pages) 88% budget Activities: Development, prototyping, testing, piloting, miniaturisation, scaling-up, market replication, research Output: "investor-ready Business plan 3" 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?) 10% success 30-50% success Lump sum: 50.000 € ~ 6 months 1-3 (5) M€ EC funding ~ 12 to 24 months

10. SME instrument: main features • Targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise • Only SMEs will be allowed to apply for funding and support • Single company support possible • No obligation for applicants to sequentially cover all three phases; each phase open to all SMEs • 70% funding (exceptions possible)

11. SME Instrument: Article 18(2) Regulation • […] a dedicated SME instrument that is targeted at all types of SMEs with an innovation potential, in a broad sense, shall be created under a single centralised management system and shall be implemented primarily in a bottom-up manner via a continuously open call[…] • Implemented centrally by one agency EASME • Bottom-up approach within the frame of the societal challenges and enabling technologies  each SC & LEIT defines a broad topic • Continuously open call with cut-off dates