European funding schemes for research and innovation Dacapo Webinar 28.05.2018 Antonio Carbone H2020 NCP
Agenda of today - Eu Research and Innovation landscape and support networks (40 ) Company life-cycle and funding opportunities The opportunities for SMEs in Horizon 2020 Value proposition from SME instrument beneficiaries The National Contact Points - Q&A and Conclusion (20 )
Innovation value chain
Technology Readiness Level - TRL The TRL is a new dimension in Horizon 2020. Many of the call topics have a defined TRL at which the implementation of the proposal is intended to start, as well as a target TRL. The use of Technology Readiness Levels (TRLs) as a measurement of the maturity level of particular technologies is a new development in Horizon 2020. This measurement system provides a common understanding of technology status and addresses the entire innovation chain. By evaluating a technology project against the parameters for each Technology Readiness Level one can assign a TRL rating to the project based on its stage of progress. There are nine technology readiness levels; TRL 1 being the lowest and TRL 9 the highest. 14.12.2016
Technology Readiness Level RIA Excellent science HORI ZON 2020 IA Societal challenges SME instrument (70%) Industrial leadership
Company life-cycles stages
Many opportunities...
Choose the right one! Basic research Development Pre-Industrialization Commercialization and Growth 01 -PRE-SEED & SEED CAPITAL - NATIONAL & REGIONAL FUNDS & INCENTIVES - H2020 & EUROPEAN FUNDS - INDUSTRIAL DOC - 04 02 - H2020 & 03 EUROPEAN FUNDS - SME2 + FTI H2020 - COSME - TAX CREDIT - 1ST ROUND EQUITY - DEBT & EQUITY (VC) - EQUIPMENT - GUARANTEE FUNDS - PUBLIC PROCUREMENT DEPRECIATION - - PATENT BOX - 9
An huge landscape COSME Target are SMEs. Access finance in all phases of their lifecycle creation, expansion, or business transfer. Helps businesses to access markets in the EU and beyond. Supports entrepreneurs by strengthening entrepreneurship education, mentoring, guidance and other support services. Reduce the administrative and regulatory burden on SMEs by creating a business-friendly environment. LIFE EU s funding instrument for the environment and climate action. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental and climate policy and legislation by co-financing projects with European added value. Erasmus Plus
How to find out the appropriate support? Access4SMEs what else? Thematic NCP Networks Enterprise Europe Network Partner Search Tools List of all NCP network PS tools http://partnersearch.ncps-care.eu/other-partner-search-tools Enterprise Europe Network http://een.ec.europa.eu/content/international-partnerships-0 Use the NCP networks, there is more to be found than you would ever expect!
Eu Research and Innovation funding opportunities
Horizon 2020 Health, demographic change and wellbeing Food security, sustainable agriculture, marine and maritime research & the bioeconomy Secure, clean and efficient energy Smart, green and integrated transport Climate action, environment, resource efficiency and raw materials Inclusive, innovative and reflective societies Security society European Innovation Council EIC Pilot European Institute of Innovation and Technology (EIT) Spreading Excellence and Widening Participation Science with and for society Joint Research Center (JRC) EURATOM 13
Innovation in Horizon 2020 The introduction in the market of new or improved products, services, processes and solutions. It is also often used in combination with the terms research or R&D to refer more broadly to the process and the range of activities that lead to the introduction in the market
1. Who can participate? Any legal entity, regardless of its place of establishment, or international organization. 2. How can participate? (a) at least three legal entities shall participate in an action; (b) three legal entities shall each be established in a different Member State or associated country; and (c) the three legal entities referred to in point (b) shall be independent of each other. 15
3. Who is eligibile for funding? (a) any legal entity established in a Member State or associated country*, or created under Union law; (b) any international European interest organisation; (c) any legal entity established in a third country identified in the work programme (Annex A). 16
How to approach an H2020 Work Programme 17
La struttura del topic 18
Type of funding actions 19
RULES OF PARTICIPATION IN A NUTSHELL
In H2020 (RIA e IA) at least 3 legal entities Autonomous from 3 different Member/Associated states Fast Track to Innovation at least 3 legal entities, max 5 Autonomous from 3 different Member/Associated states Industry involvement mandatory Sme Instrument At least one for profit SME Only for SME for profit established in Member/Associated States Minimum criteria of eligibility (art.9)
Innovation Action Fast Track Reimbursment rate 70% (100% no profit) RIA: 100% for all 70% (100% no profit) Project size Various duration end Eu contribution Up to 36 months Up to 3 m SME Instrument 70% (50k in Ph1) SME I Ph2 12-24 months Up to 2,5m
Top down (RIA/IA) vs Purely bottom up (SME I + FTI) 23
SMEs in Horizon 2020
What is an SME? The new SME definition, which entered into force on 1 January 2005: It is the economic activity that is the determining factor < 250 number of employees Annual turnover 50 million or annual balance sheet total 43 Milioni autonomous enterprise Definition: http://ec.europa.eu/enterprise/policies/sme/factsfigures-analysis/sme-definition/index_en.htm The new SME definition, User guide and model declaration: http://ec.europa.eu/docsroom/documents/15582/attachmen ts/1/translations 25
SMEs participation in Horizon 2020 26
SME Instrument 27
Who are the SME Instrument evaluators? 28
What a Venture Capital seeks for? Team The team makes all the difference and is for me the most important aspect of any venture. A bad team will not succeed with a good idea but a good team would turn even the least likely to succeed business plans in sustainable companies. Problem / Solution Often proposals are not convincing with regards to the current problem and the added value of the proposed solution. This happens especially when projects focus too Market much on the solution and neglect detailing what the problem is. There is little interest in healthy, steady, low growth businesses. The potential market needs to be of substantial size and scale Proof of Concept In order to reduce risks VC s want to see a clear proof of concept with excellent growth and market traction, conversion metrics Financials / Business Model With all this in place, then the business model also has to make sense. There are too many projects which are unsustainable and don t have a monetisation strategy which is convincing 29
What you need to clarify Strong, ambitious and measurable objectives User needs e market demand Market analysis and your solution added value Short/mid term benefits Business model e business architecture (partners, etc.) Risk analysis (market uptake) Team, competencies and strategic partnerships TRL6 and stage of development Ecc.
Phase 1: Feasibility Phase 2: Demo and market replication Phase 3: Commercializzation Input: Idea/Concept in "Business Plan I (~ 10 pages) Main Activities: Feasibility of concept Risk assessment IP regime Partner search Design study Pilot application Output: elaborated "Business plan II" Lump sum: around 50.000 ~ 6 months Input: "Business plan II" + "Description of activities under Phase 2" (~ 30 pp.) Main Activities: Development Prototyping Testing Piloting Miniaturisation Scaling-up Market replication Output: investor-ready "Business plan III" 0,5-2,5 (5) M EC funding ~ 12 to 24 months Input: "Business plan III" + Opportunities: 'Quality label' for successful Phase 1 & 2 Easier access to private finance Support via networking, training, coaching, information, addressing i.a. IP management, knowledge sharing, dissemination SME window in the EU financial facilities (debt facility and equity facility) No direct funding Coaching 31 31
Phase 1 Phase 2 Feasibility of industrial scale-up Go to market strategy and 3-5 years Business Plan Product design for xxx application Market analysis and customers survey Strategy for the commercialization/development of an operational plan Economic statements Operational capacity analysis Technical assessment, Partner search Organisational/network /financial feasibility Project management and coordination Dissemination & Exploitation/Commercialization Plan and communication Design, building and integration in industrial production/engineering Testing and validation Performance validation and xxx compliance/certification Specifications and design of Hardware / software Optimization and industrial application Analysis of developed solution pre commercial strategy 32
Open call 2018 2019 2020 Phase 1 Phase 2 Budget (mil ) 08-feb 10-jan 03-may 14-mar 05-sep 23-may 07-nov 10-oct 13-feb 09-jan 07-may 03-apr 05-sep 05-jun 06-nov 09-oct 12-feb 08-jan 06-may 18-mar 02-sep 19-may 04-nov 07-oct 479,74 552,26 600,99 33
Useful link Horizon 2020 Participant portal EASME Access4SMEs NCPs EEN Access Eu Finance http://ec.europa.eu/programmes/horizon2020/ http://ec.europa.eu/research/participants/portal/desktop/en/home.ht ml http://ec.europa.eu/easme/sme_en.htm http://www.access4smes.eu/ https://een.ec.europa.eu/ http://europa.eu/youreurope/business/funding-grants/access-tofinance/index_it.htm 34
Antonio Carbone APRE Agenzia per la Promozione della Ricerca Europea Via Cavour, 71 00184 - Roma www.apre.it Tel. (+39) 06-48939993 Fax. (+39) 06-48902550 Horizon 2020 SME, ARF, ICT National Contact Point 35