International R&D Funding Programs Deloitte

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS VERHAERTINNOVATIONDAY – OCTOBER 12th, 2007 www.mastersininnovation.com International Funding Programs Boost New Technology, Networking and Business Luc Lutin, senior manager Deloitte Grants & Incentives llutin@deloitte.com www.deloitte.be / www.mygrants.be Commercially confidence – This presentation contains ideas and information which are proprietary of DELOITTE, Grants & Incentives, it is given in confidence. You are authorized to open and view the electronic copy of this document and to print a single copy. Otherwise, the material may not in whole or in part be copied, stored electronically or communicated to third parties without prior agreement of DELOITTE, Grants & Incentives*. * DELOITTE Grants & Incentives is a business unit within DELOITTE Business Process Solutions CVBA www.mastersininnovation.com CONFIDENTIAL 12.10.2007 Slide 1

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS A Money tree ? No, Yes, www.mastersininnovation.com Governments do not fund Governments in Europe projects to help spend a lot of money to companies in reaching stimulate R&D to close their own objectives. economic and social Funds are towards the EC gaps objectives You need to find a win-win for both: companies and government CONFIDENTIAL 12.10.2007 Slide 2

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Why funds from governments ? International (USA, Asia) www.mastersininnovation.com Economic gaps Europe Scientific gaps R&D funds International programs Regional gaps Regions Structural funds Citizens Social gaps Structural funds, specific programs CONFIDENTIAL 12.10.2007 Slide 3

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS EC target to fill the R&D gap with USA and Japan www.mastersininnovation.com (total expenditure on R&D as % of GDP, 2004) (EU-25 extrapolation based on R&D intensity targets put forward by Member States in their respective National Reform Programmes) CONFIDENTIAL 12.10.2007 Slide 4

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS EC strategy : Europe -> The main knowledge economy Lisbon Strategy (March 2000) www.mastersininnovation.com Research Stimulate - R&D - Knowledge transfer Growth - Mobility of researchers and Jobs - Regions of knowledge Education Innovation Lisbon objectives: economic growth, employment creation, environmental protection, social challenges: fight poverty, improve human health and quality of life CONFIDENTIAL 12.10.2007 Slide 5

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS European Funding for Research / Innovation FP7 www.mastersininnovation.com Research CIP / LIFE / Growth eContent / and Jobs Marco Polo / Media / … Education Innovation Structural Funds Life Long Learning (Jaspers / Jeremie / Jessica) CONFIDENTIAL 12.10.2007 Slide 6

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS R&D support from governments Europe Belgium EC Federal Flanders Wallonia Brussels www.mastersininnovation.com *** ** **** R&D ± 250 R&D ± 30 R&D ± 400 **** * m€/yr (total m€/yr (total 431 m€/yr (total Grants (Subsidies) ± 8000 m€/yr ± 100 m€/yr 700 m€/yr) m€/yr) 52m€/yr) 3700 m€ 6000 m€ company 1400 m€ company company *** Tax Reduction taxes/yr taxes/yr taxes/yr ** Reduction Social Contribution * ** **** *** Soft Loans * ** ** premiums (bonusses) *** **** *** ** Supporting organisations CONFIDENTIAL 12.10.2007 Slide 7

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS R&D support from Belgian Regional levels (Flanders) - IWT R&D projects - Soft loan / Risk Capital funds (VINNOF, ARKIMEDES, …) www.mastersininnovation.com - University Interfaces - VIN Network (“Innovatieadviseurs”) - Research centra (IMEC, IBBT, VITO, Sirris, ….) - Innovatiepremie - Herculesfund - … As these are not international R&D fundings they are not covered in this presentation CONFIDENTIAL 12.10.2007 Slide 8

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS R&D support from Belgian Federal Government - R&D Tax incentives - Patent Tax incentive www.mastersininnovation.com - Grants for International cooperation (e.g. Belspo – Asia) - Reduction on social contribution for researchers - … As these are not international R&D fundings they are not covered in this presentation CONFIDENTIAL 12.10.2007 Slide 9

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS R&D support from European Government - The main funding programs - FP7 program R&D Phase www.mastersininnovation.com FP 7 - CIP program Implementation Phase CIP eContent - Specific funding programs Interreg - Life Long Learning Marco Polo … - eContent - INTERREG - Media - Marco Polo They all are targeted towards - LIFE high impact results - … CONFIDENTIAL 12.10.2007 Slide 10

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS European Framework Program www.mastersininnovation.com FP4 FP5 FP6 FP7 FP7 Budget 4 years 4 years 4 years 7 years 5200 m€ 2007-2013 (increasing per year) CONFIDENTIAL 12.10.2007 Slide 11

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS FP7: Do it for the money ? • Flanders: www.mastersininnovation.com – R&D support about 400m€ / year – of which 100m€ directly to company projects First/Best approach to get funds for your project • FP7 – 52000 m€ / 25 countries / 7 years = avg ± 300m€ / country – but Belgium is small compared to other countries ! – and most of the money goes to research centra – + international cooperation is a necessity Money will not be the only/main reason CONFIDENTIAL 12.10.2007 Slide 12

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS EU/7FP versus IWT funding IWT EU 7 FP www.mastersininnovation.com • No partners required (but partnership • International Partners required stimulated) • Continuous submission no themes • Thematic Calls • No (real) competition system • High competition system • Regional Funding per partner (Eureka) • European Funding for the consortium • Project starts 1st of the month of • Project starts after agreement with the submission of the proposal EC (Up to 1 year after call date) • (Limited) Financial Report • Audited (Certified) Financial Reports • Funds directly received • Funds through the coordinator • Few obligations towards a consortium • International consortium and more and few financial guarantuees financial guaruantees CONFIDENTIAL 12.10.2007 Slide 13

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS EU/7FP versus IWT funding IWT EU 7 FP • Yearly budget • Budget for 7FP: € 50,5 billion / 7 www.mastersininnovation.com years – SME’s € 15-20 Million – Average € 7-8 billion / year – Companies € 70-90 Million – SME’s should be at least 15% • Succes Rate for proposals • Succes Rate for proposal – General average 10-30% – General average 60-80% – But well prepared proposals … – Possibility to re-submit much higher • Funding levels • Funding level – R&D and Demonstration: 50% – SME: 35% + 10% (EUREKA) = 45% BUT SME, Univ : 75% – R&D: 25% prototype, – Other activities : 100% 38% (mixed), (Management, Audit, Certificates, …) 50% (base - rare for companies) + 10% EUREKA + Additional Uplifts possible up to 75% for SMEs CONFIDENTIAL 12.10.2007 Slide 14

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS So why FP7 ? Financial strength to cope with Financial strength to cope with Fit with planned activities Fit with planned activities pre-financing and requested pre-financing and requested within the company within the company guarantuees www.mastersininnovation.com guarantuees Limits on Strategic interest Limits on Strategic interest regional funding in the theme regional funding in the theme FP7 FP7 Need for Need for Image international Image international and Networking cooperation and Networking cooperation Need for expert knowledge Need for expert knowledge - -Networking and relationships Need for complementary partners Networking and relationships Need for complementary partners - -Dissemination Dissemination CONFIDENTIAL 12.10.2007 Slide 15

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS European Framework Program Cooperation € 32,413 million Ideas € 7,510 million Frontier Research www.mastersininnovation.com (European Research Council) People € 4,750 million Marie Curie Fellowships Capacities € 4,097 million Research Infrastructures Research for SMEs Regions of Knowledge Research Potential Science in Society Inco (Horizontal) Development of Policies JRC € 1,751 million Euratom € 2,751 million (2007-2011) CONFIDENTIAL 12.10.2007 Slide 17

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Why these themes ? How are WPs made ? Technology Platforms (Industry) EC Funded Analyses www.mastersininnovation.com Cost Actions (Academic) EC Funding ERA-Net (Policy Makers) Others (Conferences, ‘Expert Groups’, …) Studies ordered by the commission (Consultants) Previous submitted proposals and results Workprograms Defined Gaps New Funding Programs CONFIDENTIAL 12.10.2007 Slide 18

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS FP7 Collaborative research Collaborative research Basic Applied Technical Commercial Product / Research Research Prototype Prototype Service Basic Applied Pre-clinical Clinical Dev Clinical Dev Product / www.mastersininnovation.com Research Research Development Phase I Phase II Phase III Service Universities Research Centers Contract research organisations R&D departments of companies access to new technologies be the first to bring new products Main drivers and top research groups on the market for companies New partners, international Secondary drivers Funded research in line with visibility and recognition for companies the strategy CONFIDENTIAL 12.10.2007 Slide 19

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Collaborative Research – High Competition State of the Art technology Best Science Ambitious targets /Excellence in science www.mastersininnovation.com Address a scientific niche/need All partners that are expected in such a project Best Partners All partners do play an active and necessary role Respected partners Mix of research / development / prototype testers / … Addressing a maximum of call targets Best Match Address all parts of the proposal document and be very specific Optimal Impact Best Value for money concerning output Clear outputs and results and exploitation / dissemination CONFIDENTIAL 12.10.2007 Slide 20

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS # projects ICT • FP7-ICT-2007-1 www.mastersininnovation.com • Number of projects submitted for the first call • Call Budget was 1000m€ Source: EC, 2007-05-23 CONFIDENTIAL 12.10.2007 Slide 21

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS # projects NMP (part for small projects) • The Nanosciences, Nanotechnologies, Materials and new Production Technologies (NMP) first call (part for small projects) www.mastersininnovation.com • 2-stage procedure • It was noted that 17% of the submitted projects featured industrial coordinators. Source: EC, 2007-05-23 CONFIDENTIAL 12.10.2007 Slide 22

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Get involved into Collaborative Research As a company As a company www.mastersininnovation.com for strategic reasons for project reasons Build the project Promote yourself Build a consortium Join a consortium as as the coordinator a beneficiary Make sure you do your work good CONFIDENTIAL 12.10.2007 Slide 24

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Collaborative research Initial Project Idea Check the Calls Define your interests www.mastersininnovation.com Look for partners Invite others or Promote yourself Be invited Complete the project idea Complete the consortium and agreements Complete the proposal application Network activity during execution CONFIDENTIAL 12.10.2007 Slide 25

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Project Consortia – Consortium Type 1: Horizontal, trans-European network of partners in the value chain Partner Partner www.mastersininnovation.com D B Value Chain Partners Partner Partner A C – Consortium Type 2: Vertical, trans-European network of partners with common, complementary RTD interests Industry-Specific RTD Area Partner Partner A D Partner Partner B C CONFIDENTIAL 12.10.2007 Slide 26

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Where do I find partners ? • Your relations and their relations • Research associations www.mastersininnovation.com • Previous projects and coordinators – http://cordis.europa.eu/fp6/projects.htm • CORDIS (potential) partners search database – http://cordis.europa.eu/partners-service • COST Actions – http://www.cost.esf.org/index.php • Technology Platforms – http://cordis.europa.eu/technology-platforms/home_en.html • EU funded conferences and workshops – http://ec.europa.eu/research/conferences/index_en.cfm • Writers of EU Reports, Studies and Proposals – http://europa.eu/geninfo/query/advSearch_en.jsp • Evaluators from the Framework Programmes – http://cordis.europa.eu/fp6/experts.htm • National Contact Points (NCP) – http://cordis.europa.eu/fp7/ncp_en.html CONFIDENTIAL 12.10.2007 Slide 27

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS How to promote yourself • Publish your company profile on the CORDIS Partner www.mastersininnovation.com Search Consortia • Get in touch with NCP’s • Join existing consortia • Become a FP7 evaluator yourself – (shortage of women and evaluators from the industry) • Attend conferences and workshops preferably as a speaker CONFIDENTIAL 12.10.2007 Slide 28

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS People program (Marie Curie Programme) – 4,7bn€ Research Centre or Company Individual Fellowship www.mastersininnovation.com 100% Marie Curie salary paid Network Research Group … (fixed amounts) Submit Proposal 13% to cover Submit Proposal 13% to cover extra costs extra costs Grant Grant 100% salary paid (fixed amounts) No partnership needed CONFIDENTIAL 12.10.2007 Slide 29

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS People (Marie Curie Programme) • Budget: 4.7 billion € www.mastersininnovation.com • Improve mobility and career development of researchers in EU & outside • Objective: – Improve the quality of the human potential in European R&D – Increase the number of researchers in the R&D sector • Via Marie Curie Actions: – Initial training of researcher: Marie Curie networks – Lifelong training & career development: Intra-European Fellowships, Reintegration Grants – Industry/academia partnerships: Industry/academia scheme – International dimension: International fellowships, Reintegration Grants – Specific actions: Excellence awards CONFIDENTIAL 12.10.2007 Slide 30

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Marie Curie Evaluation Criteria • Content of the proposal / project • Quality / Capacity of the Host and Management www.mastersininnovation.com (Use of European Charter for Researchers) • Quality / Capacity of the Fellow • Training Activities / Knowledge Transfer • Personal Career Development Plan • Training in multidisciplinary / Multisector skills CONFIDENTIAL 12.10.2007 Slide 31

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Ideas program (ERC) – 7,5 bn€ • Aim is to identify individuals who can establish Europe as the scientific leaders in scientific research topics www.mastersininnovation.com – Supports fundamental research at the frontiers of science and technology – No thematic priorities – Excellence in science and excellence in people • 2 types of grants – ERC Starting Grant: support to the independent careers of outstanding researchers • PhD obtained between 2 and 9 years ago • 5yrs - €100-400k/yr – ERC Advanced Grant: support excellent research projects by leading researchers • 200-500 projects / year • €0,5-2,5 m€ / grant • Criteria: – Potential to become a world class leader – Quality of the Research Proposal – Research Environment CONFIDENTIAL 12.10.2007 Slide 32

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Capacities: Improve Research Potential – Budget: 4 billion € for improving EU research potential www.mastersininnovation.com – Objective: strengthen and optimise EU knowledge capacities Policy Development International Co-op. 2% 4% – Knowledge areas: • Research Infrastructures Research Research for Infrastructures • Research for the benefit of SMEs SMEs 42% 33% • Regions of Knowledge • Research Potential of Convergence Regions • Science in Society • Coherent development of research policies Science in Regions of Society Potential Knowledge • Activities of International Co-operation 8% Convergence 3% Regions 8% CONFIDENTIAL 12.10.2007 Slide 33

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Capacities – 4,1 bn€ Access to high quality research infrastructures Research Infrastructures Consortium of SMEs outsourcing a common problem www.mastersininnovation.com Research for SMEs to a research centre/organisation Assist regions in R&D strategy and EU/International Regions of Knowledge programs participation (linked to structural funds) Improve R&D activity in Objective 1 regions (wealth per capita < 75% of EU) Research Potential Ensure concerns of citizens are taken into account in scientific and technological discoveries Science in Society Programs to realize the Scientific Cooperation Agreements with non-EU countries –related to SICA Inco (Horizontal) in Coll. Research Avoid fragmentation and duplication efforts at R&D Development of Policies policy level – related to ERA-Net in Coll. Research CONFIDENTIAL 12.10.2007 Slide 34

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Euratom – 2,75 bn€ R&D in preparation of ITER operation Fusion Research Preparation for DEMO www.mastersininnovation.com R&D for the longer term Fusion Materials Irradiation Facility Infrastructures Technology Transfer Process Management of radioactive waste Nuclear Fission and Reactor Systems Radiation Protection Radiation protection CONFIDENTIAL 12.10.2007 Slide 35

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Eurostars • New call opened – close 8 feb 2008 • Eurostars is meant to support SME organisations to develop new services, products and processes. www.mastersininnovation.com • Projects should be market-driven: – maximum duration of three years, – within two years of project completion, the product of the research should be ready for launch onto the market. – the exception to this rule applies to biomedical or medical projects, where clinical trials must be started within two years of project completion. • Coordinating SME must invest at least 10% of its turnover or FTE in R&D • Participants required from only 2 countries – No participant or country will be required to invest more than 75% of the total project costs. – Minimum 50% of the research done by SMEs • Funding levels: Research: 60% ; Demonstration 35% • Target of the project must be to bring new technology to the market • Uses FP7 and EUREKA funds http://www.eurostars-eureka.eu/ CONFIDENTIAL 12.10.2007 Slide 36

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Competitiveness and Innovation Programme : CIP – 3,6bn € Enterpreneurship and ICT-Policy Support Intelligent Energy Europe Innovation Programme Programme (ICT-PSP) Programme (IEE) www.mastersininnovation.com (EIP) 0,73 bn€ (20% CIP) 0,73 bn€ (20% CIP) 2,17 bn€ (60% CIP) - Financing of start-ups and - Improve eGovernment, Promote the adaption of SME’s eHealth and eInclusion alternative energy - SME support networks - Towards common technologies - Enterpreneurship and standards and exchange -Rational use (SAVE) innovation culture of (official) electronic -New and renewable documents resources (ALTENER) -Energy in transport Grants (STEER) Involvement National -Integrated initiatives Risk Capital as Loans and Authorities very important Equity Grants CONFIDENTIAL 12.10.2007 Slide 37

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Life Long Learning Programme (LLP) – 7bn € • a single umbrella for the various EC educational and training initiatives • 4 sub-programmes: www.mastersininnovation.com – Comenius (for schools), – Erasmus (for higher education), – Leonardo da Vinci (for vocational education and training) – Grundtvig (for adult education). • A transversal programme focuses on policy co-operation, languages, information and communication technologies, effective dissemination and exploitation of project results. • The Jean Monnet programme stimulates teaching, reflection and debate on the European integration process at higher education institutions worldwide. http://ec.europa.eu/education/programmes/llp/index_en.html CONFIDENTIAL 12.10.2007 Slide 38

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Other Specific R&D / Innovation Programs • MEDIA www.mastersininnovation.com – Developments for the film/multimedia domain • MARCO POLO – Innovation to avoid road traffic congestion • eContent – Make Digital libraries accessible all over Europe • LIFE – Specific environmental related projects CONFIDENTIAL 12.10.2007 Slide 39

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS Conclusion Opportunity Threat www.mastersininnovation.com Access to high level research and know-how Success rate of proposals is quite low Networking platform for your organisation Time delay between application and start “Quality Label” for project and company Dependency on the consortium Access to new markets and regions Different interests of the partners Funds for work you were planning to do (Administrative) overhead (as coordinator) Fund level high (50% LE - 75% SME) CONFIDENTIAL 12.10.2007 Slide 40

© DELOITTE INTERNATIONAL R&D FUNDING PROGRAMS www.mastersininnovation.com Verhaert New Products & Services nv Hogenakkerhoekstraat 21 9150 Kruibeke Belgium Tel +32 (0)3 250 19 00 Fax +32 (0)3 254 10 08 www.verhaert.com info@verhaert.com www.mastersininnovation.com CONFIDENTIAL 12.10.2007 Slide 42

International R&D Funding Programs Deloitte

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