Driving Innovation Technology Strategy Board Competition Briefing -Metadata Production Tools (Mainstream & Fast Track rounds) -Collaboration across digital industries 2 Alex Chahian Competitions Team London, 24th March 2011
Driving Innovation Agenda 09:30 – Arrival 10:00 – Introduction Technology Strategy Board 10:15 – Application Criteria Costs, Finances and Grant allocations Je-S IT & The Way Forward 11:00 – Q&A (Process & Finance) **** 11:30 – Coffee Break **** 11:45 – Metadata Production Tools Competition Scope 12:05 – Collaborating Across Digital Industries 2 Competition Scope 12:30 – Q&A (Scope) **** 13:00 – FINISH ****All presentations will be available at: https://ktn.innovateuk.org/web/competitions-faqs/document-library
Driving Innovation By the end of the briefing You should, with confidence and knowledge, be able to: • Understand the scope and objectives of the competition • Understand the competition process and criteria • Understand the application requirements • Be clear on the timelines & deadlines
Driving Innovation Our vision... for the UK to be a global leader in innovation and a magnet for innovative businesses, where technology is applied rapidly, effectively, and sustainably, to create wealth and enhance quality of life. Partnership is key
Driving Innovation The Technology Strategy Board is… A national body supporting business innovation... for business benefit for economic growth for quality of life
Driving InnovationWho we are as an organisation…• An arm’s length executive body guided by business-led Governing Board• Sponsored by the Department for Business, Innovation and Skills (BIS)• We work across government departments and often in partnership with the research councils• Focused on business innovation and the application of technology• Staff of around 120 based in Swindon
Driving InnovationWhat are we funding?• Over a 1000 Business-focused R&D Consortia• Most are Business led• 3000 business partnerships• 826 academic partnerships – 98 HEIs• Over £900m invested/committed – of total £ 1,200m
Driving Innovation TSB Strategic Criteria • Does the UK have the capability? Significant research capability/capacity to exploit opportunities. • Is the idea “ready”? Clear opportunity to which this is a timely response. Speed progress towards more sustainable economic growth. • Is there a large market opportunity? What is the size of the global market opportunity? Will it create added value in the UK, taking into account the global market potential? • Can the Technology Strategy Board make a difference? Can we add value? Will our investment promote sustainability and quality of life?
Driving InnovationThe “Ideal Project” • A clear commercial opportunity to open up or exploit a significant growth market. • A technical challenge that requires the creation of an industrially driven consortium and innovative and risky research and development to solve. • A realistic project with deliverables and applications that are innovative, commercially exploitable and of wider benefit. • A demonstrable need for support.
Driving Innovation Types of Project Commercialisation Prod. Prototype System Qual. System Dev. Technology Demo Technology Development Feasibility Blue sky Research Commercial Investment Councils BAS APP EXP Venture Capital TSB and its co-funders funding Market readiness
Driving Innovation Application Structure The Application is broken down into 4 marked sections: Gateway: Scope Section One: Business Proposition • Does the project fit the competition • What is the business proposition call? that the applicants are trying to address and exploit? Section Two: Project & Partners Section Three: Value Add Details : • Is the project value for money? • What will the project entail? • Why should the Technology Strategy • Who are the project participants and Board invest? what are their credentials?
Driving Innovation Abstract of proposed project • This part of the application is not marked
Driving Innovation Scope Gateway Key Points: • “must align” • “clear majority of the projects objectives and activities” Don’t write yourself out of scope...!
Driving Innovation Section 1: The Business Proposition Question 1 What is the business opportunity that this project addresses? Question 2 What is the size of the market opportunity that this project might open up? Question 3 How will the results of the project be exploited and disseminated? Question 4 What economic, social and environmental benefits are the project expected to deliver to those inside and outside of the consortium and over what timescale? All questions are equally weighted (10 marks per question)
Driving Innovation Business Proposition – Key points Question 1 What is the business opportunity that this project addresses? Question 2 What is the size of the market opportunity that this project might open up? • Have you identified a viable business opportunity? • Is it clear you understand the dynamics of the market? • Has the “size of the market” been quantified and where possible, has evidence been given? • Is the business need and market realistic and addressable by the project? “If no-one in the consortium knows the market, you haven’t got the right consortium!”
Driving Innovation Business Proposition – Key points Question 3 How will the results of the project be exploited and disseminated? Question 4 What economic, social and environmental benefits are the project expected to deliver to those inside and outside of the consortium and over what timescale? • Is it clear how your consortium plans to exploit the results? • Is it clear how your consortium will benefit from the project? • Have you quantified the value of the output and how it will be disseminated? • Who else will benefit from the project and how? • Will there be any social or environmental impacts? If these are negative how will they be mitigated? • Sustainability implications?
Driving Innovation Section 2: The Project Details Question 5 What technical approach will be adopted and how will the project be managed? Question 6 What is innovative about the project? Question 7 What are the risks (technical, commercial and environmental) to project success? What is the project’s risk management strategy? Question 8 Does the consortium have the right skills and experience and access to facilities to deliver the intended benefits? All questions are equally weighted (10 marks per question)
Driving Innovation Project Details – Key points Question 5 What technical approach will be adopted and how will the project be managed? Question 6 What is innovative about the project? • Have you described the main technical objectives, methodology and the project plan? • Have you explained how the project will result in substantial and lasting changes? • Does the project present both commercial and scientific innovations? • Have you provided evidence such as patent search of this innovation? The UK Intellectual Property Office says 80% of published patents are lapsed and estimates that 30% of European R&D expenditure is wasted!
Driving Innovation Project Details – Key points Question 7 What are the risks (technical, commercial and environmental) to project success? What is the project’s risk management strategy? • Have you identified the risks for your project; technical, commercial, managerial, environmental and others? • Have you outlined how the risks will be managed and mitigated?
Driving Innovation Project Details – Key points Question 8 Does the consortium have the right skills and experience and access to facilities to deliver the intended benefits? • Why are you the consortia best placed to do this project? • Have you adequately demonstrated your consortia’s proven track record? • Have you successfully completed other innovative R&D projects? • Do you have the ability within the consortia to develop and exploit?
Driving Innovation Section 3: Funding and Added Value Question 9 What is the financial commitment required for the project? Question 10 How does the financial support from the Technology Strategy Board and its funding partners add value? All questions are equally weighted (10 marks per question)
Driving Innovation Funding – Key points Question 9 What is the financial commitment required for the project? • Do not simply write out the finance table! • Have you explained the funding model & cost break down for the project? • Is the budget realistic and appropriate? – underestimating cost is as bad as overestimating costs • Have you explained and justified any significant costs e.g subcontracting or travel? • Have you articulated and quantified the amount of investment required to deliver the project?
Driving Innovation Funding – Key pointsQuestion 10 How does the financial support from the Technology Strategy Board and its funding partners add value? • Will the TSB investment increase the amount of Research and Development undertaken in the UK? • Have you explained and justified why you are not fully funding the project yourselves? • Have you explained how the project would be undertaken differently with TSB investment? • What are the implications of the TSB funding? What does it mean to the project, idea and exploitation?
Driving Innovation Appendices (None for EOI) Appendix Guidance Appendix A This should be used to provide additional information to address Section 1 of the application form: The Business Proposition. The Maximum length: applicant may wish to include graphics describing the nature of the Up to 5 sides of A4 problem, market dynamics and/or exploitation plans. Appendix B This should be used to provide supporting information to address Section 2 of the application form: The Project Details. For example, Maximum length: a Gantt chart, risk analysis table, project management structure Up to 5 sides of A4 (7 sides of A4 and/or details of evidence for innovation. for Science to Business Science to Business applications, are allowed an additional 2 A4 sides for additional assessment information such as the Pathways to Applications) Impact. Appendix C This should be used to provide details of the specific expertise and track record of each consortium partner and each subcontractor to Maximum length: address Question 8 of the application form. Academic collaborators Half a side of A4 for each partner may wish to refer to their research standing. and subcontractor • These should be used to add justification, graphs, pictures etc to support your application • They are not a continuation of the application form • Do not use web references
Driving InnovationApplication Assessment All applications are assessed by independent reviewers drawn from industry and academia What do they look for? • Clear and concise answers • The right amount of information – don’t give too much detail or make assumptions • Quantification and justification • That you’re the right people with the right bright idea and the means to exploit its potential
Driving InnovationTop Tips • Answer the question fully and use all the space available • Number your sections & questions • Check your application for quality of presentation – make the best impression on the assessors • Use capitals when correct to do so but not to draw attention to your case – reviewers do not like it • Quantified means put some numbers in • Avoid clichés – “Holy Grail” or “Market is massive” • Don’t leave your submission until the deadline • Please refer to the Guidance for Applicants
Driving Innovation Key Dates – Metadata Mainstream Timeline Summary Competition opens 14th March Optional Expression of Interest review period 14th March to Noon 14th April Optional Briefing 24th March Final date for Registration Noon 14th April Submission of Expression of Interest Applications Deadline: Noon 21st April Decision provided by Technology Strategy Board End of business 6th May Stage 2 opens (for invited applications) 9th May Feedback to applicants End of business 9th May Optional Finance Form review period 9th May to Noon 9th June Submission of the Application – including Je-S submission, Deadline: Noon 16th June finance forms & appendices Decision to applicants End of business 22nd July New Projects Workshop Date and location to be confirmed
Driving Innovation Key Dates – Metadata Fast Track Timeline Summary – Round One Competition opens 14th March Optional Briefing 24th March Final date for Registration Noon 14th April Optional Finance review 14th March to 14th April Submission of the Application – including Je-S submission, Deadline: Noon 21st April finance forms & appendices Decision provided by Technology Strategy Board End of business 25th May Feedback to Applicants End of business 8th June Timeline Summary – Round Two Competition opens 13th June Final date for Registration Noon 14th July Optional Finance review 13th June to 14th July Submission of the Application – including Je-S submission, Deadline: Noon 21st July finance forms & appendices Decision provided by Technology Strategy Board End of business 24th August Feedback to Applicants End of business 7th September
Driving Innovation Key Dates – CADI2 Timeline Summary Competition opens 14th March Optional Expression of Interest review period 14th March to Noon 13th April Optional Briefing 24th March Final date for Registration 13th April Submission of Expression of Interest Applications Deadline: Noon 20th April Decision provided by Technology Strategy Board End of business 13th May Full Stage Workshop (successful applicants from the 24-25 May Expression of Interest only) Stage 2 opens (for invited applications) 27th May Feedback to successful applicants 27th May Optional Finance Form review period 27th May to Noon 27th June Submission of the Application – including Je-S submission, Deadline: Noon 6th July finance forms & appendices Decision to applicants End of business 5th August Feedback to Applicants provided End of business 19th August New Projects Workshop Date and location to be confirmed
Driving Innovation Funding Criteria (Collaborative R&D) • Collaborative... business-led • Typically in the category of Applied Research (attracting 50% public funding for eligible project costs) • Consortium members (within overall project funding levels) • Industrial up to 50% • Industrial (SME) up to 60% • Academic 100% (of 80% FEC)
Driving Innovation What is Collaboration? • For two partners - one must undertake at least 30% of the work (in terms of eligible cost). • For more than two partners - any one partner cannot carry out more than 70% of the work (in terms of eligible costs).
Driving Innovation What does this mean for the grant? The share of the grant can be determined by agreement between the partners subject to the following criteria:- • The project must be business led, i.e. the lead partner must be a business/industry partner. • Each industry partner must receive at least 10% grant against their costs. • Different maximum funding levels apply for consortium partners dependent on their size & type: • Different maximum funding levels for SMEs vs. large organisations • An HEI may receive up to 100% of its costs (based on 80% Full Economic Costs.) • The project can not request more grant than the total maximum funding indicated • 50% (collaborative R&D, assuming Applied Research)
Driving Innovation Top 3 Financial Issues 1. Overhead rates – • too high, containing ineligible items such as sales and marketing expenses, audit costs, etc. • not justified – if not using the overhead calculator, you must explain how its been calculated 2. Academic 20% - the difference between FEC and the Grant available total generated by Je-S is not a contribution from the academic partner. 3. Software licences supplied by/from project partners or collaborators within the project should be priced at the actual cost of supplying the software and not at the normal or even discounted commercial licence rate.
Driving Innovation To reiterate: Total Funding Limits • Up to 75% for Basic Research projects • Up to 50% for Applied Research projects • Up to 25% for Experimental development projects • Business to Business projects(50%, 50%, 25%) • Projects can span more than one type, calculate the grant on a work package by work package basis.
Driving Innovation Eligible Costs (Industry Partners) • Labour Costs • Overheads • Materials • New Capital Equipment • Existing Capital Equipment Depreciation • Sub-Contracts • Travel & Subsistence • Other Costs – Other eligible direct costs not included in the above headings, • cash transfers • Contributions in Kind – IP filing costs up to £5,000 (SME only)
Driving Innovation Industrial Finance Form (not required for R&D EoI Stage)
Driving Innovation Overheads “Any indirect cost related to the general management and administration of the company necessary for the company to perform the project” Eligible Ineligible Board & senior management – where they Production or service delivery costs – any are not productive / fee earning and are costs associated with the way in which the not included as individuals in the direct company makes its money. This would Labour costs include all items used to calculate gross margin and cost of sale. Admin and support staff – where not included in direct labour costs Marketing and Sales Costs – these again count in the cost of sales Recruitment costs Non-bookable R&D time – non productive General supplies and IT – not linked to time or non-chargeable time of technical production or service delivery or support personnel Corporate fees and expenses – auditing, IPR Entertainment and Hospitality maintenance, insurance, photocopying New IP protection costs Site expenses – building rental, taxes, security and cleaning Any headings that are being charged for directly within the project – such as Utilities – careful not to include production training, T&S equipment energy or supply costs
Driving Innovation Overheads Calculation Option 1 – Use the calculator provided on the finance form Option 2* – provide an equivalently detailed explanation and breakdown of your own methodology
Driving Innovation Project Management • It is up to the consortium to develop and implement a sound project management system • Implications of project management – Ensure that you have identified a suitably experienced individual to act as Project Manager – Ensure that you have provided them with sufficient time to carry out the role, for example: A typical 3 year £1m project with 5 partners will need an experienced Project Manager with 50% Full Time Equivalent (FTE) available to run the project. (~350 days) – Include this resource in the labour costs of the lead partner
Driving Innovation Cash Transfers • Cash transfers between participants are eligible, but they should not increase the size of the project. • The donating partner shows a positive value in “Other” cost on their finance form. • The receiving partner shows an equal negative value in “Other” cost on their finance form.
Driving Innovation Ineligible Project Costs • Input or Output VAT • Interest charges, bad debts, profits, advertising, entertainment • Hire purchase interest and associated service charges • Profit earned by a subsidiary or by an associate undertaking work sub- contracted out under the project • Inflation and contingency allowances expressed as an overall arbitrary percentage • The value of existing assets such as IPR, data, software and other exploitable assets that are contributed to the project by any collaborator • Project Audit Fees
Driving Innovation Grant Claims & Payments • All grants are claimable quarterly in arrears • Claims can only be made for costs incurred and defrayed (amounts actually paid, may include partial payments) between the project start and end dates • All claims will be subject to an independent audit (including all academic partners) • In most cases audits are required with the first and last claim • Claims are only paid once quarterly reporting and necessary audits are complete • All projects are monitored on a quarterly basis including a visit from the appointed Monitoring Officer • The monitoring will be carried out against a detailed project plan
Driving Innovation Why Je-S? • The Research Councils Joint Electronic Submission System is being used to collect ALL academic finance forms. • Also to collect project finance details from non-HEIs (e.g. RTOs) that are claiming they are carrying out academic quality work and want to be funded on an FEC basis. • The Je-S system automates the collection of Full Economic Costs (FEC) based costs from academic partners and tells them exactly what numbers should be used in the application form for their costs. • Using Je-S enables Research Councils to easily co-fund Technology Programme projects.
Driving Innovation Submission Research Office HoD R.O P.I. Submission to meet deadline Submitter Pool Je-S Acceptance Je-S Output Form ‘with Council’ statusTechnology Strategy Board
Driving Innovation Eligible Costs (Academic Partners) • Eligible costs are based on FEC calculation • RC Contribution is the total eligible cost of academic partners. • The 20% difference between this and the FEC total DOES NOT represent a contribution to the project and should not be included anywhere within the application.
Driving Innovation Normal Je-S application elements • Not just the financials – E.g. Justification of resources – E.g Pathways to impact • Full details on the Je-S system • Queries about Je-S via the Je-S Helpdesk – JeSHelp@rcuk.ac.uk – 01793 44 4164
Driving Innovation Je-S Output Report Page 3 of X
Driving Innovation Academic Partner Finance Form Je-S Equivalent Summary Form - To be completed by each academic applicant from the Je-S submission document and submitted to the Technology Strategy Board by the lead applicant Please complete this form by filling in the pink shaded cells and return with all other paper work as advised in the guidance notes. This form is for HEIs and not for industry partners – the “Grant Sought” Total should be transferred to column 4 on Page 8 of the Application Form. Financial resources Summary of staff effort requested Percentage Staff Role Months Summary Tech Prog Fund Fund Full Economic Grant Sought Heading Heading Cost (FEC) (% of FEC) Grant Sought Staff Investigator 80% £0 Travel & subsistence Researcher 80% £0 Directly Incurred Equipment Technician 80% £0 Other Costs Project Students 80% £0 Sub-total Visiting Researchers £0 80% £0 Investigators Other 80% £0 Estates Costs Total 0 80% £0 Directly Allocated Other Directly Allocated 80% £0 Sub-total £0 80% £0 Indirect Costs Indirect Costs Research Council Facilities £0 80% £0 Staff 100% £0 Travel & Subsistence 100% £0 Exceptions Equipment 100% £0 Other Costs 100% £0 Sub-total £0 100% £0 Total £0 £0
Driving Innovation TSB Finance Application Form
Driving Innovation EOI Application consists of: • EOI Application Form – with finance summary table • Je-S open for validation, not submission at this stage • EOI submission deadlines: – CADI2: noon 20th April – Metadata Mainstream: noon 21st April (Note: no optional finance review at this stage) All submitted by the lead partner
Driving Innovation Fast Track Application consists of: • Application Form • Appendices • Industry Partner Finance Form (non-academic partners only) • Academic Partner Finance Form (academic partners only) • Je-S pdf Output Document (academic partners only) • Optional Finance Review deadline: noon 14th April 2011 • Application deadline (incl. Je-S): noon 21st April 2011 All submitted by the lead partner
Driving Innovation Where to go for help... www.innovateuk.org firstname.lastname@example.org Competition Helpline: 0300 321 4357 Technology Strategy Board: 01793 442700
Driving Innovation IT Download & Upload Process
Driving Innovation Competition Entry Instructions Process overview 1. If you do intend to make an application, you must first register for the competition. Registration closes one week before the competition CLOSE date. 2. You will receive an email with your username and password along with a link to the secure upload area. This email will also contain your application form with unique application number. 3. Submission: please don’t leave it until the last minute to submit your Application. Allow yourself 24 hours before the competition deadline, in order to avoid last minute issues.
Driving Innovation Competition Entry Instructions General NotesPlease ensure that:a) your file is named as instructed: a) Documents in an optional review period and for review must begin with DRAFT b) Your fully completed submission documents must begin with FINAL c) Any requested appendices begin with APPENDIXb) the application form is of the correct format: it should be a 97-2003 Word file (.doc) and not a later version (.docx). Excel appendices in 97-2003 (.xls)c) file names should only be made up of Alpha Numeric characters – do not include any other signs or symbols.d) include the applicant number and the partner number where applicable eg FINALApplicationApp12345.
Driving Innovation Competition page Competition Brief Register to receive other documents
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Driving Innovation Timelines & Offer Letter • Conditional offer letters will be issued approximately 3 weeks after notification. • We will require the return of various documents within the timescales stated on the offer letter to validate the grant offer.
Driving Innovation Outline of the letter • Project lead organisation • State Aid Obligations • Total grant amount • Role of the Lead and project • Project title management • Terms & Conditions of offer • Confidentiality and Intellectual Property • Payment terms • Exploitation • Changes affecting the Project • Acceptance of Offer • Publicity • Dispute Resolution
Driving Innovation Collaboration agreement • To be returned within the deadlines stated within the offer letter • Original agreement signed by all participants • A financial forecast for each Participant showing the anticipated spend of the project broken down by quarters throughout the life of the Project This will have to be done within the deadlines
Driving Innovation Key features • Who is in the Consortium? • What are the aims, and how is the work divided up? • Ownership of IPR • Management of consortium
Driving Innovation The Collaboration Agreement Preparation Negotiating a Collaboration Agreement can be complex and time consuming. Applicants for Technology Strategy Board funding should therefore start work on this at an early stage in the process, ideally before submitting their full applications
Driving Innovation New Projects Workshop • Requirement for successful projects • Expectation that each partner has one representative to attend the workshop • Outlines process requirements (how to raise a claim etc) • Opportunity to meet your Monitoring Officer
Driving Innovation Remember • Projects will be assessed based on the strength of their business proposition • And their value for money