Uploaded on


  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Financial Instrumentsfor Research and Innovation - HORIZON 2020 - Martin KOCH Policy Officer European Commission - DG Research and Innovation RTD C-03 – Financial Engineering UnitEU – Israel Seminar on Technology Transfer Tel Aviv, 25/26 November 2012 Not legally binding
  • 2. What are EU Financial Instruments?Equity/risk capital/ loans: e.g. venture capital to SMEs withhigh growth potential, risk capital to infrastructure projects andrisk-sharing loans for R&D and innovation investmentsGuarantees to financial intermediaries that provide lending toe.g. infrastructure projects, SMEs, persons at risk of socialexclusionOther risk-sharing arrangements with financialintermediaries in order to increase the leverage capacity of theEU funds (e.g. Project bonds)or a combination of the above with other forms of EU financialassistance 2 Not legally binding
  • 3. EU Financial Instruments: Why and when?Rationale and guiding principles:1. Addressing clearly identified funding gaps: Market dysfunction due to general economic uncertainty, high business/innovation risk (transfer of R&D to innovation and the market; innovative SMEs; introduction of new technologies), high transaction costs, asymmetric information2. Ensuring EU value added: • Effective targeting of EU policy goals • Catalytic effect on existing similar MS schemes or private investment, no crowding out1. Leverage effect: Using the EU budget for leveraging additional funding through risk-sharing and attraction of private capital Not legally binding
  • 4. HORIZON 2020: Budget proposal for Financial Instruments•HORIZON 2020 budget proposed: EUR 80 billion for the period2014-2020•Approximately 4.5% provided not via grants but throughFinancial Instruments (various facilities)•H2020 (SP "Industrial Leadership") – “Access to risk finance”•€ 3,768 million in current prices (net of administrative costs)for financial facilities supporting all sizes of companies and typesof entity (demand driven) + additional budget possible for policytargets (topping-up possibility) 4 Not legally binding
  • 5. HORIZON 2020: Proposed Financial Instruments (FI)Two Financial Instruments: One for debt, one forequityoDebt Financial Instrument: Two facilities o Loans and guarantees for investments in Research & Innovation (demand-driven; target groups midcaps and larger companies, research bodies and stand-alone projects) o Guarantee facility for research-intensive and innovative SMEs & small midcaps (loan guarantees)oEquity Financial Instrument – focus on early-stage finance o Early stage finance for innovative SMEs and small midcaps (seed and start-up companies) o Growth-stage finance also possible o Implementation in co-operation with the COSME programme 5 of the EU (in particular growth-stage) Not legally binding
  • 6. HORIZON 2020 Equity Financial InstrumentProvision of early-stage (seed and start-up) finance forresearch- and innovation-driven SMEs and small midcapsthrough different means:•Formal VC (Funds-of-Funds; funds)•Informal VC (Business Angels & their networks)•Technology Transfer funding ? 6 Not legally binding
  • 7. Technology Transfer funding underHORIZON 2020: Examination of options• Current state-of-play: Concept of TT funding at European level under discussion (Commission services, JRC, TTOs, EIF)• Clarification of added value to address TT funding needs at European level (TT funding landscape in Europe very divers)• Survey of "best practices" and successful models on its way (EU Member States and other countries including Israel)• Budget: No budget foreseen so far in HORIZON 2020 for dedicated Technology Transfer funding; but principal option to include TT funding in the 7 Equity facility Not legally binding
  • 8. Technology Transfer funding underHORIZON 2020: Examination of options• Next step: Building the case for a convincing justification for TT funding at EU level• Key elements in this context: • Addressing a clear funding gap (Proof of concept stage, pre-seed and seed phase) • TT funding through equity at various stages • Leverage of EU funding through additional, notably private capital • Sustainability, if possible (probably difficult in view of the high-risk profile of TT) • Achieving critical mass (no small-scale EU TT fund) • Governance and implementation costs• Ex-ante Impact Assessment for TT funding foreseen in 8 early 2013 Not legally binding
  • 9. Thank you very much for your attention! Not legally binding
  • 10. Thank you very much for your attention! Not legally binding