IGNITE your....European Funding Opportunities Presenter – Alan Scrase, centre manager of SETsquared at the University of Southampton, will present about “The new SME instrument” Horizon 2020 provides easy access to € 2.8 Billion to SMEs to fill the gaps in funding for early-stage, Research and Innovation SMEs and accelerating the exploitation of innovations. The new SME instrument will be a simpler and more easily accessible funding scheme for SMEs, where projects will be selected through a bottom-up approach within a given societal challenge or enabling technology of H2020.

1. Research and
Innovation
SME support
under
HORIZON 2020
1
Alan Scrase
1st May 2014

2. The Analysis

3. Outcome of impact assessments
• Less than 50% of industrial partners use the publicly funded
applied research projects strategically
• Only about 22% of SMEs participating in EU research programs
are strategic innovators
• Most academics engage with industry to further their research
rather than to commercialise their knowledge
• Results are not exploited because projects were not designed for
exploitation
• There is a strong relationship between internationalisation and
innovation, but SMEs are not aware of internationalisation support
programmes.
• The information environment of (European) R&D programmes is
unattractive and repelling to SMEs

4. Innovation Union Commitment n°7
Ensure stronger involvement of SME in
future EU R&I programmes
*
European Council 4 February 2011
Commission is invited to explore the
feasibility of a Small Business Innovation
Research Scheme

5. Concept
and
Design

6. Why participate?
Horizon 2020
• To compete among the best European companies
• Visibility at European level
• Possibility to receive business/management coaching
• Networking possibility with investors and customer
networks
• Preferential treatment for subsequent financing (EU
Financial Instruments: loan and equity facilities)
6

7. SME support: integrated approach
Horizon 2020
SME instrument
7%
Collaborative projects
13%
Eurostars II
Enhancing Innovation
Capacity
Market-driven Innovation
Access to Risk Finance
20 %
budgetary
target in
LEITs & SC
'Innovation
in SMEs'
7

8. Funding Gap
(range: 1-3 M€)

9. Technology Readiness Level

10. ?
IDEA business coaching and complimentary services MARKET
Concept &
Feasibility
Assessment
Demonstration
Market Replication
Research
Development
Commercialisation
SME window EU
financial facilities
Procurement
SME instrument
10

11. Phase 1: Concept and
feasibility assessment
Phase 2: R&D,
demonstration, market
replication
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"
Lump sum: 50.000 €
~ 6 months
No direct funding
Phase 3:
Commercialisation
0.5-2.5 M€ EC funding
~ 12 to 24 months
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
Procurement
10% success 30-50% success
Phase 3+coaching  2% budget

12. • 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)
Main features
12

13. 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 SC & LEIT
 each SC & LEIT defines a broad topic
• Continuously open call with around 4 cut-off dates per year
• Draft Dates:
Implementation
13
2014 2015
Phase 1
18/06/2014
24/09/2014
17/12/2014
Phase 2
09/10/2014
17/12/2014
Phase 1
18/03/2015
17/06/2015
17/09/2015
16/12/2015
Phase 2
18/03/2015
17/06/2015
17/09/2015
16/12/2015

14. Evaluation: Remote evaluation throughout the process
Suggestion to abandon consensus meetings
Long feedback loops ("ESRs") slow down the process
Other eligibility conditions:
* established in EU or associated country
* one application/project (phase 1 or phase2) at a time
Funding over 7 years:
ca. 5,200 Phase 1 projects (fixed lump sum of 50K€)
ca. 1,700 Phase 2 projects with an average size of 1.5 M€
(or 2550 of an average size of 1 M€;1250 of an
average size of 2 M€)
14
Implementation

15. Area Topics &Budget
LEIT ICT Open Disruptive Innovation Scheme; 45 M€ per year,
Estimated projects per year: 90 phase 1, 26 phase 2
LEIT Nanotechnology
LEIT Advanced
materials &processing
LEIT Advanced
manufacturing
Accelerating the uptake of nanotechnologies, advanced materials or advanced
manufacturing and processing technologies by SMEs
21.8 M€ (2014), 23.8 M€ (2015)
Estimated projects: 43 phase 1 , 13 phase 2 (2014)
Estimated projects: 47 phase 1, 14 phase 2 (2015)
LEIT Biotech SME boosting biotechnology-based industrial processes driving competitiveness and
sustainability; 3.80 M€ (2014), 2.40 M€ (2015)
Estimated projects: 7 phase 1, 3 phase 2 (2014)
Estimated projects: 5 phase 1, 1 phase 2 (2015)
LEIT Space SME innovation in space applications, 8.5 M€ (2014), 8.75 M€ (2015)
Estimated projects: 17 phase 1, 5 phase 2 (2014)
Estimated projects: 18 phase 1, 5 phase 2 (2015)
SC1 Health Clinical validation of biomarkers and/or diagnostic medical devices (100% funding)
66.1 M€ (2014), 45 M€ (2015)
Estimated projects: 132 phase 1, <38 phase 2 (2014),
Estimated projects: 90 phase 1, <26 phase 2 (2015)
bigger projects envisaged for phase 2 (~5 M€)
Draft Topics
(2014/2015)

16. Area Topics &Budget
SC2 Bio-economy Resource-efficient eco-innovative food production and processing
9 M€ (2014), 17 M€ (2015)
Estimated projects: 18 phase 1, 5 phase 2 (2014)
Estimated projects: 34 phase 1, 10 phase 2 (2015)
Supporting SMEs efforts for the development - deployment and market replication
of innovative solutions for blue growth
6.8 M€ (2014), 7.4 M€ (2015)
Estimated projects: 13 phase 1, 4 phase 2 (2014)
Estimated projects: 15 phase 1, 4 phase 2 (2015)
SC3 Energy Stimulating the innovation potential of SMEs in a low carbon and efficient energy system
33.95 M€ (2014), 37.26 M€ (2015)
Estimated projects: 67 phase 1, 20 phase 2 (2014)
Estimated projects: 74 phase 1, 22 phase 2 (2015)
SC4 Transport Small business innovation research for Transport
35.87 M€ (2014), 38.96 M€ (2015)
Estimated projects: 72 phase 1, 21 phase 2 (2014)
Estimated projects: 78 phase 1, 23 phase 2 (2015)
SC5 Climate Boosting the potential of small businesses for eco-innovation and a sustainable supply
of raw materials; 17M€ (2014), 19 M€ (2015)
Estimated projects: 34 phase 1, 10 phase 2 (2014)
Estimated projects: 38 phase 1, 11 phase 2 (2015)
Draft Topics
(2014/2015)

17. Area Topics &Budget
SC6 IIIS no topic in 2014 Innovative mobile e-government applications by
SMEs, 4M€ (2015)
Estimated projects: 8 phase 1, 2 phase 2
SME business model innovation, 11 M€ (2015)
Estimated projects: 22 phase 1, 6 phase 2
SC7 Security Protection of urban soft targets and urban critical infrastructures
7 M€ (2014), 7.4 M€ (2015)
Estimated projects: 14 phase 1, 4 phase 2 (2014)
Estimated projects: 15 phase 1, 4 phase 2 (2015)
Total 254.82 M€ (2014) 266.97 M€ (2015)
Draft Topics
(2014/2015)
Phase 2 project estimated with an average of 1.5 M€
2014 and 2015 represent 5% of the combined budgets of these areas, this will increase over time to 7%

18. The profile and competences of evaluators is highly important
Market Opportunity
company’s potential
achieving the
envisaged results
Technical solution
possible and better
than existing ones
Excellence in
innovation
Evaluation
Commercialisation
potential and
economic impact
Company's
growth
potential
Plus: EU added value

19. 19
Coaching
and EEN support
EEN
Initial
Assessment
Phase 1 Phase 2 Phase 3
Coaching (not part of EEN)
Regional
HR
…
SME
Instrument
Support for
Application
Support for EU
project Management
Support for Access
to Finance
Facilitation and Moderation

20. Coaching
in practice
• Voluntary coaching offered in Phase 1 and Phase 2:
 Phase 1 – 3 coaching days
 Phase 2 – 12 coaching days
• Coaches will drive the performance of the organization by working
with the senior management team
• Coach suggestion provided, but final selection by the SME
• Coach and SME to decide a coaching plan in Phase 1. A summary
of coaching foreseen for Phase 2 will form part of application to
Phase 2
• Coaching paid in addition to Phase 1 and Phase 2 contribution

21. SETsquared
at University of Southampton
• Alan Scrase,
Incubation Centre Manager
a.scrase@soton.ac.uk
• 07825 761 652