SME Instrument and other funding for SMEsRobin Tones – Jane Watkins - Leo Donato

Who is Enterprise Europe Network?

The Enterprise Europe Network brings together 600 partner organisations in more than 50 countries to help your business innovate, grow and succeed in the European marketplace.The biggest business club in the world

We Help you

• find new markets for your products• access funding and finance• find the right partners for new research and

development• gain free business advice and guidance• take part in a wide variety of networking events• understand how to protect your intellectual assets• learn how EU regulation and guidance affects you• have your say in Europe

Who pays for us?

• 60% of our funding is from Europe –“EASME”

• 40% comes from The UK government from “Innovate UK” the operating name for the Technology Strategy Board

• We are free to SME’s

What are we going to do today?

• Give a brief overview of European funding

• Introduce available grants from Innovate UK

• Signpost you towards further support

EU Funding: Horizon 2020

• Nearly €80 billion of funding available over 7 years (2014 to 2020);

• Collaborative projects at transnational level (top‐down approach).

H2020 structure

European Commission

Investment plans “Work Programmes” 

Topics

Call for proposals

Electronic application process

H2020 Process

SME InstrumentAddressed to highly innovative SMEs and projects with  a clear commercial ambition and a potential for high growth and internationalisation;

Fast Track to Innovation

Innovate UK funding: SMART Smart is a grant scheme which offers funding to SMEs to engage in R&D projects inthe strategically important areas of science, engineering and technology, fromwhich successful new products, processes and services could emerge and stimulateUK economic growth.Any UK SME undertaking research and development may apply.

Applications are accepted on a rolling basis for assessment by independent experts.

Three types of grant are available:• Proof of market;• Proof of concept;• Development of prototype.

Innovate UK funding: innovation vouchers 

Up To £5,000 to pay for an external expert tohelp your business grow (real challenge):‐ universities and further education colleges;‐ research and technology institutes;‐ technical consultancies and Catapult centres;‐ design advisers;‐ intellectual property advisers.

You cannot use an Innovation Voucher for:‐staff training;‐ equipment;‐ off‐the‐shelf software;‐marketing or branding items;‐ standard business advice.

SBRI competitions 

There are normally two competitionrounds per year (Spring and Autumn).Competitions are based around amarket need and typically split into twophases.Phase 1 proposals concentrate onproving the scientific, technical andcommercial feasibility of the proposedproject (up to £100,000 and last for sixmonths)Prototyping is undertaken in phase 2.Projects that successfully completephase 2 can then be commercialisedand offered to governmentdepartments and others under anormal procurement process (up to £1million over a period of 12 months)

Research‐Driven Projects

Innovation‐Led Projects

Near to market R&D Projects

Demonstration market 

replication

Consortia –min 3 partners, 3 countries

1 additional non‐UK partner

Single SME (also groups)

Prescriptive & Thematic Calls

Bottom‐Up Projects – no thematic focus

Thematic Calls, but flexible projects

100% Funding 70% Funding 60% Funding 70% Funding

Value Varies Up to €360KPhase 1: €50k

Phase 2: €0.5 ‐ 2.5m

Societal Challenges & Industrial Leadership

Eurostars **

SME Funding Opportunities under Horizon 2020 (and associated programmes**)

SME Instrument

Prescriptive & Thematic Calls

Consortia –min 3 partners, 3 countries

Value Varies

Fast Track to Innovation

5 from 5 countries, Min. 

3 from 3

Bottom‐Up Projects – no thematic focus

Demonstration market 

replication

70% Funding

Maximum 3m

SME self-assessment wizardBased on organisational financial data and headcount

•Shareholders/shareholdings may affect status (non-autonomous)•Assessment optional and only required if participating in SME specific actions

•Can’t apply for an SME action if entity not validated as SME in last 2 years

•The wizard produces an instant result and summary of data•The wizard isn’t a model of clarity…•Typical issues: status expired, no economic activity, applicants leave it too late, applicants believe they are SMEs but aren’t!

SME definition:http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf

Beneficiary register user manual:http://ec.europa.eu/research/participants/data/support/manual/urf_sme_wizard_guidance.pdf

Key Features of the SME Instrument

‐ Targeted at all types of innovative SMEs showing a strong ambition to grow‐ Only ‘for profit’ SMEs allowed to apply for funding ‐ Competitive, EU dimension ‐ only the best ideas pass ‐Market‐oriented, close‐to‐market activities (TRL 6)‐ Embedded in societal challenges and key enabling technologies‐ Evaluators: market perspective ‐ Time to grant: 400 days in 2008 ‐ > 150 days in 2014 

Phase 1Grant support of €50,000 (lump sum) + coaching

Phase 2Grant of €0.5m – 2.5m

70% funding + coaching

Phase 3Risk Finance

(Public/Private)

Concept & Feasibility Assessment DemonstrationMarket Replication R&D

Commercialisation

Concept to Market-Maturity Market-Maturity to Market Launch

Proof of ConceptProve technical & commercial viabilityExplore IP regimeDesign StudyDevelop pilot applicationRisk assessment

Demonstrate Commercial PotentialPrototypingTestingPilotingMiniaturisationScaling-UpApplication Development

Go-To-MarketEU Quality LabelInvestment Readiness TrainingSME window in EU financial facilities (Debt & Equity)Link to Public Procurement Networks

Project: 6 Months Project: 12 – 24 Months

Ideas to Concept

Outcome: Elaborated Business Plan Outcome: Commercialisable Output Outcome: Market Success

TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9

Specific Calls SME Instrument 2016/17SMEInst-01-2016-2017: Open Disruptive Innovation Scheme;SMEInst-02-2016-2017: Accelerating the uptake of nanotechnologies advanced materials or advanced manufacturing and processing technologies by SMEs;SMEInst-03-2016-2017: Dedicated support to biotechnology SMEs closing the gap from lab to market;SMEInst-04-2016-2017: Engaging SMEs in space research and development;SMEInst-05-2016-2017: Supporting innovative SMEs in the healthcare biotechnology sector;SMEInst-06-2016-2017: Accelerating market introduction of ICT solutions for Health, Well-Being and Ageing Well;SMEInst-07-2016-2017: Stimulating the innovation potential of SMEs for sustainable and competitive agriculture, forestry, agri-food and bio-based sectors;SMEInst-08-2016-2017: Supporting SMEs efforts for the development - deployment and market replication of innovative solutions for blue growth;SMEInst-09-2016-2017: Stimulating the innovation potential of SMEs for a low carbon and efficient energy system;SMEInst-10-2016-2017: Small business innovation research for Transport and Smart Cities Mobility;SMEInst-11-2016-2017: Boosting the potential of small businesses in the areas of climate action, environment, resource efficiency and raw materials;SMEInst-12-2016-2017: New business models for inclusive, innovative and reflective societies;SMEInst-13-2016-2017: Engaging SMEs in security research and development.

Key message

Focus on the business planThe evaluation panels are external experts in investment and venture capital. As a result the evaluation process, is very much simulating an investor decision.Money coming through the instrument can be seen as an investment, the Commission does not expect a direct return. The return on investment [is] more jobs, growth, turnover, more tax.Given this, proposals should be structured as a business plan that is investor-ready.

Practical Help

• Self evaluation form– http://ec.europa.eu/research/participants/data/ref/h2020/call_ptef/ef/

h2020-call-ef-sme_en.pdf

• Submission is via Participant Portal– http://ec.europa.eu/research/participants/portal/desktop/en/home.ht

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SMEI Video hints and tipshttp://ec.europa.eu/easme/en/news/precious-tips-4-sme-instrument-evaluators

For Fast Track to Innovation or the SME Instrument contact Jane Watkins NCP-SME@innovateuk.gov.uk

Innovation support

• H2020 Grant winners get Business coaching support through phase 1 and 2 to support their project

• Prospective Grant winners can get Innovation process support to develop their capacity

Contacts

Jane Watkins SMEI UK NCP

E: NCP-SME@innovateuk.gov.ukTel: 0750 005 1146

Leo Donato

Innovation AdvisorE: leo.donato@rtcnorth.co.ukTel: 0 113 203 1384

Robin TonesInnovation Specialist

E: robin.tones@rtcnorth.co.ukMobile: 07779787781