The smart way to innovate – Funding options for R&D and commercialisation in the food industry

Obi Ezenwa

Agenda

1. Brief background about Pera  

2. What funding is available?

3. What is the EC looking to fund?

4. What are the key elements for funding?

5. How do I go about the application process?

6. Case study examples of previously funded projects

8. Close

• Set-up in 1946 by UK government

• An international, multi-site research organisation

• An organisation owned by our sector/clients

• Typical research institute activities

• Technology transfer

• Technology valorisation

• Technology development

Who is Pera?

Five societal challenges – innovation is needed

What funding is available?

Call Deadline Budget

EC Framework Programme seven (FP7):

Research for the benefit of SMEs 08 Dec 2010 €110 million

Research for the benefit of SME Associations 08 Dec 2010 €79 million

Demonstration 08 Dec 2010 €15 million

Knowledge Based Bio-Economy (KBBE) Feb 2011 €240.27 million

CIP Eco-innovation and market replication Sept 2011 Tbc (€35 million – 2009)

Technology Strategy Board (TSB):

Technology inspired collaborative research:(Biosciences and High Value Manufacturing)

17 Nov 2010 £18 million

Background to EC Funding – Framework Programme 7 (FP 7)

€53Bn available to help businesses develop new products and processes

Designed to enhance the competitiveness of Europe through collaborative research and supporting activity

10 themes in total from food to space and security

EC Priority thematic topics

•Energy

•Environment (including climate change) – €1800 million

•Food, Agriculture, Fisheries, Biotechnology – €1935 million

•Health – €6050 million

•Information and Communication Technology

•Nanoscience, nanotechnologies, materials and new production technologies

•Security

•Space

•Transport (including aeronautics)

Background to EC Funding - Why is there €53Bn from the EC?

•Low labour rate competition

•High-technology competition

•Globalisation

0

5

10

15

20

25

30

1985 1995 2005

%% EU15 Manufacturing Employment

•We don’t have the time

•We don’t have cash to invest and can’t afford to take the financial risk

•We don't have the facilities, equipment, know-how

•Don’t have the contacts to take to market

The barriers – Is there a smart way to innovate?

Blocks of between €1500k & €3500k are available to fund

• Your new product, process or service development

• Your improved supply chain development

• Your strategic customer relationship development

• Your promotion of new offerings in new markets

Minimise your investment & risk

• Without diluting equity or IPR

What is the EU looking to fund?

KBBE

• Processed foods with lower salt, fat and sugar content

• Safety and quality of ready-to-eat foods

• Novel biotechnological approaches for transforming industrial and/or municipal biowaste into bioproducts

• Sustainable management of agricultural soils in Europe for enhancing food and feed production and contributing to climate change mitigation

• And more..........

Research for the benefit of SMEs \ Associations

• Any scientific or technology area

What is the EU looking to fund?

•€1.45m total project value

•Norsk Gardsost is a sector organisation for traditional cheese-making.

•A Barrier for preventing pathogenic bacterial growth in cheese from non-pasteurized milk

What are the key elements for funding?

Is there a NEED?

Why can’t you just do it?

How is your solution going to satisfy this NEED?

Why is your solution better than existing solutions?

•What are the key elements for funding?

Political

Economic

Social

Technology

Legislation

Environmental

PESTLE

How do I go about the application process?

BEFORE YOU START

•Techno-economic validation

•Novelty verification, patent reviews

•Risk

DECISION MADE TO MOVE FORWARD WITH AN APPLICATION

•Concept surgery, concept development

–What is our solution?

–Who are the best people to deliver?

–How will we take it to market?

WRITE THE PROPOSAL / RECRUIT PARTNERS

INTERNAL REVIEW

SUBMIT THE PROPOSAL TO BRUSSELS

The process

•Feedback from EC, score out of 15

•Contract negotiation

•Documentation collation, partner due-diligence

•Consortium agreement is signed

•Advance EC funds to project bank account, distribution to partners

•Project start

EC evaluation criteria

1. Scientific and technical excellence

2. Quality and efficiency of the implementation and the management

3. Potential impact through the development, dissemination, and use of project results

Deliverables

•Mid-term : proof of science

•Final deliverable: pre-production prototype or demonstration rig

•Funding for exploitation and dissemination activities

•Project success criteria?

Are you making money as a result of the project?

About 6 man-months effort to prepare an EU application

The chances of securing funding can be less than 10%

Bureaucratic to secure and manage contract

The process - downside

•€2.28m total project value

•Healthy high-fibre / low salt baking process based on the use of European Barley flour

•NBL - the Norwegian Federation of Food and Drink Industry as route to Market

FP7 Website

http:cordis.europa.eu/fp7

Summary

•Innovation is essential to compete in global markets

•EU government grants available to help companies

•Difficult to win the grants

•Help is available to help you access the grants and develop products for you

Thank You