Centres for Research-based Innovation (SFI) Description of the SFI scheme

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1 Centres for Research-based Innovation (SFI) Description of the SFI scheme Research Council of Norway June 2013 The SFI scheme seeks to promote innovation by providing funding for long-term research conducted in close cooperation between research-performing companies and prominent research groups. The SFI centres are to develop expertise of high international calibre in fields of importance for innovation and value creation. The scheme is designed to enhance technology transfer, internationalisation and researcher training. The centres are to be co-financed by the host institution, partners and the Research Council. Companies must take active part in the centres management, financing and research activities. The centres will be established for a period of maximum five plus three years. The centres will be selected primarily on the basis of their potential to generate innovation and value creation. The scientific merit of the research must be of high international calibre. 1 Objectives and targets of the SFI scheme The overall objective of the Centres for Research-based Innovation (SFI) is to enhance the ability of the business sector to innovate by providing funding for long-term research conducted in close cooperation between research-performing companies and prominent research groups. The SFI scheme seeks to: Encourage companies to innovate through a greater focus on long-term research, and make Norway an attractive location for international companies to establish their operations. Facilitate active cooperation between innovative companies and prominent research groups. Promote the development of industry-oriented research clusters that are in the forefront of the international research community and that are an integral part of dynamic international networks. Enhance researcher training in areas of importance for the business sector, and encourage transfer of research-based knowledge and technology. The Research Council has established the SFI scheme to promote innovation and internationalisation in Norwegian trade and industry. The scheme is also intended to enhance quality and efficiency in the public sector. The SFI scheme is characterised by broader objectives, a longer-term perspective and a more targeted focus than other innovation-related instruments administered by the Research Council, and is directed towards the R&D-performing component of Norwegian companies. The SFI scheme provides companies with the opportunity to take a longer-term perspective on, as well as enhance the continuity and reduce the risk of, their research initiatives. For research groups, the scheme makes it possible to achieve long-term development of expertise through research of high international calibre conducted in close cooperation with companies. The companies participating in the centres are expected to be the main users of the research results, but results that fall outside of the company partners core areas may be commercialised by other means, e.g. through establishing new research-based enterprises. 2 Background of the SFI scheme The establishment of a Centres for Research-based Innovation (SFI) scheme was proposed in 2004 in a study conducted by the Research Council of Norway. The Government followed up the proposal to establish the SFI scheme in Report No. 20 ( ) to the Storting: Commitment to Research. 1

2 There were several important reasons given for launching the SFI scheme: There was a need to encourage established companies with high aspirations to increase their research activity, and make Norway a more attractive location for international companies to establish their operations. There was a need to promote more basic industry-oriented research and a longer-term perspective within both companies and research institutions. There was a need to focus efforts on creating internationally recognised research groups that are attractive partners in the international research arena. There was a need to strengthen interaction between R&D-performing companies and research institutions and to forge alliances across institutions and disciplines. The SFI concept is modelled on the competence centres that have been successfully established in a number of countries over the past 20 years. The US came first with its Engineering Research Centers, followed by the Corporate Research Centres in Australia and the Kompetenssentra in Sweden. The Norwegian SFI scheme has been adapted to conditions in Norway, and is a competition-based, national initiative under the Research Council of Norway, which confers status as and allocates funding for the Centres for Research-based Innovation. The first funding announcement for the SFI scheme (SFI-I) was issued in June Fourteen centres were selected in June 2006 and began their activities in spring A second funding announcement was issued in 2010 (SFI-II), and seven additional centres were launched in The framework for the SFI scheme stipulates that each centre will be subject to a mid-term evaluation by the Research Council, and the first 14 centres were evaluated in The overall evaluation of the scheme was very positive: The generalist evaluators conclude that to this date the SFI scheme as a whole has been very successful, meeting the success criteria defined by the Research Council of Norway when the centres were started and that there is every reason to believe that it will continue to develop in a very positive way. We find this achievement very commendable. An evaluation of the Research Council itself was conducted by the Technopolis Group in The evaluation report calls the SFI scheme a good achievement, and concludes that the centre schemes as a whole have contributed to renewal, increased quality and reduced fragmentation in the research system. The evaluation indicated that the schemes have clearly exerted influence on the strategies of the host institutions and led to greater concentration of resources, in addition to helping to enhance researcher training and international exposure. 3 Main features of the SFI scheme Partners It is primarily the companies participating in the centre s activities that are supposed to reap the benefits of the centre s research findings and expertise. These companies are designated as company partners. Public institutions may also be partners and relevance to society is considered to be important; however, an SFI centre is required to incorporate company partners and is intended primarily to facilitate innovation and value creation in companies. Companies and public institutions that participate in the centres are designated as user partners. Each centre should normally have at least three user partners that support and participate in the centre s activities. The user partners must take active part in the centre s research projects and conduct their own innovation activities. The scheme is 1 Midway evaluation of the Centres for Research-based Innovation. The Research Council of Norway ISBN A Good Council? Evaluation of the Research Council of Norway. Technopolis Group. 31 August

3 Host institution Internationalisation Organisation Financing highly flexible with regard to encouraging the involvement of large, internationallyoriented enterprises as well as of small and medium-sized companies. Research institutions may also serve as partners, and may participate in the establishment, financing and execution of research activities conducted there. These participants are designated as research partners. The host institution for a centre may be a university, university college, independent research institute, R&D-performing company or R&D-performing public service provider with a leading position within the disciplines or industrial areas addressed by the centre. The establishment of a centre must be viewed in the context of the research strategy of the host institution. In the SFI application, the host institution s administration must attach a signed letter of intent stating that the institution will assume the obligations to be set out in a contract to host a centre. The letter must also describe how the research conducted at the centre constitutes part of the host institution s scientific strategy. The establishment and operation of the centre will be based on a contract drawn up between the Research Council and the host institution for the centre. If the host institution does not have the right to confer doctoral degrees, satisfactory researcher training must be provided through cooperation with a university or university college which has a doctoral degree programme in the relevant field. Research at the centre should be conducted in close cooperation between Norwegian and international research communities and companies. Proposals for centres that incorporate international companies as partners will be viewed in a positive light, but the overall objective of the SFI scheme is to enhance innovation and value creation in Norway. Importance will be attached to the applicant s experience with international cooperation and the centre s potential to become a key player in international cooperation, such as within the EU. This also includes the research communities international profile and status. It will be advantageous for the staff of the centre to have their place of work in the same location, but decentralised solutions will also be possible for centres whose partners are companies or research institutions located elsewhere than at the host institution. If a decentralised model is chosen, the centre must facilitate researcher exchange between the host institution and partners as well as implement other measures to promote cohesiveness among the centre s units. In all cases, centres are required to have a unified leadership, a common research plan, and a board that is responsible for the centre s overall scientific and administrative activities. The user partners must have majority representation on the centre s board. Financing of the individual centre is the joint responsibility of the Research Council, the host institution and the partners. The partners and the host institution must combined contribute at least 50 per cent of the centre s annual budget, and the contributions from the company partners must comprise at least 25 per cent of the budget. Under special circumstances, the Research Council may reduce the amount of the financial contribution required of the company partners. The host institution s contribution may consist of office space, equipment, personnel and strategic resources. The partners may provide budget allocations or in-kind resources in the form of participation in research projects at the centre. The companies internal follow-up in the form of in-house innovation projects may not be counted as part of their contribution to the centre. The partners responsible for the establishment of a centre must commit to long-term involvement in the centre s 3

4 Duration Areas of innovation Application and selection activities and financing. To ensure that the research conducted at the centres has the appropriate depth and impact, the annual allocation from the Research Council to each centre is planned to be on average about NOK 9 12 million. Along with the contributions from the host institution and partners, this will result in an overall annual budget for each centre of about NOK million. Experience shows that a gradual escalation of activities may be called for during the initial years, and it is permissible to include such an escalation plan in the centre proposal. The centres will be established for a maximum period of eight years (an initial fiveyear period with the possibility of a three-year extension). After 3-1/2 years an evaluation of the centre will be carried out under the auspices of the Research Council. This evaluation will form the basis for determining whether funding from the Research Council will be continued for an additional three years following the initial five-year period. After a maximum period of eight years the Research Council s funding for the centre will cease, and the centre will no longer have SFI status. When the centre is dissolved, it is anticipated that most of the key personnel will be able to return to their positions at the partner organisations or host institution. Doctoral students must complete their studies within the budget framework established for the centre. The centre s scientific profile will be determined by user needs and by the research expertise that is available or needs to be strengthened. The SFI scheme is aimed primarily at strong industrial fields in which Norwegian research is already on the cutting-edge. Thus, as a general rule the scheme will not focus on particular industrial sectors, but specific thematic areas for which proposals are sought may be indicated. A national funding announcement for the SFI scheme will be issued by the Research Council of Norway, which will be responsible for processing applications and selecting the centres. Applications will be accepted from all interested and relevant research institutions. Applications for funding and status as an SFI centre must be submitted by the host institution for the centre in consultation with the user partners and research partners that will be participating in the centre s activities and financing. The main criterion for assessment is the centres potential to generate innovation and value creation. The scientific merit of the research conducted at the centres must be of high international standard. Internationalisation, technology transfer and researcher training will also be considered when assessing the applications. A committee comprised of members of the Research Board of the Division for Innovation and additional resource persons will submit its recommendation to the Research Council Executive Board, which is responsible for the final decisions regarding conferral of centre status and allocation of funding. When selecting the SFI centres, the Research Council will also consider the overall industrial profile of the portfolio of centres. 4 The SFI scheme in relation to other schemes and funding instruments at the Research Council The SFI scheme is a key component of the Research Council s set of innovation-oriented funding instruments, and supplements other instruments such as Innovation Projects for the Industrial Sector and Knowledge-building Projects for Industry by providing a longer-term perspective and broader scope. It is especially important for companies that are seeking a leading international position. The Research Council of Norway seeks to enhance coordination between the national funding instruments that are designed to promote innovation. 4

5 In 2009, the Research Council established eight Centres for Environment-friendly Energy Research (FME) based on the SFI model. These centres were launched as part of the increased commitment to R&D in the area of environment-friendly energy. The SFI scheme also has much in common with the Research Council s Centres of Excellence (SFF) scheme, which was introduced in 2003 to enhance the scientific quality of Norwegian research. The SFI, FME and SFF schemes all seek to advance basic research of high international standard and to promote internationalisation. These centre schemes also represent a long-term investment in research with the aim of developing dynamic research communities. The centres are intended to generate added value for the participating groups and to create ripple effects as a result of the expertise and recruitment which will have an impact far beyond the lifetime of the centre. While the SFF scheme focuses on the scientific merit of research outside the context of the benefit to society, the SFI and FME schemes address the knowledge needs of the business sector. The SFI and FME centres are to forge alliances between dynamic research groups and R&D-performing companies and to strengthen long-term research that promotes innovation and value creation. The SFI concept may also be viewed in light of the regional Norwegian Centres of Expertise (NCE) scheme. The objective of the NCE scheme is to support the development of industrial clusters that have the capability and will to become leading international actors. The scheme is adapted to the needs of regional industrial groups, and requires broad support and binding commitment from industry. The NCE centres are different from the SFI centres in that they primarily support network-building activities. 5

Centres for Research-based Innovation (SFI) Description of the SFI scheme

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