From FP7 to Horizon 2020

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1 From FP7 to Horizon 2020 Jane Watkins UK FP7 NCP Food, Agriculture, Fisheries and Biotechnology Steve Bradley UK FP7 NCP for SMEs

2 Innovation Union A strategic and integrated approach to research & innovation Innovation is an overarching policy objective driving all other policies Innovation policy is steered and monitored at the highest level Radically improving framework conditions and reduce time to market Prioritising resources around major challenges Fully exploiting non technological innovation

3 Turning the European Union into an Innovation Union Improving framework conditions for innovation to flourish 34 commitments Speeding up standardisation Making better use of and 'modernising' public procurement procedures Creating a real internal market for venture capital Agreeing on a unified European patent Completing the European Research Area

4 European Research Area: "An unified research area open to the world based on the Internal Market, in which researchers, scientific knowledge and technology circulate freely and through which the Union and its Member States strengthen their scientific and technological bases, their competitiveness and their capacity to collectively address grand challenges."

5

6 Horizon 2020: What Is It? billion research and innovation funding programme ( ) New framework programme bringing together three separate programmes/initiatives (FP, EIT, CIP) Continuation of investment in frontier research More support for innovation activities focus on business opportunities Simplification (e.g. reduction of average time to grant by 100 days)

7 What s New? A strong challenge based approach Broader topics Single set of rules for participation, coherent with other new EU Programmes Strong emphasis on the expected impact Simple evaluation criteria: Excellence, Impact, Implementation New funding schemes: pre commercial procurement, prizes, loan and equity instruments, etc.

8 Excellent Science Industrial Leadership Societal Challenges

9 Three Pillars of Horizon Excellent Science Industrial Leadership Societal challenges European Research Council Future and EmergingTechnologies Marie Curie actions Research infrastructures Indicative Budget: 24,4 M * Leadership in enabling and industrial technologies Access to risk finance Innovation in SMEs Indicative Budget: 17,0 M * Health, demographic change and wellbeing Food security, sustainable agriculture, marine and maritime research & the bioeconomy Secure, clean and efficient energy Smart, green and integrated transport Climate action, resource efficiency and raw materials Inclusive societies * , actual budget, without EIT, "widening" Secure societies Indicative Budget: 29,7M

10 Horizon 2020: Excellent Science European Research Council Supporting world leading scientist in blue sky research (11.93B) Future and Emerging Technologies (FET) Collaborative research to open new fields of innovation ( 2.46B) Marie Skłodowska Curie actions (MSCA) Opportunities for training and career development ( 5.62B) Research infrastructures (including e infrastructure) Ensuring access to world class facilities ( 2.27B)

11 Priority 1 Excellent Science World class science is the foundation of tomorrow s technologies, jobs and wellbeing Europe needs to develop, attract and retain research talent Building on and further developing Europe s outstanding scientific base Promoting Europe as world leaders in frontier research and innovation Researchers need access to the best infrastructures

12 Horizon 2020: Industrial Leadership Leadership in enabling and industrial technologies (LEIT) ICT (45 %), nanotechnologies (22 %), biotechnology (3 %), etc ( 12.35B) Access to Risk Finance Leveraging private finance and venture capital for research and innovation ( 2.59B) Innovation in SMEs Fostering all forms of innovation in all types of SMEs ( 0.6B + 20% of societal challenges + industrial leadership + access to risk finance)

13 Priority 2 Industrial Leadership Strategic investments in key technologies (e.g. advanced manufacturing, micro electronics) underpin innovation across existing and emerging sectors Europe needs to attract more private investment in research and innovation Europe needs more innovative SMEs to create growth and jobs

14 Priority 3 Societal Challenges Addressing pressing concerns of citizens and society/eu policy objectives (eg. climate, environment, energy, transport etc) cannot be achieved without innovation Breakthrough solutions come from multidisciplinary collaborations, including social sciences and humanities Promising solutions need to be tested, demonstrated and scaled up

15 Health, demographic change and wellbeing Food security, sustainable agriculture & the bioeconomy Secure, clean and efficient energy Smart, green and integrated transport Climate action, environment, resource efficiency and raw materials Europe in a changing world inclusive, innovative and reflective societies Secure societies protecting freedom and security of Europe and its citizen 6.81B 3.51B 5.4B 5.78B 2.81B 1.2B 1.5B

16 Funding Simplified list of possible types of actions one project one funding rate Direct Costs Indirect Costs Eligible Costs Indirect (flat rate, 25% of direct costs) Direct 100% rate for research projects, 70 % rate for activities closer to market

17 New funding model: what impact on the EU contribution? An Example: Direct costs Indirect costs Total Costs % EU contribution EU Contribution Flat rate 60% % 120 Direct costs Indirect costs Total costs % EU contribution EU Contribution 100/25 funding

18 Activities for SMEs in Horizon 2020 All forms of R&D and all forms of innovation, towards exploitation and commercialisation SME participation in collaborative R&D or innovation projects (all three priorities) SME instrument (budget from all societal challenges as well as from the Leading Enabling Industrial Technologies LEITs) Innovation in start ups, spin offs and young companies (Eurostars and other measures) Access to risk finance (debt and equity facility) Exchange and mobility of researchers involving SMEs (Marie Curie actions)

19 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

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

21 SME Instrument? Concept & Feasibility Assessment Demonstration Market Replication R&D Commercialisation SME window EU financial facilities Idea to concept, risk assessment, technological & commercial feasibility Demonstration, prototyping, testing, market replication, scaling up, miniaturisation, research Quality label for successful projects, access to risk finance, indirect support IDEA continued support throughout the project MARKET

22 SME Instrument Main Features Targeted at all types of innovative SMEs Only SMEs allowed to apply for funding (single company support possible) Competitive Market oriented, EU dimension Bottom up while addressing societal challenges and/or key enabling technologies Grant based staged funding

23 Phase 3 = 2% budget Phase 1: Concept and feasibility assessment 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. 10% success 30-50% success Output: elaborated "Business plan 2" Lump sum: ~ 6 months Phase 2: R&D, demonstration, market replication 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: "investorready Business plan 3" 1-3 (5) M EC funding ~ 12 to 24 months Phase 3: Commercialisation 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 PPC (and PPI?) No direct funding

24 What does "Access to risk finance" mean in the Horizon 2020 context? Using part of the Horizon 2020 budget to stimulate more investment in research and innovation not through grants but in the form of Financial Instruments: o Debt finance Loan finance, i.e. risk sharing loans to companies and for innovative projects introducing new technologies Guarantees to financial intermediaries (commercial and development banks) that provide loans to research and innovation driven SMEs and small mid caps o Equity finance Equity, i.e. venture capital for newly created companies exploiting R&D results Not legally binding

25 Coaching and EEN support Phase 1 Phase 2 Phase 3 EEN Initial Assessment Regional HR TO/TR EU Funds SME Instrument Facilitation and Moderation Coaching Support for Application Support for EU project Management Support for Access to Finance

26 Evaluation Evaluating SME instrument activities Commercialisation potential and economic impact There has to be a market Excellence in innovation Company's potential to achieve the envisaged results Easy to use/produce for the customer and the firm Technical solution possible and better than existing ones Plus: EU added value

27

28 H2020 Timeline Informal consultation of Member States Sept Nov 13 Adoption of the (provisional) work programme 10 th December Publication of the first calls 11 th December Call deadlines mid 2014

29 Further information: Europe 2020 is the European Union s ten year growth strategy. It is about more than just overcoming the crisis which continues to afflict many of our economies.. Horizon 2020 is the financial instrument implementing the Innovation Union a Europe 2020 flagship initiative aimed at securing Europe's global competitiveness. The Participant Portal is the entry point for electronic administration of EU funded research and innovation projects.. techweb/index_en.cfm This is the home page of the SME Techweb site. It contains information on opportunities for SMEs in EU research. https://connect.innovateuk.org/home Hosted by the Technology Strategy Board, provides an effective and powerful way to collaborate online, network and share knowledge with other innovators

30 National Contact Points: Steve Bradley Jane Watkins Beta Technology:

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