Horizon The EU Framework Programme for Research and Innovation
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- Jonas Horton
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2 Horizon 2020 The EU Framework Programme for Research and Innovation
3 What is Horizon 2020? Horizon 2020 is the biggest EU Research and Innovation programme ever with nearly 80 billion of funding available over seven years (2014 to 2020) with 3 billion dedicated solely for SMEs. It promises more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market. Horizon 2020 is open to everyone, with a simple structure that reduces red tape and time, enabling participants to focus on what is really important. This approach makes sure new projects get off the ground quickly and achieve results faster.
4 Horizon 2020 SME Funding Instruments Horizon 2020 has a range of options for SME project funding. However, there are significant differences in terms of process, funding rate and scope, between all of the funding instruments. H2020 Collaborative Project H2020 SME Instrument H2020 Fast Track to Innovation EUREKA Eurostars Small or large consortium Industrial or academic research driven SMEs encouraged SMEs requested in specific calls Non prescriptive funding range indicated in the call text Single applicant (phase 1) Single applicant or SME consortium (phase 2) Small industry-driven consortium (max 5 organisations) Small SME-driven consortium, industry and academia permitted, average 3-4 participants SMEs only SMEs encouraged Project leader must be an R&D performing SME 50k (phase 1) funding m (phase 2) funding ( 5m for healthcare projects) 3m max funding 1.4m average project costs, max funding specific to each country Specific challenge, scope and expected impact, all indicated in the call text Single or two stage deadlines Broad scope per topic (except healthcare projects) Continuous submission 4 annual call dates Broad scope: any topic related to LEIT or Societal Challenges Continuous submission 3 annual call dates Broad scope: innovative products, processes and services Continuous submission 2 annual call dates 100% for RIAs and CSAs 70% for IAs Typically 70% (100% for healthcare projects) Typically 70% 50-80% (specific to each country) Both SME instrument and FTI pilot are extremely attractive to SMEs and industry-driven consortiums for three main reasons: Shortened average time-to-grant: between 4 months (SME Instrument Phase 1) and 6 months (SME instrument Phase 2, FTI pilot) Bottom-up programmes: applicants can come up with any project related to the target domain (except in the healthcare thematic) Large funding per applicant: in a mono-applicant SME instrument Phase 2 application, a single SME can receive up to 2.5m ( 5m for healthcare) for a 2-year project
5 Horizon 2020 SME Funding Instruments Are they the right funding instruments for your business? European funding is provided in the form of grants that are not tied to any IPR or equity transfer to the EC. This non-dilutive funding is very attractive to SMEs, as they get to keep their IPR and equity. The funding does comes with a set of strings attached but these are mostly reporting requirements to the EC (in order to validate and document that you are making a correct use of public funding). However, do not underestimate these requirements, EC reporting is not something that you should undertake lightly.
6 Horizon 2020 Dedicated SME Instrument The Dedicated SME Instrument (DSI) is an EU funding programme specially for SMEs. It consists of three phases covering technical and market feasibility, demonstration activities and commercialisation across a range of thematic areas. Company requirements You must be an SME employing between 10 and 250 employees Need to have an early prototype (or proof of concept). EC use TRL 6 but TRL4 has proven to be acceptable A turnover of up to 50 million. You must be able to fund their part of the project costs due to a negative cash flow for part of Phase 2 Must be something you want to do This is not a wish project
7 Horizon 2020 Dedicated SME Instrument Phased support Phase 1: Feasibility assessment Funding is available for: exploring and assessing the technical feasibility and commercial potential of a breakthrough innovation that a company wants to exploit and commercialise. Activities funded could be: risk assessment, design or market studies, intellectual property exploration; the ultimate goal is to put a new product, service or process in the market, possibly through an innovative application of existing technologies, methodologies, or business processes. The project should be aligned to the business strategy, helping internal growth or targeting a transnational business opportunity. Amount of funding: lump sum of 50,000 (per project, not per participating business). Duration: typically around 6 months Outcome: The outcome of a Phase 1 project is a feasibility study (technical and commercial), including a business plan. Should the conclusion of the study be that the innovative concept has the potential to be developed to the level of investment readiness/market maturity, but requires additional funding in view of commercialisation, the SME can apply for Phase 2 support.
8 Horizon 2020 Dedicated SME Instrument Phased support Phase 2: Innovation project Funding is available for: innovation projects underpinned by a sound and strategic business plan (potentially elaborated and partially funded through Phase 1 of the SME Instrument). Activities funded in can be: prototyping, miniaturisation, scaling-up, design, performance verification, testing, demonstration, development of pilot lines, validation for market replication, including other activities aimed at bringing innovation to investment readiness and maturity for market take-up. Amount of funding: in the indicative range of 500, million or more (covering up to 70% of eligible costs, or in exceptional, specific cases up to 100%). Duration: typically around 1 to 2 years Outcomes: a new product, process or service that is ready to face market competition; a business innovation plan incorporating a detailed commercialisation strategy and a financing plan in view of market launch (e.g. on how to attract private investors, if applicable).
9 Horizon 2020 Dedicated SME Instrument Phased support Phase 3: Commercialisation With the view of facilitating the commercial exploitation of the innovation activities resulting from Phase 1 or Phase 2, specific activities will be proposed. These can include support for further developing investment readiness, linking with private investors and customers through brokerage activities, assistance in applying for further EU risk finance, and a range of other innovation support activities and services offered via the Enterprise Europe Network (EEN).
10 Horizon 2020 Dedicated SME Instrument Eligible costs for in-kind Time/Effort Real research tasks as described in the Description of Work (DoW) (including business development, market stimulation, attendance at conferences/expos) Attendance at Project Meetings (including preparation time, travelling time, completing actions arising, reporting back) Reviewing Project Reports and other documents Completion of cost statements and in-kind logs Answering EC queries Business case preparation Relevant commercial/sales meetings Creation/maintenance of project website(s) Communication with Consortium Partners Authoring, reviewing and approval of press releases Writing Description & Use Plan (DUP) and providing input to EC online questionnaires/surveys Consumables Supply of materials/software Use of facilities and test equipment A proportion of the cost of Market Intelligence reports Other costs Hire of Equipment Purchase of computers/software Patent preparation costs Legal and Agent fees associated with Project IP Cost of any other legal agreements (eg Licensing) Flights and hotels for project meeting attendance Fuel and Car rental
11 Horizon 2020 Funding Instruments Is your business ready for Dedicated SME Instrument funding? There are three fundamental questions that you need to ask yourself in order to decide if you should apply for DSI funding. 1. Can you wait 4-6 months before starting your project? 2. Do you have a prototype that has been tested (or proof of concept)? 3. Can you co-fund 30% of the project? If you have answered no to any of these questions, then these instruments are not for you yet. However, there are other instruments within the H2020 Work Programme that may fit with your plans. For example, Research & Innovation Actions (RIAs) have a funding rate of 100% and focus on Technology Readiness Levels below 6.
12 What makes Pera Technology different? There are many ways that SMEs can access DSI funding, but with unrivalled experience of accessing European funding, Pera Technology delivers certainty into your innovation process. You will also be able to utilise our proven multi-disciplinary innovation processes and competencies to get the right product developed, by the right people, in the right way.
13 What makes Pera Technology different? There are many ways that SMEs can access DSI funding, but with unrivalled experience of accessing European funding, Pera Technology delivers certainty into your innovation process. You will also be able to utilise our proven multi-disciplinary innovation processes and competencies to get the right product developed, by the right people, in the right way. there are other ways
14 What makes Pera Technology different? There are many ways that SMEs can access DSI funding, but with unrivalled experience of accessing European funding, Pera Technology delivers certainty into your innovation process. You will also be able to utilise our proven multi-disciplinary innovation processes and competencies to get the right product developed, by the right people, in the right way. there are other ways and there s the Pera Technology way
15 Who are Pera Technology? We are a leading new product development contractor. We exist to make your innovation a profitable and successful venture for your business Founded in 1946 as the Production Engineering Research Association of Great Britain, we are now a privately owned technology-based innovation, training and commercial research group with offices in the UK and Estonia. We support you in creating the innovative new products that enable you to build a competitive advantage. We bring innovation to life within your business by bringing hard-won, real-world industry experience to your own market knowledge. When it comes to understanding and securing funding from national and European bodies, Pera Technology has proved itself to be one of Europe s most successful intermediaries. With an exceptional reputation for adding innovation expertise to all sizes of businesses in all sectors, we work with you to: conceive ideas create prototypes commercialise products
16 Innovation for SME businesses leap is Pera Technology s new product development service for SMEs. We ve helped hundreds of SMEs conceive, create and commercialise innovative new products, providing the expertise to fill knowledge gaps and securing the funding to make it all happen. Our approach Unlike a lot of our competitors, we do not offer a no win-no fee service. We feel that this blanket approach leaves clients in an uncertain situation that could end in a failed application, due to the provider not fully understanding the project or SMEs business. Instead, we charge an upfront fee to write your proposal application, but only if we are convinced it stands the best chance of funding. The leap team at Pera Technology will take the time to learn more about your project and fully support you in your DSI application. We assist with the project bid writing process, using our extensive experience and expertise in securing European funding to dramatically improve your chances of making a successful project bid.
17 Ready to take the next step? Contact us today at and take the first step to a more secure and successful future Phone: +44 (0) enquiries@peratechnology.com
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