SMEs and Research- WHY BOTHER?

Sean Burke, Framework Programme 7 National Contact Point / National Delegate Research For the Benefit of SMEs SMEs and Research- WHY BOTHER?

A company told me Its very beaurocratic There s too much paperwork Its not for SMEs, only for Universities If it goes wrong, it will blow up in my face. I will be up the Swannie Its only for the big boys in industry Language difficulties are a big problem You will be waiting for ages to start, to get paid, to exploit. Poor chances of success

Why would you (SME!) ever go for EU Research funding When SMEs have project ideas that require more funding than their revenue can afford. When the project idea has strong IP and needs to be held by the SME. When new European markets need to be addressed and where strategic European partners are needed. When outsourcing of leading R&D performers is required from around the world. Where strong tight collaboration is needed in the value chain from concept to commercialisation. Internationalisation of contacts and markets via external funding mechanisms.

Yippee! There are good reasons Benefits for SMEs by taking part in EU R&D projects Productivity Skills and know how Quality of products/services New to company products/services New to market products/services Exports In addition to the benefits listed above, SMEs have also reported the following: Closer collaboration with partners Intensification of international contacts Additional know-how to design own products /file future patents/manage large projects Faster development of subsequent standards Extension of markets Additional funding to that initially anticipated by taking on additional roles

What is out there? EU Framework Programme 7 EU Competitiveness and Innovation Programme

Framework Programme 7

Did you know! FP7 costs the EU s 500 million tax-paying citizens just EUR 14 each a year. The EU targets EUR 5 billion (15% of the total budget) to go to SMEs participating in the Seventh Framework Programme s (FP7) Cooperation Programme. That s an average of EUR 275 000 for each SME participating. In addition, the EU contributes EUR 1 billion to SMEs in the Capacities Programme of FP7 77% of its total budget of EUR 1.3 billion. On average, a project in the Research for SMEs scheme receives EUR 1 million. On average, a project in the Research for SMEs Associations receives EUR 2.3 million. It is estimated that 20 000 SMEs will benefit from FP7.

Framework 7 Structure 2007 2013 : SME input R&D-performing SME R&D Outsourcing SME Cooperation Research for the benefit of SMEs FP7 Participation in Joint Programmes of Member States

Call for proposals CORDIS Website http://cordis.europa.eu/fp7/dc/index.cfm?fuseaction= UserSite.FP7CallsPage

People Programme - IAPP Industry Academia Partnerships and Pathways Irish success rate is approximately 37% Needs 2 partners 1 public & 1 private Project duration : 3-4 years Call open 30 th July 2010 Why would you use it Supports set-up of R&D capability Expand the knowledge and skill base Used to strategically align with 3 rd level Action IAPP Industry Academia Partnerships & Pathways IEF Intra-European Fellowships IOF International Outgoing Fellowship IIF International Incoming Fellowships IRSES International Research Staff Exchange Scheme RG Reintegration Grants Call Closes/ Cut-off date 9 December 2010 17 August 2010 17 February 2011 2 nd cut off 7 September 2010 Budget (and budget/size per project, where applicable) 75M (~250k - 3M ) 95M 28M 28M 40M Success rates (expected) 15% or more 20% - 25% depending on scheme 32M 50% or more ITN Initial Training Networks 10 February 2011 309M (average 3.4M, 9 partners) 5% CO-Funding of Regional, national & International Programmes 17 February 2011 90M (max. 5M per applicant) 70% or more

Example of Successful IAPP Fastnet Mussels Contract Value: 579,085 Dr. Julie Maguire Bivalves from farm to fork The objective of this project will be to develop an economically viable and environmentally sustainable genetic breeding programme for scallops in order to produce seed in a hatchery to supplement the inconsistent wild seed supply. With the increased demands for shellfish products due to their healthy image, improvements in food technology and product development are required. This project will integrate multi-disciplinary resources from bivalve hatchery production and on-growing to seafood processing by considering a total food chain approach on all research, training and technology transfer levels.

Research for the Benefit of - Who are the target groups? Research for SMEs: Low to medium technology SMEs with little or no research capability. Research performing SMEs that need to outsource research to complement their core research capability. Research for SME Associations: SME associations representing their members and their common technical problems Both schemes will follow a bottom-up approach, no thematic focussing

Key Features of the two Schemes Research for SMEs Research for SME Associations Duration 1 2 Years 2 3 Years Number of Partners 5-10 10 15 Total Budget 0.5 1.5 million 1.5 4 million Activities R&D, demonstration, management, other activities. R&D, demonstration, management, other activities.

Number of Partners Minimum requirements, coordination Research for SMEs At least three independent SME participants, established in three different Member States or Associated countries. At least two RTD performers. Other enterprises and end-users optional. Research for SME associations At least three independent SME association/groupings, established in three different Member States or Associated countries, or one European SME association/grouping. At least two RTD performers. Other enterprises and end-users with at least two SMEs. SMEs or SME associations may entrust coordination to organisations specialised in professional project management.

SMEs SME Associations Other enterprises, End users Investing in Research Results & IPR RTD- Performers

Payment Modalities One Pre-financing (upon entry into force) for the whole duration of the project. Interim payments based on financial statements (payment = cost accepted * funding rate) There is a retention of 10% for the final payment. Pre-financing Period 1 Period 2 Period 3 150% pre-financing of initial accounting period Financial Statement 1 Financial statement 2 Project start and pre-financing modality

In Summary- Where else can you get funding of approximately 75% of project costs with European collaborative partners to bring a concept to the European / World market and where the bulk of the money is prepaid to the collaborators at the start of the project. Due to the collaborative nature of these projects, the cost to the SME is approximately 8% of total cost and can be paid as benefit in kind. This in turn equates to approximately 120k cost to an SME for a project costing 1.5 million (these approximations are based on 3 SMEs in the project). Why would SMEs NOT do it?

Examples of Successful projects SME Programme Coordinator: Holfeld Plastics Ltd Total Project Value: 1,018,000 Funding to Ireland: 613,000 Project Description: Environmentally Friendly Food Packaging Tray with Lower Carbon Footprint RPET-FC will address the specific objectives of capacities research by supporting low to medium technology SMEs in response to an increasingly competitive European and international market. It will achieve this through providing SME foodprocessing companies a new food packaging tray that will be lighter that the current market leader. This prototype will facilitate high-speed stacking, packing and safe transportation of a whole range of food products, with significant carbon footprint reduction, environmental impact and cost savings in materials. The new prototype food tray will utilise 25% less material and will be made from 100% recyclable rpet. The partners in the project comprise four SMEs Holfeld Plastcs Ltd and Recycle Net ltd from ireland, Cumapol Bv from Holland and Signum Specialities Pty from Australia, and three research providers - TMB Patterns from UK, and the Universities of Limerick and UCD.

2 nd Example SME Programme Coordinator: University of Reading EC Scientific Officer: Mr Antonio Loredan Total Project Value: 1,000,000 Funding to Ireland: 608,000 Website: www.seaweedforhealth.org Project Description The overall aim of the 2 year project is to realize a commercial opportunity to produce low molecular weight polysaccharides from alginate- and agar-bearing seaweeds for applications in food & health, and wellness products by a group of SMEs. The research will encompass a range of in vitro assays to assess effects on gut microflora and intestinal metabolism followed by a dietary intervention study on selected polysaccharides to establish health effects in human volunteers. The three SME s involved will implement LMWP technology transfer and scale-up to facilitate production at an industrial scale along with a route to market in the health and wellness industry. The partners in the project comprise three SMEs The Hebridean Seaweed Company based in Isle of Lewis in Scotland, Marigot Ltd from Carrigaline, Ireland and Industrias Roko in Asturias, Spain, and three research providers - Cybercolloids Ltd, and the Universities of Ulster (Coleraine) and Reading.

Finding your partners www.ncp-sme.net Step 1 Proposer inserts a new Partner Search Step 2 The PS is validated by the local Representative (NCP) Step 5 the proposer replies to Expressions of Interest and chooses the partner(s) Step 4 a potential partner sends an Expression of Interest to the proposer Step 3 The PS is published in the web & disseminated to the subscribers of the national Mailing Lists

Partner Search Website for SMEs Look for partners for your idea Look for proposals for your profile Keep updated of published partner searches

What to do next if it is your idea!!!!! Write a half page description of idea under the headings send to NCP Title (1 line) Problem Description (1 line) Deliverable of the Project (quantified, 1 line per deliverable) Benefits of the solution (quantified, 1 line per benefit) Role of partners (I line per partner) Register your company Go to website and follow instructions for Unique Registration Facility http://ec.europa.eu/research/participants/portal/appmanager/participants/portal?_n fpb=true&_pagelabel=myorganisations Contact National Contact Point Help define Skill set needed technical and commercial Do Partner Search Help in seeking financial support to get proposal written

Important Documents Workprogramme "Research for the benefit of SMEs" Guides for applicants "Research for SMEs and Research for SME associations Guide to Intellectual Property Rules for FP7 projects Rules for the submission of proposals These documents and additional information about the open calls are available on the following webpage: http://cordis.europa.eu/fp7/dc/index.cfm?fuseaction=usersite.fp7op encallspage SME Techweb ec.europa.eu/research/sme-techweb

EU Publication on FP7 Get Support SME TechWeb: ec.europa.eu/research/sme-techweb http://cordis.europa.eu/fp7/get-support_en.html EU SME Portal http://ec.europa.eu/enterprise/ entrepreneurship/sme_policy.htm SME programme explained FP6 projects SME Publications website http://ec.europa.eu/research/sme-techweb/index_en.cfm?pg=publications

For Further Details Sean Burke Enterprise Ireland National Support Team Phone: +353 61 777048 Fax: +353 61 777001 Mob: +353 87 9534606 http://www.fp7ireland.com Email: sean.burke@enterprise-ireland.com