OPERATIONAL PROGRAMME INNOVATION AND COMPTITIVENESS

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OPERATIONAL PROGRAMME INNOVATION AND COMPTITIVENESS 2014-2020 Synergies between European Structural and Investment Funds & Research and Innovation Funding: The Stairway to Excellence Sofia, 14 th of July 2016

OPIC 2014-2020 is the main programming document at national level outlining the support for the Bulgarian business from ESIF for the 2014-2020 programming period in the field of innovation, capacity for growth of SMEs, energy and resource efficiency. OPIC 2014-2020 was officially approved by the European Commission on 13 th March 2015, subsequently amended with EC Decision as of 30 th September 2015. The total budget of OPIC 2014-2020 after the amendment amounts to 1,270 bln. EUR, the ERDF funding is 1,079 bln. EUR (85% of the total budget) and the national co-funding amounts to 191 mln. EUR (15 % of the total budget).

Investment Priority 1.1: Technological development and Innovation (Thematic Objective 1) Priority Axis 1: Technological development and Innovation 23.25% (295.3 mln. EUR) of OPIC budget Investment Priority 2.1: Access to finance for supporting entrepreneurship (Thematic Objective 3 ) Investment Priority 2.2: Capacity for SMEs to grow (Thematic Objective 3) Priority Axis 2: Entrepreneurship and Capacity for growth of SMEs 45.47% (577.5 mln. EUR) of OPIC budget

Investment Priority 3.1: Energy technologies and energy efficiency (Thematic Objective 4) Investment Priority 3.2: Resource Efficiency (Thematic Objective 6) Priority Axis 3: Energy and Resource Efficiency 24.46% (310.7 mln. EUR) of OPIC budget Investment Priority 4.1: Improving energy efficiency and security of supply through the development of smart energy transmission systems (Thematic Objective 7) Priority Axis 4: Removing bottlenecks in security of gas supplies 3.54% (45 mln. EUR) of OPIC budget

Activities Expected Results Beneficiaries Development of cooperation for innovation between enterprises, between business and academia Support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises Support for development of environment and research and innovation infrastructure for business needs Increase of the innovation activity and capacity of the enterprises Increased share of enterprises which individually develop, introduce and disseminate innovation Bringing Bulgarian enterprises and innovators to the international market Building innovation capacity and create long-term competitive advantages of the country Enterprises or group of enterprises, including partnerships with research organizations Clusters; Agencies, institutions, business organizations; Technology transfer offices and technology centers; Sofia Tech Park The Support will be provided for operations/investments falling exclusively within the areas of smart specialization set in the RIS3 Budget: 235.3 mln. EUR

Planned FIs Target Group Beneficiaries Equity instruments for innovation in enterprises: Guarantees covering losses from debts, or Credit and/or leasing for investment in assets and/or working capital for growth and development Equity and/or quasi equity investments Investments in technological transfer, commercialization of research results, intellectual property rights, etc. Developed or already existing enterprises developing/integrating innovation (SMEs and large enterprises); Enterprises performing research and development and innovation activities (SMEs and large enterprises); Other enterprises based on knowledge. Fund of funds according to art. 5 of the Management of Resources from the European Structural and Investment Funds Act and to art. 38, par. 4 of Regulation (EU) No 1303/2013 (CPR). The Support will be provided for operations/investments falling exclusively within the areas of smart specialization set in the RIS3 Budget: 60 million Euro

Informatics and ICT New technologies in creative and recreative industries PA 1 of OPIC Mechatronics and Clean Technologies Industry for healthy life and bio-technologies 7

According to the Guidance for Enabling synergies between European Structural and Investment Funds, Horizon 2020 and other research, innovation and competitiveness-related Union programmes there are three main approaches: Parallel complementary projects with good timing; Co-financing under the same project with clear demarcation of expenditure; Building on the results of the projects under the Framework Programmes implemented under PA1 of OPIC. Project proposals involving building on the results under 5, 6, 7 Framework Programme and Horizon 2020 and ECSEL Joint Undertaking, are advantageously encouraged under the principle of bonus points during assessment.

Grant Scheme Support for Introduction of Innovation in Enterprises Main purpose: Providing focused support to increase innovation activity of Bulgarian enterprises in the thematic areas of the Innovation Strategy for Smart Specialization (RIS3) Total Budget 97 791 500 BGN (50 million EUR) Eligible applicants/activities Eligible applicants: Micro, small, medium and large enterprises - the applicants must be merchants according to the Bulgarian Commerce Act or the Cooperatives Act or to be an equivalent entity according to the law of a memberstate of European Economic Area. The applicants must have at least three completed financial years (2013, 2014 and 2015 Eligible activities: Acquisition of long-term tangible assets and long-term intangible assets Consultancy and support services in favour of innovation. Eligible expenses Investment expenses (long-term tangible assets and long-term intangible assets) Expenses for services Minimum amount of grant: 100 000 BGN Maximum amount of grant: Micro, small and medium enterprises 1 000 000 BGN Large undertakings 1 500 000 BGN Date of announcement: 23 December 2015 Deadline: 4 April 2016 567 project proposals

Grant Scheme Support for Development of Innovations by Start-ups Main purpose: Providing focused support to increase the innovative activity of startups enterprises, developing innovation in the thematic areas of the Innovation Strategy for Smart Specialization (RIS3) Budget: 19 558 300 BGN (10 million EUR) Eligible applicants/activities Eligible applicants: Micro, small, medium and large enterprises - the applicants must be merchants according to the Bulgarian Commerce Act or the Cooperatives Act The applicants must have less than three completed financial years Eligible activities: Developing innovation in the thematic areas of the RIS3. Applied research Creation and testing of prototypes and pilot lines. Eligible expenses Investment expenses (long-term tangible assets and long-term intangible assets) Expenses for services Operating expenses Minimum amount of grant: 50 000 BGN Maximum amount of grant: 391 166 BGN Date of announcement: February 2016 Deadline: 5 May 2016 889 project proposals

Grant Scheme Support for Introduction of Innovation in Enterprises Grant Scheme Support for Development of Innovations by Start-ups The Criteria for technical and financial evaluation include a criterion which gives bonus points in the assessment to project proposals that upgrade results achieved under the EU Framework Programmes (5 th, 6 th, 7 th FP, Horizon 2020 incl. ECSEL Joint Undertaking). The Criteria for technical and financial evaluation include a criterion which gives bonus points in the assessment to projects proposals sent by applicant teams of experts who took part in projects funded by Framework Programmes (5 th, 6 th, 7 th FP, Horizon 2020 incl. ECSEL Joint Undertaking).

Grant Scheme Development of product and production innovation Main purpose: Growth of the share of undertakings developing and disseminating innovation, as well as raising the innovative capacity of the undertakings. Budget: 35 000 000 Euro (68 454 050 BGN) Eligible applicants/acitivities Eligible applicants: SMEs and large enterprises Eligible activities: Developing innovation in the thematic areas of the RIS3. Applied research in the enterprise Creation and testing of prototypes and pilot lines. Eligible expenses Investment expenses (long-term tangible assets and long-term intangible assets) Expenses for services Operating expenses Minimum amount of the grant: 50 000 BGN Maximum amount of the grant: 1 000 000 BGN Date of announcement: December 2016

Grant scheme for direct granting of support to Sofia Tech Park Main purpose: Development of a pro-innovative structure and technological park Budget: 6 391 149 Euro (12 500 000 BGN) Eligible applicants/activities Eligible applicants: Sofia Tech Park SA Eligible activities: Finalizing investment activities related to: - the constructed infrastructure for R&D and Innovation; - Support and incubation of a high-tech SME Incubator; - Museum and experiment facility; - Sport playground and facilities, etc. Eligible expenses Investment expenses not financed under OP Competitiveness 2007-2013. Maximum amount of the grant: 12 500 000 BGN Date of announcement: 2016