The EU Commission, Horizont 2020 program, supporting research & innovation proposes a new funding instrument for innovative SMEs. This presentation introduces the instrument and provides information on the way it will be used in the context of ICT priority.

1. ODI / SME instrument
ICT 2013
Vilnius November 2013
Viorel Peca
Pierre Marro
DG CONNECT / Innovation
Research and
Innovation

2. Barriers to participation (study on
non participation of SMEs in FP7)
The following were identified as either strong or weak
barriers for ICT-SMEs as a whole, regardless of FP7
participation:
Resources: Dedicating time and human resources to proposal
preparations
Information: Awareness/access to preceding documents and to
FP7 information days
Time: Current time-to-project and Long projects
Support: Getting feedback on project ideas
Financials: Partial reimbursement of project expenses, EU
accounting arrangements and the required reporting capacity
Business: Participating in research project outside the company’s
main business interest

3. Overview of Key Messages (study
on non participation of SMEs in FP7)
• From the questionnaires and interviews
6 key messages were identified:
•
•
•
•
•
SMEs want more quality information
Fit the Rhythm of SMEs
Making life simpler for SMEs
Flexibility fosters creativity and innovation
Getting closer to private investors and the
market
• Attracting new participants

4. Why ODI (Open Disruptive Innovation)
Triggered by Vice President Neelie Kroes speech (25/09/2012):
"First, remember that great innovation isn't about keeping the status
quo: it's about challenging it. It's radical, disruptive, and
sometimes non-linear – especially for emerging technologies.
So let's make space for that in Horizon 2020.
Here's what I want to do. I want to try out support for truly open,
disruptive innovation in ICT. Allocating perhaps 5% of funds to
create an open, agile, responsive funding instrument. Starting an
experiment to support creativity and innovation."
It is one of the answers to the issues that you raised in FP7.
Open in scope and in time and in 2014-2015 dedicated to SMEs.

5. Horizon 2020
SME support: integrated approach
20 %
budgetary
target in
LEITs & SC
'Innovation
in SMEs'
Collaborative
projects
SME instrument
13%
7%
Eurostars II
Enhancing Innovation
Capacity
Market-driven Innovation
Access to Risk Finance
5

6. Open
Disruptive
Innovation
CONTEXT
H2020 ICT
thematic
areas
Start-up
phase
(StartUp
Europe)
Growth
phase
(SpeedUp
Europe)
Access to Finance

7. SME instrument
?
Procurement
Phase 1:
Concept &
Feasibility
Assessment
Phase 2:
Demonstration
Market Replication
R&D
Phase 3:
Commercialisation
SME window EU
financial facilities
50 k€
6 months
IDEA
0,5 to 2,5 M€
1 – 2 years
business coaching throughout the project
Eg: Access to risk
finance
MARKET

8. SME instrument
Phase 1: Concept
and feasibility
assessment
Input: Idea/Concept:
"Business Plan 1"
(~ 10 pages)
Activities:
Feasibility of concept
Risk assessment
IP regime
Partner search
Design study
Pilot application
etc.
Output: elaborated
"Business plan 2"
Phase 3 & coaching = 2% budget
Phase 2:
R&D, demonstration,
market replication
Phase 3:
Commercialisation
Input: "Business plan
2" plus description of
activities under Phase
2 (~ 30 pages)
Promote instrument as
quality label for
successful projects
Activities:
Development, prototyp
ing, testing, piloting,
miniaturisation, scalin
g-up, market
replication,
research
Support via networking
, training, information, a
ddressing i.a. IP
management, knowledg
e sharing, dissemination
Output: "investorready Business plan 3"
Facilitate access to
private finance
SME window in the EU
financial facilities (debt
facility and equity
facility)
Possible connection to
PPC (and PPI?)
Lump sum: 50.000 €
Typically 1-2,5 M€ EC funding
~ 6 months
~ 12 to 24 months
No direct funding
8

9. Coaching
and EEN support
Phase 1
Phase 2
Phase 3
Regional
EEN
HR
Initial
Assessment
…
EU Funds
TO/TR
Facilitation and Moderation
SME
Instrument
Coaching
Support for
Application
Support for EU
project Management
Support for Access
to Finance
9

10. Volumes and funding (overall ~2,8 B€ over 2014-2020)
10%
2% coaching
88%
5,200
Phase 1
projects
1,700
Phase 2
projects*
1 to 2,5 M€
50 k€ lump sum
Phase 1
Phase 2
Phase 3
Phase 3
projects
Access to risk finance
*Average size of 1.5 M€
Or 2550 projects of 1 M€, 1250 of 2 M€…

11. Main features
• Targeted at all types of innovative SMEs showing a strong
ambition to develop, grow and internationalise (EU
dimension)
• Combination of demonstration and market replication
encouraging the involvement of end users/potential
clients, research as appropriate
• Only SMEs allowed to apply for funding
• Single company support possible

12. Main features (2)
• Simple rules and procedures
• Continuous open call with 3-4 cut-off dates per year
• No obligation for applicants to sequentially cover all three
phases; Each phase open to all SMEs; however SME
strongly encouraged to go in phase1
• Bottom-up approach, each SC & LEIT themes defines a
broad topic
• Central implementation through Executive Agency

13. Evaluation
1. Remote evaluation whole process
2. Suggestion to abandon consensus meetings
3. Long feedback loops ("ESRs") slow down the process
4. Evaluation criteria focus :
•
Excellence
•
Impact
• Quality and efficiency of the implementation
5. Competences of evaluators is important

14. Award criteria
Excellence:
Impact:
Quality of the
-Soundness of the -Enhancing innovation capacity implementation:
concept, including and integration of new
trans-disciplinary knowledge;
considerations;
-Strengthening the
-Progress beyond competitiveness and growth of
the state of the art. companies by developing
innovations meeting the needs
of European and global
markets;
-Competences,
experience and
complementarity of
the individual
participants, as well
as of the consortium
as a whole;
-Appropriateness of
-Effectiveness of the proposed the management
measures to communicate the structures and
procedures,
project, disseminate and/or
exploit the project results, and including risk
management.
appropriate management of
IPR.

15. Demand
Based on various surveys (EVCA, EIM, NESTA), it is estimated
that about 1 to 6 % of all SMEs belong to the target group, i.e.
200,000 to 1.2 million SMEs.
Without restrictions it is estimated to receive 10,000 to 15,000
SME applications for Phase 1 every year.
This number is limited in case of topic oriented calls
Measures to "reduce" applications:
1. Only one application per company (in both phases)
2. This implies: no possibility to apply for Phase 1 during the
submission and/or implementation of a Phase 2 project and
vice versa.
3. Advice by the support network(s)
4. SMEs should be encouraged to enter the scheme in Phase 1

16. Open Disruptive Innovation - ICT LEIT
Implementation: SME instrument
Budget: 90M € for 2014-15
Funding: lump sum 50k€ phase1;
0.5 to 2.5 M€ phase2; 70% of eligible costs
Scope: No restriction on ICT area
Focus on "Disruptive ICT innovation"= Innovative ICT
concept, product or service applying new sets of rules, values and
models which ultimately disrupt existing markets
Cut off dates(TBC!):indicative 18/06/2014; 24/09/2014;
17/12/2014 for phase 1; Oct/Dec. for phase 2 (opening 01/03/2014)