1 Project supported by the European Commission Ile-de-France ECREIN platform Funding eco-innovation from labs to export 16 th of October 2007 (morning)

2 The actual regional funding landscape  Basic research (public/private labs) : public/private money Actors : public and private research centres + State, Region, Companies, foundations, companies  R & D (public/private labs)+ seeding/incubation: public/private money Actors : Public and private research centres + State, Region, companies, societies (such as French competitiveness clusters), foundations  Eco-innovating project support (aims at verifying if eco-innovation is « bankable ») : public/private money Actors : Region (subsidies funding the cost of a technology expert consultant) + OSEO’s repayable advances (OSEO : national-semi public financer)

3 The actual regional funding landscape  Pulling eco-innovation from the labs : early –stage loan, early-stage equity and security funding – public/private money oEarly-stage loan : loans without interest provided by funds fueled by the Region oEarly-stage equity : capital stock funding for innovative young start-ups supported by the Region Ile-de-France (Business angels’ funds and public/private funds) oSecurity funding : provided by funds fueled by the Region Ile-de-France (OSEO, SIAGI, SOCAMA)

4 CRITT chemistry lab market Competitiveness cluster (VMD) t Seeding/incubators Advisor (PCT) + Provides regional Subsidies (ARITT) public/private cluster R & D Advisors skill – market planing Public & private Research centres Firms (big) OSEO Participative Early-stage loan equity Early-stage funds equity B.A Equity Venture capital banks (loan) security funding

5 ORIENTATIONS TO IMPLEMENT

6 The 2 main axis of a regional eco-innovation strategy  Pulling out eco-innovation from labs : making R & D operational and transforming it in new businesses  Main-streaming eco-innovation into the whole local economy : aiming at eco-compatibity or eco-conformity everywhere if necessary

7 Pulling out eco-innovation from labs  Transfer eco-innovation from labs to market requires a global partnership between the Region Ile-de-France and its public/private partners : creation of a « regional platform » in charge of spotting and routing eco-innovating projects to the appropriate funding instruments.  It also needs a global approach of funding: remastering the regional funding chain is a priority to keep a general track record of the supported projects during the first stages of their life, from eco- innovation to eco-innovating companies.  Eco-innovation consists both in high-tech and low-tech businesses which characteristics entail different funding solutions : equity funding or loan.

8 Hi-tech businesses/High ROI = Intensive equity funding Low-Tech businesses/low ROI = loan BASIC+R&DBASIC+R&D EARLY DEvEARLY DEv DEVPDEVP Financial support to Research programs (subsidies) To be re-designed + Regional Early stage funds 1st round-table Regional Early stage funds 2 nd round-table + Venture Capital Repayable Advance OSEO Innovation Participative early-stage loan (prêt participative amorçage OSEO) Participative long-term loan Fonds de prêt à risque (projet) Ile-de-France Capital si TRI faible t + Loan (banks) Security Fund OSEO + Banks (loan) then Repayable Advance OSEO Innovation + R E G I O N A L P L A T E F O R M M€ Regional Co-investment Fund Designed to Intervene beside B.A Business Angels’ Funds or To be created (to be created) existing Stock exchange existing

9 Main-streaming eco-innovation into the whole local economy  Because thousands of small companies have to adapt themselves to the change of the recent environmental rules : what is at stake is their chance of surviving or continuing (transmission). They need up-to-date capital goods and skill to make the U turn.  Because small businesses, especially in the house building branch, represent the major part of the regional economy in terms of employment potiential.  Because, as individual consumers, they fuel ecoinnovating production.

10 To conclude (provisionally) Funding eco-innovation is :  Managing new instruments/new processes to fuel R & D and transform it into companies: the Region Ile-de-France is eager to re-remaster its interventions through local loan, security and equity funds and to develop a genuine ecoinnovating strategy with its public and private partners, by creating a platform including all the regional actors who want to participate.  Fostering small existing traditional businesses’ adjustment to the change of environmental standarts and environmental rules and striving for environmental excellence at the greatest scale. Therefore, information, training …, must continue to be regional priorities.