Accessing Public Sector Funds for Innovation and R&D Andrew Beale Director, IP Wales®

IP Wales® A £3.5m project (part funded by the European Union) to help SMEs within the Region become aware of IP; protect their IP assets; commercialise their IP assets. Our Chairman – Lord Griffiths (Vice Chairman Goldman Sachs International)

50% grant funding IP Wales has supported a total of 162 SME projects from 109 Welsh SMEs helping them to acquire the following assets: Projects Patents Trade Marks Designs Total

Patents UK53 PCT45 EP34 USA31 Canada10 Australia5 Germany4 China2 France2 Italy2 Japan2 New Zealand2 Norway2 Poland2 Spain2 Brazil1 Hong Kong1 India1 Ireland1 Israel1 Singapore1 South Africa1 Total205

Trade Marks UK23 CTM20 USA13 Canada2 Australia1 New Zealand1 Total60

Registered Designs UK3 USA3 CDR2 Australia1 Canada1 France1 Germany1 Total12

Understanding innovation The “Invention” The “Market” Quality Human Capital Quality Products Innovation Research and Development Education Skills and Training Support Infrastructure Marketing Culture Management Intellectual Property Finance and Resources

EU Funding Opportunites for SMEs ( ) The March 2006 Aho Expert Group Report on ‘Creating an Innovative Europe’, which has been endorsed by EU Heads of State and the Commission, recommended trebling the present €10.6bn structural funds support to measures related to R&I. In addition, Commission President Jose Manuel Barroso has emphasised that the EU needs to deliver results on innovation, and that EU regional policy is the primary instrument to do so. Jose Manuel Barroso (Commission President)

EU Funding Opportunites for SMEs ( ) The Commission Directorate-General (DG) for Regional Policy is under significant political pressure from the Commission President and EU heads of government to increase the number and impact of structural fund projects that will deliver increased innovation within companies under the Lisbon growth and jobs agenda (as refreshed in 2005). Danuta Hubner (Commissioner for Regional Policy)

EU Funding Opportunites for SMEs ( ) For the first time ALL Regions can apply for funding and the Commission will start to adopt Regional Innovation Plans from the end of A European Innovation Scoreboard will be extended to the Regional level and the Commission will grade Regions on the following indicators: Number of science and technology graduates Number of adults engaged in learning Employment in hi-tech sectors/services Gross and business expenditure on R&D Number of patent applications [A new European 25 cluster collaboration map has been commissioned for publication in 2007]

SME applications for EU Project funding 1.Need to focus on a relevant Priority with uncommitted expenditure. 2.Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants). 3.Will be PR obligations. 4.Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications for EU Project funding

1.Need to focus on a relevant Priority with uncommitted expenditure. 2.Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants). 3.Will be PR obligations. 4.Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications for EU Project funding 1.Need to focus on a relevant Priority with uncommitted expenditure. 2.Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants). 3.Will be PR obligations. 4.Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications for EU Project funding 1.Need to focus on a relevant Priority with uncommitted expenditure. 2.Projects are invariably non profit making and claims for retrospective part payment are the norm (cash flow issues are recognised for non public sector applicants). 3.Will be PR obligations. 4.Will have major obligations of evidence and documentation with the potential for claw-back.

SME applications to benefit from EU funded projects 1.Need to be focus on the Project Targets (see Scoreboard): Jobs (but not job relevant) Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary Gross FTE safeguarded jobs in high/medium hi-tech companies Patents Positive due diligence Defensive due diligence 2.Need to be supported by a business strategy. 3.May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment. 4.May have PR obligations. 5.Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefit from EU funded projects high technology companies means those in both high technology industries and medium high technology industries. high technology industries means those in the following sectors: pharmaceuticals SIC 24.4 office machinery and computers SIC 30.0 Aerospace SIC 35.3 electronics-communications SIC 32.0 medium high technology industries means those in the following sectors: scientific instruments SIC 33.0 motor vehicles SIC 34.0 electrical machinery SIC 31.0 chemicals SIC 24.0 (exc.24.4) other transport equipment SIC 35.2, 35.4, 35.5 non-electrical machinery SIC 29.0

High & Medium Hi-Tech Co’s SIC CodeNo. Co.’sCo.’s TMPredictionSuccess N/A31 A2001 D34151,6,7,10,12,14,16,17, 30 5 F31370 G55350 K M10410 N11440 O22360 SIC Code analysis was found to be irrelevant for 28% of our membership and potentially less than 20% accurate for the remainder. Using the Nice classification system was 3 times more accurate.

SME applications to benefit from EU funded projects 1.Need to be focus on the Project Targets (see Scoreboard): Jobs (but not job relevant) Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary Gross FTE safeguarded jobs in high/medium hi-tech companies Patents Positive due diligence Defensive due diligence 2.Need to be supported by a business strategy. 3.May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment. 4.May have PR obligations. 5.Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefit from EU funded projects 1.Need to be focus on the Project Targets (see Scoreboard): Jobs (but not job relevant) Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary Gross FTE safeguarded jobs in high/medium hi-tech companies Patents Positive due diligence Defensive due diligence 2.Need to be supported by a business strategy. 3.May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment. 4.May have PR obligations. 5.Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefit from EU funded projects 1.Need to be focus on the Project Targets (see Scoreboard): Jobs (but not job relevant) Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary Gross FTE safeguarded jobs in high/medium hi-tech companies Patents Positive due diligence Defensive due diligence 2.Need to be supported by a business strategy. 3.May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment. 4.May have PR obligations. 5.Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefit from EU funded projects 1.Need to be focus on the Project Targets (see Scoreboard): Jobs (but not job relevant) Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary Gross FTE safeguarded jobs in high/medium hi-tech companies Patents Positive due diligence Defensive due diligence 2.Need to be supported by a business strategy. 3.May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment. 4.May have PR obligations. 5.Will have obligations of evidence and documentation with the potential for claw-back.

SME applications to benefit from EU funded projects 1.Need to be focus on the Project Targets (see Scoreboard): Jobs (but not job relevant) Gross FTE new jobs in high/medium hi-tech companies - permanent (direct/indirect) & temporary Gross FTE safeguarded jobs in high/medium hi-tech companies Patents Positive due diligence Defensive due diligence 2.Need to be supported by a business strategy. 3.May require prior approval (note confidentiality/prior disclosure issues) and only offer a retrospective part payment. 4.May have PR obligations. 5.Will have obligations of evidence and documentation with the potential for claw-back.

Thank you for your attention and I hope your interest Andrew Beale Director, IP Wales®