Procurers of innovation? Boarding in the Horizon 2020 SME Instrument How to connect Innovative SMEs & Procurers of innovation? Dr.Bertrand Wert EASME – Project adviser bertrand.wert@ec.europa.eu @bertrandwert Horizon 2020 Space Information Days 2015 in Warsaw Paris 28/10/2015

Why the SME Instrument?... …To get accros the Valley of Death… © Charles D. Wessner PhD

SME Instrument - A recipe for success It's not about writing a good proposal It's about defining a good project… …And ultimetly convincing the evaluators

SME Instrument target SME with innovative ideas – single company ok Ambition to grow and have a global/EU impact Established SMEs with high growth potential Clear European dimension For profit SMEs of the EU and associated countries

SME Instrument target Technology readiness level 6 or above

SME Instrument phases

Phase 1 - Concept & Feasibility Assessment The 3 Project Phases Phase 1 - Concept & Feasibility Assessment €50.000 in EU funding Feasibility study Initial 10 page business proposal to be drafted 6 months in duration

Phase 2 – Innovation Project Between €0.5M & €2.5M of EU funding Develop project through innovation strategy Draft a more developed 30 pages business plan 1-2 years in duration

Phase 3 – « Commercialisation » No stand-alone phase! No direct funding Business coaching Facilitate access to risk finance Additional support & networking opportunities SMEs “Business Club”

Themes for 2014 & 2015 High risk ICT innovation Nanotech, or other advanced tech for manufacturing and materials Space research and development Diagnostics devices and biomarkers Sustainable food production and processing Blue growth Low carbon energy systems Greener and more integrated transport Eco-innovation and sustainable supply of raw material Urban critical infrastructure Biotechnology-based industrial processes Mobile e-government applications (2015 only) SME business model innovation (2015 only)

Why participating? Rank among the best European SMEs Get visibility at European & global level Receive high-quality business coaching Benefit from networking opportunities Get support for follow-up financing The SME Instrument aims to identify European growth champions and to showcase and support the excellent innovation potential of European small companies. It does not aim to substitute or compensate the lack of national or regional activities to boost innovation capacity. What we intend to stage is champions league. Don’t select any application which is not at that level. Besides the competition among the very best European companies and the visibility this provides - and we can provide through the SME Agency and our various support networks - the impact of the SME Instrument shall come from the combination of financial support with a number of services, like leadership development (through business coaching) and various links to parallel or subsequent networking and finance possibilities.

First lessons learnt Unsuccessful proposals were Too much focused on the project, not on the market opportunity Without convicing description of the company Without enough information on competing solutions Not innovative enough Without commercialisation concept (TRL too low) Just trying ones' luck Unsuccessful proposals were too much project focussed, not enough business opportunity oriented Description of company not convincing (why would this company succeed and not the competitor) No information on competing solutions Innovation content too low; product exists already on the market (just incremental improvement) Just ideas, no proof of existing commercialisation concept (TRL far too low) Just trying ones luck

Unsuccessful proposals were too much project focussed, not enough business opportunity oriented Description of company not convincing (why would this company succeed and not the competitor) No information on competing solutions Innovation content too low; product exists already on the market (just incremental improvement) Just ideas, no proof of existing commercialisation concept (TRL far too low) Just trying ones luck

Resubmissions 3478 (25%) unique applicants resubmitted at least once 584 got funded after resubmission (16%) The overall success rate in SME Instrument is 8% There is a clear learning factor and applicants resubmitting have double chances to get funding

SME Instrument Champions League Map of beneficiaries available on the EASME website The participation of Belgian companies is so far fairly limited, not more than a handful applications per phase and cut-off. And if I break this down by region and look into Wallonia it is even less. I wouldn't like to come forward with an analysis at this stage but could imagine that the discussion we will have now could provide some suggestions on how to change this (or not?) http://ec.europa.eu/easme/en/sme-instrument-beneficiaries

Branding & Marketing https://www.youtube.com/watch?v=l7ztjrsIc0I

Why working together: innovative SMEs & procurers of innovation? Work in progress… Why working together: innovative SMEs & procurers of innovation? 1. "SME instrument" / SMEs interests to link with procurers Finding first clients/lead customers 2. Procurers' interests to work with "SME instrument" Being able to prepare and stimulate the market Lock-in effect

Linking SME & procurement support Work in progress… Linking SME & procurement support For Innovative SMEs need to Train/prepare SMEs we invested in to bid to public tenders For procurers of innovation need to Know better what is available or not 3market consultation" Stimulate the market at European level to prepare a procurement: e.g. Maires européens pour le climat Avoide any potential lock-in effect by "dominant" suppliers Inspiration from the US SBIR programme: procurers using grants to prepare a procurement of innovation

SME instrument as market stimulation at EU level Work in progress… SME instrument as market stimulation at EU level Initiative des Maires européens pour le climat Paris, Brussels, Madrid, Copenhaguen, Rome, Athens, Bucarest, Lisbon, Stockholm, Warsaw, Vienna, Lyon, Bordeaux, Sofia, Ljubljana, Geneva

http://ec.europa.eu/easme/sme/ More information Join us Join me EASME-SME-HELPDESK@ec.europa.eu Join me @bertrandwert bertrand.wert@ec.europa.eu @H2020SME