1. Funding and support in FP6 for SMEs Kalev Kaarna ESTIRC

2. Purpose of the presentation Help SMEs to see opportunities and get ideas How SME plans fit into FP6 instruments How to overcome potential problems Who can help

3. Funds for SMEs 1,7 billion Euros

4. How SME plans fit into FP6

6. Encourage SME participation Participation of SME groupings Evaluation criteria related to SME Targeting of calls in areas relevant for SME Pre-allocation budget for take-up measures Possibility to extend FP6 contracts to include new SME

7. Integrated project & problems Multi-national corporations (MNC) are probably main players MNC see SME roll in Integrated Projects as subcontractors and not partners. Because: – risks of including SME are high (long project) – MNC will be responsible for failure – SMEs want high level ownership but offer low level financial contribution – value from including SMEs is seen to be low

8. Risks of including SME Risk of including SME is high compared to value Risks are hard to decrease what about increasing value?

9. Value of including SME Percieved Benefits (Cost + Harm) VALUE =

10. Benefits MNC can offer Benefits of including SME Benefits SME can offer  Income  Costs Benefits MNC can offer  Costs  Income CLIENT skills and resources How many of SME skills and resources sell through allow to “sell through”?

11. TESTING APPLICABLE KNOWLEDGE IDEAS What if SME could constantly develop innovative improvement ideas? Fortunately there are methods to do it IDEA

12. TRIZ: Based on more than 2 million patents 40 main conflicts were found (like: speed increase vs loss of information) 40 main solutions to these conflicts (like: speed vs loss of information problem solutions can be copying) 35 trends in technology evolution (like: point-line-curve-3D surface or commodity-product- service-experience-transformation) TESTING APPLICABLE KNOWLEDGE IDEA

13. Advantages: – Is in public domain – Makes innovation systematic – Allows derive knowledge from other fields – Allows to find markets to your solutions outside traditional fields – Is applicable in software development – Makes SMEs more willing to give up greater share of ownership of their idea – Allows long term partnership with MNC TESTING APPLICABLE KNOWLEDGE IDEA

14. CLIENT NETWORK  Knowledge about clients  Readiness to modify product for a segment  Test-marketing  Clients who are ready to pay for R&D TESTING APPLICABLE KNOWLEDGE IDEA

15. FUTURE SUB-CONTRACTOR Testing and developing capabilites and skills for being a perfect sub-contractor for the new generation product TESTING APPLICABLE KNOWLEDGE IDEA

16. Relevance to MNC Decision is that SMEs have to be included into Integrated Projects Including SMEs as partners is strongly encouraged Evaluators know that it is not easy and look for “just on paper” partnerships

17. Relevance to MNC Risk and include SMEs as dummies OR Develope a non-traditional co-operation model where SMEs are true value creators

18. Who can help? GOAL support sharingimplementation innovative solutions support sharing and implementation of innovative solutions in European SMEs IRC network

19. Support offered Finding with needed Finding partners with needed capabilities, know-how, products or client network Findingwho need Finding partners who need your capabilities, know-how, products or client network Support Support for negotiations, contracts and IP Know-how Know-how about financial support opportunities IRC network

20. ESTIRC consultant contact Kalev Kaarna SA Archimedes Kompanii 2, Tartu Phone: +372 7 300 338 E-mail: kalev@irc.ee

21. Thank You!