1. The New EU Framework Programme for Research and Innovation 2014-2020 HORIZON 2020 for SMEs Samuël Maenhout Unit "Small and Medium-sized Enterprises" DG Research and Innovation @ Federation of the European Sporting Goods Industry Meeting, November 14, 2013

2. What is Horizon 2020 Initial Commission proposal for a €80 billion research and innovation funding programme (2014-2020); now just over €70 billion (79 billion in current prices including inflation) A core part of Europe 2020, Innovation Union & European Research Area: − Responding to the economic crisis to invest in future jobs and growth − Addressing people’s concerns about their livelihoods, safety and environment − Strengthening the EU’s global position in research, innovation and technology

3. What's new A single programme bringing together three separate programmes/initiatives* Coupling research to innovation – from research to retail, all forms of innovation Focus on societal challenges facing EU society, e.g. health, clean energy and transport Simplified access, for all companies, universities, institutes in all EU countries and beyond  The 7 th Research Framework Programme (FP7), innovation aspects of Competitiveness and Innovation Framework Programme (CIP), EU contribution to the European Institute of Innovation and Technology (EIT)

4. Three priorities Excellent science Industrial leadership Societal challenges

5. Priority 2. Industrial leadership Why: Strategic investments in key technologies (e.g. advanced manufacturing, micro-electronics) underpin innovation across existing and emerging sectors Europe needs to attract more private investment in research and innovation Europe needs more innovative small and medium-sized enterprises (SMEs) to create growth and jobs

6. Leadership in enabling and industrial technologies (LEITs) (ICT, nanotechnologies, materials, biotechnology, manufacturing, space) 13 557 Access to risk finance Leveraging private finance and venture capital for research and innovation 2 842 Innovation in SMEs Fostering all forms of innovation in all types of SMEs 616 + complemented by expected 20% of budget of societal challenges + LEITs and 'Access to risk finance' with strong SME focus Proposed funding (€ million, 2014-2020)

7. Priority 3. Societal challenges Why: Concerns of citizens and society/EU policy objectives (climate, environment, energy, transport, etc) cannot be achieved without innovation Breakthrough solutions come from multi-disciplinary collaborations, including social sciences & humanities Promising solutions need to be tested, demonstrated and scaled up

8. Proposed funding (€ million, 2014-2020)  Additional funding for nuclear safety and security from the Euratom Treaty activities (2014-2018) Health, demographic change and wellbeing7 472 Food security, sustainable agriculture and forestry, marine and maritime and inland water research and the Bioeconomy 3 851 Secure, clean and efficient energy *5 931 Smart, green and integrated transport6 339 Climate action, environment, resource efficiency and raw materials 3 081 Inclusive, innovative and reflective societies1 310 Secure societies1 695 Science with and for society462 Spreading excellence and widening participation816

9. SME support: integrated approach SME instrument 7% Collaborative projects 13% Eurostars II Enhancing Innovation Capacity Market-driven Innovation Access to Risk Finance 20 % budgetary target in LEITs & SC 'Innovation in SMEs' 9

10. ? IDEAbusiness coaching and complimentary services MARKET Concept & Feasibility Assessment Demonstration Market Replication Research Development Commercialisation SME window EU financial facilities Procurement SME instrument

11. Phase 1: Concept and feasibility assessment Phase 2: R&D, demonstration, market replication Input: Idea/Concept: "Business Plan 1" (~ 10 pages) 10% budget Activities: Feasibility of concept Risk assessment IP regime Partner search Design study Pilot application etc. Output: elaborated "Business plan 2" Input: "Business plan 2" plus description of activities under Phase 2 (~ 30 pages) 88% budget Activities: Development, prototyping, testing, piloting, miniaturisation, scaling-up, market replication, research Output: "investor- ready Business plan 3" Lump sum: 50.000 € ~ 6 months Phase 3: Commercialisation 1-3 (5) M€ EC funding ~ 12 to 24 months Promote instrument as quality label for successful projects Facilitate access to private finance Support via networking, training, information, addressing i.a. IP management, knowledge sharing, dissemination SME window in the EU financial facilities (debt facility and equity facility) Possible connection to PPC (and PPI?) 10% success 30-50% success Phase 3 = 2% budget No Direct Funding

12.  Targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise  Only SMEs will be allowed to apply for funding and support  Single company support possible  No obligation for applicants to sequentially cover all three phases; each phase open to all SMEs  70% funding (exceptions possible)  Bottom-up approach, framed within "societal challenges" and "leadership in enabling and industrial technologies" Main features 12 SME instrument: main features

13.  To compete among the best European companies  "Champions league" with only very few winners, quality label based on a rigorous assessment  Visibility at European level  Possibility to receive business/management coaching  Networking possibility with investors and customer networks  Preferential treatment for subsequent financing (EU Financial Instruments: loan and equity facilities) SME instrument: why participate?

14. Article 18(2) Regulation […] a dedicated SME instrument that is targeted at all types of SMEs with an innovation potential, in a broad sense, shall be created under a single centralised management system and shall be implemented primarily in a bottom-up manner via a continuously open call […] Implemented centrally by one agency (EASME) Bottom-up approach within the frame of the societal challenges and enabling technologies  each SC & LEIT defines a broad topic Continuously open call with around 4 cut-off dates per year Implementation SME instrument: Implementation

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. Other eligibility conditions: * established in EU or associated country * one application/project (phase 1 or phase2) at a time Funding over 7 years: ca. 5,200 Phase 1 projects (fixed lump sum of 50K€) ca. 1,700 Phase 2 projects with an average size of 1.5 M€ (or 2550 of an average size of 1 M€;1250 of an average size of 2 M€) Implementation SME instrument: Implementation

16. There has to be a market Easy to use/produce for the customer and the firm Technical solution possible and better than existing ones Excellence in innovation Evaluation Commercialisation potential and economic impact Company's potential to achieve the envisaged results Plus: EU added value SME instrument: Evaluation

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

18. Coaching in practice  Objectives: Enhance the commercial potential and impact of SME participation in the dedicated H2020 instrument Achieve tangible organizational change Leave a legacy, H2020 to become the stepping stone to sustainable high growth  Delivered by high calibre individuals with substantial experience in working in or with high growth businesses at a senior level (Coaches are independent of EEN)  Accessible through the regional EEN which will support the coach by linking the SME to EEN and regional/ national support services SME instrument: Coaching

19. 19 Access to Risk Finance  Part of the Horizon 2020 budget (3.69%)* will not be provided through grant funding but in the form of risk- sharing (for loans and guarantees) and by providing risk finance (equity)  Around EUR 2.84 billion in total for market-driven financial instruments  Leverage effect: to attract additional finance and multiply HORIZON 2020 budget resources  Addressing financing gaps: Intervention only if there are financing gaps in the R&I delivery chain (e.g. due to high risk)  Building a bridge from R&D to Innovation: Effective and cost-efficient way to complement grant funding under Horizon 2020 and translate R&D results to the market Not legally binding

20. Participant Portal: https://ec.europa.eu/research/participants/portal/page /home https://ec.europa.eu/research/participants/portal/page /home Calls for proposals Horizon 2020 documents Support services Evaluation experts Horizon 2020 web portal: http://ec.europa.eu/research/horizon2020/index_en.cfm http://ec.europa.eu/research/horizon2020/index_en.cfm SME Techweb (Research & Innovation support for SMEs): http://ec.europa.eu/research/sme- techweb/index_en.cfm http://ec.europa.eu/research/sme- techweb/index_en.cfm V. Useful links Useful Links

21. HORIZON 2020 Thank you for your attention! Find out more: www.ec.europa/research/horizon2020