1. Research and Innovation Research and Innovation Brussels, 12 November 2013 Types of Action Focus on Innovation Actions and the SME Instrument

2. Forms of funding Grants Direct financial contribution by way of donation in order to finance an action Prizes Financial contribution given as reward following a contest (recognition or inducement prizes) Procurement Supply of assets, execution of works or provision of services against payment Financial instruments Equity or quasi-equity investments; loans; guarantees; other risk-sharing instruments

3. Types of actions supported by grants Research and innovation actions Innovation actions Coordination and support actions SME instrument ERANET Co-fund Pre-commercial procurement (PCP) Co-fund Public procurement of innovative solutions (PPI) Co-fund Disclaimer : legally not binding

4. Supporting innovation and activities close to users and markets Innovation Actions Innovation activities as part of other types of actions In 'main' Work Programme actions - In Public-Private Partnerships and Public-Public Partnerships - In EIT Knowledge and Innovation Communities Demonstrating and piloting activities in. Research and Innovation Actions. SME Instrument. PCP Co-fund. Financial instruments: debt and equity. … Primarily with activities such as demonstrating and piloting, first market replication…

5. Innovation Actions … 'Innovation Action' means an action primarily consisting of activities directly aimed at producing plans and arrangements or designs for new, altered or improved products, processes or services. For this purpose they may include prototyping, testing, demonstrating, piloting, large-scale product validation and market replication.

6. … Innovation Actions … A demonstration or pilot aims to validate the technical and economic viability of a new or improved technology, product, process, service or solution in an operational (or near to operational) environment, whether industrial or otherwise, involving where appropriate a larger scale prototype or demonstrator.

7. … Innovation Actions … A market replication aims to support the first application/deployment in the market of an innovation that has already been demonstrated but not yet applied/deployed in the market due to market failures/barriers to uptake. 'Market replication' does not cover multiple applications in the market of an innovation that has already been applied successfully once in the market. First means new at least to Europe or new at least to the application sector in question Often such projects involve a validation of technical and economic performance at system level in real life operating conditions provided by the market An Innovation Action may include limited research and development activities.

8. … Innovation Actions Funding rate Grant limited to max 70% of total eligible costs (direct + indirect) Grant may reach max 100% of total eligible costs for non-profit legal entities Weighting of evaluation criteria To determine the ranking, the score for the Impact criterion will be given a weight of 1.5 Prioritisation of ex aequo proposals done first on the basis of the score for Impact, and then on that for Excellence

9. 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 No direct funding 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% success30-50% success Phase 3 = 2% budget SME Instrument

10. 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) 10 SME instrument: main features

11. SME Instrument: 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 cut-off dates 11