HORIZON 2020 A new understanding of SME`s innovation needs 12/3/2017 HORIZON 2020 A new understanding of SME`s innovation needs Camelia MARINESCU NCP SMEs & Access to Risk Finance – H2020 National Authority for Scientific Research and Innovation tel: +40 21 316.29.77 fax: +40 21 318.30.71 e-mail: camelia.marinescu@ancs.ro website: www.research.ro

What is HORIZON 2020? - Horizon 2020 is the European Union`s Framework Programme for Research and Innovation - Running from 2014 until 2020 with a budget of nearly €80 billion, HORIZON 2020 is the biggest multinational research programme in the world. - It funds research in all areas of science and innovation. Three main pillars / objectives of Horizon 2020 - Excellent Science - Competitive Industries (LEIT) - Tackling global societal challenges (SC) http://www.ec.europa.eu/horizon2020 Bucharest, 10 November 2016

HORIZON 2020 for SMEs Collaborative Projects SME Instrument 7% 13% Eurostars II Enhancing Innovation Capacity InnovFin – EU Finance for Innovators & accompanying measures Fellowships (Access to Skills) 20 % budgetary target in LEITs & SC* 'Innovation in SMEs 'Access to Risk Finance' MSCA *= ~ EUR 9 billion of direct SME support over the period 2014-2020

HORIZON 2020 approach to innovation HORIZON 2020 supports all forms of innovation: - innovation that results from R&D activities; - innovation that results from other activities, such as finding new uses or combinations of existing technologies or developing new business models or new ways of interacting with users; - innovation traditionally understood as the commercial introduction of a new or significantly improved products or services; - innovation for non-commercial applications such as for better public services or for addressing social needs (so-called 'social innovation'). Bucharest, 10 November 2016

Horizon 2020 approach to innovation SME instrument: key features - Targeted to all types of innovative SMEs showing a strong ambition to grow, develop and internationalise;  - All Societal Challenges (SC) and LEIT should apply the dedicated SME instrument;  - Only SMEs allowed to apply for funding (single company support, but collaboration is advisable); - Bottom up approach within a given SC or LEIT; - Competitive, EU dimension: only the best ideas pass phase I;  - Market-oriented, close-to-market activities: 70% funding; - 3-phased but no obligation to cover all three phases: each phase open to all SMEs; - Coaching along the three phases: professionals with business experience. BOOTOM-UP approach! Bucharest, 10 November 2016

2% budget 10% budget 88% budget

2% budget 10% budget 88% budget

2% budget 10% budget 88% budget

2% budget 10% budget 88% budget

Financial instruments in Horizon 2020 Intermediated SME/Mid-Cap Financing Direct Corporate Lending SMEs and small Mid-Caps < 500 Employees Large Caps Typically > 3,000 Employees Intermediated and/or direct Corporate lending Mid-Caps < 3,000 Employees http://www.eib.org/products/blending/innovfin/products/index.htm

2% budget 10% budget 88% budget

SME instrument: Euro 51.6 million more to invest in innovation in 2017 - WP2016-2017 has been updated on 25-th of July - The budget increase for 2017 concerns four topics: 1) Healthcare and biotechnology (SME-I 05 topic) euro 35 mil 2) Sustainable agriculture, forestry (SME-I 07 topic) euro 5.68 mil 3) Blue growth (SME-I 08 topic) euro 2.42 mil 4) SC5 - Climate action, environment, raw materials, resource efficiency (SME-I 11 topic) euro 8.5 mil Bucharest, 10 November 2016

The SMEs Romanian White Book The 14th edition published in July 2016 by CNIPMMR (National Council of Private Small and Medium Enterprises from Romania) Some findings: - 33.58% of SMEs appreciate framework conditions in Romania are cumbersome for their development, 48.27% neutral and 13.78% SMEs have estimated a positive favourable trend in 2016 (from 1096 interviews) - main difficulties of SMEs are bureaucracy (61.41%), excessive taxation (54.74%), corruption (45.15%) and excessive controls (44.96%) - a better access to the markets for SMES is viewed by 45.99% as the main positive aspect of the EU accession - 71.99% of SMEs does not plan to access Structural Funds in the next period Bucharest, 10 November 2016

Romanian participation in H2o2o H2020 Project Participants Top 100 organisations by EU financial contribution granted to the H2020 research projects RO – Romania 1) Top 100 organisations 2) HES – Higher or Secondary Education Establishments 3) PRC – Private for profit entities (excluding Higher or Secondary Education Establishments) 4) PUB – Public bodies (excluding Research Organisations and Higher or Secondary Education Establishments) 5) SMEs – Small and Medium Enterprises Bucharest, 10 November 2016

A new understanding of SMEs Innovation Needs 1) SMEs need INFORMATION 2) SMEs need to focus on RESEARCH and INNOVATION for increasing competitiveness 3) SMEs need OPPORTUNITIES (such as this event – Innovation Forum) 4) SMEs need highly qualified personnel/well trained employees Comments: Innovation in skills development provides new ways of talent development for SMEs. !!! SMEs are involved in up to 50% less training than larger firms. 5) SMEs need … Bucharest, 10 November 2016

Thank you for your attention ! Bucharest, 10 November 2016