Operational Programme Prague – Competitiveness (OPPC) Priority axis 3 Innovation and entrepreneurship 18th October 2011 PRAGUE & EU WE INVEST IN YOUR FUTURE

22 OPPC – priority axis 3 Areas of intervention  3.1 Development of an innovative environment and partnerships between R&D and practice  3.2 Support of a favourable entrepreneurial environment  3.3 Development of small and medium-sized enterprises

3 Area of intervention 3.1 Development of an innovative environment and partnerships between research and development and practice Specific objectives:  to improve the innovative infrastructure in the city, enabling better use of the potential of research and development,  to enhance cooperation between the research and development base and other (user) entities in the city, Eligible applicants:  Research and development organizations (universities, Academy of Sciences of the Czech Republic, research institutes etc.)  Business entities (especially small and medium-sized enterprises)  Professional associations and interest groups (business associations, economic chambers etc.) Minimum limit of eligible costs:  CZK 1.0 million per project

4 Area of intervention 3.1 Development of an innovative environment and partnerships between research and development and practice Supported activities:  investment activities related to the establishment of new and development of existing innovation units with direct participation of research and development organizations, development of infrastructure for R and D  acquisition / modernization of the devices and laboratory equipment for research, development and innovations  clusters based on cooperation between member organizations in several areas (e.g. collective purchases and use of testing, measuring and laboratory equipment, workshops etc.)  establishment of networks of research and development organizations, business companies and other entities  development of information, advisory and research centres for innovation and technology transfers

5 Area of intervention 3.1 Development of an innovative environment and partnerships between research and development and practice Specific eligible costs:  purchase and installation of technologies  purchase and lease of machines and equipment, acquisition of devices and laboratory equipment for research, development and innovations  acquisition of intangible assets relating to project implementation (e.g. know-how, patents, licences)  acquisition of information and communication technologies, HW and SW  personnel costs only for project management (all other personnel costs are ineligible)  purchase and lease of land (in the case of land purchases up to 10% of total eligible project costs)  construction, reconstruction and modernization of buildings and premises (incl. necessary demolitions, technical infrastructure, technical equipment of buildings and areas, removal of old ecological burdens); ground, surface and park work on the immediate surroundings of buildings and new buildings; construction and reconstruction of service roads incl. parking areas serving for the reconstructed premises or new buildings; real estate purchases – all this max. up to 50% of the total eligible project costs (expenditures for reconstructions and construction changes are eligible only provided that the premises are owned by the applicant)

66 ELIGIBLE COSTS IN GENERAL Eligible costs (applicable to all areas of intervention) –acquisition of stand-alone movables –write-offs; VAT, if the applicant is not entitled to input VAT deduction –expenditures for project publicity –financial services (fees) –expenditures for accounting audits (applicable to projects with total costs incl. VAT exceeding CZK 90 million) –complete administrative work related to the subsidy, legal and technical consultancy, project documentation, tender expenditures, personnel costs related to project management, expenditures for expert opinions ….up to 5 % of total eligible costs Eligible costs time-wise: –regulated in relevant calls –in the case of state aid projects as of the date of the submitting of the application –until the date of the investment phase of the project specified in the contract

77 Amount of support and co-financing – area 3.1 Outside of the state aid regime: - co-financing amounting to 7.5% (public service entity) - co-financing amounting to 10% (private entity) State aid projects: - in accordance with the de minimis rule (up to EUR 200 th.) – co- financing amounting to 20% regardless of the form of the entity of the applicant - pursuant to EC Regulation no. 800 on block exemptions: Basic research: co-financing amounting to 7.5% Industrial research: co-financing amounting to 50% Experimental development: co-financing amounting to 75%

88 RECAPITULATION of area 3.1  Up to now 3 calls have taken place, the 4th is being assessed  a total of 139 projects have been submitted  contracts have been signed with 33 projects of a total volume of EUR mil. (CZK 1.4 billion), i.e % of the total allocation to the area of intervention  % of the allocation to the area of intervention has been paid out (64 % of projects are still being implemented)  Negotiations of reallocation from area 3.2  Additional allocation in accordance with Article 17 of the Interinstitutional Agreement amounting to EUR 5.45 mil. (cca CZK 130 mil.) Exchange rate of CZK/EUR

99 Information on the calls for area 3.1 Excess of demand CallAvailable amount (in mil. CZK) No. of submitted projects Requeste d amount (in mil. CZK) Excess of demand (EUR 32.6 mil.) % (EUR 42.8 mil.) % (EUR 16.3 mil.) % ( EUR 4.1 mil.) % Exchange rate of CZK/EUR

10 Call Applications eliminated during formal assessment No. of projects with less than 50 points No. of supported projects Allocated support in mil. CZK * Information on the calls for area 3.1 Number of supported applications * The original amount allocated to the 3rd call was increased from CZK 400 mil. to CZK mil.

11 Area of intervention 3.1 – example of a project ERILENS s.r.o.– Innovation of the forearm crutch  1st Dec 2007 – 31st Nov 2009, 1st call  Partner: Czech Technical University (Laboratory of Biomechanics)  Total costs: CZK 8.5 mil. (ERDF share of CZK 4.2 mil.), De minimis  Primary costs: CZK 5.3 mil. for technologies (press + moulds) Project objective:  interconnection of the scientific and commercial spheres; cooperation between a company and university enabling the transfer of the knowledge of academics and students in practice and at the same increasing the competitiveness of the company  development and start of production of the innovated product  Project outputs: development of a competitive product meeting the current requirements for construction, technology, ergonomics, design and safety  Project results: start of lot production + load tests

12 Area of intervention 3.1 – example of a project Institute for Clinical and Experimental Medicine - Centre of Experimental Research of Cardiovascular Diseases and Organ Transplants  1st Jan 2010 – 30th Jun 2010, 2nd call  Partner: Czech Technical University (Laboratory of Biomechanics)  Total costs: CZK 80 mil. (ERDF share of CZK 68 mil.)

13 Project objective:  modernization of the devices and laboratory equipment for research at the Experimental Medicine Centre  investment in laboratory equipment so that in the implementation phase of the project the research team can start working on research hypotheses in the field of cardiovascular diseases and organ transplants and subsequently apply the outputs in practice Area of intervention 3.1 – example of a project

14 Area of intervention 3.1 – example of a project GENOMAC – Genomic Analysis Company  1st Jan 2010 – 31st Dec 2010, 2nd call  Partner: University Hospital in Pilsen, Thomayer University Hospital, Charles University  Total costs: CZK 4.0 mil. (ERDF share of CZK 3.4 mil.), De minimis  Primary costs: CZK 4.1 mil. for technologies (DNA sequenator, thermocycler)

15 Area of intervention 3.1 – example of a project Project objective:  to equip with technologies the centre focusing on the research and development of methodologies, experimental procedures and related products for the molecular and genetic analysis of frequent forms of solid tumours.  Project outputs: enlargement of the area intended for R and D in the field of molecular biology by two new laboratories of an area of 50 m2 and their equipment with laboratory devices.  Project results: applied research in primary diagnostics of diseases, monitoring and prediction of their effective treatment with the aim of early detection.  Research projects will focus on malign diseases of the lungs, colorectum, pancreas, prostate gland and breast.

16 Institute of Macromolecular Chemistry of the Academy of Sciences of the Czech Republic - Otto Wichterle´s Centre for Polymeric Materials and Technologies  1st Jan 2010 – 31st Jul 2011, 2nd call  Partners: Beznoska, s.r.o., Zentiva k.s., NOEN Recycling and Technologies s.r.o., MEGA a.s., NAKE spol. s.r.o.  Total costs: CZK 78 mil. (ERDF share of CZK 61.1 mil.)  Primary costs: purchase of technologies worth CZK 32 mil.

17 Project objective:  development of an innovation centre for polymeric materials and technologies through a reconstruction and modernization of a part of the premises of the Institute and purchase of additional devices and technical equipment.  The Centre will focus on research, innovations and know-how transfers in the field of polymeric materials for advanced technologies. In the operational phase of the project, the Centre will, besides doing research, search for information with an innovative potential obtained in other units of the Institute and also in cooperation with other research institutions and companies as well as appraise these results and help their implementation

18 Area of intervention 3.1 – example of a project LASAK – Design and Development Centre for Dental Implantology and Bone Regeneration in Prague  1st Jun 2010 – 31st Jul 2011, 3rd call (in OPPC 4th call)  Partner: Institute of Chemical Technology  Total costs: CZK 44 mil. (total eligible costs of CZK 11.4 mil., ERDF share of CZK 9.7 mil.), Czech temporary framework  Primary costs: 50% construction; technologies and equipment Project objective:  development of a new research centre, acquisition of technologies, devices and specialized software for research and development activities in innovation projects in the field of dental implantology and bone regeneration  Project outputs: new premises, 3 R and D jobs  Project results: Research in the field of materials for the transplantation and controlled regeneration of the bone tissue, innovation of the dental implantological system and individual implants for the transplantation of the bone in maxillocranial surgery and facial epithetic reconstruction, development of a system for neurosurgical implants for intervertebral fusion.

19 Area of intervention 3.2 Support of a favourable entrepreneurial environment Supported activities:  development of information, advisory and educational centres focusing on the support of entrepreneurship, especially in the area of innovation processes and technology transfers  development of services focusing on the support of the search for suitable, commercially usable R and D outputs  development of networks focusing on the support of entrepreneurship (implemented by the non-profit and public sectors)  consultancy and other activities in the area of establishment and protection of intellectual/industrial property rights Eligible applicants:  City of Prague  Prague city boroughs  Organizations established by the City of Prague and its boroughs  Non-governmental non-profit organizations, professional associations and interest groups

20 Area of intervention 3.2 – example of a project Blue Key – Centre for the Employment of Mentally Disabled People Project objective:  purchase of a real estate on the existing premises of the applicant and its reconstruction  new service for entrepreneurs, non-profit organizations and public administration – centre for educational and training programmes in the field of employment of people with mental handicaps  well-equipped reference centre, at the same time serving as a training centre for entrepreneurs, NGOs and public administration representatives (i.e. job offices) in the field of employment of people with mental handicaps and combined handicaps and also a training centre for people with mental or combined handicaps as a form of vocational preparation  1st Jan 2009 – 31st Mar 2010, 1st call  Total costs: CZK 37.4 mil. (ERDF share of CZK 33.7 mil.)

21 Area of intervention 3.3 Development of small and medium- sized enterprises Specific objectives:  To stabilize and improve the attractiveness of the entrepreneurial environment in the city in the long term  To implement such forms and tools of support that will lead to an improvement of general competitiveness and the resolution of specific issues of the Prague economic base  To enhance the attractiveness of entrepreneurship in the field of ICT development, processing industry, building industry, health and social care, culture, arts and tourism  To improve access to information and telecommunication services Eligible applicants:  Business entities (small and medium-sized enterprises) Minimum and maximum limits of eligible costs:  CZK 0.5 mil. per project  In accordance with the de minimis rule – max. EUR 200,000

22 Area of intervention 3.3 Development of small and medium- sized enterprises Supported activities: in accordance with economic activity classification (CZ-NACE): - Processing industry (except for 11.01, 20.51, 25.4, 30.3 and 30.4) - Gathering, collection and removal of waste, waste treatment for further use - Cleaning up and other activities related to waste - Accommodation and catering (except for stalls and mobile facilities) - Activities relating to films, video recordings, TV programs, audio recordings and music publishing activities - Telecommunication activities - Activities in the field of information technologies - Activities relating to data processing and hosting; activities relating to web portals - Management activities; consultancy regarding management - Research and development - Veterinary activities - Health care activities - Sports - Activities of travel agencies etc.

23 Area of intervention 3.3 Development of small and medium- sized enterprises Projects implementing CZ-NACE activities should at the same time meet at least one of the following criteria: –innovation activities aiming at new technologies, competitive products and services –increase of the technical and utility values of products, technologies and services (product innovation) –increase of production process efficiency and service provision (process innovation) –introduction of new methods of company process organization and cooperation between companies and public institutions (organizational innovation) –introduction of new sales channels (marketing innovation) –implementation of IT systems for product development or increasing internal efficiency of the company –activities aiming at industrial property right protection

24 Area of intervention 3.3 Development of small and medium- sized enterprises Specific eligible costs:  construction, reconstruction and modernization of buildings and premises serving as business premises (incl. necessary demolitions, technical infrastructure, technical equipment of the buildings and premises, elimination of old ecological burdens)  purchase and lease of machines and equipment  purchase and installation of technologies  acquisition of information and communication technologies, HW and SW, creation of web pages  acquisition of intangible assets related to project implementation (e.g. know-how, patents, licences)  ground, surface and park work of the surroundings of buildings and new buildings  construction and reconstruction of the service roads, incl. the parking areas serving for the reconstructed or new premises  acquisition of tangible fixed assets – buildings, structures, machines and equipment  purchase and lease of immovables (purchase of land up to 10% of the total eligible project costs)  marketing and promotion (up to 1 % of the total eligible costs)  purchase of services related to business development (quality certificates)

25 RECAPITULATION of area 3.3  3 calls have taken place so far  a total of 350 projects have been submitted  contracts have been signed with 99 projects of a total volume of EUR mil. (CZK mil.), i.e % of the allocation to the area of intervention  % of the allocation to the area of intervention has been paid out  Cca EUR 5.71 mil. (CZK 140 mil.) is left  Negotiations of reallocation from area 3.2 Exchange rate of CZK/EUR

26 Information on the calls for area 3.3 Excess of demand CallAvailable amount (in mil. CZK) No. of submitted projects Requested amount (in mil. CZK) Excess of demand 1.70 (116.8) (EUR 4.77 mil.) % (EUR 6.12 mil.) % (284.1) (EUR mil.) % Exchange rate of 24,509 CZK/EUR

27 Call Applications eliminated during formal assessment No. of projects with less than 50 points No. of supported projects Allocated support in mil. CZK Information on the calls for area 3.3 Number of supported applications

28 Area of intervention 3.3 – example of a project I.G.INVESTMENT a.s. – Increase of the attractiveness of the entrepreneurial environment in a historic zone  1st Dec 2008 – 15th Mar 2009, 1st call  De minimis rule, subsidy of CZK 4,895,000

29 Area of intervention 3.3 – example of a project Project objective:  reconstruction of a historic building in Old Town Square, uncovering of a gothic basement under a restaurant – extension of the restaurant´s area  Project outputs:  Uncovering and exposure of outstanding architectonic and historic elements  Improvement of the quality of services and environment (new interconnection of the kitchen area and restaurant)  Modernization and enlargement of the restaurant  Tourism development – alternative use of the restaurant area as a permanent exhibition area (excursions, lectures)

30 Area of intervention 3.3 – example of a project CITYLAB s.r.o. – Increase of laboratory efficiency  14th Jun 2010 – 30th Apr 2011, 3rd call (in OPPC 5th call)  Czech temporary framework, subsidy of CZK 5,238,720  Project objective: to start providing a new service (diagnostics of the PCA3 gene). The applicant is a nongovernmental health care facility providing a wide range of laboratory services  Project outputs:  purchase of two devices (device for the identification of microorganisms, PCA3 gene isolator in prostate glands)  acceleration and streamlining of diagnostic processes in the laboratory  new service: diagnostics of the PCA3 marker serving for the detection of prostate tumours  provision of services especially for health care facilities (inpatient and outpatient) and independent outpatient doctors, provision of laboratory care in retirement homes etc.

THANK YOU FOR YOUR ATTENTION Bc. Klára Slapničková Prague City Hall, EU Funding Department European Regional Development Fund Unit