Malta Enterprise support for Research, Development & Innovation Ing Malta Enterprise support for Research, Development & Innovation Ing. Evan Stringos September 07

The ‘Lisbon Agenda’ aims for Europe to become, “the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment”. This objective is envisaged through raising the average EU investment in R&D to 3% of GDP by 2010. Malta's overall national R&D intensity target at 0.75% of GDP by 2010, against the Lisbon target of 3% GDP for the whole of the EU.

Current Malta Enterprise – R&D based Incentives Current specific measures managed by ME are limited to the enhancement of existing Tax Incentives for R&D investment and to a Loan Guarantee scheme to support innovative start-ups; plus R&D Tax Credits however only available for SMEs (and non BPA assisted); June 2006 saw the launch of the EUREKA programme by ME. The objectives of the EUREKA programme is to hand hold and financially assist, via grants, Maltese enterprises participating in market oriented R&D projects in collaboration with other enterprises throughout Europe; In 2006, ME approved Lm 130,000 of financial assistance on EUREKA - R&D&I projects. It is estimated that this initiative would be generating another Lm 300,000 private investment in R&D&I.

What is a EUREKA Project? EUREKA projects are: ‘Bottom-up’ - proposed, defined and managed by its partners; International – with partners from at least two of EUREKA’s 37 members; Industry led, developing; Hi-Tech products, processes and services for the market.

38 Members Austria Belgium Croatia Cyprus Czech Republic Denmark Estonia European Union Finland France Germany Greece Hungary Iceland Ireland Israel Italy Latvia Lithuania Luxembourg Malta Monaco The Netherlands Norway Poland Portugal Romania Russia San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom National Information Points (NIP) Albania Bulgaria Associated Country Morocco EUREKA members EUREKA NIP countries EUREKA Chairmanship* EUREKA Associated Country

Some statistics Since 1985, 25 billion euro of public-private investment has been mobilised to support some 2,800 EUREKA projects Additional turnover and jobs created 30 % exploited results in the market upon project completion; Ratio of R&D costs/additional turnover: 57% upon completion and 219% within 3 years; €1 of subsidy generates €13-53 of additional turnover. From: Annual Impact Report 2005 (Final Reports from 678 participants in 328 projects, finished between 2001-2005)

EUREKA Projects The EUREKA approach is based on two Main pillars: Medical Biotechnology ICT Industrial Technology & Processing Transport Energy Environment Materials Electronics and others.. The EUREKA approach is based on two Main pillars: Clusters and, Innovative projects.

Clusters Clusters are long-term, strategically significant industrial initiatives. They usually have a large number of participants and aim to develop generic technologies of key importance for European competitiveness, primarily in Information and Communication technologies (ICT), but also in Energy and Biotechnology. By bringing together large companies, SMEs, research institutes and universities from all over Europe, Clusters are providing participants with a pool of technological knowledge that financial resources much greater than traditionally accessibly within national research programmes.

Innovative Projects www.eureka.be Innovative projects have ready - to - market results, representing a significant advance in their particular sector. The EUREKA Initiative’s flexible, bottom-up structure means participants build projects themselves, to meet the specific objectives and capabilities of the project consortium. Thanks to EUREKA, SMEs can be involved in projects much larger than they would otherwise be able. Costs and risk diminish. And the time it takes to bring the result to the market is accelerated. Through such international collaboration, participants can also access new markets and expertise. The results of EUREKA innovative projects can be encountered every day. From intelligent in-car navigation systems, recyclable plastic lampposts which reduce road deaths by crumbling on impact, micro generators that replace batteries in watches to new film special effects techniques. www.eureka.be

Maltese Projects since June 06 Since our recent membership, Malta has already made a remarkable start and is currently leading two EUREKA projects with a total cost of approximate 0.8 Million Euro. Project E! 3904 focuses on standby and motive power applications where lead acid and non lead acid batteries are used without geographical limitation. Project E! 3911 focuses on developing products with a significant anti-allergic potential, without the use of conventional petrochemical-based ingredients.

EUREKA Grants Typical Elements eligible for assistance include: Cash Grants awarded on a competitive basis to enterprises carrying EUREKA Projects in cross border collaboration with one or more enterprises from other EUREKA Member States. Typical Elements eligible for assistance include: Salaries (researchers & technicians, approved by Malta Enterprise, to the extent that they are directly employed on the research project); Costs of instruments and equipment to the extent and for the duration used for the research project; Cost of materials supplies and similar products bought specifically for the project and for the duration of the research project, incurred directly as a result of the research activity and as long as these are justified; Costs for additional overheads, incurred directly as a result of the research activity and cost items pre-approved by Malta Enterprise, up to 10% of total project costs.

Maximum Intensity levels 2008 - Financial Support Offered SME Innovative Projects Large Enterprise Innovation Project Cluster Project Maximum Grants per project Lm65,000 ( Euro 151K) total assistance -Not exceeding 40% over 3 years Lm85,000 (Euro 198K) total assistance -Not exceeding 30% - spread over 3 years Lm30,000 (Euro 70K) max assistance per year not exceeding 40% Maximum project duration for cluster project- 5 years

Starting up a EUREKA Project Local access to EUREKA projects occur through National Project Coordinators, who are usually based in the relevant ministry or government agency of each member country. These also provide market knowledge, scientific expertise, general information and support, and facilitate access to national funding. Since all EUREKA projects must involve partners from at least two EUREKA member countries, national offices also help projects find partners.

EUREKA- Shaping Tomorrow’s Innovations Today

Malta Enterprise support for R&D&I ME offers a “One Stop Shop” approach, whereby R&D&I projects at the early stage are both financially and technically supported by ME via the internal networks such as BTN and Kbic; Once, projects are terminated, the projects are not left alone but further support can be provided both financially and technically via assistance such as Royalty Scheme or Knowledge Transfer via the IRC network and IMT Advisors ME Tech Support Incentives Eureka network IRC BTN R&D Project KBIC IMT Advisor

Planned R&D&I Incentives under the New ME Act The schemes should include concepts such as: Specific Tax Credits to support enterprises engaged in Industry led Research and Development; “Beefing Up” of EUREKA grants; Support for enterprises to engage in costly pre - R&D activities such as Technical Feasibility Studies in preparation to Industrial Research or Experimental development; Support for Industrial Property Rights for SMEs; Support for the temporary engagement of “highly qualified personnel” to SMEs to work on specific R&D&I projects; ERDF for R&D&I projects, in line with the new ‘Community Framework for State Aid for R&D and Innovation’ (2006/ C 323/01).

Thank You For Listening Ing. Evan Stringos Manager - Technology Development and Innovation - EUREKA National Programme Coordinator Malta Enterprise Tel:              (+356) 2542 3419 E-mail: Evan.Stringos@maltaenterprise.com Website: www.maltaenterprise.com/eureka