1/1 Competitiveness OP - Portugal Implementing business support schemes at regional level (I) Nelson de Souza

2 NRSF- Portugal Incentive Schemes for Investment in Enterprises 9 October 07

3/3 Strategic options 1.Lessen the importance of state aids in the global budget 2.Reduce aid intensity 3.Focus on priorities 4.Favour SME 5.Simplified administrative management

4/4 Incentive schemes NRSF Global architecture

5 NRSF Incentive Schemes IS R&TD Incentive Scheme for Research and Technological Development

6/6 IS R&TD Type of projects Enterprise R&TD Individual projects Co-promoted projects Mobilising projects R&TD voucher Collective R&TD R&TD project promoted by a business association representing SME Internal R&TD competences R&TD teams R&TD centres R&TD valorisation Demonstrative projects

7/7 IS R&TD Incentive rates A. GENERAL RATES A. GENERAL RATES (Enterprises) Base Rate - 25% Additional: –10 p.p. (medium enterprise) or 20 p.p. (small enterprise) –15 p.p. (cooperation projects) –25 p.p. (industrial research – further from the market) B. SPECIFIC PROJECTS RATE (Enterprises) R&TD voucher – 75% R&TD teams and centres– 50%

8/8 IS R&TD Incentive type A. General type Non refundable B. Specific cases Enterprise R&D projects – 25% of the incentive exceeding 1 M shall be granted as refundable; R&TD Centres – refundable incentive; 80% may be considered as non refundable if re-invested in R&D activities.

9 NRSF Incentive Schemes IS Innovation Incentive Scheme for Innovation (Productive Investment)

10/10 IS Innovation Type of projects Product innovation - Producing new or conside- rable improved goods and services; Process innovation – Adopting new or considera- ble improved production, logistics, distribution, organizational or marketing processes and methods; High added value activities – Increasing produc- tion capacity in activities with a high technological contents or with dynamic international demand; Qualified entrepreneurship – Creation of enterprises with qualified resources or developing activities within highly dynamic growing sectors.

11/11 Base rate: 35% + Additionals: –10 p.p. (medium enterprise) or 20% (small enterprise) –10 p.p. (collective efficiency strategies) Refundable incentive; may be changed into non refundable depending on project performance, up to a 75% maximum ceiling. IS Innovation Incentive rates and type

12 NRSF Incentive Schemes IS Qualification of SME Incentive Scheme for the Qualification and Internationalisation of SMEs

13/13 1.Individual project, submitted by a SME; 2.Joint project, submitted by a public body, a business association, or a body from the STS; 3.Cooperation project, submitted by several SME or a SME-led consortium; 4.Innovation Voucher, submitted by a SME for the purchase of innovation support services from STS bodies. IS SME Qualification project nature

14/14 Creation, fashion & design Development and product, services and processes engineering Industrial property Organisation and management of information and communication technologies (ICT) Quality Environment Internationalisation Innovation Energy diversity and efficiency Digital economy Sales and marketing Social responsibility and health and safety at work Equal opportunities IS SME Qualification Type of projects

15/15 Base rate: 35% + Additionals: 10 p.p. (small enterprise) 5 p.p. (collective efficiency strategies) 5 p.p. (cooperation projects) Refundable incentive, with absolute ceilings per project. IS SME Qualification Incentive rates

16/16 Final remarks 1.Aids more focused on priorities 2.Selectivity assured by the process management 3.Horizontal aids: R&D, Innovation and SME 4.Possibility of specific strategies: clusters, poles and urban projects 5.The same policy for different public players (national and regional)

17/17 Governance Alfredo Marques

18/18 National Framework Portuguese regions eligible under different objectives Lisbon agenda as the paradigm Different territorial levels for the management of aid schemes

19/19 National Aid Schemes

20/20 Share of Tasks Competitiveness Factors PO Micro + Small Companies Medium + Large Companies Regional PO

21/21 Decision Procedure FINANCING DECISION IV V VI I IIIII PROJECT SUBMISSION NRSF Incentive Internet PORTAL FINANCING PROGRAMME PROJECT ASSESSMENT Specialised agencies R&D Tourism FDI SME+Other FINANCING DECISION Selection Committee: CFPO + Regional PO + Specialised Agencies Approval by the management authority CONTRACTING AND FOLLOW-UP Specialised public agencies + management authority FINANCING PROGRAMME CFPO – medium and large enterprises REGIONAL PO – micro and small enterprises First stepSecond step