Establishing a standardised methodology to measure JEREMIE impact Álvaro Navarro Innovation and Development Agency of Andalusia, Spain Brussels, 20 th May 2011

2 Index Issues to measure the impact of JEREMIE Benefits of an impact evaluation system Issues of an impact evaluation system Requirements for an efficient reporting system and impact evaluation Proposal design of an impact evaluation system for JEREMIE Reporting Approach of JEREMIE Andalucía Set up JEREMIE Andalucía

3 Issues to measure the impact of JEREMIE Information delay Inefficient monitoring Matchless outcomes Information delay Inefficient monitoring Matchless outcomes Each region is developing (or not) their own procedures and reporting No interfaces among regions No communication to EC Each region is developing (or not) their own procedures and reporting No interfaces among regions No communication to EC From industrial society to information society No evaluation of efficient resources allocation and impact No guidelines / No standards established From industrial society to information society No evaluation of efficient resources allocation and impact No guidelines / No standards established CURRENT SITUATION Need for a STANDARDISED REPORTING METHODOLOGY

4 Benefits of an impact evaluation system Efficiency of resources allocation Maximise effectiveness of funds Maximise effectiveness of financial instruments Strategy and operation alignment Assess on how participants benefit from by means of JEREMIE Redefine initial goals Benchmarking of operational parameters and impacts Optimize existing legislation Monitoring and control Design of more effective financial instruments European Commission European Commission Holding Funds Holding Funds Financial Intermediates Financial Intermediates Impact evaluation system

5 Issues of an impact evaluation system Design Phase Prolonged – long term outcomes Investment vs. Impact gap Outcomes misunderstanding / interpretation Counterfactual scenario Issues Implementation Phase Contain a technically complex design Hierarchies Users Languages Needs Hierarchies Users Languages Needs Data access Who When How Who When How Cost- Benefit ratio

6 Requirements for an efficient reporting system and proposal design of an impact evaluation for JEREMIE Requirements of the model Proposal indicators Concise, brief and with a minimum of homogeneity (but margin for customisation) Clear data definition Parameterize for understanding Periodicity Deadlines Size Structure Data Requirements Company Data 4 possible hierarchical levels: European Commission Holding fund Financial Intermediate Companies Global involvement Qualified and committed team Scope Project Data Amount Financial Instrument Data Investment Repayment Collateral requirements Impact Data Stage Sector Ratios Employment Investment Innovation Regional Social… Cost Guarantees Maturity

7 Reporting approach of JEREMIE ANDALUCIA Investment Destiny Compatibility with other public grants Etc etc Project Data Sector Employees (number & gender) Individual /group company Age Size Situation Main financial figures Company Data Financed amount Instrument Terms Cost Guarantees Leverage Maturity Covenants Financial instrument European Commission European Commission Holding Fund Andalusia Holding Fund Andalusia Financial Intermediate 1 Financial Intermediate 1 Companies Financial Intermediate 2 Financial Intermediate 2 Companies

8 Set up of an European impact evaluating and reporting system Targets Information needs Operational core team Phases and terms Core Regions roll-out Objective definition Data analysis Quantitative and qualitative technical selection Procedures Local team trainee Tools set up Pilot testing / Sample selection Design Monitoring & control Conclusions Implementation

9 APPENDIX

10 JEREMIE ANDALUCIA - IMPACTS INVESTMENT EMPLOYMENT REGIONAL STRUCTURE INNOVATION SYSTEMS SOCIAL IMPACTS Assets investment: current vs fixed ROI / Leverage.. Economic sectors targeted Duration.- Gender… New productive networks through technological development Job creation : direct vs indirect employment Hi-tech impact Sustainability Technology transfer New procedures development Skills level of participants International entrepreneur vs foreign investors Talent attraction.- higher skills and competences Private partners Real vs substitution / Off shoring jobs Creation vs Maintenance Andalusian business framework

11 JEREMIE ANDALUCIA - STATUS 12/05/2011

12 IDEA Monitoring system, collecting data for SMEs through FIs. 3 months normal report Gathering daily information on financial indicators of financed SMEs 6 months operational report Gathering official semestrial information for financed SMEs (eg. financial indicators, balance sheets, P&L, audit reports) exceptional reports Concerning SMEs that the Fund manager deems they can be in risk