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Research and Innovation Research and Innovation Government help or hindrance Innovation in Horizon 2020 Global University Venturing Summit (16/10/2013)

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Presentation on theme: "Research and Innovation Research and Innovation Government help or hindrance Innovation in Horizon 2020 Global University Venturing Summit (16/10/2013)"— Presentation transcript:

1 Research and Innovation Research and Innovation Government help or hindrance Innovation in Horizon 2020 Global University Venturing Summit (16/10/2013) Viorel Peca ( DG CONNECT / Innovation

2 Why be interested in H2020 Participation by type of organisations in FP7 -ICT: Funding by category of organisations, M€ and %, cumulated fig. Legend: -High Education Institutions & Research Centres (HES/REC) -Large Companies (LARGE) -Other organisations NIL BUT: Past performance is not guarantee for future success!

3 What is Horizon 2020? A 77 B€ European Research & Innovation funding programme Expanded Continuity, Openness, Smart Experimentation Excellent Science Industrial leadership Societal challenges

4 Innovation dimensions of Horizon 2020  Innovation Actions*  SME instrument  Fast Track to Innovation  Support to innovation procurement*  Inducement prizes**  CSAs to prepare market uptake  Support to EIP agendas*  Social innovation*, service innovation*  Financial instruments: loan finance, guarantees, equity * Guidance note provided ** On-going study

5  'Innovation Actions' (funded at 70%)are definned in the Horizon 2020 Rules for Participation:  'Innovation action' means an action primarily consisting of activities directly aiming at producing plans and arrangements or designs for new, altered or improved products, processes or services. For this purpose they may include prototyping, testing, demonstrating, piloting, large- scale product validation and market replication

6 Research and Innovation Actions R&D activities, often combined with closely connected but limited innovation activities Demonstration/pilot projects may include limited R&D activities First market replication projects only in specific market contexts Innovation Actions Basic and applied research Technology development and integration Establishing technical feasibility in lab or simulated environment Establishing technical and economic viability in (near to) operational environment Supporting first application in the market to confirm user benefits (only in specific market contexts) Decision by producers to validate in (near to) operational environment Decision by producers/users to commercialise/buy – if no market failures/barriers to uptake Wide market deployment starts

7 ? IDEAbusiness coaching throughout the projectMARKET Concept & Feasibility Assessment Demonstration Market Replication Research Development Commercialisation SME window EU financial facilities Procurement SME instrument 7 Funded by LEITs and SC. Initially 5%, will rise to at least 7% averaged over H2020. Approximate 3 B€ over 7 years.

8 Phase 1: Concept and feasibility assessment Phase 2: R&D, demonstration, market replication Input: Idea/Concept: "Business Plan 1" (~ 10 pages) 10% budget Activities: Feasibility of concept Risk assessment IP regime Partner search Design study Pilot application etc. Output: elaborated "Business plan 2" Input: "Business plan 2" plus description of activities under Phase 2 (~ 30 pages) 90% budget Activities: Development, prototyping, testing, piloting, miniaturisation, scaling-up, market replication, research Output: "investor- ready Business plan 3" Lump sum: 50.000 € ~ 6 months No direct funding Phase 3: Commercialisation 1-5 M€ EC funding ~ 12 to 24 months Promote instrument as quality label for successful projects Facilitate access to private finance Support via networking, training, information, addressing i.a. IP management, knowledge sharing, dissemination SME window in the EU financial facilities (debt facility and equity facility) Possible connection to PPC (and PPI?) 10-15% success50-70% success Phase 3 & coaching = 2% budget 8 SME instrument

9 Any legal entity may participate in an FTI action Actions funded under FTI shall be innovation actions FTI shall be open to any field under LEITs or SCs Proposals may be submitted at any time, with 3 cut-off dates per year Time to grant signature or notification of decision ≤6 months Criterion of impact given a higher weighting ≤5 legal entities shall participate in an action Amount of grant ≤€3 million Fast Track to Innovation 9

10 PCP - Pre-Commercial Procurement PPI – Public Procurement of Innovative Solutions When to use PCP: –Challenge requires R&D to get new solutions developed. Problem clear, but pros / cons of several potential competing solutions not compared / validated yet. No commitment to deploy (PPI) yet. When to use PPI –Challenge requires solution which is almost on the market or already on the market in small quantity but not meeting public sector requirements for large scale deployment yet. No R&D involved (R&D already done, or no R&D needed to solve problem)

11 Supplier B Supplier C Supplier D Phase 1 Solution design Phase 2 Prototype development Phase 3 Original development of limited volume of first test products / services Supplier A Supplier B Supplier C Supplier D Supplier B Phase 0 Curiosity Driven Research R&D / Pre-commercial Procurement (PCP) Phase 4 Deployment of commercial end-products Diffusion of newly developed products / services Supplier D Public Procurement of Innovative Solutions (PPI) PCP to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors PPI to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market … in line with WTO proc. rules, EU Treaty, State aid free Supplier(s) A,B,C,D and/or X Also normally multiple sourcing here to keep competition going PCP and PPI complementary

12  Support to innovation procurement  8 areas topping-up call budgets for PCP/PPI  9 networks of public procurers  Baseline? - €94 million in FP7 and CIP WP13  Inducement prizes  In Health, Energy, ICT and NMP: currently €11 million budgeted  Indications to add prizes in Food, Transport and Climate  CSAs to prepare market uptake  1-2 such CSAs in almost all areas: exploitation services, assessments of market barriers, awareness and promotion…  Support to EIP agendas  Selected parts of EIP agendas supported under relevant Societal Challenges: large scale demos, R&I, brokering…  Social innovation : central to number of Societal Challenge topics

13 13 How do the financial instruments for R&I SME work? Bank Venture capital Fund European Union budget SMEs Invests Lends Provides funds Guarantee Society Counter or Co-Guarantees Implementation now

14 14 Equity instrument for SMEs’ R&I and growth Equity Facility for R&I (H2020) Equity Facility for Growth (COSME) Debt instrument for SMEs’ R&I and growth SMEs & Small Midcaps Guarantee Facility for R&I (H2020) Loan Guarantee Facility (COSME) Debt instrument for larger midcaps, large corporates, research bodies, etc Horizon 2020 (+ COSME another EU programme support financial instruments for SMEs) Access to finance

15 15 Investment-readiness schemes (including coaching, mentoring, etc) Detecting and monitoring high growth SME profiles Raising awareness of VC firms and business angels Fostering business angels (deal volumes now comparable to VC!), crowd-funding, family offices etc… Technical assistance for financial intermediaries (Large Scale) Experimental Facilities  FIRE Accompanying measures

16 How can FIRE help you?  You are an innovator or entrepreneur or SME with beta technology or innovative technology but not fully tested.  Your innovative technology relates to internet (from networking protocols, IoT to content centric networking).  You need an experimental facility for validating your innovative research and developments on large scale or real conditions.  FIRE can help you in giving you access to such facilities.

17 17 FIRE topics and projects Test bed 1 Test bed 2 Test bed 3 Test bed 4 Test bed 5 Test bed 6 Test bed 7 Test bed 8 Test bed 9 Federated Network Testbeds Test bed 1 Test bed 2 Test bed 3 Test bed 4 Test bed 5 Test bed 6 Test bed 7 Test bed 8 Federated Service Testbeds Exp1 Exp3 Exp2 Exp4 Exp5 requirements validation Research Large Scale Experiment.

18 How can you participate? Now in FP7: Open Calls launched by the Facility Projects One single entity participation (Research Institutes, Universities, SMEs, Industry) Evaluation as in EC calls but: Short proposal, Light evaluation, 1 Call/year/facility Financing: Max 200K €/project but also Open Access Submit proposal, in consortium as new partner, or subcontractor for small exp. IPR Rules: To be negotiated with Facility Provider but IPRs can be protected In H2020: Specific FIRE+ objective in WP 2014-15: FIRE+: testing your ideas through experimentation, testing and validation Experiments with a clear innovation and business perspective Experimenting with EIT support, based on new business models (SMEs & startups)

19 ICT 2013: Create, Connect, Grow 6-8 November 2013, Vilnius Registration: Still open Structure of the event :  Conference  exhibition  Networking Including "Entrepreneurship and investment forum" Aim of the event: ICT in Horizon 2020 - the EU's Framework Programme for Research and Innovation for 2014-2020.

20 Thank you

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