EUREKA and Eurostars - European Commission>R&D SMEs from Spain, Romania and Finland >Integration of several high throughput techniques for the discovery of new drug candidates targeting

© EUREKA Secretariat 2010

EUREKA and Eurostars

SMEs at the heart of ground breaking biotech innovations

Luuk Borg

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> EUREKA is a public network supporting R&D businesses > Established in 1985 by French President Mitterrand and German Chancellor

KohlEUREKA is :

• Intergovernmental initiative(39 Members – EU 27, European Commission + 11 other European countries)

• Financed using national public and private funding

• Market-oriented (Projects must result in a marketable product, process or service)

• Bottom-up (The consortium decides on the project aim. No thematic restriction)

Since 1985, 29 billion euro of public-private investment has been mobilised to support some

3,100 EUREKA projects

EUREKA – What is it ?

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EUREKA supports three types of projects

Cluster Projects

Long-term, strategically-significant initiativesLarge number of participants, many from Europe’s major companiesDevelop generic technologies of key importance to European competitiveness

Individual Projects (E!1782; E!1784…)

Small, shorter-term projectsInvolve participants from at least two member countriesResult in a product, process or service with a significant advance in their sector

Eurostars Projects

Small, short-term projects, involving participants from at least two member countriesConsortium leader is an R&D-performing SMEProgrammed jointly with the European Commission

Umbrellas; Thematic network of public authorities and sectoral experts

EUREKA Projects

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EUREKA member countries

AustriaBelgiumCroatiaCyprusCzech RepublicDenmark

EstoniaEuropean UnionFinlandFranceFYROMGermanyGreeceHungaryIcelandIrelandIsraelItalyLatviaLithuaniaLuxembourg

MaltaMonacoThe NetherlandsNorwayPolandPortugalRomaniaRussian FederationSan MarinoSerbiaSlovakia SloveniaSpainSwedenSwitzerlandTurkeyUkraineUnited Kingdom

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Global Overview : EUREKA 1985 - 2010

In 25 years, EUREKA has endorsed 4000 projects for a total value of 29 Billions euros

3096 projects are Individual projects, 567 are Clusters type and 346 are Eurostars

7.6 B€ for Individual projects, 21 B€ for Clusters and 0.5 B€ for Eurostars

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Over 1000 running projects

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A few success stories

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EUREKA Success Stories

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EUREKA : Historical Trends by Number of Projects

EUREKA Projects Endorsed 1985 - 2010

0

50

100

150

200

250

300

350

400

85H 86L 86S 87M 88C 89V 90R 91H 92T 93P 94L 95I 96B 97L 98L 99I 00H 01M 02T 03C 04P 05M 06P 07R 08L 09L 10B

Num

ber o

f pro

ject

s

Individual Projects Clusters Eurostars

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EUREKA : Type of Participants

EUREKA Type of Participants

(not including clusters participant data from 1999 onwards)

0%

10%20%

30%40%

50%

60%70%

80%90%

100%

85H 86L 86S 87M 88C 89V 90R 91H 92T 93P 94L 95I 96B 97L 98L 99I 00H 01M 02T 03C 04P 05M 06P 07R 08L* 09L* 10B

SME Large company Research Institute University Other

*Includes Eurostars dataAssumption for 2010

Includes all Eureka Projects (Individual Projects, Clusters and Eurostars)

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Adoption by theEuropean Parliament

10 April 2008

Adoption by theCouncil of Ministers

23 June 2008

Eurostars exploits Article 169 of the EU Treaty, requiring co-decision by the European Parliament and Council of Ministers

Eurostars a Joint programme

The Eurostars Programme is powered by EUREKA and the European Community

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EUREKA The Leverage Effect

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EUREKA Impact Results shown at the Ministerial Conference

• 1000 Final Report received and anlaysed (20% of the overall participants)For the Period 2000-2005

• Final Report are based on Participants data and assumptions (not an audit)

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Ex-Post ImpactAnalysis of the Final Report 2000-2005

Public Fund 1M€

Achieved Commercial Turnover

3 M€

Private Fund 2.5 M€

Expected Commercial Turnover

10 M€

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Leverage effect on Commercial Turnover : 13

Leverage Effect on Private Fund : 2.5

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Global overview - Market Areas

Trends are quite SimilarMedical & Health = 25-30% ; ICT = 20-25%; Industrial Product =15-20%; Services =10-15%

Applications Submitted - Type of Market Areas - By Total Costs

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cut off 4 Cut off 3 Cut off 2 Cut off 1

Other

Energy

AgricultureConstruction & Transport

ServicesIndustrial products

ICT

Medical & Health

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Eurostars in the Medical/Healthcare Field

> 254 Project Applications with market focus on Medical/Healthcareinvolving:

> 823 Participants, of which> 527 R&D SMEs> 394,200,000 € total value

> 56 Approved Projects with market focus on Medical/Healthcare involving:

> 184 Participants> 89,000,000 € total value> 117 R&D SMEs involved> 65,400,000 € contribution by R&D SMEs> 23 Eurostars Member Countries

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Value of Approved Eurostars Projects:In the Medical/Health Care Market

-

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

AT BE CH CZ DE DK EE ES FI FR GR HU IL IS IT LT NL NO PL PT RO SE UK

Tota

l Val

ue o

f Pr

ojec

ts (

Mill

ions

€)

Total Value of Projects (89 M€)

Contribution by R&D SMEs (65.4 M€)

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Technological Fields involved in Medical/Health Care Applications

138

33

6 4 3

0

20

40

60

80

100

120

140

160

BIOLOGICAL SCIENCES /TECHNOLOGIES

ELECTRONICS, IT ANDTELECOMS TECHNOLOGY

INDUSTRIALMANUFACTURING, MATERIAL

AND TRANSPORT

MEASUREMENTS ANDSTANDARDS

OTHER INDUSTRIALTECHNOLOGIES

Technology Area

Num

ber

of A

ppro

ved

Proj

ects

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Project examples 1.

> AID (Medical Imaging)> R&D SMEs and Universities from France and Germany> development of intracardiac diagnosing product providing realtime 3D image

capability while maintaining high resolution for 2D scans. AID's devices will open up new cardiac surgical modality in offering on-demand volume examination, essential in electrophysiology.

> 1.9 M€

> DEPSTER (Pharmaceutical Products)> R&D SMEs, Research Institutes and Universities from France,

Germany and Sweden> a new therapy for the treatment of depressive disorders> 2.2 M€

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Project examples 2.

> DISC-SCREEN (Pharmaceutical development)> R&D SMEs from Spain, Romania and Finland> Integration of several high throughput techniques for the discovery of new drug

candidates targeting neoplasic related diseases.> 1.5 M€

> pharmAID (Electronics, Logistics)> R&D SMEs, SMEs and Universities from Italy and Switzerland> Logistics control, storage monitoring and anti-counterfeiting of pharmaceutical

products to prevent drugs' counterfeiting, certify drugs' integrity against unsuitable ambient conditions & track drugs along the supply chain.

> 2.1 M€

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EurostarsThe Leverage Effect Expected

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Risk v Return

Technological Risk (degree of Innovation)

Successrate

Marketshare

0 %

100%

Market potential

1000 of failed start-upVolvo

Very SuccesfulSME

SuccesfulSME

Champione.g : Tom Tom

Eurostars Projects

EUREKA Individual / Cluster Projects

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SME profile

Average Annual Turnover of the RD SMEs

2,768,916 €

2,195,670 €

RD SME

cut off 1 cut off 2

Number of employees of the RD SMEs

28

23

Cut-Off 1 Cut-Off 2

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Expected Growth impact

Average Employement Growth Expected (% of FTE)

58%

4% 3% 2%0%

10%

20%

30%

40%

50%

60%

70%

RD SME Largecompany

ResearchInstitute

University

Average Annual Turnover Growth Expected (% of Annual turnover)

181%

6% 4% 3%0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

RD SME Largecompany

ResearchInstitute

University

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Main motivations for participation

Main motivations for participating in Eurostars

Mutual sharing of human and

financial resources

Develop new products/services/

processes

Complement skills with the skills of other participants

Obtain public funds

Access new markets

Mutual sharing of existing know-how

Share the risk Develop strategic co-operation

with competitors

Other 0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

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Annual Report 2008 : 7 Key Messages

1. The first cut offs have been very successful.215 applications received in the first cut off 317 applications received in the second cut off

2. Eurostars Target has been reached74% of the applicants are R&D SMEs75% of the funds goes to R&D SMEs

3. High Success Rate 42% of the projects application (90) were funded in the first cut off

4. Good Scientific IntegrationCommon Eligibible and Evaluation CriteriasCentral Evaluation System

5. Good Management Integration One dedicated implementing body : The EUREKA Secretariat Unique Added Value of the EUREKA Network (promotion, local contact with SMEs)

6. Good Funding SynchronisationThe Funding allocation respected the order of the ranking List.90 projects could be funded thanks to the increase of funding from 10 Countries.

7. Continous Progress On Eurostars Funding rules compliancy (50% needs an industrial partner to fund a university)Delegation agreement still pending as well as bilateral agreements

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Survey comments from registrants MTR

On the Programme:“Most efficient programme”“Completely adapted to SME’s“Accessible scheme”“User-friendly”“Great support

On the funding: “synchronization of national funding”

> “Different rules and timing in countries”> “time to contract could go faster”

On the evaluation:“The evaluation report (consensus report) was too short”

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Successful models to pursue…

The Opportunities preparing for future Framework Programmes, CIP attracting SMEs

Joint Eurostars Model:simple procedurescentral evaluationdecentralised funding combining national, regional and European funding

Easy access for SME driven projects:Simple proceduresShort time to contractSingle entry points

Support of SMEs along the innovation value chain:financial (second round) through EIB AIF, RSFFservice (IPR, support through national networks)

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Thank you!

Luuk BorgEuropean Secretariat of Eureka

Documents

EUREKA and Eurostars - European Commission>R&D SMEs from Spain, Romania and Finland >Integration of several high throughput techniques for the discovery of new drug candidates targeting