Research and Innovation

Government help or hindranceInnovation in Horizon 2020

Global University Venturing Summit (16/10/2013)

Viorel Peca (viorel.peca@ec.europa.eu)

DG CONNECT / Innovation

Why be interested in H2020Participation 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!

What is Horizon 2020?A 77 B€ European Research & Innovation funding programme

Expanded Continuity, Openness, Smart Experimentation

ExcellentScience

Industrialleadership

Societalchallenges

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

'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

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

appliedresearch

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

?

IDEA business coaching throughout the project

MARKET

Concept & Feasibility

Assessment

DemonstrationMarket Replication

ResearchDevelopment

Commercialisation

SME window EU financial facilities

Procurement

SME instrument

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• Funded by LEITs and SC. Initially 5%, will rise to at least 7% averaged over H2020. Approximate 3 B€ over 7 years.

Phase 1: Concept and feasibility

assessmentPhase 2: R&D, demonstration,

market replicationInput: Idea/Concept: "Business Plan 1"

(~ 10 pages) 10% budget

Activities:Feasibility of concept

Risk assessmentIP regime

Partner searchDesign study

Pilot applicationetc.

Output: elaborated "Business plan 2"

Input: "Business plan 2" plus description of activities under Phase

2 (~ 30 pages)90% budgetActivities:

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 financeSupport via

networking , training, information, addressing

i.a. IP management, knowledge sharing,

disseminationSME window in the EU

financial facilities (debt facility and equity

facility)Possible connection to

PPC (and PPI?)

10-15% success 50-70% success

Phase 3 & coaching = 2% budget

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SME instrument

• 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

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PCP - Pre-Commercial ProcurementPPI – 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)

Supplier B

Supplier C

Supplier D

Phase 1 Solution design

Phase 2 Prototypedevelopment

Phase 3 Original developmentof limited volumeof first test products /servicesSupplier A

Supplier B

Supplier C

Supplier D

Supplier B

Phase 0 CuriosityDrivenResearch

R&D / Pre-commercial Procurement (PCP)

Phase 4 Deployment of commercial end-productsDiffusion of newly developedproducts / 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,Dand/or X

Also normally multiple sourcing here to keep competition going

PCP and PPI complementary

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

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How do the financial instruments for R&I SME work?

Bank

Venture capital Fund

European Union budget

SMEs

SMEs

Invests

Invests

Lends

Provides funds

Guarantee Society

Counter or Co-Guarantees

Implementation now

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• Equity instrument for SMEs’ R&I and growthEquity Facility for R&I (H2020)Equity Facility for Growth (COSME)

• Debt instrument for SMEs’ R&I and growthSMEs & Small Midcaps Guarantee Facility for R&I (H2020)Loan Guarantee Facility (COSME)

• Debt instrumentfor larger midcaps, large corporates, research bodies, etc

Horizon 2020 (+ COSME another EU programme support financial instruments for SMEs)

Access to finance

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• 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

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.

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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 ScaleExperiment.

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)

ICT 2013: Create, Connect, Grow

6-8 November 2013, Vilnius

Registration: Still open

Structure of the event : Conference exhibition NetworkingIncluding "Entrepreneurship and investment

forum"

Aim of the event:ICT in Horizon 2020 - the EU's Framework

Programme for Research and Innovation for 2014-2020.

http://ec.europa.eu/ictevent

Thank you