Horizon 2020SMEs Overview
DG Research and Innovation
Laura Piani
Unit for "SMEs, Financial Instruments and State Aid" (B.3)
DG Research and Innovation
PolicyResearch andInnovation
What is Horizon 2020?
� Framework funding programme for all EU research & innovation-related activities (2014-2020)*
� A core part of Europe 2020, Innovation Union & European Research Area:
- Responding to the economic crisis to invest in future jobs and growth
- Addressing people’s concerns about their livelihoods, safety and environment
- Strengthening the EU’s global position in research, innovation and technology
* Total budget amount of EUR 79 billion (in current prices including inflation)
PolicyResearch andInnovation
Three priorities
Excellent science
Industrial leadership
Societal challenges
Marie Skłodowska-Curie Actions
SME
PolicyResearch andInnovation
Business-Oriented SME-friendly:
� strong challenge-based approach, allowing SME applicants to have considerable freedom to come up with innovative solutions
� Emphasis on innovation, with continuing support for R&D
� Less prescriptive topics, strong emphasis on expected impact
� A strategic approach, with two-year work programmes
� Focus areas bring together different technologies, along entire innovation chain
H2020 for SMEs
Integrated Approach to SME Support
20 % budgetarytarget in
LEITs & SC*
'Innovation in SMEs'**
*= EUR 8.65 billion (in constant prices) of direct SME support, incl. approximately EUR 3 billion to be allocated to the SME Instrument over the period 2014-2020 ** = EUR 616 million (in constant prices) in direct SME support via Eurostars-2, and in indirect support via innovation and market capacity building activities
SME Instrument7% ≈ €3 bn
Collaborative Projects13%
Eurostars II
Enhancing Innovation CapacityMarket-driven Innovation
Access to Risk Finance
GRANTS
INNOVATION CAPACITY BUILDING & VALUE
CHAIN DEVELOPMENT SUPPORT
FINANCIAL INSTRUMENTS
(DEBT, EQUITY) + ACCOMPANYING
MEASURES
GRANTS
PolicyResearch andInnovation
Project Grant
Support
Figure 1: Horizon 2020's complementary measures for SME support
Innovation Capacity Building and
Value Chain Development Support Financial Instruments and Accompanying Measures HR Support
Horizon 2020 Pillar
Horizon 2020 Objective
Concrete Support Measures
Societal Challenges Collaborative Projects
SME Instrument
IndustrialLeadership
LEITsLeadership in Enabling and Industrial Technologies
Collaborative Projects
SME Instrument
Innovation in SMEs
Eurostars (II)
Networking and Support Actions
Access to RiskFinance
Debt Facility
Equity Facility
Accompanying Measures
Excellent Science MSCA Marie Skłodowska-Curie Actions
FET Collaborative Projects
PolicyResearch andInnovation
Horizon 2020Grants for SMEs
PolicyResearch andInnovation
R&D driven
projects
Market opportunity
driven projects
SME InstrumentTarget: Innovative SME
(min. 1 participant)
EurostarsTarget: R&D intensive
SME(min. 2 participants)
Collaborative Research
Target: R&D topics(min. 3 participants)
FTI (pilot)Target: value creation
(min. 3 participants)(max. 5)
SME Grant Support Horizon 2020
PolicyResearch andInnovation
Simplified R&I Cooperation
� Implementation similar to Cooperation Programme under FP7. Collaborative Research & Innovation across Europe through transnational consortiums that consist of a minimum of threedifferent partners (legal entities) from three different EU member-states or countries associated to Horizon 2020.
� Same reimbursement rate for all*: Up to 100% of eligible cost (limited to maximum of 70% for innovation actions), 25% flat-rate for indirect costs
* Exception for non-profit organisations
SimpleHorizon 2020Collaborative Research
Target: R&D topics(min. 3 participants)
PolicyResearch andInnovation
Open and Ambitious
� 13 % of the total combined budget for all societal challenges and the enabling and industrial technologies (LEITs) – or at least EUR 5.5 billion* – should be directly invested into collaborative research and innovation activities conducted by SMEs.
� The major initiatives that favor the involvement of SMEs include selection of SME-relevant topics, and coordination and support actions. SME participation is expected not to be uniform across the different priorities of Horizon 2020, but the ambition is clearly to enhance SME participation across the board.
� First statistics on SME participation to Horizon 2020 calls confirm the relative attractiveness of Horizon 2020 to SMEs: end of 2015, close to 20% of all participants to Horizon 2020 are SMEs (more than 27% in SC and LEITs, where they take over almost 24% of the budget).
* In current prices
Horizon 2020Collaborative Research
Target: R&D topics(min. 3 participants)
PolicyResearch andInnovation
EUROSTARS-2 https://www.eurostars-eureka.eu/
� European joint programme initiative (public-public partnership),co-funded by 34 EUREKA countries & the EU (through Horizon 2020)
� Support for R&D-performing SMEs wishing to exploit promisingR&D results and bring new products or services to the market
� Transnational approach: collaboration of an R&D-performing SMEwith at least one other partner from another EUREKA country that isalso participating in Eurostars 2
� Bottom-up approach: SME defines the nature of the project; opento all technology areas
� Average project volume: EUR 1.4 million (upper limits in terms offunding depend on national funding bodies in respective EUREKAcountries)
� Funding rates vary between 35-100% of eligible costs depending onnational funding rules/ rates in countries participating in Eurostars 2
� Total budget: ca. EUR 1.2 billion; Eurostars 2-participating countrieswill contribute EUR 861 million, EU contribution of EUR 287 million(max.)
EUROSTARS-2Eurostars
Target: R&D intensive SME
(min. 2 participants)
PolicyResearch andInnovation
Around € 2.8 billion allocated for the SME instrument (2014 -2020.
Commitment H2020:
"… A minimum of 7% of the total budgets of the specificobjective "Leadership in enabling and industrial Technologies(LEITs)"and the priority "Societal Challenges" will beallocated to the dedicated SME instrument averaged over theduration of Horizon2020".
SME Instrument Budget allocation (of combined budgets SC & LEITs)
=>2014-2015 = 5.30% (EUR 519,9 million)
=>2016-2017 = 7.53% (EUR 790,9 million)
SME Instrument:BUDGET
Horizon 2020SME Instrument
Target: Innovation in SME
(min. 1 participant)
PolicyResearch andInnovation
BUDGET ALLOCATION:
SME Instrument Phase 1 proposals: lump sum of EUR 50,000.
The Work Programme foresees the following budgetdistribution:
� 10% of the budget for Phase 1
� 88% for Phase 2
� The remaining 2% is used for evaluators, the business coaching scheme and potential Phase 3 activities (from 2016).
The budgets are evenly distributed between the cut-off dates.
Horizon 2020SME Instrument
Target: Innovation in SME
(min. 1 participant)
PolicyResearch andInnovation
Article 18(2) Regulation
• […] a dedicated SME instrument that is targeted at all types of SMEs with an innovation potential, in a broad sense, shall be created under a single centralised management system and shall be implemented primarily in a bottom-up manner via a continuously open call […]
• Implemented centrally by one agency (EASME)
• Bottom-up approach within the frame of SC & LEIT
� each SC & LEIT defines a broad topic
• Single and continuously open call with around 4 cut-off dates per year (until end of H2020)
Horizon 2020SME Instrument
Target: Innovation in SME
(min. 1 participant)
Implementation
PolicyResearch andInnovation
The SMEI under H2020: Seamless Business Innovation Support from Mature Idea to Market
EU Grant of € 50,000 (lump sum)
EU Grant of € 500,000 to 2.5 million (indicative amount)
• No grant, but… • Coaching support• Market and Investment
Readiness support• Promotion / networking with
financiers & clients• … and more indirect support!
PolicyResearch andInnovation
The SMEI: main features
• For all types of innovative SMEs (EU-28 + H2020 AC)showing a strong ambition to develop, grow andinternationalise
• Single company support possible
• From idea to market through three phases of continuoussupport
• No obligation for applicants to sequentially cover all threephases
• 70% funding (as a general rule)
• Mature ideas with a clear European dimension
• EU budget for 2016-2017: ca. EUR 750 million (> ca.EUR 500 million in 2014-2015)
PolicyResearch andInnovation
Business Coaching
• Coaches will drive the performance of the organisation
• Coaches suggested by EEN, and selected by the SME
• Voluntary:
• Phase 1: 3 days
• Phase 2: 12 days
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Horizon 2020SME Instrument
Target: Innovation in SME
(min. 1 participant)
PolicyResearch andInnovation
There has to be a market
Easy to use/producefor the customer
and the firm
Technical solution possible and betterthan existing ones
Excellence in innovation
Commercialisation potential and economic impact
Company's potential to achieve the envisaged results
Plus: EU added value
Evaluation
Horizon 2020 Award Criteria: 1. Excellence 2. Impact 3. Quality and efficiency of the implementation
Implementation / Work Programme 2016/2017
Topics Budgets (EUR million)
2016 2017
SMEInst-01-2016-2017: Open Disruptive Innovation Scheme 60.00 66.00
SMEInst-02-2016-2017: Accelerating the uptake of nanotechnologies
advanced materials or advanced manufacturing and processing technologies
by SMEs
31.83 35.32
SMEInst-03-2016-2017: Dedicated support to biotechnology SMEs closing
the gap from lab to market
7.50 7.50
SMEInst-04-2016-2017: Engaging SMEs in space research and development 11.37 12.60
SMEInst-05-2016-2017: Supporting innovative SMEs in the healthcare
biotechnology sector
35.00 45.00
SMEInst-06-2016-2017: Accelerating market introduction of ICT solutions
for Health, Well-Being and Ageing Well
18.00 12.50
SMEInst-07-2016-2017: Stimulating the innovation potential of SMEs for
sustainable and competitive agriculture, forestry, agri-food and bio-based
sectors
25.46 32.19
SMEInst-08-2016-2017: Supporting SMEs efforts for the development -
deployment and market replication of innovative solutions for blue growth
9.50 10.00
SMEInst-09-2016-2017: Stimulating the innovation potential of SMEs for a
low carbon and efficient energy system
46.00 50.00
SMEInst-10-2016-2017: Small business innovation research for Transport
and Smart Cities Mobility
57.57 61.23
SMEInst-11-2016-2017: Boosting the potential of small businesses in the
areas of climate action, environment, resource efficiency and raw materials
25.00 27.50
SMEInst-12-2016-2017: New business models for inclusive, innovative and
reflective societies
10.80 11.40
SMEInst-13-2016-2017: Engaging SMEs in security research and
development
15.37 14.67
Overall indicative budget 353.40 385.91
Cut-off dates Phase 1 Cut-off dates Phase 2
June 2014
Sep 2014
Dec 2014
Mar 2015
Jun2015
Sep2015
Nov 2015
Oct2014
Dec 2014
Mar2015
Jun 2015
Sep 2015
Nov 2015
N° of proposals received
2666 1944 2363 1569 2029 1861 2035 580 629 614 962 945 1090
Above threshold
317 237 320 251 342 336 316 132 180 233 357 373 425
Funded 155 178 259 149 128 122 175 60 74 37 44 33 30
% funded 6% 9% 11% 9,5% 17% 6,5% 8,5% 10,5% 12% 6% 4,5% 3,5% 2,75%
FUNDED ABOVE
THRESHOLD49% 75% 81% 59 % 37,5% 36% 55% 45% 41% 16% 12% 9% 7%
Success rates / Case in point:SME instrument
Phase 1 – a very fast uptake by SMEs
Stable number of proposals
About 15% of proposal above threshold
1340 funded projects67 mio total grants
8.15% funded => 55% of above threshold
- 500
1.000 1.500
2.000 2.500
3.000
June 2014
Sep 2014
Dec 2014
Mar 2015
June 2015
Sep 2015
Nov 2015
Feb 2016
155
178
259
149
128
122
175
174
162
59
61
102
214
214
141
125
2.285
1.680
2.008
1.288
1.676
1.525
1.719
1.628
60
27
35
17
12
12
22
32
Funded Proposals Proposals Below Budget Not Funded Proposals Non Eligible Proposals
• A consistent trend
• Overall results:
• 325 funded projects
• 541.74 mio total grants
• 6.05% of proposals funded =16% of above threshold
60 74 37 44 33 30
47
72
106 194 313 340 395
143
439 431
367 589 572 643 324
9 18 16 16 15 22 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Oct 2014 Dec 2014 Mar 2015 June 2015 Sep 2015 Nov 2015 Feb 2016
Funded Proposals Proposals Below Budget Not Funded Proposals
Non Eligible Proposals To be funded
Phase 2 – a consistent uptake by SMEs
Success rate per country over the years (1)
Nr of proposals
Number of SMEs
participating
Success rate Nr of
proposals
Number of SMEs
participating
Success rate
Albania 6 6 1 1Anguilla 2 2 2 2 50.00%Austria 185 195 11.28% 106 114 6.14%Belgium 215 223 8.07% 106 118 1.69%Bosnia and Herzegovina
11 11
Bulgaria 396 419 0.95% 89 101Croatia 140 150 2.67% 27 29Cyprus 71 73 4.11% 23 25 4.00%Czech Republic
189 198 2.53% 43 43 4.65%
Denmark 334 338 15.09% 195 227 8.37%Estonia 186 198 13.64% 93 103 6.80%Faroe Islands 4 4 25.00% 1 1Finland 391 411 9.73% 267 285 6.67%Former Yugoslav Republic of Macedonia
22 22 9 11
France 746 781 9.35% 590 633 5.37%Germany 1042 1083 9.05% 580 652 6.60%Greece 333 342 3.51% 166 177 2.82%
Hungary 742 782 3.20% 242 275 5.45%
Iceland 27 27 18.52% 17 17 5.88%
Ireland 235 236 14.83% 131 142 11.27%
Israel 307 309 12.94% 316 320 3.44%
Country
PHASE 1 PHASE 2
Success rate per country over the years (2)
Country
PHASE 1 PHASE 2
Nr of proposalsNumber of
SMEs participating
Success rate Nr of
proposals
Number of SMEs
participatingSuccess rate
Italy 3222 3595 7.26% 954 1276 4.23%
Latvia 143 145 2.76% 41 52 1.92%
Lithuania 126 127 8.66% 22 22 4.55%
Luxembourg 31 31 6.45% 13 13 7.69%
Malta 31 33 3.03% 22 22 4.55%
Moldova (Republic of)14 15 4 4
Montenegro 8 8
Netherlands 590 624 9.78% 359 395 6.84%
Norway 212 220 12.27% 90 108 8.33%
Poland 811 842 4.28% 144 157 3.82%
Portugal 401 409 7.33% 108 109 1.83%
Romania 168 180 0.56% 40 42
Serbia 70 71 4.23% 19 20 5.00%
Slovakia 198 204 3.43% 70 77
Slovenia 480 532 5.26% 122 153 7.84%
Spain 2598 2694 10.73% 905 1011 8.01%
Sweden 330 338 14.20% 256 266 7.14%
Turkey 297 299 3.01% 74 85 4.71%
Ukraine 23 24 4.17% 11 11
United Kingdom1449 1504 12.70% 789 915 6.78%
Virgin Islands (British)1 1
PolicyResearch andInnovation
Unsuccessful proposals were:
• too much project focussed, not enough business opportunity oriented
• Description of company not convincing (why would this company succeed and not the competitor)
• No information on competing solutions
• Innovation content too low; product exists already on the market (just incremental improvement)
• Just ideas, no proof of existing commercialisation concept (TRL far too low)
• Just trying ones luck!
Lesson learned
PolicyResearch andInnovation
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THE SEAL OF EXCELLENCEFeatures
Funding threshold due to H2020 budget availability
Quality threshold:
Meriting Meriting funding
Rejected: not ready for funding
Funded� 'Seal of excellence' certifies
proposal of high quality, meriting funding
� Accompanying letter explaining how to get in touch with other funding bodies (like e.g. ESIF Managing Authorities in the Member States)
� Certificate digitally signed against fraud
Target population: excellent projects not funded by H2020
Pilot using the SME Instrument
� Single company� Small scale R&I actions� Close to market
� Clear benefits for regions / Member States:
� make the most of a unique, high quality evaluation process
� better use of resources� potential high local impact
Horizon 2020 evaluation:
PolicyResearch andInnovation
CERTIFICATE
PolicyResearch andInnovation
•Participant Portal http://ec.europa.eu/research/participants/portal/desktop/en/funding/sme_participation.html
� Calls for proposals� Horizon 2020 documents� Support services� Evaluation experts
•Reference documents
•https://ec.europa.eu/research/participants/portal/desktop/en/funding/reference_docs.html#h2020-call_ptef-pt
ACTION
Participate via…
PolicyResearch andInnovation
HORIZON 2020:
• http://ec.europa.eu/programmes/horizon2020/en/area/smes
• http://ec.europa.eu/programmes/horizon2020/en/h2020-section/access-risk-finance
• http://ec.europa.eu/programmes/horizon2020/en/h2020-section/innovation-smes
• Seal of Excellence Website: http://ec.europa.eu/research/regions
• EASME – http://ec.europa.eu/easme/sme/
• SME Techweb – http://ec.europa.eu/research/sme-
techweb/index_en.cfm
• EUROSTARS-2 - https://www.eurostars-eureka.eu/
More Information
Research andInnovation
Thank you very much for your attention!
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