Government help or hindrance
Innovation in Horizon 2020
Global University Venturing Summit (16/10/2013)
Viorel Peca
(viorel.peca@ec.europa.eu)
DG CONNECT / Innovation
Research and
Innovation
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!
What is Horizon 2020?
A 77 B€ European Research & Innovation funding programme
Excellent
Science
Industrial
leadership
Societal
challenges
Expanded Continuity, Openness, Smart Experimentation
Innovation dimensions of Horizon 2020
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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, largescale product validation and market replication
Basic and
applied
research
Technology
Establishing technical
development
feasibility in lab or
and integration simulated environment
Establishing technical and economic viability
in (near to) operational environment
Decision by producers to
validate in (near to)
operational environment
Supporting first application in
the market to confirm user
benefits (only in specific
market contexts)
Decision by producers/users to
commercialise/buy – if no market
failures/barriers to uptake
Wide market
deployment
starts
Research and Innovation Actions
R&D activities, often combined with closely connected
but limited innovation activities
Innovation Actions
Demonstration/pilot projects
may include limited R&D activities
First market replication projects
only in specific market contexts
SME instrument
?
Procurement
Concept &
Feasibility
Assessment
IDEA
Demonstration
Market Replication
Research
Development
Commercialisation
business coaching throughout the project
SME window EU
financial facilities
MARKET
• Funded by LEITs and SC. Initially 5%, will rise to at least 7%
averaged over H2020. Approximate 3 B€ over 7 years.
7
SME instrument
Phase 1: Concept
and feasibility
assessment
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.
10-15% success
Phase 3 & coaching = 2% budget
Phase 2: R&D,
demonstration,
market replication
Phase 3:
Commercialisation
Input: "Business plan
2" plus description of
activities under Phase
2 (~ 30 pages)
90% budget
Promote instrument as
quality label for
successful projects
Activities:
Development,
prototyping, testing,
piloting,
miniaturisation,
scaling-up, market
replication,
research
Support via networking ,
training, information,
addressing i.a. IP
management,
knowledge sharing,
dissemination
50-70% success
Output: elaborated
"Business plan 2"
Output: "investorready Business plan 3"
Lump sum: 50.000 €
1-5 M€ EC funding
~ 6 months
~ 12 to 24 months
Facilitate access to
private finance
SME window in the EU
financial facilities (debt
facility and equity
facility)
Possible connection to
PPC (and PPI?)
No direct funding
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Fast Track to Innovation
•
•
•
•
Any legal entity may participate in an FTI action
•
•
•
•
Time to grant signature or notification of decision ≤6 months
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
Criterion of impact given a higher weighting
≤5 legal entities shall participate in an action
Amount of grant ≤€3 million
9
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)
PCP and PPI
complementary
•
•
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
R&D / Pre-commercial Procurement (PCP)
Phase 0
Curiosity
Driven
Research
Phase 1
Solution design
Phase 2
Prototype
development
Supplier A
Supplier B
Supplier B
Supplier C
Supplier C
Supplier D
Supplier D
Public Procurement of
Innovative Solutions (PPI)
Phase 3
Original development
of limited volume
of first test products /
services
Supplier B
Supplier D
Phase 4
Deployment of commercial
end-products
Diffusion of newly developed
products / services
Supplier(s)
A,B,C,D
and/or X
Also normally multiple sourcing
here to keep competition going
… in line with WTO proc. rules, EU Treaty, State aid free
 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
Implementation now
How do the financial instruments for R&I SME work?
European
Union
budget
Provides funds
Counter or Co-Guarantees
Guarantee Society
Bank
Lends
Invests
Venture capital
Fund
Invests
SMEs
SMEs
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Access to finance
Horizon 2020
(+ COSME another EU programme support financial instruments for SMEs)
• 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
14
Accompanying measures
• 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
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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.
validation
FIRE topics and projects
Large Scale
Experiment.
Research
requirements
Test bed 1
Test bed 1
Test bed 4
Test bed 4
Exp4
Test bed 7
Test bed 7
Test bed 3
Exp2
Test bed 2
Exp1
Test bed 6
Test bed 6
Test bed 2
Test bed 3
Exp5
Test bed 9
Test bed 5
Test bed 5
Exp3
Test bed 8
Federated Service Testbeds Test bed 8
Federated Network Testbeds
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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)
http://ec.europa.eu/ictevent
ICT 2013: Create, Connect, Grow
6-8 November 2013, Vilnius
Aim of the event:
ICT in Horizon 2020 - the EU's Framework Programme
for Research and Innovation for 2014-2020.
Structure of the event :
 Conference
 exhibition
 Networking
Including "Entrepreneurship and investment forum"
Registration: Still open
Thank you