Scottish Funding Council
Horizon 2020 Innovation Voucher Scheme
Guidance Notes AY2013-14
1.1 – About the Scheme
1.2 – Eligibility
1.2.1 – Companies not registered in Scotland & Spin Outs
1.2.2 – Can a company apply for more than one voucher?
2.1 – Value of Award
2.2 – Eligible Costs
2.3 – VAT
3.1 – Application form
3.2 – Scope of Applications
3.3 – How to submit
3.4 – Timescales
3.5 – How are collaborations chosen
4.1 – Submission dates
5.1 – Slippage in timescales
5.2 – Final reports
5.3 – Payment of grant
6.1 – Data Sharing contract
6.2 – Freedom of Information
6.3 – De Minimis Rules & State Aid
ABOUT THE SCHEME & ELIGIBILITY
Horizon 2020 is a new, €80 billion European funding programme which will support research
and innovation and drive the creation of new growth and jobs in Europe. The programme
will run from 2014 to 2020 and will combine the current Framework Programmes for
Research and Technical Development, the innovation related activities of the
Competitiveness and Innovation Framework Programme (CIP) and the European Institute of
Innovation and Technology (EIT). Support for Research and Innovation under H2020 will:
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Strengthen the EU’s position in science by boosting top level research in Europe and
increasing funding for the European Research Council
Strengthen industrial leadership in innovation through major investment in key technologies,
greater access to capital and support for SMEs
Address major societal challenges such as climate change, developing sustainable transport
and mobility, making renewable energy more affordable, ensuring food safety and security,
and coping with the challenge of an ageing population by bridging the gap between research
and the marketplace.
H2020 will present new opportunities for international co-operation and cross collaboration
across Member States and will be complemented by measures to complete and further
develop the European Research Area. All of these measures will be aimed at breaking down
barriers to create a genuine single market for knowledge, research and innovation. H2020
presents a significant opportunity for companies throughout Scotland.
1.1
What is the Horizon 2020 Innovation Voucher Scheme?
The H2020 Innovation Voucher Scheme is aimed at supporting Scottish based SMEs (Small to
Medium sized Enterprises) to explore the opportunities of H2020 funding and apply for
particular schemes or calls under it, with the assistance of a Scottish HEI. The proposed
programme of activity should lead to applications for H2020 funding that will benefit the
business and the Scottish economy. The H2020 Innovation Voucher is seen as an initial step
on the “journey of engagement” for the business to access H2020 funds with other agencies
likely to provide additional support if the H2020 application is successful eg negotiation of
contracts.
The awards are particularly intended to encourage companies that have not previously
applied for funding to the European Framework Programmes for Research and Technical
Development through support for fact finding, travel to meet with potential partners etc.
Given the track record of success of Scotland’s Higher Education Institutions in applying
for funding from the previous European Framework Programmes, it is anticipated that the
business applicant will benefit from the previous experience of the partner HEI.
Collaboration in the exploration and application process will result in greater participation by
SMEs and encourage a longer, sustained relationship between companies and HEIs rather
than just offsetting the costs of the business purchasing a service from a HEI.
The H2020 Innovation Voucher scheme is broad in nature and encompasses all disciplines
of academia that are relevant for the competitive H2020 calls: from science, engineering and
technology to arts, creative industries, humanities and social sciences. Likewise the range of
company sectors can be from social enterprises to technology based companies so long as
the eligibility criteria (below) are adhered to.
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HORIZON 2020 INNOVATION VOUCHER PROCESS
Complete application form and
email to application@interfaceonline.org.uk
Due diligence and eligibility
checks will be performed by
Interface
Application submitted to SFC
for consideration
Applicants notified that further
information is required.
SFC confirm approval of grant
via confirmation email
Applicants submit further
information for consideration
Project commences
SFC notify applicants of decision
1.2
Eligibility
All SMEs (including social enterprises) with main business operations in Scotland (it is
anticipated that these will hold a registration commencing SC) are eligible to partner with a
HEI under the H2020 innovation voucher scheme. By SME we refer to organisations that are
registered companies, employ between 1-250 employees and have an annual turnover not
exceeding 50 million euro. Reference Source:
http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf
The rationale for the voucher being targeted specifically at registered companies is that
they are likely to have a more sophisticated structure to embrace more readily the concept
of innovation and partner with other organisations in a collaborative bid to the European
Commission.
Collaborations with organisations within the “third sector” are eligible so long as they
meet the definition and registration requirements for an SME as set out above.
For the Agrifood sector, businesses that are solely engaged in primary production, the
cultivation of crops and husbandry of livestock, are not eligible for support under de
minimis, unless they are able to show that they have the capacity to undertake R&D activity
that will have a wider impact within the Agrifood sector, for example by selling the
product/service to other businesses, not just for use on your own farm. If you are involved in
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any of the above activities, make sure your application shows us clearly how you will use the
idea in this wider way.
1.2.1 For Companies not registered in Scotland
If the company is not registered in Scotland then additional information must be supplied
prior to submission of an application (see Appendix 1). This information must include the
following details:
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the company’s presence and activity in Scotland;
background to the company: what do they do, the company’s trading status? ;
the number of employees, remit, website details;
how the H2020 voucher will focus on the development of the company’s activity in Scotland;
how they would take forward the outputs from the H2020 innovation voucher project – i.e.
impact to Scottish operations?
If in doubt about the eligibility of the company please seek further clarification from
Interface prior to preparing a submission; applications@interface-online.org.uk.
1.2.2 Can a company apply for more than one H2020 innovation voucher?
Companies in conjunction with an HEI partner can apply for more than one H2020
innovation voucher. However only one application by the Company can be “live” and ongoing at any point in time, ie a satisfactory final report must have been submitted from a
previous H2020 Innovation voucher prior to a new application for funds being submitted.
We advise the nominated university contact preparing the application to check with the
company at the scoping stage as to whether they have received previous support under this
scheme.
1.2.3 Can a company apply if it has no university partner in Scotland?
A company intending to apply to an H2020 call either under a call allowing a single SME
application or in a consortium with no Scottish university partner can still apply for support
for its exploratory and preparatory activities through the H2020 voucher scheme. A Scottish
university will be identified to offer assistance: by the company itself, or with the help of
Interface.
FINANCIAL INFORMATION
2.1
What is the Value of the award?
The award for an individual programme of work towards an identified application
opportunity is for up to £5,000, with a minimum of £1,000, and will be paid upon submission
(and sign off) of a final report proforma by the supporting academic institution (sent to
applications@interface-online.org.uk) and approval by the Scottish Funding Council. It is
anticipated that H2020 Voucher applications will be submitted around 6 months in advance
of a H2020 call closing date to ensure sufficient time to scope up the application and support
the SME engagement during the period leading up to the call closing. The effectiveness of
offering support for programmes of work over considerably shorter periods will be assessed
on a case-by-case basis.
All expenditure must be clearly accounted for in a final report. Applicants should note the
guidance on VAT set out below.
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HEIs supporting the SME participation should use the application form to set out the
exact costs of activity by both the SME and the HEI. In terms of value for money (eg staff
time, materials, advanced purchase standard class travel etc.).
SFC would not expect the HEIs to conduct this activity at a loss and they should set out
their rates accordingly. Full economic costing (fEC) will inform this process. Equally, SFC
would expect HEIs to justify the costs and will look at the proposal with an appropriateness
and value for money test.
2.2
What costs are eligible?
Eligible costs include:
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Exploratory meetings for the SME and Academic with partners in other European countries
to prepare the H2020 proposal.
Travel for the SME and Academic to attend European information days, brokerage events
directly related to the project objectives, relevant discussions with European Commission
officials or similar.
HEI staff time to scope up project application for the SME (setting the budget, market
analysis etc.)
Due diligence work to identify other collaborative partners eg. HEIs and companies.
Participation in training sessions or information sessions about the chosen theme for the Call.
A breakdown of the costs including staff costs, for the actual work completed and other
associated costs eg travel will be submitted with the final report and invoice. Eligible
expenditure should be for activity explicitly set out in the approved application.
It is the responsibility of the HEI that the day rates included for staff costs are appropriate
for the skill set/sector. A request to substantiate these rates with evidence of
appropriateness may be made on submission of the application for auditing purposes.
For the avoidance of doubt, the following activities are, as for the standard Innovation
Vouchers, not eligible for support in the H2020 Voucher Scheme:
o
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o
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o
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Standard training courses.
Software purchases.
Aid that would promote/ subsidise the cost of exports.
Internships for students of knowledge institutions.
Sales and marketing activities.
Design and production of advertising materials including websites and mobile
applications if these are to be used for sales and marketing.
In addition, the H2020 voucher scheme should not be used to support:
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Third-party consultancy costs: the support for the SME should derive from university
expertise.
Academic-only applications or activities only involving the academic partner: the vouchers
are intended to assist SME engagement with H2020.
2.3
Are the awards subject to VAT?
VAT which is recoverable, by whatever means, is ineligible, even if it is not actually recovered
by the final beneficiary or individual recipient. Irrecoverable VAT can be claimed as an
eligible cost provided the claim is substantiated by appropriate evidence from the
organisation’s auditors or accountants. It is at the discretion of the individual HEI and their
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internal procedures that the proposed scheme of activity is classified research or
consultancy.
PREPARING AND SUBMITTING APPLICATIONS
3.1
Application form
The application form has 2 main sections
1. partner details and declaration; and
2. details of the proposed programme of activity
(When completing the form, please ensure correct email addresses and phone numbers are
included). For guidance please ensure that your application includes the following
information:
Details of the proposed programme of activity:
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Provide background information on the company and the context, aims and scope of
the proposed collaborative project.
Details of the specific call for proposals which is being aimed for. The closing date for
the call must be given or, if the call does not have a closing date, a realistic date by
which the application will have been made.
Outline why H2020 funding is appropriate for the company and academic partner?
Why is this the funding of choice compared to other sources eg. TSB, SE, HIE etc.
Details showing how the funding will lead to a long term relationship between the
partners.
Outline how the proposed H2020 application fits with the strategic plan for the
company .
Timescale – please note that this needs to be realistic eg. 6 months in advance of a
call closing.
Description of how the award will be used: Provide full details of the key activities and
milestones, tasks and time scales for the period of the application process clearly showing
the contribution / roles from the company and the HEI partner.
3.2
Scope of applications
It is anticipated that strong proposals would:
 Demonstrate a strong opportunity for a successful submission to a H2020 call
resulting in European funding being won by a Scottish SME.
 Develop, or further develop, a long term relationship between the company and the
supporting HEI.
 Provide an opportunity to develop, for the SME, new collaborative partnerships with
European HEIs and companies.
Please note that design and production of advertising materials including websites and
mobile applications particularly as they are used for sales and marketing are not eligible. If
your business is engaged solely in primary production ie the cultivation of crops and
husbandry of livestock etc. then you must show that they have the capacity to undertake
R&D activity that will have a wider impact within the Agrifood sector.
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3.3
How to submit an application?
Completed paperwork must be sent electronically to applications@interface-online.org.uk by
the HEI and not to an individual.
3.4
Project timescales
H2020 vouchers are intended to fund short-term programmes of activity, however, both
partners must be realistic in terms of time scales and setting a proposed completion date.
When selecting start and end dates, please take in to consideration the following points:
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3 weeks should be left from submission to approval by SFC (assuming there is sufficient
information in the proposal to assess).
Consider the length of time to obtain internal sign off of paperwork within the university
once the support for programme of activity has been approved.
Please ensure that the timescales for revisions, approvals and holidays have been taken into
account in nominating start and finish dates.
The closing date of the call for proposals, or latest date that the SME intends to complete its
application to an open call.
Please also allow sufficient time for an end of project meeting between all parties prior to
submission of the final report.
3.5
How are collaborations chosen for support?
Each HEI in Scotland has resources to support collaborations and will decide which they wish
to support.
The information on the chosen project must be forwarded by the HEI commercialisation
or European office contact to colleagues at Interface: applications@interface-online.org.uk
who will then perform due diligence. A decision on the award will be communicated by the
Scottish Funding Council within 3 weeks.
The Scottish Funding Council reserves the right to turn down any application should it be
deemed not to match the published criteria or overall purposes of the scheme. The Council
may in some cases ask applicants for further information to clarify applications. The SFC is
not obliged to enter into a dialogue with the applying SME or HEI to explain its decision.
SUBMISSION DATES 2013-2014
4.1 The call for applications will open from 1st September 2013. Up to £400k has been
allocated by SFC for H2020 innovation vouchers in this pilot phase. Applicants are
encouraged to submit on a regular basis with deadlines of 1 st Monday of each month from
Monday 2nd September 2013 until Monday 7th July 2014. Agreed programmes of activity
should generally be completed within 6 months of the start date.
POST AWARD PROCEDURES
5.1
What happens if the circumstances change?
If for any reason the planned programme of activity changes, a Change Request form
(Appendix 2) must be completed and sent to applications@interface-online.org.uk.
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Please be advised that if you do not notify Interface of any changes to the programme of
activity, ie change of partnership, additional activities, changes to the call timescales etc.
then the SFC are under no obligation to make any payment towards the project.
5.2
Final report and project completion
It is anticipated that the company and HEI team will hold a final close out meeting to review
the outcome of the programme of activity – the submission of an application to H2020 or
otherwise. This should be confirmed in the final report proforma to ensure that all parties
are in agreement with the outcome. A short final report will be completed by the HEI and
the company. A proforma copy of which is included in the application form.
This report will be helpful in assessing the scheme, impacts and outputs and potential
lessons for future delivery so please ensure that all requested information is included. This
information may also be included in reports to funders etc.
All final reports must be submitted to Interface using the address applications@interfaceonline.org.uk who will check them and liaise with the institution if required prior to passing
them over to the SFC for payment. Please do not send directly to SFC as this will result in
delays in processing.
The full and complete document should be submitted when making the final report. This
means that we require the original application, final report and costing section as one
document. HEIs should not raise a separate invoice (or include any separate
documentation); section 3 of the final report proforma constitutes an invoice for the SFC
payment purposes and must be signed off by the academic or commercialisation contact.
Failure to do so will lead to a delay in payment being made.
The final report and invoice needs to be submitted to applications@interfaceonline.org.uk within 4 weeks of the agreed completion date for the programme of activity
so, again, please be realistic with the proposed completion date.
In addition the HEI should inform applications@interface-online.org.uk of the outcome
from the H2020 application once the decision has been made.
Following a review of the final report the SFC may consult with the HEI and company
teams to produce a case study following the completion of H2020 applications based on
non-confidential information. The case studies will be used to promote the benefit of the
scheme to other organisations. Please be advised that the case study will be produced unless
you opt out of this.
5.3
When is the grant paid?
The grant is payable to the HEI and will be paid on agreement of the completed final report
and invoice for the costs incurred. The final report must clearly outline how the grant was
spent e.g. travel, accommodation, proposal preparation etc. Payments eligible for grant
must have been incurred and defrayed by HEIs.
The payment will be included in the next SFC payment run to the HEI that is in process
following the approval date of the final report proforma.
Failure to submit the final report proforma within 4 weeks of the nominated end date
may result in the grant not being paid by SFC.
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CONFIDENTIALITY, DATA SHARING AND INTELLECTUAL PROPERTY
6.1
Joined Up Government and Freedom of Information
The Scottish Funding Council may share information about projects with the Scottish
Government, Scottish Enterprise, Highlands and Islands Enterprise and any other
appropriate organisation in the interests of developing and promoting the H2020 Voucher
Scheme.
The Scottish Funding Council is subject to the Freedom of Information (Scotland) Act 2002
and as such may be requested to disclose information regarding the H2020 Voucher Scheme.
Voucher recipients will be consulted before any decision to disclose information is taken.
However, any refusal to disclose may be appealed to the Scottish Information Commissioner.
6.2
De Minimis Rules and State Aid
The assistance for a H2020 Voucher Scheme Award constitutes State aid as defined under
Articles 87 and 88 of the Treaty of Rome and is being granted as ‘de minimis’ aid under
Commission Regulation EC 1998/2006 (the ‘de minimis’ aid regulation).
European Commission rules prohibit any undertaking from receiving more than €200,000
‘de minimis’ aid over any period of three fiscal years. Any ‘de minimis’ aid granted over the
€200,000 limit may be subject to repayment with interest.
If the SME partner has received any ‘de minimis’ aid over the last three years (from any
source) they should inform the higher education institution with which they intend to
collaborate immediately with details of the dates and amounts of aid received. Furthermore,
information on this aid must be supplied to any other public authority or agency asking for
information on ‘de minimis’ aid for the next three years.
For the purposes of the ‘de minimis’ regulation, the award letter must be retained for 3
years from the date on the letter and produce it on any request by the UK public authorities
or the European Commission. (You may need to keep the award letter longer than 3 years
for other purposes).
The best place to refer to for state aid information is the BERR website for definitions and
information, exemptions etc.
http://www.berr.gov.uk/whatwedo/businesslaw/stateaid/rules/frameworks/page28712.html
You can also refer to the European Union online’s website:
http://ec.europa.eu/comm/competition/state_aid/reform/reform.html
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Appendix 1
Scottish Funding Council H2020 Innovation Voucher
PRE-SUBMISSION BACKGROUND INFORMATION
AY2013/14
Companies not registered in Scotland
If the company is not registered in Scotland then additional information must be supplied
prior to submission of an application. This information must include the following details:
o
o
o
o
o
the company’s presence and activity in Scotland;
how the voucher will focus on the development of this element of the company’s activity;
background to the company: what do they do, the company’s trading status? ;
the number of employees, remit, website details; and
how they would benefit from European funding and build on the ?
Please send the information requested above to applications@interface-online.org.uk to confirm
eligibility, prior to submission of a full application.
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