Types of Action
Fo c u s o n I n n o va t i o n A c t i o n s
and the SME Instrument
Brussels, 12 November 2013
Research and
Innovation
Forms of funding
• Grants
− Direct financial contribution by way of donation in order to
finance an action
• Prizes
− Financial contribution given as reward following a contest
(recognition or inducement prizes)
• Procurement
− Supply of assets, execution of works or provision of
services against payment
• Financial instruments
− Equity or quasi-equity investments; loans; guarantees;
other risk-sharing instruments
Types of actions supported by grants
•
•
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Research and innovation actions
Innovation actions
Coordination and support actions
SME instrument
ERANET Co-fund
Pre-commercial procurement (PCP) Co-fund
Public procurement of innovative solutions (PPI) Co-fund
Disclaimer : legally not binding
Supporting innovation and activities
close to users and markets
•Innovation Actions
 Primarily with activities such as
demonstrating and piloting,
first market replication…
Innovation activities as part
of other types of actions
 Demonstrating and piloting activities in
. Research and Innovation Actions
. SME Instrument
. PCP Co-fund
. Financial instruments: debt and equity
.…
In 'main' Work Programme actions - In Public-Private Partnerships and
Public-Public Partnerships - In EIT Knowledge and Innovation Communities
Innovation Actions …
• 'Innovation Action' means an action primarily consisting of
activities directly aimed 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.
… Innovation Actions …
• A ‘demonstration or pilot’ aims to validate the technical and economic
viability of a new or improved technology, product, process, service
or solution in an operational (or near to operational) environment,
whether industrial or otherwise, involving where appropriate a larger
scale prototype or demonstrator.
… Innovation Actions …
• A ‘market replication’ aims to support the first application/deployment in the
market of an innovation that has already been demonstrated but not yet
applied/deployed in the market due to market failures/barriers to uptake.
 'Market replication' does not cover multiple applications in the market of an innovation
that has already been applied successfully once in the market.
 ‘First’ means new at least to Europe or new at least to the application sector in question
 Often such projects involve a validation of technical and economic performance at
system level in real life operating conditions provided by the market
• An Innovation Action may include limited research and development
activities.
… Innovation Actions
•Funding rate

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Grant limited to max 70% of total eligible costs (direct + indirect)
Grant may reach max 100% of total eligible costs for non-profit legal entities
•Weighting of evaluation criteria

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To determine the ranking, the score for the Impact criterion will be given a
weight of 1.5
Prioritisation of ex aequo proposals done first on the basis of the score for
Impact, and then on that for Excellence
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% success
Phase 3 = 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)
88% 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
30-50% success
Output: elaborated
"Business plan 2"
Output: "investorready Business plan 3"
Lump sum: 50.000 €
1-3 (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
SME instrument: main features
• Targeted at all types of innovative SMEs showing a strong
ambition to develop, grow and internationalise
• Only SMEs will be allowed to apply for funding and support
• Single company support possible
• No obligation for applicants to sequentially cover all three phases;
each phase open to all SMEs
• 70% funding (exceptions possible)
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SME Instrument: 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 the societal
challenges and enabling technologies
 each SC & LEIT defines a broad topic
• Continuously open call with cut-off dates
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