Scottish Funding Council
Horizon 2020 SME Engagement Scheme
Guidance Notes AY2014/15
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About the Scheme
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Eligibility
Companies not registered in Scotland & Spin Outs
Can a company apply for more than one award?
Value of Award
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Finance
 Eligible Costs
 VAT
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Application form
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Scope of Applications
How to submit
Timescales for start/end dates
How are collaborations chosen
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Payment
 Final reports
 Payment of grant
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Data Sharing
 Freedom of Information
 De Minimus Rules & State Aid
H2020 – THE BIGGER PICTURE
Horizon 2020 is a new, €70 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 Horizon 2020 will:
 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.
Horizon 2020 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. Horizon 2020 presents a significant opportunity for companies throughout
Scotland.
Horizon 2020 will be divided into three main areas:
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Excellent science
Competitive industries - through strengthening leadership in enabling and industrial
technologies, and greater access to capital and support for SMEs
Tackling societal challenges, including
o Health, demographic change and well-being
o Food security, sustainable agriculture and forestry, marine and maritime and
inland water research, and the bioeconomy
o Secure, clean and efficient energy
o Smart, green and integrated transport
o Climate action, environment, resource efficiency and raw materials
o Europe in a changing world - inclusive, innovative and reflective societies
o Secure societies - protecting freedom and security of Europe and its citizens
Details for specific calls can be found here:
http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/index
.html
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What is the Horizon 2020 SME Engagement Scheme?
The Horizon 2020 SME Engagement Scheme is aimed at supporting Scottish based SMEs to
explore opportunities of Horizon 2020 funding and apply for particular schemes or calls, with
the assistance of a Scottish Higher Education Institute (HEI).
The proposed programme of activity should lead to applications for H2020 funding that will
benefit the business and the Scottish economy. The Horizon 2020 award 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 e.g.
Negotiation of contracts.
The H2020 SME Engagement Scheme can award up to £5,000 for an individual project. The
Scheme is specifically intended to encourage companies through support for fact finding,
travel to meet with potential partners, admin support and use of university expertise.
The support provided to eligible companies through Scottish Higher Education Institutions
will be drawn from Scottish Funding Council.
KEY PRINCIPLES
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The purpose of the scheme is to encourage SMEs to engage more effectively with
European Funding, under H2020.
Academics or European officers within HEIs can offer expertise and experience to
advise and facilitate appropriate consortium building and support towards full H2020
application for the SME.
The award will be paid to the HEI on submission of a completed final report and HEI
costs will be reimbursed by the SFC (please note the grant will not be paid to the SME
or any in kind costs reimbursed.)
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HORIZON 2020 SME ENGAGEMENT 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
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 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 award being targeted specifically at registered companies is that they
are likely to have a more sophisticated structure to embrace more readily the concept of
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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
any of the above activities, make sure your application shows us clearly how you will use the
idea in this wider way.
There are options available for Scottish SMEs to ‘pool’ awards e.g. multiple SMEs working
with one or more academic partners in developing the same H2020 application.
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 award will focus on the development of the company’s activity in
Scotland;
how they would take forward the outputs from the H2020 project – i.e. impact to
Scottish operations?
Spin outs
If you are a Spin Out then please complete the pre-submission information and send to
applications@interface-online.org.uk to check eligibility.
Sole Traders
While sole traders are not excluded from this SFC scheme, it will be necessary, as in all
applications, to outline the credibility of their future H2020 application given the historical
evidence which strongly suggests that sole traders are not awarded EU funds as they are
deemed to have insufficient capacity to successfully participate in the programmes and
deliver projects to the benefit of Europe.
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
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Can a company apply for more than one H2020 Award?
Companies in conjunction with an HEI partner can apply for more than one H2020 SME
Engagement award. Please note that the HEI must be the lead applicant. However, only one
application by the Company can be “live” and on-going at any point in time. i.e. A
satisfactory final report must have been submitted from a previous H2020 SME Engagement
award prior to a new application for funds being submitted.
Can a company apply if it has no university partner in Scotland?
A company intending to apply to a H2020 call either under a call for a single SME application
(e.g. SME instrument) or in a planned consortium with no Scottish university partner can still
apply for support for exploratory and preparatory activities through the H2020 scheme. A
Scottish university will be identified to offer assistance: by the company itself, or with the
help of Interface.
FINANCIAL INFORMATION
What is the Value of the award?
The award for an individual programme of work towards an identified H2020 application
opportunity is for up to £5000, with a minimum of £1000, 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. The
SMEs are expected to match the grant contribution with an in kind contribution only (time,
resources etc.)
It is anticipated that applications to the scheme 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.
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 e.g. staff time,
materials, advanced purchase standard class travel etc.) The contribution from the SME is an
in kind contribution only and these costs will not be reimbursed by the SFC.
Please note that the award is paid directly to the HEI and not the SME. The award can only
be used for work carried out by HEI staff or any services they have purchased i.e. booking
flights for the SME/arranging travel for the SME. Further information can be found in the
eligible costs section below.
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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.
What costs are eligible?
Eligible costs include:
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Exploratory meetings for the SME with partners in other European Countries to
prepare the H2020 proposal
Travel for the SME 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, first feasibility studies, lab visits)
Due diligence work to identify other collaborative partners e.g. HEIs and companies
Participation in training sessions or information about the chosen theme for the Call
HEI Administrative time e.g. to arrange meetings, book flights, arrange
accommodation etc. for the SME.
Travel and subsistence – this should be in line with HEI rules on travel and
subsistence
A breakdown of all 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 Scheme:
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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 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
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Academic-only applications: the awards are intended to assist SME engagement with
H2020
HEI travel to attend European meetings – unless reasons are fully justified.
HEI input on H2020 proposal, this scheme can only support SME engagement.
PREPARING AND SUBMITTING APPLICATIONS
Application form
The application form has 2 main sections
1. Partner details and declaration; and
2. Details of the proposed programme of activity
All applications should 'aim at' particular calls under H2020, these being:
Excellent Science, Competitive Industries and Tackling Societal Challenges and this
information must be included on the application form. See below link to further
information on the calls;
http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/index
.html
(When completing the form, please ensure correct email addresses and phone numbers are
included). It is anticipated that the HEI partner will submit the application on behalf of the
partner company.
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 H2020 call for proposals which are being aimed for.
Outline why H2020 funding is appropriate for the company and academic partner?
Outline how the proposed H2020 application fits with the strategic plan for the
company
Timescale – please note that this needs to be realistic e.g. 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 project clearly showing the contribution / roles from the company (in kind)
and the HEI partner.
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Please include here the value (£) of contributions requested from the grant and being
contributed by the company –in kind.
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 a
Scottish HEI though this is not a requirement of the scheme.
 Provide an opportunity to develop new collaborative partnerships with European
HEIs and companies.
The SFC expects all applications to 'aim at' particular calls under H2020 or apply under
the broader SME instrument which has broad areas addressing societal challenges. The
SFC or Enterprise Europe can offer advice on calls.
How to submit an application?
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. (Based on the date that the final version of the
application is received by SFC).
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. SFC may in
some cases ask applicants for further information to clarify applications. SFC is not obliged
to enter into a dialogue with the applying HEI to explain its decision.
Project timescales
H2020 awards 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 project 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).
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.
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SUBMISSION DATES 2014-15
Applicants are encouraged to submit on a regular basis with deadlines of 1st Monday of each
month.
Agreed programmes of activity should generally be completed no more than 6 months after
start date.
POST AWARD PROCEDURES
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
Please be advised that if you do not notify Interface of any changes to the programme of
activity, i.e. change of partnership, additional activities, changes to the call or timescales
etc. then the SFC are under no obligation to make any payment towards the project.
Following the exploration stage, if the SME/HEI decides not to pursue with that particular
H2020 application, the monies need not be paid back.
Final report and project completion
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@interface-online.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.
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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 nonconfidential 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.
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.
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.
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
internal procedures that the proposed scheme of activity is classified research or
consultancy.
CONFIDENTIALITY, DATA SHARING AND INTELLECTUAL PROPERTY
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 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 Scheme. Award
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.
De Minimus Rules and State Aid
The assistance for a Knowledge Exchange Business Assist Support 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).
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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 SME Engagement Scheme
PRE-SUBMISSION BACKGROUND INFORMATION
AY2014/15
You should complete this form if the following applies to you:
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Companies not registered in Scotland
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You are a spin out
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You need to check eligibility
If any of the above applies 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 award 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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Appendix 2
Scottish Funding Council
H2020 SME Engagement Scheme - Project Change Request Form
Company Name
University Name
Date Requested
H2020 call being addressed
Requested by
Change Request Description
(Describe the change)
Proposed Revised Start date
Proposed revised End date
(Reason for the request)
(Priority)
High
Medium
Low
(Impact of not making the change)
Date form received
Change request approved / denied
Action to be taken
The final report and invoice needs to be submitted to applications@interface-online.org.uk within
4 weeks of the agreed completion date of the programme of activity so please be realistic with the
proposed completion date.
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