SMEs relative Actions

SMEs relative Actions Capacities: Research for SMEs Valerio Abbadessa - ENEA Workshop – IGLO Bruxelles 08.02.2010

42% of SMEs: WP Leader 10% of the projects coordinated by an SME Average company age of an SME:10 years

Capacities: SME support Aim: • Increase their research efforts • Acquire technological know-how • Extends their international networks • Improve the exploitation of research results Strengthen the innovation capacities of SME to develop new products and markets by outsourcing of research Not an instruments to solve short-term technological problems

Objectives • Support innovative SMEs to solve common or complementary technological problems in order to strengthen their competitiveness by enhancing their investment in RTD-activities and acquisition of intellectual property rights and knowledge. • Projects must be centred on the innovation needs of the SMEs which outsource research to RTD performers and must demonstrate a clear exploitation potential and economicbenefits for the SMEs concerned. • Projects are centred around the economicinterest of the SME participants who will take an active role by defining their specific technological needs and will ensure that the research performed complies with their requirements

Principle: Outsorcing scheme“customer-seller” relationship Investments in research SME SME Associations (minimum 3 countries) RTD performers (minimum 2 entities, including research performing SMEs) Results & IPR SMEs with no / little R&D capacity Bottom-up, any subject Other enterprises, End users Research for SMEs Research for SME Assoc. Duration 1- 2 years 2- 3 years Participants 5 -10 10 - 15 Budget € 0.5- 1.5 M € 1.5- 4 M

Research and technological development activities … form the core of the project. The research and technological development activities of the RTD performers should form the bulk of the project. SMEs should focus on testing and validation of project results and the preparatory stages for further use. Knowledge management and IPR protection should support the SMEs in protecting and using the research results to their best advantage, leading to a clear economic impact. Demonstration activities … are designed to prove the viability of new technologies that offer a potential economic advantage but which cannot be commercialised directly (e.g. testing of product-like prototypes). This is the last development stage before products or processes enter production. Supported activities (1)

Supported activities (2) Management activities … are a regular part of the project and provide an appropriate framework that brings together all project components and maintains regular communications with the Commission. Other activities, to facilitate the take-up of results by the SMEs, in particular training and dissemination: Training activities are performed in general by the RTD performers and are aimed at technical and managerial staff from the participating SMEs. Training should focus on results/technologies generated by the projects. Training activities should normally not exceed 10% of the total eligible project costs. Dissemination activities may include conferences, publications, workshops or web-based initiatives.

The RTD performers offer a research service for which they must be remunerated by the SME participants and/or other enterprises and end-users. In return the SME participants receive rights to the “foreground" (including intellectual property) generated in the project. All participants must agree on the appropriate conditions with respect to remuneration of the RTD performers and rights relinquished to the SME-participants, and in the best interest of the SME participants, before submitting the proposal. The default regime remains full ownership of all project results ("foreground") and IPR by the SME participants. The consortium may however reach a different agreement in their own best interests, as long as the SME participants are provided with all the rights that are required for their intended use and dissemination of the project results. IPR – principle

In practice, this can, e.g., mean that: SME participants keep ownership but give access to the RTD performers for further, clearly specified activities or The RTD performers keep ownership of the entire foreground (or parts of it) and the SME participants acquire licences only. or … The agreement must be done in the (economic) interest of the SME participants The remuneration to be paid by the SMEs for the research services delivered should reflect the value of the IPR, e.g. the remuneration of licences should be lower than the price for ownership of all results. IPR - flexibility

Evaluation criteria S/T QUALITY Sound concept, and quality of objectives Innovative character in relation to the state-of-the art Contribution to advancement of knowledge / technological progress Quality and effectiveness of S/T methodology and associated work. IMPLEMENTATION Appropriateness of the management structures and procedures Quality and relevant experience of the individual participants Quality of the consortium as a whole (including complementarity and balance) Appropriate allocation and justification of the resources to be committed (budget, staff, equipment) IMPACT Contribution, at the European [and/or international level], to the expected impacts listed in the work programme under the relevant topic/activity Appropriateness of measures envisaged for the dissemination and/or exploitation of project results, and management of intellectual property.

S/T QUALITY • Sound concept, and quality of objectives • Innovative character in relation to the state-of-the art • Contribution to advancement of knowledge / technological progress • Quality and effectiveness of S/T methodology and associated work. Furthermore • Specific scientific and/or technological problems or needs of SME? • Outsourcing research activities to RTD performers? • Enabling SMEs to gain a competitive advantage? • Innovative perspective of new PrPrSe? (not necessary to develop cutting edge technology - Adoption of existing ones to new applications in a concrete SME business case)

IMPLEMENTATION • Appropriateness of the management structures and procedures • Quality and relevant experience of the individual participants • Quality of the consortium as a whole (including complementarity and balance) • Appropriate allocation and justification of the resources to be committed (budget, staff, equipment) Furthermore • Are IPR matters reflected in the decision making process? • Are the SME participants the real driving force for the project? Each having an active role in the consortium? • Integration of other enterprises or end users to the benefit of SMEs (e.g. testing of results or multiplier or image carrier)? • Remuneration for RTD performers by SME participants? • Demonstration that SME participants provide their own resources for investment in the project?

IMPACT • Contribution, at the European [and/or international level], to the expected impacts listed in the work programme under the relevant topic/activity • Appropriateness of measures envisaged for the dissemination and/or exploitation of project results, and management of intellectual property. Furthermore • Clear economic impact for SMEs? Economic growth, employment, market strategy, distribution channel, expected patent applications or license agreements…. • Improvement competitiveness of involved SMEs? Industrial competitiveness in Europe? • Cost-effectivenes of proposed research? • Community societal objectives addressed? • Transnationalapproach? Increased cooperation SMEs & RTD performers? • Plans for knowledge and IPRmanagement (protecting, sharing, managing, exploiting…)? • Estimate time-to-market?

The financial support of the Community: not exceeding 110% of subcontracting to RTD providers, excluding VAT.  “Value” of the project is based on the subcontracted R&D activities.  EC contribution: “Grant to the project” (and not to individual participant) which covers only part of the total investment Financial contribution

EC contribution

Research for SMEs: Coordinators in signed contracts

Research for SMEs: beneficiaries in signed contracts

Research for SMEs: http://ec.europa.eu/research/sme-techweb/index_en.cfm?pg=sme_indiv • European portal for SMEs: http://ec.europa.eu/enterprise/sme/index_en.htm • Enterprise Euroep network: http://www.enterprise-europe-network.ec.europa.eu/index_en.htm • SME definition: http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf • SME participation in FP7 Report: http://ec.europa.eu/research/sme-techweb/pdf/fp7_report_autumn_2009_full.pdf

SMEs relative Actions