1. FP7UK
Technology Strategy Board
Driving Innovation
SMEs and Horizon 2020 -
SME Instrument
Horizon 2020 – how to access EU funding for R&D & Innovation
Olympic Suite, Titanic Belfast – Tuesday, 27th May 2014
Steve Bradley - EU National Contact Point for SME‘s (UK)

2. FP7UK
Technology Strategy Board
Driving Innovation
Strategic positioning:
R&D
driven
projects
Market
opportunity
driven projects
Cooperation logic at
regional or national level
Transnational
cooperation logic
Horizon 2020
SME instrument
Target: Business innovation
motivated SMEs
Eurostars 2
Target: R&D
intensive SME
Horizon 2020
Collaborative
Research
Target: R&D topics
National & regional programs

3. FP7UK
Technology Strategy Board
Driving Innovation
Outcome of impact assessments
• Less than 50% of industrial partners use the publicly funded applied
research projects strategically
• Only about 22% of SMEs participating in EU research programs are
strategic innovators
• Most academics engage with industry to further their research rather than to
commercialise their knowledge
• Results are not exploited because projects were not designed for
exploitation
• There is a strong relationship between internationalisation and innovation,
but SMEs are not aware of internationalisation support programmes.
• The information environment of (European) R&D programmes is unattractive
and off-putting to SMEs

4. FP7UK
Technology Strategy Board
Driving Innovation
Activities for SMEs in Horizon 2020
• All forms of R&D and all forms of innovation, towards exploitation and
commercialisation
• SME participation in collaborative R&D or innovation projects (all three
priorities)
• SME instrument (budget from all societal challenges as well as from the
Leading Enabling Industrial Technologies LEITs)
• Innovation in start-ups, spin-offs and young companies (Eurostars and
other measures)
• Access to risk finance (debt and equity facility)
• Exchange and mobility of researchers involving SMEs (Marie Curie
actions))

5. FP7UK
Technology Strategy Board
Driving Innovation
SME instrument main features
• Targeted at all types of innovative SMEs
• Only SMEs allowed to apply for funding (single
company support possible)
• Competitive
• Market-oriented, EU dimension
• Bottom-up while addressing societal challenges
and/or key enabling technologies
• Grant-based staged funding

6. FP7UK
Technology Strategy Board
Driving InnovationSME instrument
?
IDEA continued support throughout the project MARKET
Concept &
Feasibility
Assessment
Demonstration
Market Replication
R&D
Commercialisation
Idea to concept,
risk assessment,
technological &
commercial feasibility
Demonstration,
prototyping, testing ,
market replication, scaling
up, miniaturisation,
research
Quality label for
successful projects,
access to risk
finance, indirect
support
SME window EU
financial facilities

7. FP7UK
Technology Strategy Board
Driving Innovation
Phase 1: Concept
and feasibility
assessment
Phase 2: R&D,
demonstration,
market replication
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.
Output: elaborated
"Business plan 2"
Input: "Business plan
2" plus description of
activities under Phase
2 (~ 30 pages)
88% budget
Activities:
Development,
prototyping, testing,
piloting,
miniaturisation,
scaling-up, market
replication,
research
Output: "investor-
ready Business plan 3"
Lump sum: 50.000 €
~ 6 months No direct funding
Phase 3:
Commercialisation
1-3 (5) M€ EC funding
~ 12 to 24 months
Promote instrument as
quality label for
successful projects
Facilitate access to risk
finance
2% budget
Support via networking ,
training, information,
addressing i.a. IP
management, knowledge
sharing, dissemination
SME window in the EU
financial facilities (debt
facility and equity
facility)
Possible connection to
PPC (and PPI?)
10-15% success 40-50% success
Phase 3 & coaching = 2% budget

8. FP7UK
Technology Strategy Board
Driving Innovation
H2020 SME instrument: Total Volume
Overall ~2,8 B€ over 2014-2020
50 k€ lump sum 0,5 to 2,5 M€
*Depending of funding per project
10% 88%
2% coaching
Funding

9. FP7UK
Technology Strategy Board
Driving Innovation
Evaluating SME instrument activities
There has to
be a market
Easy to use/produce
for the customer
and the firm
Technical solution
possible and better
than existing ones
Excellence in
innovation
Commercialisation
potential and
economic impact
Company's
potential to
achieve the
envisaged
results
Plus: EU
added value

10. FP7UK
Technology Strategy Board
Driving Innovation
Coaching and EEN support
EEN
Initial
Assessment
Phase 1 Phase 2 Phase 3
Coaching
Regional
HR
…
SME
Instrument
Support for
Application
Support for EU project
Management
Support for Access
to Finance
Facilitation and Moderation

11. FP7UK
Technology Strategy Board
Driving Innovation
What does "Access to risk finance" mean in the
Horizon 2020 context ?
 Using part of the Horizon 2020 budget to stimulate more investment in research and
innovation, not through grants, but in the form of Financial Instruments:
o Debt finance
 Loan finance, i.e. risk-sharing loans to companies and for innovative projects
introducing new technologies
 Guarantees to financial intermediaries (commercial and development banks) that
provide loans to research- and innovation-driven SMEs and small mid-caps
o Equity finance
 Equity, i.e. venture capital for newly created companies exploiting R&D results

12. FP7UK
Technology Strategy Board
Driving Innovation
Next steps..
Publication date: 11th Dec 2013
Opened: 1st March 2014 for phase 1 and 2
Deadlines for evaluation:
• Further reference documents - for preparing your proposal
• http://ec.europa.eu/research/participants/portal/desktop/en/opportuniti
es/h2020/calls/h2020-smeinst-1-2014.html - list of related topics
Topic identifier:
Open call cut off
dates
Phase 1 Phase 2 Phase 1 Phase2
18 June 2014 9 Oct 2014 18 March 2015 18 March 2015
24 Sept 2014 17 Dec 2014 17 June 2015 17 June 2015
17 Dec 2014 17 Sept 2015 17 Sept 2015
16 Dec 2015 16 Dec 2015

13. FP7UK
Technology Strategy Board
Driving Innovation
Further information:
• http://ec.europa.eu/europe2020/index_en.htm
• Europe 2020 is the European Union’s ten-year growth strategy. It is about more than just overcoming
the crisis which continues to afflict many of our economies..
• www.ec.europa.eu/research/horizon2020
• Horizon 2020 is the financial instrument implementing the Innovation Union a Europe 2020 flagship
initiative aimed at securing Europe's global competitiveness.
• http://ec.europa.eu/easme/sme_en.htm
• Executive Agency for Small and Medium Sized Enterprises (EASME)
• http://ec.europa.eu/research/participants/portal/ the Participant Portal is the entry point for electronic
administration of EU-funded research and innovation projects, and hosts the services for managing
proposals and projects throughout their lifecycle.

14. FP7UK
Technology Strategy Board
Driving Innovation
Steve Bradley - EU National Contact Point for SMEs (UK)
steve.bradley@betatechnology.co.uk
Steve.Bradley@tsb.gov.uk
Beta Technology: 01302 322633