EU public funding. The basics on H2020@finodexproject #publicfunding #myFIWAREstory

Miguel Garcíamiguelgarcia@zabala.es

Albert Alonsoaalonso@zabala.es

16/11/2015

Welcome2

Index3

H2020

Instruments for funding

What is funded?

SME Instrument and FTI

Q&A

4

H2020

H2020. What is it?5

Biggest investment by the EC on R&D and innovation

+€70b between 2014 and 2020

H2020. How is it structured?6

Tackling Societal Challenges• Health, demograhic change and wellbeing• Food security, sustainable agriculture and

the bio-based economy• Secure, clean and efficient energy• Smart, green and integrated transport• Climate action, resources efficiency and

raw materials• Inclusive, innovative adn reflective

societies• Secure societies

Creating Industrial Leadershipand Competitive Frameworks

• Leadership in enabling and industrialtechnologies• ICT• Nanotech, Materials, manuf, and

Processing• Biotechnology• Space

• Access to risk finance• Innovation in SMEs

Excellence in the Science Base• Frontier research (ERC)• Future and Emerging Technologies (FET)• Skills and career development (Marie Curie)• Research Infrastructures

Different areas and sub-areas

H2020. The work programmes I7

Biannual document per sub-area divided in topics/objectives

Actual Work Programmes are here 2016-2017

http://goo.gl/OKiivf

H2020. The work programmes II8

Topic. A concrete description of what is required for a proposer

An open call is a subset of topics with a deadline for submission.

Actual calls are available:http://goo.gl/FGe0iX

H2020. The topics9

Topics need to be addressed properly by each proposal

A proposal is submitted in general by a consortium of partners via

Participants Portalhttp://goo.gl/HPcVyV

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Instruments for funding

Instruments for funding. Beneficiaries11

Any kind of organisation from the

EU or H2020 associated countries

You need to be registered at the Participants Portal

and have a PIC (at least a provisional one)

General rules (might be exceptions)

All organisations are identified as profit (SMEs, corporates…) or non-profit (research

foundations, etc.)

Instruments for funding. The TRL levels12

TRL level concept is needed to understand what a topic is asking for.

Commercial EndProducts

III. Pilot Production orDemonstration Project ManufacturingII. Applied ResearchI. Disruptive

Research

Product Idea Prototype First TestProduct

Instruments for funding. How much I’m getting then?13

Profit

Non for profit

Every topic is aligned to a specific instrument for funding: Innovation Action (IA), Research and Innovation Action (RIA) or Coordination and Support Action (CSA)*

IA RIA CSA

TRL >6 TRL<5 NO TRL

70% 100% 100%

100% 100% 100%

*There are additional instruments but out of the purpose of this webinar specially tailored to SMEs

FUNDING RATE DEPENDING ON THE INSTRUMENT AND THE TYPE OF ORGANISATION

Instruments for funding. How are the proposals?14

Cooperation. At least 3 organisations from

3 different eligible countries*

General rules* to be aware of:

Applications submitted in 1 or 2 phases

(depends on the topic)

*There are exceptions

Results : 4-5monthsStarting: 8 months after submission deadline

The submission is an online form plus a

proposal (PDF). The longer ones 60 pages

Instruments for funding. Who wins the open calls?15

All the results are public and open and different analytics can be launched thanks to the availability of H2020 results (and earlier programmes) at the EU open data portal.

H2020 results (last update: 24/06/2015)https://goo.gl/ymTmFQ

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What is it funded?

What is funded? 17

Personnel costs

Subcontracting

The budget is divided in standard categories. Here we show the main ones for simplicity

Other direct costs

Indirect costs

+

TOTAL costsxFunding Rate = TOTAL funding

What you invest

What you get

What is funded? Personnel costs 18

Salaries

Social security

Pensions

Etc.

+

Need to demonstrate the time that every employee has devoted to the project and their hourly cost

Hours devoted in the project are tracked via timesheet or internal

reporting system

External hires can also be considered as personnel if accomplishing some rules.

What is funded? Subcontracting19

Invoices+

Keep track of invoices and payment slipsRecommended to follow the best value for offer

approach to select your subcontractor

Minor issues. Non-core tasks (i.e. project website)

What is funded? Other direct costs20

Travel & subsistence

Equipment

Other

+

Keep all the invoices related to the expenses

Related to the project only. Equipment refers to

depreciation and proportional use in the

project.

What is funded? Indirect costs21

Personnel

Other direct costs+

Flat rate for everyone (25%). Used to cover expenses like phone, general supplies, etc. not directly linked to

one project

Direct costsx25% = Indirect costs

What is funded? An example 22

Personnel costs – €50,000

Subcontracting - €3,000

SME participating in a IA topic.

Other direct costs - €4,000

Indirect costs - €13,500

+

TOTAL costs€70,500

xFunding Rate70%

= TOTAL funding€49,350

What is funded? Justification23

No admin burden. You just send the amounts spent,

not the supporting documents

Justification of costs more or less every 18 months

(reporting periods)

You can be audited up to 5 years after the project

ends. BUT

The official time framework is decided by

projectBUT

Justification of costs is done after the expenditure is done (actual numbers)

You are pre-financed up to a third of the fundingBUT

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SME Instrument and Fast Track to Innovation

Introduction: SME Instrument & FTI25

All you guys have surpassed the research stage

SME Instrument and FTI help you to reach the market

SME INSTRUMENT

SME Instrument: Specific Objective26

Support highly innovative SMEs with a clearcommercial ambition and a potential for high growthand internationalisation

Flexibility:- SMEs on their own or SME

consortia- Broad topics (almost a bottom-up

approach)- 4 cut-off dates per year until 2020

SME Instrument: Phases27

Phase 1: 50.000 euros to carry out a feasibility study (6months implementation)

10 pages proposal. Threshold 13/15

Examples of activites: risk assessment, market study,user involvement, Intellectual Property (IP) management,innovation strategy development, partner search,feasibility of concept (this is the basis for the Phase 2proposal).

SME Instrument: Phases28

Phase 2: Demonstration projects funded at 70%.Funding between 0,5 and 2,5 million euros (12-24months implementation).

30 pages proposal. Threshold 12/15

Examples of funded activites: demonstration, testing,prototyping, piloting, scaling-up, miniaturisation, design,market replication

SME Instrument: Phases29

Phase 3: No direct help. indirect support measures andservices as well as access to the financial facilities.

Building a community of successful European SMEs andeasing investment by VC and big companies.

SME Instrument: Project characteristics30

- Demonstration of TRL 6 : Technology validated in a operation environment

- Your product brings an added value compared to the competence

- Willingness to grow and embrace the international market

- Present a well-draft business plan (Phase 1) and a detailed and refined business plan (Phase 2 & FTI)

- Demonstrate the implementation capacity of the company / consortia with complementary profiles and skills

SME Instrument: TIPS31

- Overall funding rate: 7,9% for Phase 1 and Phase 2: For Phase 2 proposals coming from Phase 1 it doubles.

- In the ESR you can identify the score criteria of the evaluators. Try to address all the criteria.

- Show your accomplishments until now.- Use the first page as a elevator pitch to engage the

evaluator.- This is not a lottery. It is not about being lucky.- However submitting and improving the proposal

works. Almost 44% of the beneficiaries of last cut-off date were re-submitters.

SME Instrument: Success Stories32

CYSNERGY: innovative system able to reduce the electricity consumption in industries in a percentage up to 40%.

Phase 1 funded in 18/06/2014 and Phase 2 funded in 17/09/2015 (submitted twice Phase 2).

SME Instrument: Success Stories33

HDIV, a technology that follows a security by design approach, generating self-protected web applications

Company applying directly to Phase 2 (twice,17/12/2014 and 17/06/2015)

They were funded under the security topic although the first idea was to submit in ICT

Phase 1 beneficiaries

Phase 2 beneficiaries

FTI: Characteristics34

3-5 Entities with strong presence of Industry (forprofit entities) including SMEsFully bottom-up approachClose to market activities1-3 Million Euros funding (70% budget)Obligation to reach the market in 3 years afterbeginning the project3 cut-off dates per yearTrial during 2015-2016 to evaluate its performance

FTI: TIPS35

Include the whole value chain of the product /service: Supplier – Manufacturer – End customer

Describe the extended and refined version of thebusiness plan

Be concise. You have 30 pages

ESR with detailed comments about the project. Use itto improve your proposal.

FTI: Statistics36

Information of the first cut-off date:269 proposals (231 in the 2nd, -14%)48 (18%)proposals above threshold (12)16 (6%) proposals funded12,92 cut-off date for funding

FTI: Success Stories37

Link to the beneficiaries of FTITraditional sectors seem more successful: energy,transport, manufacturingICT sector has shown lower funding rateThe average composition of funding consortia doesnot show significant differences with the rest ofapplicants

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Questions & Answers

Now it’s your turn to ask!39

And last but not least…40

The important thing is growing your business,

the funding is just an incentive!

Thanks!

info@finodex-project.euwww.finodex-project.eu

finodexFuture Internet Open Data Expansion

This project is co-funded by the European Union