“We’re looking for a gold nugget and if we’re lucky enough to find it, we’re going to help grow it,” said Bernd Reichert, Head of the SMEs in Horizon 2020 unit, European Commission.
Under Horizon 2020, small companies can apply for individual funding, rather than as part of a consortium as under Framework Programme Seven. It’s not only about money: business coaching and networking opportunities will also be on offer.
Grants will be available for all stages of the innovation cycle from business idea and planning (phase I) business plan development and demonstration (phase II), to commercialisation (phase III).
The Commission is particularly keen to see SMEs participating in the societal challenges, such as health, energy and transport, as well as the leadership in enabling and industrial technologies programme, including activities in nanotechnologies, ICT and advanced materials.
Calls under the SME instrument in 2014 will include €66.1 million for clinical research in the validation of biomarkers and diagnostics; €33.95 million for low carbon and efficient energy systems; and €35.87 million for transport.
The new SME instrument sits in the “Innovation in SMEs” programme. This programme also includes Eurostars, which supports international collaborations between SMEs, and a number of business support services.Previous research programmes were not designed to embrace SMEs, though the EU made attempts to include them through quotas. In reality, the likelihood of SMEs getting any money has been low, with the cost and time involved in submitting an application eating into their resources.
Including a dedicated SME budget in Horizon 2020 is “one of the Parliament’s biggest achievements in the negotiation”, Christian Ehler, MEP said in July 2013, when the funding was agreed.
SME instrument: in a nutshell
Phase I: Concept and feasibility assessment
• Funding: A lump sum of €50,000• Duration: six months
This is the elevator pitch stage where an SME presents its idea in a ten page business plan. The funding will help with feasibility studies, intellectual property protection and with finding partners.
Phase II: Innovation Activities
• Funding: €0.5-2.5 million
• Duration: 12-24 months
The SME will provide a refined business plan of some 30 pages, showing further proof of a sound market-ready product (through demonstration, testing, prototyping etc.).
Phase III: Commercialisation
This stage will not provide for direct funding, rather the EU will connect SMEs to other programmes that could provide the funding.
An SME can apply directly for phase II funding, if it has a good enough business plan. Failure in phase I is not an obstacle to submitting a proposal to phase II either.
Themes
In 2014 and 2015 the SME instrument will sponsor 13 themes:
• High risk ICT innovation• Nanotech, or other advanced tech for manufacturing and materials
• Space research and development
• Diagnostics devices and biomarkers
• Sustainable food production and processing
• Blue growth
• Low carbon energy systems
• Greener and more integrated transport
• Eco-innovation and sustainable raw material supply
• Urban critical infrastructure
• Biotechnology-based industrial processes
• Mobile e-government applications (2015 only)
• SME business model innovation (2015 only)
Proposals can be submitted any time but there are several cut-off points: 18 June, 24 September and 17 December (phase I), October and December for phase II.
To see the full list of calls, visit here.
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