This document provides information about support for small and medium-sized enterprises (SMEs) under the Horizon 2020 program. It summarizes the outcomes of impact assessments that found SME participation in EU research has been lacking. It then outlines the SME Instrument, a dedicated program to support innovative SMEs. The SME Instrument will have three phases - concept and feasibility assessment, research/development and demonstration, and commercialization. It will provide funding, coaching, and help SMEs access private financing. Draft topics and budgets for 2014-2015 are listed across various Horizon 2020 focus areas like health, transport, and energy.

1. SME support
under
HORIZON 2020
Dr Bernd Reichert
Unit "Small and Medium-Sized
Enterprises"
DG Research and Innovation
1
Research and
Research and
Innovation
Innovation

2. The Analysis

3. 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 repelling to SMEs

4. Funding Gap
(range: 1-3 M€)

5. Innovation Union Commitment n°7
Ensure stronger involvement of SME in
future EU R&I programmes
*
European Council 4 February 2011
Commission is invited to explore the
feasibility of a Small Business Innovation
Research Scheme

6. Concept
and
Design

7. Horizon 2020
Why participate?
• To compete among the best European companies 
"Champions league" with only very few winners,
quality label based on a rigorous assessment
• Visibility at European level
• Possibility to receive business/management coaching
• Networking possibility with investors and customer
networks
• Preferential treatment for subsequent financing (EU
Financial Instruments: loan and equity facilities)
7

8. Horizon 2020
SME support: integrated approach
20 %
budgetary
target in
LEITs & SC
'Innovation
in SMEs'
8

9. SME instrument
?
Procurement
Concept &
Feasibility
Assessment
IDEA
Demonstration
Market Replication
Research
Development
Commercialisation
business coaching and complimentary services
SME window EU
financial facilities
MARKET
9

10. Phase 1: Concept
and feasibility
assessment
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.
10% success
Phase 2: R&D,
demonstration,
market replication
Phase 3:
Commercialisation
Input: "Business plan
2" plus description of
activities under Phase
2 (~ 30 pages)
88% budget
Promote instrument as
quality label for
successful projects
Activities:
Development,
prototyping, testing,
piloting,
miniaturisation,
scaling-up, market
replication,
research
Support via networking ,
training, information,
addressing i.a. IP
management,
knowledge sharing,
dissemination
30-50% success
Output: elaborated
"Business plan 2"
Output: "investorready Business plan 3"
Lump sum: 50.000 €
0.5-2.5 M€ EC funding
~ 6 months
~ 12 to 24 months
Facilitate access to
private finance
SME window in the EU
financial facilities (debt
facility and equity
facility)
Possible connection to
Procurement
No direct funding

11. Main features
• Targeted at all types of innovative SMEs showing
a strong ambition to develop, grow and
internationalise
• Only SMEs will be allowed to apply for funding
and support
• Single company support possible
• No obligation for applicants to sequentially cover
all three phases; each phase open to all SMEs
• 70% funding (exceptions possible)
11

12. Implementation
Article 18(2) Regulation
[…] a dedicated SME instrument that is targeted at all types of
SMEs with an innovation potential, in a broad sense, shall be
created under a single centralised management system and
shall be implemented primarily in a bottom-up manner via
a continuously open call […]
• Implemented centrally by one agency (EASME)
• Bottom-up approach within the frame of SC & LEIT
 each SC & LEIT defines a broad topic
• Continuously open call with around 4 cut-off dates per year
2014
2015
• Draft Dates:
Phase 1
Phase 2
Phase 1
Phase 2
18/06/2014
09/10/2014
18/03/2015
18/03/2015
24/09/2014
17/12/2014
17/06/2015
17/06/2015
17/09/2015
17/09/2015
16/12/2015
16/12/2015
17/12/2014
12

13. Implementation
Evaluation: Remote evaluation throughout the process
Suggestion to abandon consensus meetings
Long feedback loops ("ESRs") slow down the process
Other eligibility conditions:
* established in EU or associated country
* one application/project (phase 1 or phase2) at a time
Funding over 7 years:
ca. 5,200 Phase 1 projects (fixed lump sum of 50K€)
ca. 1,700 Phase 2 projects with an average size of 1.5 M€
(or 2550 of an average size of 1 M€;1250 of an
average size of 2 M€)
13

14. Draft Topics
(2014/2015)
Area
LEIT ICT
Topics &Budget
Open Disruptive Innovation Scheme; 45 M€ per year,
Estimated projects per year: 90 phase 1, 26 phase 2
LEIT Nanotechnology Accelerating the uptake of nanotechnologies, advanced materials or advanced
LEIT Advanced
manufacturing and processing technologies by SMEs
materials &processing 21.8 M€ (2014), 23.8 M€ (2015)
LEIT Advanced
Estimated projects: 43 phase 1 , 13 phase 2 (2014)
manufacturing
Estimated projects: 47 phase 1, 14 phase 2 (2015)
LEIT Biotech
SME boosting biotechnology-based industrial processes driving competitiveness and
sustainability; 3.80 M€ (2014), 2.40 M€ (2015)
Estimated projects: 7 phase 1, 3 phase 2 (2014)
Estimated projects: 5 phase 1, 1 phase 2 (2015)
LEIT Space
SME innovation in space applications, 8.5 M€ (2014), 8.75 M€ (2015)
Estimated projects: 17 phase 1, 5 phase 2 (2014)
Estimated projects: 18 phase 1, 5 phase 2 (2015)
SC1 Health
Clinical validation of biomarkers and/or diagnostic medical devices (100% funding)
66.1 M€ (2014), 45 M€ (2015)
Estimated projects: 132 phase 1, <38 phase 2 (2014),
Estimated projects: 90 phase 1, <26 phase 2 (2015)
bigger projects envisaged for phase 2 (~5 M€)

15. Draft Topics
(2014/2015)
Area
SC2 Bio-economy
Topics &Budget
Resource-efficient eco-innovative food production and processing
9 M€ (2014), 17 M€ (2015)
Estimated projects: 18 phase 1, 5 phase 2 (2014)
Estimated projects: 34 phase 1, 10 phase 2 (2015)
Supporting SMEs efforts for the development - deployment and market replication
of innovative solutions for blue growth
6.8 M€ (2014), 7.4 M€ (2015)
Estimated projects: 13 phase 1, 4 phase 2 (2014)
Estimated projects: 15 phase 1, 4 phase 2 (2015)
SC3 Energy
Stimulating the innovation potential of SMEs in a low carbon and efficient energy system
33.95 M€ (2014), 37.26 M€ (2015)
Estimated projects: 67 phase 1, 20 phase 2 (2014)
Estimated projects: 74 phase 1, 22 phase 2 (2015)
SC4 Transport
Small business innovation research for Transport
35.87 M€ (2014), 38.96 M€ (2015)
Estimated projects: 72 phase 1, 21 phase 2 (2014)
Estimated projects: 78 phase 1, 23 phase 2 (2015)
SC5 Climate
Boosting the potential of small businesses for eco-innovation and a sustainable supply
of raw materials; 17M€ (2014), 19 M€ (2015)
Estimated projects: 34 phase 1, 10 phase 2 (2014)
Estimated projects: 38 phase 1, 11 phase 2 (2015)

16. Draft Topics
(2014/2015)
Area
SC6 IIIS
SC7 Security
Total
Topics &Budget
no topic in 2014
Innovative mobile e-government applications by
SMEs, 4M€ (2015)
Estimated projects: 8 phase 1, 2 phase 2
SME business model innovation, 11 M€ (2015)
Estimated projects: 22 phase 1, 6 phase 2
Protection of urban soft targets and urban critical infrastructures
7 M€ (2014), 7.4 M€ (2015)
Estimated projects: 14 phase 1, 4 phase 2 (2014)
Estimated projects: 15 phase 1, 4 phase 2 (2015)
254.82 M€ (2014)
266.97 M€ (2015)
Phase 2 project estimated with an average of 1.5 M€
2014 and 2015 represent 5% of the combined budgets of these areas, this will increase over time to 7%

17. Evaluation
The profile and competences of evaluators is highly important
Commercialisation
potential and
economic impact
Market Opportunity
Company's
growth
potential
company’s potential
achieving the
envisaged results
Excellence in
innovation
Technical solution
possible and better
than existing ones
Plus: EU added value

18. Coaching
and EEN support
Phase 1
Phase 2
Phase 3
Regional
EEN
HR
Initial
Assessment
…
Facilitation and Moderation
SME
Instrument
Coaching (not part of EEN)
Support for
Application
Support for EU
project Management
Support for Access
to Finance
18

19. Coaching
in practice
• Voluntary coaching offered in Phase 1 and Phase 2:
 Phase 1 – 3 coaching days
 Phase 2 – 12 coaching days
• Coaches will drive the performance of the organization by
working with the senior management team
• Coach suggestion provided by the EEN, but final selection
by the SME
• Coach and SME to decide a coaching plan in Phase 1. A
summary of coaching foreseen for Phase 2 will form part of
application to Phase 2
• Coaching paid in addition to Phase 1 and Phase 2
contribution

20. Thank you very much for
your attention