Innovation for SME Businesses- Fasttrack for Innovation - Horizon 2020 Funding

Supporting businesses in conceiving, creating and commercialising innovative new products,
and securing the funding to make it happen

Who are Pera Technology?
We are a leading new product development contractor.
We exist to make your innovation a profitable and successful venture for your business
Founded in 1946 as the Production Engineering Research Association of Great
Britain, we are now a privately owned technology-based innovation, training and
commercial research group with offices in the UK and Estonia.
We support you in creating the innovative new products that enable you to
build a competitive advantage. We bring innovation to life within your business
by bringing hard-won, real-world industry experience to your own market
knowledge. When it comes to understanding and securing funding from national
and European bodies, PeraTechnology has proved itself to be one of Europe’s most
successful intermediaries.
With an exceptional reputation for adding innovation expertise to all sizes of
businesses in all sectors, we work with you to:
conceive ideas create prototypes commercialise products

Innovation for SME businesses
leap® is Pera Technology’s new product development service for SMEs. We’ve helped hundreds of
SMEs conceive, create and commercialise innovative new products, providing the expertise to fill
knowledge gaps and securing the funding to make it all happen.
Our approach
Unlike a lot of our competitors, we do not offer a ‘no win-no fee’
service. We feel that this blanket approach leaves clients in an
uncertain situation that could end in a failed application, due to the
provider not fully understanding the project or SMEs business.
Instead, we charge an upfront fee to write your proposal application,
but only if we are convinced it stands the best chance of funding.
The leap® team at PeraTechnology will take the time to learn more
about your project and fully support you in your funding application.
We assist with the project bid writing process, using our extensive
experience and expertise in securing European funding to dramatically
improve your chances of making a successful project bid.

What is Horizon 2020?
Horizon 2020 is the biggest EU Research and Innovation programme ever
with nearly €80 billion of funding available over seven years (2014 to 2020)
– with €3 billion dedicated solely for SMEs. It promises more breakthroughs,
discoveries and world-firsts by taking great ideas from the lab to the market.
Horizon 2020 is open to everyone, with a simple structure that
reduces red tape and time, enabling participants to focus on what
is really important.
This approach makes sure new projects get off the ground quickly –
and achieve results faster.

Horizon 2020 SME Funding Instruments
Horizon 2020 has a range of options for SME project funding. However, there are significant
differences in terms of process, funding rate and scope, between all of the funding instruments.
H2020 Collaborative Project H2020 SME Instrument H2020 Fast Track to Innovation EUREKA Eurostars
Small or large consortium
Industrial or academic research driven
Single applicant (phase 1)
Single applicant or SME consortium (phase 2)
Small industry-driven consortium
(max 5 organisations)
Small SME-driven consortium,industry and
academia permitted,average 3-4 participants
SMEs encouraged
SMEs requested in specific calls
SMEs only SMEs encouraged Project leader must be an R&D performing SME
Non prescriptive funding range indicated in
the call text
€50k (phase 1) funding €0.5-2.5m (phase 2)
funding (€5m for healthcare projects)
€3m max funding €1.4m average project costs,max funding
specific to each country
Specific challenge,scope and expected
impact,all indicated in the call text
Broad scope per topic
(except healthcare projects)
Broad scope:any topic related to LEIT or
Societal Challenges
Broad scope:innovative products,processes
and services
Single or two stage deadlines Continuous submission
4 annual call dates
Continuous submission
3 annual call dates
Continuous submission
2 annual call dates
100% for RIAs and CSAs 70% for IAs Typically 70% (100% for healthcare projects) Typically 70% 50-80% (specific to each country)
Both SME instrument and FTI pilot are extremely attractive to SMEs and industry-driven consortiums
for three main reasons:
• Shortened average time-to-grant:between 4 months (SME Instrument Phase 1) and 6 months (SME instrument Phase 2,FTI pilot)
• Bottom-up programmes:applicants can come up with any project related to the target domain (except in the healthcare thematic)
• Large funding per applicant:in a mono-applicant SME instrument Phase 2 application,a single SME can receive up to €2.5m (€5m
for healthcare) for a 2-year project

Horizon 2020 SME Funding Instruments
Are they the right funding instruments for your business?
European funding is provided in the form of grants that are not tied to any IPR
or equity transfer to the EC.This non-dilutive funding is very attractive to SMEs,
as they get to keep their IPR and equity.
The funding does comes with a set of ‘strings attached’ but these are mostly
reporting requirements to the EC (in order to validate and document that you
are making a correct use of public funding).
However, do not underestimate these requirements, EC reporting is not
something that you should undertake lightly.

Horizon 2020 Dedicated SME Instrument
The Dedicated SME Instrument (DSI) is an EU funding programme specially for SMEs.
It consists of three phases covering technical and market feasibility, demonstration
activities and commercialisation across a range of thematic areas.
Company requirements
• You must be an SME employing between
10 and 250 employees
• Need to have an early prototype
(or proof of concept).
EC useTRL 6 but TRL4 has proven to be acceptable
• A turnover of up to €50 million.
You must be able to fund their part of the project
costs due to a negative cash flow for part of Phase 2
• Must be something you want to do
This is not a‘wish’project

Phased support
Phase 1: Feasibility assessment
Funding is available for: exploring and
assessing the technical feasibility and
commercial potential of a breakthrough
innovation that a company wants to
exploit and commercialise.
Activities funded could be: risk
assessment, design or market studies,
intellectual property exploration; the
ultimate goal is to put a new product,
service or process in the market, possibly
through an innovative application of
existing technologies, methodologies, or
business processes.
The project should be aligned to the
business strategy, helping internal
growth or targeting a transnational
business opportunity.
Amount of funding: lump sum
of €50,000 (per project, not per
participating business).
Duration: typically around 6 months
Outcome:The outcome of a Phase 1
project is a feasibility study (technical
and commercial), including a
business plan.
Should the conclusion of the study be
that the innovative concept has the
potential to be developed to the level of
investment readiness/market maturity,
but requires additional funding in view
of commercialisation, the SME can apply
for Phase 2 support.

Phased support
Phase 2: Innovation project
Funding is available for: innovation
projects underpinned by a sound and
strategic business plan (potentially
elaborated and partially funded through
Phase 1 of the SME Instrument).
Activities funded in can be: prototyping,
miniaturisation, scaling-up, design,
performance verification, testing,
demonstration, development of pilot
lines, validation for market replication,
including other activities aimed at
bringing innovation to investment
readiness and maturity for market
take-up.
Amount of funding: in the indicative
range of €500,000 – € 2.5 million or more
(covering up to 70% of eligible costs, or in
exceptional, specific cases up to 100%).
Duration: typically around 1 to 2 years
Outcomes: a new product, process or
service that is ready to face market
competition; a business innovation
plan incorporating a detailed
commercialisation strategy and a
financing plan in view of market launch
(e.g. on how to attract private investors,
if applicable).

Phased support
Phase 3: Commercialisation
With the view of facilitating the commercial exploitation of the innovation activities
resulting from Phase 1 or Phase 2, specific activities will be proposed.
These can include support for further developing investment readiness, linking with
private investors and customers through brokerage activities, assistance in applying
for further EU risk finance, and a range of other innovation support activities and
services offered via the Enterprise Europe Network (EEN).

Eligible costs for ‘in-kind’
Time/Effort
• Real research tasks as described in the Description of
Work (DoW) (including business development, market
stimulation, attendance at conferences/expos)
• Attendance at Project Meetings (including preparation
time, travelling time, completing actions arising,
reporting back)
• Reviewing Project Reports and other documents
• Completion of cost statements and in-kind logs
• Answering EC queries
• Business case preparation
• Relevant commercial/sales meetings
• Creation/maintenance of project website(s)
• Communication with Consortium Partners
• Authoring, reviewing and approval of press releases
• Writing Description Use Plan (DUP) and providing
input to EC online questionnaires/surveys
Consumables
• Supply of materials/software
• Use of facilities and test equipment
• A proportion of the cost of Market Intelligence reports
Other costs
• Hire of Equipment
• Purchase of computers/software
• Patent preparation costs
• Legal and Agent fees associated with Project IP
• Cost of any other legal agreements (eg Licensing)
• Flights and hotels for project meeting attendance
• Fuel and Car rental

Horizon 2020 Fast Track to Innovation
To reduce the time from idea to market and increase industrial participation in Horizon
2020, Fast Track to Innovation (FTI) is a fully-bottom-up measure to promote close-to-
the-market innovation activities, and open to all types of participants.
• Open to all types of participants (SMEs, LEs, Universities, etc)
• Proposals for funding must be submitted by a consortium comprising of between
three and five legal entities established in at least three different EU Member States
or countries.
• Actions funded under the scheme must be ‘business-driven’because they are
intended to give promising innovation ideas the last push before entering the market.
• Products must be commercially ready within three years after the start of the FTI
action to ensure quick market take-up
• No thematic requirement.Trans-disciplinary and cross-sector.
• TRL level 6-9 (Level 7 and above is preferred)
• €3 million maximum project size (€1-2 million expected)
• 70% funded for profit-making organisations

Horizon 2020 Funding Instruments
Is your business ready for European funding?
There are three fundamental questions that you need to ask yourself in order to decide if you should
apply for funding.
1. Can you wait 4-6 months before starting your project?
2. Do you have a prototype that has been tested (or proof of concept)?
3. Can you co-fund 30% of the project?
If you have answered no to any of these questions,then these instruments are not for you…yet.
However,there are other instruments within the H2020Work Programme that may fit with your
plans.For example,Research Innovation Actions (RIAs) have a funding rate of 100% and focus on
Technology Readiness Levels below 6.

Horizon 2020 Research innovation Actions
Research Innovation Actions (RIA) is an EU funding programme focussing on
research activities leading to the development of innovative new products, processes
and services.
100% funding
RIA will fund 100% of early-stage research which demonstrates the technical and economic
viability of a new or improved technology, product, process, service or solution.
Collaborative projects
Projects funded under RIA must be collaborative in nature.This requires a consortium of at
least three companies or universities from three different EU member states collaborating on
the project.
Specific calls
Funding is made available for projects covering specific themes (such as energy, transport etc.).
Calls for applications under different themes are made at different times.
Duration
Projects last between 36-48 months and are awarded between €2 - €5 million.

UK Funding RD Tax Credits
Are you claiming cash back or maximising tax relief from your RD spend? It may be a
surprise that much of the work you undertake to grow your businesses can qualify for
significant tax credits, regardless of the industry you are in.
If you are creating new or improved products, developing new processes or duplicating existing
products in an appreciably improved way, you may be eligible for an RD tax credit claim.
You must be an SME with fewer than 500 employees and either of the following:
• an annual turnover not exceeding €100 million
• a balance sheet not exceeding €86 million
Your company or organisation can only claim RD Relief if it’s liable for CorporationTax.
PeraTechnology has developed an excellent working relationship with HMRC and offers
a pragmatic and practical format for the claims process. We’ll help you examine your
suitability for reclaiming tax, or receiving cash, as soon as possible to avoid losing expenditure
from previous years. We have a 100% success record in securing RDTax Credits and the
average claim is £40,000 (25p in every £1)
While the scheme is complex, our approach makes it simple. We can also work on a no win,
no fee basis. A cash back claim could radically change your year end financial position.

UK Funding Patent Box
With a rate of 10%, compared to the current mainstream rate of 24%, your company can
benefit from an annual tax saving of up to £120,000 on qualifying patent profits of up
£1 million a year. Relief is phased over five years and can be back-dated up to six years
This tax saving is in addition to the RD tax credits/relief scheme, so your company can
benefit under both regimes if the requirements of the rules are met.
Who can benefit from the Patent Box?
You can take advantage of the Patent Box if your company is liable to corporation tax and
makes a profit from exploiting patented inventions. Your company must own or exclusively
license-in the patents and must have undertaken qualifying development on them.
What income is covered by the Patent Box?
The 10% rate will apply to worldwide profits arising from existing and new patents granted
by the UK or European Patent Office. Patent Box income can include: sales of patented
products, sales of products that include a patented invention, sales of spare parts, licence
and royalty fees and income from non-patented goods or services provided using a patented
process.The 10% rate will only be available once a patent is granted. However, profits arising
while the patent is pending can also be included in the Patent Box in the accounting period
in which the patent is granted.

UK Funding Innovate UK
Innovate UK is the new name for the Technology Strategy Board. They fund, support and
connect innovative businesses to accelerate sustainable economic growth.
Their responsibilities are to:
• provide new support for innovative small and medium-sized enterprises (SMEs)
with high-growth potential
• make sure that government initiatives such as SBRI (Small Business Research
Initiative) attract innovative UK businesses and give companies access to
important customers in the public sector
• identify and invest in the sectors that have the greatest potential for innovation
to speed up economic growth
• help innovative companies work with their backers so their ideas can be
developed commercially
There are three funding options:
• SMART
• Collaborative RD
• Small Business Research Initiative (SBRI)

UK Funding Innovate UK - SMART
Funding for individual companies from Innovate UK to carry out RD that has
significant potential for their business – and the UK’s economic growth.
There are three types of Smart grant, focusing on commercial viability, technical feasibility and
prototype development ranging in value up to £25,000, £100,000 and £250,000 respectively. Any pre
start-up, start-up, small or medium-sized business carrying out RD in any sector across the UK is
eligible for Smart funding.
Proof of Market Grant
Market research and commercial planning (Potential up to £25k /60% project costs)
Proof of Concept Grant
Feasibility and prototyping(Potential of up to £100K / 60% project costs)
Prototype Development Grant
Trials testing, IP protection marketing strategies (Potential of up to £250K / 35-45% project costs)
Innovate UK will ask to see proof that you have the non-grant part of the project’s costs
readily available.
Established by the Government, Innovate UK stimulates business-led innovation, removes barriers to innovation and invests in the
development of new technology-based products, processes and services, in order to increase the economic competitiveness of the UK.

Proof of Market Grant
Assess commercial viability:
• Market Research
• Market testing and competitor analysis
• Intellectual property position
• Initial planning to take the project to commercialisation, including assessing costs,
timescales and funding requirements
Grant:
• Duration of up to 9 months
• Maximum grant of £25,000
• Up to 60% of total project cost
PeraTechnology charge an up-front fee, plus a 10% success fee on the grant you receive

Proof of Concept Grant
Explore technical feasibility and commercial potential:
• Initial feasibility studies
• Basic prototyping
• Specialist testing/demonstration to provide basic proof of technical feasibility
• Intellectual property protection
• Investigation of production and assembly options.
• Pre-clinical research studies for healthcare technologies and medicines
Grant:
• Duration of up to 18 months
• Maximum grant of £100,000
• Up to 60% of total project cost

Prototype Development Grant
To develop technologically innovative product/service or industrial process:
• Small demonstrators
• Intellectual property protection
•Trials and testing (including clinical)
• Market testing and strategies
• Identify routes to market
• Product design
Grant:
• Duration up to 2 years
• Maximum grant £250,000
• Up to 45% of total project cost (50)
• Up to 35% of total project cost (+)

UK Funding Innovate UK - Collaborative RD
Designed to assist the industrial and research communities to work together on
RD projects in strategically important areas of science, engineering and technology –
from which successful new products, processes and services can emerge.
The amount available is specific to each call, the type of participant and the category of RD activity,
but typically range from £500K to £2m. For conducting industrial research 60% of the SME’s eligible
costs are funded.
A collaborative project must have at least two collaborators; be a business-led consortium (which may
involve both business and research participants); or have evidence of effective collaboration – added
value created in the project from working together.
The grants have specific calls and the bid process differs with each call, but the general format follows
four distinct phases:
Phase 1: Expression of Interest (EOI) application (Month 1)
Phase 2: Full stage application (Invitation of successful EOI applicants) (Month 2-3)
Phase 3: Evaluation (Project assessed, ranked and then reviewed by an expert panel) (Month 4-5)
Phase 4: Contract Negotiation (Month 6-9)
Projects commence after 9 months and are typically one to two years long, ending with a field-tested
pre-production prototype. Ownership of IP will be decided before the project starts and will be defined
in a Consortium Agreement.

UK Funding Innovate UK - SBRI
The Small Business Research Initiative (SBRI), enables the public sector to tap into new
ideas and technologies and speeds up their adoption. It helps government departments
connect with innovative businesses to solve the tough challenges facing the public sector.
SBRI is a simple process. All competitions are based around a need that has been identified by
the lead government organisation.This need is a desired outcome of the project, rather than
a required specification.Typically, competitions are split into two phases:
Phase 1 Feasibility
Proposals focus on proving the scientific, technical and commercial feasibility of the project. The results
of phase 1 determine whether the project should continue to phase 2 – not all projects will progress to
the second phase.
Duration is up to 6 months with a 100% funded grant of between £50,000 to £100,000
Phase 2: Prototyping
Projects that successfully complete phase 2 are then ready to be commercialised and offered to
government departments and other public sector organisations through the normal procurement process.
Duration is up to 24 months with a 100% funded grant of between £250,000 to £1,000,000

What makes Pera Technology different?
There are many ways that SMEs can access
DSI funding, but with unrivalled experience of
accessing European funding, Pera Technology
delivers certainty into your innovation process.
You will also be able to utilise our proven multi-disciplinary
innovation processes and competencies to get the right
product developed, by the right people, in the right way.

there are other ways…

there are other ways… …and there’s the Pera Technology way

Ready to take the next step?
Contact us today at and take the first step to a more secure and successful future
Phone: +44 (0)1664 501201 Email: enquiries@peratechnology.com www.peratechnology.com

Innovation for SME Businesses- Fasttrack for Innovation - Horizon 2020 Funding

Innovation for SME Businesses- Fasttrack for Innovation - Horizon 2020 Funding

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Innovation for SME Businesses- Fasttrack for Innovation - Horizon 2020 Funding