Research for the benefit of SMEs The new approach. Amaury NEVE European Commission DG Research - Unit T4: SMEs
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1 Research for the benefit of SMEs The new approach Amaury NEVE European Commission DG Research - Unit T4: SMEs
2 Research for the benefit of SMEs Objectives Strengthen the innovation capacities of SMEs to develop new products and markets by outsourcing of research: Increase their research effort Acquire technological know-how Extend their networks Improve the exploitation of research results
3 Principle: Outsourcing scheme customer-seller relationship SMEs SME Associations Other enterprises, End users Investing in Research Results & IPR RTD- Performers
4 Customer-seller relationship between SMEs* and RTD-performers. Clear principle: SMEs invest in R&D SMEs* invest in the RTD project and outsource part of the research activities to "RTD performers. RTD performers invoice their services to SMEs*. EC contribution: Grant to the project (and not to individual participants) which covers only part of the total investment. SMEs* and "Other participants and end users" contribute with own resources to the project. Collective leadership of the SMEs* in the project. * including SME associations
5 Funding Scheme - principles The financial support of the Community in accordance with the Rules for participation will be capped at a value not exceeding 110% of the estimated price to be invoiced by RTD providers to SMEs or SME Associations.
6 EC contribution Value of the project is based on the subcontracted R&D activities. Maximum financial contribution is 110% of the price to be invoiced by RTD providers to SMEs or SME Associations. The Community support has to be in accordance with the Rules for participation.
7 Rules for participation Funding rates R&D: maximum of 50 % of the total eligible costs Exception: SMEs, non-profit public bodies, secondary and higher education establishments and research organisations: maximum of 75 % Associations may meet the criteria for SMEs Demonstration activities: maximum of 50 % Management activities: maximum of 100 % Other activities: maximum of 100 % (e.g. training, coordination, networking, dissemination)
8 Step 1: Calculation of the budget for the SMEs Budget for the SMEs Activities and costs SME 1 SME 2 SME 3 RTD Own RTD Invoice RTD performers for subcontracted RTD DEMO Own DEMO Invoice RTD performers for subcontracted DEMO OTHER MANAGEMENT TOTAL
9 Step 2: Calculation of the budget for the RTD Performers Budget for the RTD perfomers Activities and costs RTD 1 RTD 2 OTHER MANAGEMENT TOTAL
10 Step 3: Calculation of the budget for the Other enterprises and end-users Budget for Other enterprises and end users Activities and costs OTH 1 RTD DEMO OTHER 0 MANAGEMENT 0 TOTAL
11 Step 4: The total budget of the project Partners & costs RTD DEMO MANAG OTHER TOTAL SME Own activities Subcontracting SME Own activities Subcontracting SME Own activities Subcontracting RTD RTD OTH TOTAL
12 Calculation of the EC contribution Partners & costs RTD [50%/75%] DEMO [50%] MANAG [100%] OTHER [100%] TOTAL Maximum EC contribution SME Own activities Subcontracting SME Own activities Subcontracting SME Own activities Subcontracting RTD RTD OTH TOTAL TOTAL amount of subcontracting, excl. VAT Maximum EC contribution = 110% of subcontracting to RTD performers excl. VAT Requested EC contribution is the minimum of the two:
13 Distribution of the EC contribution Scenario 1 Partners & costs Total costs EC contribution for each participant Own contribution (in kind) Own contribution (in cash) SME Subcontracting SME Subcontracting SME Subcontracting RTD RTD OTH TOTAL
14 Distribution of the EC contribution Scenario 2 Partners & costs Total costs EC contribution for each participant Own contribution (in kind) Own contribution (in cash) SME Subcontracting SME Subcontracting SME Subcontracting RTD RTD OTH TOTAL
15 Capping of the EC contribution Project 1 budget Maximum EC contribution Project 2 budget Maximum EC contribution RTD Own RTD SMEs RTD Subcontracting Other activities Management Total Subcontracting 110% Requested EC contribution is the minimum of the two:
16 Calculation of the EC contribution What is specific for SME associations? IPR ownership and rights for dissemination and use should reflect the needs and the role of the SMEs in the consortium and of the members of the SME-AGs. Some SME-AGs may NOT qualify for 75% funding rate for RTD activities. Some SME-AGs may NOT be able to recover VAT. System is flexible for tailor-made solutions: SME-AG may charge costs incurred by its members in carrying out the project Participating SMEs and SME-AG members may invest in the project Other forms of remuneration are possible: e.g. grant to the RTD performers
17 Step 1: Calculation of the budget for the SME associations Budget for the SME-AGs Activities and costs SME-AG 1 SME-AG 2 SME-AG 3 RTD Own RTD Invoice RTD performers for subcontracted RTD DEMO Own DEMO Invoice RTD performers for subcontracted DEMO OTHER MANAGEMENT TOTAL
18 Step 2: Calculation of the budget for the RTD Performers Budget for the RTD perfomers Activities and costs RTD 1 RTD 2 OTHER MANAGEMENT TOTAL
19 Step 3: Calculation of the budget for the Other enterprises and end-users (including SMEs) Budget for Other enterprises and end users Activities and costs OTH 1 [SME] OTH 2 [SME] OTH 3 [SME] OTH 4 RTD Own RTD Invoice RTD performers for subcontracted RTD DEMO Own RTD Invoice RTD performers for subcontracted RTD OTHER MANAGEMENT TOTAL
20 Step 4: The total budget of the project Partners & costs RTD [50%/75%] DEMO [50%] MANAG [100%] OTHER [100%] TOTAL SME-AG Own activities Subcontracting SME-AG Own activities Subcontracting SME-AG Own activities Subcontracting RTD RTD OTH 1 [SME] Own activities Subcontracting OTH 2 [SME] Own activities Subcontracting OTH 3 [SME] Own activities Subcontracting OTH Own activities Subcontracting TOTAL
21 Calculation of the EC contribution Partners & costs RTD [50%/75%] DEMO [50%] MANAG [100%] OTHER [100%] TOTAL Maximum EC contribution SME-AG Own activities Subcontracting SME-AG Own activities Subcontracting SME-AG Own activities Subcontracting RTD RTD OTH 1 [SME] Own activities Subcontracting OTH 2 [SME] Own activities Subcontracting OTH 3 [SME] Own activities Subcontracting OTH Own activities Subcontracting TOTAL TOTAL amount of subcontracting, excl. VAT Maximum EC contribution = 110% of subcontracting to RTD performers excl. VAT Requsted EC contribution is the minimum of the two:
22 Distribution of the EC contribution Scenario 1 Partners & costs Total costs EC contribution for each participant Own contribution (in kind) Own contribution (in cash) SME-AG Subcontracting SME-AG Subcontracting SME-AG Subcontracting RTD RTD OTH 1 [SME] Subcontracting OTH 2 [SME] Subcontracting OTH 3 [SME] Subcontracting OTH Subcontracting TOTAL
23 Distribution of the EC contribution Scenario 2 Partners & costs Total costs EC contribution for each participant Own contribution (in kind) Own contribution (in cash) SME-AG Subcontracting SME-AG Subcontracting SME-AG Subcontracting RTD RTD OTH 1 [SME] Subcontracting OTH 2 [SME] Subcontracting OTH 3 [SME] Subcontracting OTH Subcontracting TOTAL
24 Important documents Workprogramme "Research for the benefit of SMEs" Guides for applicants "Research for SMEs and Research for SME associations Guide to Intellectual Property Rules for FP7 projects Rules for the submission of proposals These documents and additional information about the open calls are available on the following webpages: esdetailscallpage&call_id=35 esdetailscallpage&call_id=36
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