PROGRAMME: HORIZON 2020 (2014-2020)

CALL  SME Instrument

FUNDING BODY  European Commission. Implemented centrally by EASME agency

CALL FOCUS The SME instrument is targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise. It provides staged support covering the whole innovation cycle

ELIGIBLE INSTITUTIONS 

For-Profit SMEs for any sector, established in an EU Member States or a H2020 Associated Country.

INSTRUMENT DESCRIPTION

Scope: The SME instrument consists of three phases, including a coaching and mentoring service for beneficiaries. Participants can apply to phase 1 or directly to phase 2. There are no set topics.

• Phase 1. Feasibility study verifying the technological/practical as well as economic viability of an innovation idea/concept with considerable novelty to the industry sector in which it is presented (new products, processes, design, services and technologies or new market applications of existing technologies). The activities could, for example, comprise risk assessment, market study, user involvement, intellectual property management, innovation strategy development, partner search, feasibility of concept, and the like, to establish a solid high-potential innovation project aligned to the enterprise strategy and with a European dimension. Bottlenecks in the ability to increase profitability of the enterprise through innovation shall be detected and analysed during phase 1 and addressed during phase 2, to increase the return in investment in innovation activities.
• Phase 2. From concept to market. Innovation projects that demonstrate high potential in terms of company competitiveness and growth underpinned by a strategic business plan. Activities should focus on innovation activities such as demonstration, testing, prototyping, piloting, scaling-up, miniaturisation, design, market replication and the like aiming to bring an innovation idea (product, process, service etc.) to industrial readiness and maturity for market introduction, but may also include some research. For technological innovation, Technology Readiness Levels of 6 or above (or similar for non-technological innovations) are envisaged.
Proposals shall be based on an elaborate business plan. Particular attention must be paid to IP protection and ownership; applicants will have to present convincing measures to ensure the possibility of commercial exploitation ('freedom to operate').
Proposals shall contain a specification for the outcome of the project and criteria for success. They will include an explanation of how the results of the supported project are to be commercialised and of what kind of impact on the company is expected.
• Phase 3. Commercialisation. It aims at increase the economic impact of the funding provided by the SME Instrument phase 1&2 grants and by the business coaching. Phase 3 is not subsequent to phase 1 and/or 2, but provides specific support to SME instrument beneficiaries during and after phase 1 or 2.
All support under phase 3 of the SME instrument will be accessible through a single, dedicated entry point, which will serve as an information portal and a networking space.

This platform will offer access to two main strands of services:

- Access to markets
- Access to finance

In addition, phase 3 will create opportunities for partnering, networking and training, which are the Dedicated Support Actions:

1. SME Instrument Business Community - Interactive Platform (information portal and networking space)
2. SME Instrument Business Community Activities
3. SME Instrument Academy
4. Access to New Geographical Markets – Overseas Trade Fair Participation Programme

Coaching and mentoring. SME instrument beneficiaries are also offered dedicated business innovation coaching and mentoring support. This service is facilitated by the Enterprise Europe Network and delivered by a dedicated coach through consultation and signposting to the beneficiaries. The coaches are recruited from a central database managed by the Commission and have all fulfilled stringent criteria with regards to business experience and competencies.
Throughout the three phases of the instrument, the Network will complement the coaching support by providing access to its innovation and internationalisation service offering. This could include, for example, depending on the need of the SME, support in identifying growth potential, developing a growth plan and maximising it through internationalisation; strengthening the leadership and management skills of individuals in the senior management team and developing in-house coaching capacity; developing a marketing strategy or raising external finance.

Expected Impact:

• Enhancing profitability and growth performance of SMEs by combining and transferring new and existing knowledge into innovative, disruptive and competitive solutions seizing European and global business opportunities.
• Market uptake and distribution of innovations tackling the specific challenges in a sustainable way.
• Increase of private investment in innovation, notably leverage of private co-investor and/or follow-up investments.
• The expected impacts should be clearly described in qualitative and quantitative terms (e.g. on turnover, employment, market seize, IP management, sales, return on investment and profit).

INSTRUMENT FUNDING LEVEL

• Phase 1: will be provided in the form of a lump sum of EUR 50.000. Projects should last around 6 months.
• Phase 2: The Commission considers that proposals requesting a contribution from the EU of between EUR 0.5 and 2.5 million (70% funding of the eligible costs) would allow phase 2 to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts. Projects should last between 12 and 24 months.
• Phase 3: No direct funding from the European Commission.

ELIGIBLE COSTS

• Personnel cost.
• Other direct cost: travel and subsistence; equipment, informatics, consumables.
• Subcontracting.
• Indirect cost (25% total direct cost, except subcontracting).

REMARKS

• Minimum consortium: one eligible SME (established in EU or associated country)
• One application/project (phase 1 or phase2) at a time
• No obligation for applicants to sequentially cover all three phases; each phase opens to all SMEs
• Information on the outcome of the evaluation: Maximum 2 months after the corresponding cut-off date for phase 1, and maximum 4 months after the corresponding cut-off date for phase 2.
• Indicative date for the signing of grant agreements: Maximum 3 months from the final date for submission in phase 1, and maximum 6 months from the final date for submission in phase 2.
• In the case of two or more SMEs submitting a proposal, members of the consortium are required to conclude a consortium agreement in principle prior to the signature of the grant agreement.
• Technology Readiness Levels (TRL): the following definitions apply, unless otherwise specified:

INDICATIVE BUDGET

• Total budget € million per 2019: 552.26

DEADLINES

MORE INFORMATION

Participant Portal