TYPE OF ACTION: SME Instrument
FUNDING BODY:  European Commission. Implemented centrally by EASME agency.
CALL FOCUS: A dedicated SME instrument that is targeted at all types of SMEs with an innovation potential, in a broad sense, implemented primarily in a bottom-up manner via a continuously open call.
ELIGIBLE APPLICANTS: Only SMEs are allowed to apply for funding and support

SME INSTRUMENT DESCRIPTION

Scope: The SME instrument consists of three separate phases and a coaching and mentoring service
for beneficiaries. Participants can apply to phase 1 with a view to applying to phase 2 at a later date, or
directly to phase 2.

In phase 1, a feasibility study shall be developed 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 (IP) management, innovation strategy development, partner search, feasibility of concept and the like to establish a solid highpotential 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. The proposal should contain an initial business plan based on the proposed idea/concept.
The proposal should give the specifications of the elaborated business plan, which is to be the outcome of the project and the criteria for success. Proposals for phase 1 are not required to provide a draft plan for exploitation and dissemination.

In phase 2, innovation projects will be supported that address the specific challenges identified and 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 a Technology Readiness Levels of 6 or above (or similar for nontechnological innovations) are envisaged (see “Remarks”).

Proposals shall be based on an elaborated business plan either developed through phase 1 or another means. 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, including a first
commercialisation plan, and criteria for success.

In phase 3, SMEs can benefit from indirect support measures and services as well as access to the
financial facilities supported under Access to Risk Finance.

Coaching and mentoring
Successful beneficiaries will be offered coaching and mentoring support during phase 1 and phase 2. This service will be accessible via the Enterprise Europe Network (EEN) and delivered by a dedicated coach through consultation and signposting to the beneficiaries. The coaches will be 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 impact should be clearly described in qualitative and quantitative terms (e.g. on turnover, employment, market seize, IP management, sales, return on investment and profit).

FUNDING LEVEL & DURATION

• 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.

ELIGIBLE COSTS

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

FOR FURTHER INFORMATION CHECK ATTACHED FILE