Bigger, simpler, smarterHorizon 2020 PWA Milan, 17° June 2014

Barbara Chiavarino

From European Union toInnovation Union

Overview

Horizon 2020

− Responding to the economic crisis to invest in future jobs and growth− Addressing people’s concerns about their livelihoods, safety and

environment− Strengthening the EU’s global position in research, innovation and

technology

The EU’s 2014-20 programmefor research & innovation

A core part of Europe 2020, Innovation Union &European Research Area

Horizon 2020 – what’s new

• A single programme bringing together three separate programmes/initiatives*

• Coupling research to innovation – from research to retail, all forms of innovation

• Focus on societal challenges facing European society e.g. health and ageing, clean energy and transport

• Simplified access, for all companies, universities, institutes in all EU countries and beyond

The 7th Research Framework Programme (FP7), innovation aspects of Competitiveness and Innovation Framework Programme (CIP), EU contribution to the European Institute of Innovation and Technology (EIT)

3 Pillars

European Research Council (ERC)Frontier research by the best individual teams 13 095

Future and Emerging TechnologiesCollaborative research to open new fields of innovation

2 696

Marie Skłodowska-Curie actions (MSCA)Opportunities for training and career development 6 162

Research infrastructures (including e-infrastructure)

Ensuring access to world-class facilities 2 488

Proposed funding(million EUR, 2014-2020)

Proposed funding(million EUR, 2014-2020)

Leadership in enabling and industrial technologies (LEITs)(ICT, nanotechnologies, materials, biotechnology, manufacturing, space)

13 557

Access to risk financeLeveraging private finance and venture capital for research and innovation

2 842

Innovation in SMEsFostering all forms of innovation in all types of SMEs

616 + complemented by expected 20% of budget of societal challenges + LEITs

and 'Access to risk finance' with

strong SME focus

Proposed funding(million EUR, 2014-2020)

Health, demographic change and wellbeing 7 472

Food security, sustainable agriculture and forestry, marine and maritime and inland water research and the Bioeconomy

3 851

Secure, clean and efficient energy * 5 931

Smart, green and integrated transport 6 339

Climate action, environment, resource efficiency and raw materials

3 081

Inclusive, innovative and reflective societies 1 310

Secure societies 1 695

Science with and for society 462

Spreading excellence and widening participation 816

Less prescriptive topic texts

Two-year work programme

Stronger focus on end users

Broad topics

Challenge-driven

A new approach

SMEs on the stage

• Integrated approach - around 20% of the total budget for societal challenges and LEITs to go to SMEs

• Simplification of particular benefit to SMEs (e.g. single entry point)

• A new SME instrument will be used across all societal challenges as well as for the LEITs

• A dedicated activity for research-intensive SMEs in 'Innovation in SMEs'

• 'Access to risk finance' will have a strong SME focus (debt and equity facility)

?

IDEA business coaching and complimentary services MARKET

Concept & Feasibility

Assessment

DemonstrationMarket Replication

ResearchDevelopment

Commercialisation

SME window EU financial facilities

Procurement

The new SMEs Instruments

Phase 1: Concept and feasibility

assessment

Phase 2: R&D, demonstration,

market replication

Input: Idea/Concept: "Business Plan 1"

(~ 10 pages) 10% budget

Activities:Feasibility of concept

Risk assessmentIP regime

Partner searchDesign study

Pilot applicationetc.

Output: elaborated "Business plan 2"

Input: "Business plan 2" plus description of activities under Phase

2 (~ 30 pages)88% budget

Activities:Development,

prototyping, testing, piloting,

miniaturisation, scaling-up, market

replication, research

Output: "investor-ready Business plan 3"

Lump sum: 50.000 €

~ 6 monthsNo direct funding

Phase 3: Commercialisation

0.5-2.5 M€ EC funding

~ 12 to 24 months

Promote instrument as quality label for

successful projects

Facilitate access to private finance

Support via networking , training,

information, addressing i.a. IP management, knowledge sharing,

dissemination

SME window in the EU financial facilities (debt

facility and equity facility)

Possible connection to Procurement

10% success 30-50% success

Phase 3+coaching 2% budget

Simpler• Single set of

simpler and more coherent participation rules

• New balance between trust & control

• Just two funding rates for different beneficiaries and activities

• Single flat rate to calculate overhead or «indirect costs»

• Forthcoming financial regulation will make things simpler

• time-to-grant of 8 months(exceptions for the ERC and in duly justified cases

An international programme• A priority

• Key goal: enhancing and focusing international cooperation in terms of areas and partners

• Horizon 2020 is open to participation from across the world

• Wanted: more involvement of international partners!

• Targeted actions across the entire programme

• Horizon 2020 Regulation and Rules for Participation apply

Targeted • Targeted international cooperation activities across Horizon 2020:

area for cooperation and partner specified upfront

• Areas identified based on analysis of a set ofcriteria to ensure common interest and mutual benefit:

• Research and innovation excellence

• Framework conditions/access to markets

• Contribution to international commitments

• Frameworks to engage in cooperation andlessons learned

• Differentiation by countries/regions: enlargement/ neighbourhood/EFTA, industrialised and emergingcountries, developing countries

• International cooperation as part of strategic planning for each part of Horizon 2020

• Result: roadmaps for international cooperation with international partners (to be published early 2014)

Implementation in Horizon 2020• Regular calls for proposals:

• topics inviting projects where third country participation is required and/or encouraged

• topics stimulating networking between existing projects

• Joint initiatives of Union and third countries:

• bilateral coordinated/joint calls

• multi-lateral initiatives

• contribution of Union to third country/international organisations

• ERA-Net

How to apply

•From CALL to GRANT

Publication of the calls

Submission of proposals

Signature grant agreement

Information on the outcome of the evaluator

Time to prepare the proposal

Finalisation of the grant

Evaluation

Keeping flexibility where needed.

• A single set of rules

etc.

EU FinancialRegulation

Specific rules for participation

Covering all H2020 research and innovation actions

EU FinancialRegulation

Specific rules for participation

WE KEEP

Grants as main form of funding

Standard collaborative actions

Coordination and support

Use of Grant Agreements

Actual costs

• Forms of funding - I

What is

Grants to SME instrument

Grants to Programme co-fund actions

Specific provisions targeting innovation: • pre-commercial procurement,• procurement of innovative solutions• and inducement prizes.

• Forms of funding - II

NEW

Enhanced use of other lump-sums, flat rates and unit costs.

SME Instrument:

Implemented via single centralised management structure

Bottom-up approach

Continuously open call

Only SMEs eligible for participation

•Specific procedures : SME Instrument

•Conditions for Participation

Minimum conditions Standard collaborative actions

•At least three legal entities each established in a different Member State or an Associated

Country;

ERC, SME instrument, programme co-fund, coordination and support, training and mobility actions:

•One legal entity established in a Member State or in an Associated Country.

Additional Conditions In the work programme or work plan.

No additional conditions in Health WP except for SME instrument

Participation

Open for all legal entities established in third countries and for international organisations.

•International Cooperation - I

Restrictions only possible if introduced in the work programme.

For reciprocity reasons;

For security reasons.

Funding

Third country identified in the Work Programme orGeneral list in Annex A plus entities established in US

•International Cooperation - II

participation deemed by the Commission essential in the actionor

when provided under a bilateral scientific and technological agreement

One project = One rate For all beneficiaries and all

activities in the grant.

Defined in the Work Programme:

‒ Up to 100 % of the eligible costs;

‒ but limited to a maximum of 70 %

for innovation projects (exception for

non-profit organisations - maximum

of 100%).(*) Research and technological development includes scientific coordination. (**) For beneficiaries that are non-profit public bodies, secondary and higher education establishments, research organisations and SMEs(***) The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on the premises of the beneficiary.(****) Including research for the benefit of specific groups (in particular SMEs)

Maximum reimbursement

rates

Research and technological development activities (*)

Demonstration activities

Other activities

Network of excellence

50%75% (**)

100%

Collaborative project(****)

50%75% (**)

50% 100%

Coordination and support action

100% (***)

•A single funding rate

FP7

•Single indirect cost model

20% ?60% ?

Real ?

Simplified?

Single model:25 % Flat Rate

FP7

An example

•New funding model: what impact on the EU contribution?

Direct costs

Indirect costs

Total costs

% EU contribution

EU contribution

Flat-rate (60%) 100 60 160 75% € 120

Direct costs

Indirect costs

Total costs

% EU contribution

EU contribution

100/25 Funding 100 25 125 100% € 125

FP7 Majority of HES & RTOs

Personnel costs Wider acceptance of average

personnel costs

Acceptance of supplementary payments

•for non-profit organisations of up to 8000

euros/year/person

Simplifying participation for SMEs

Less requirements for time records

…and more in the Horizon 2020 Grant Agreement

• Cost reimbursement

•Controls and Audits

Financial

viability

Restricted to coordinators for projects ≥ €500 k€

CFS

[Certificate for

Financial Statements]

Only for final payments/per beneficiary /for actual costs ≥ €325 000 €

Optional Certificates on average personnel costs

Ex-post audits

Provisions in Horizon 2020 Regulation!

Commission's audits up to two years after payment of the balance

Audit strategy focused on risk and fraud prevention

Extrapolation New Financial Regulation will apply

Continuity with FP7Guarantee Fund

Ownership

• for the participant who generates results,

• joint-ownership only in specific

circumstances

Protectionwhere appropriate

Exploitation

• General obligation to exploit

Dissemination

• principle maintained;

•Intellectual Property Rights - I

We keep

Transfer and exclusive licences outside the Union/Associated Countries

• the grant agreement may foresee right to object if a participant has received Union funding

Access rights

• for implementation and for exploitation purposes

(also for affiliated entities established in MS/AC)

Tailor-made provisions in the MGA for:

• security-related activities,

• ERC frontier research,

• SME instrument,

• mobility,

• support,

• KICs, etc.

•Intellectual Property Rights - II

What is Additional exploitation /dissemination obligations

• (in the work programme)

Open access:

• obligatory for scientific publications and,

• to research data (in appropriate areas and when foreseen in the work programme)

Access rights:

• for the Union under all parts of the programme and,

• for MS under 'Secure societies',

Specific provision:

• for pre-commercial public procurement and

• for procurement of innovative solutions

•Intellectual Property Rights - III

NEW

•Time to grant: speeding up the process - I

A maximum TTG of 8 months

5 monthsfor informing all applicants

on scientific evaluation

3 monthsfor signature of GA

•Time to grant: speeding up the process - II

How to speed upthe process

No detailed negotiations: • each proposal evaluated 'as it is',

• not as 'what could be';

Legal entity validated in parallel.

No more paper: e-communication & e-signature of grants.

A single source of information!

Il Participant Portal!

http://ec.europa.eu/research/participants/portal/desktop/en/home.html

… Award criteria

… Award criteria

… Award criteria

… So…

PLEASE REMEMBER AND CONSIDER:

Exploitation: use of results (i) in further research (outside the project), (ii) in developing, creating or marketing products, services or processes, or (iii) in standardisation activities.

IMPACT!

Gender equality in H2020

Gender equality

The promotion of gender equality in research and innovation is a commitment of the. It is enshrined in the core documents establishing Horizon 2020, with the following objectives:

– Gender balance in research teams– Gender balance in decision-making – Integrating gender/sex analysis in R&I content

Vademecum

It’s your turn…

Thanks for your attention!

Barbara Chiavarinobarbarachiavarino@gmail.com