Funding and support in FP6 for SMEs

Kalev KaarnaESTIRC

Purpose of the presentation

Help SMEs to see opportunities Help SMEs to see opportunities

and get ideasand get ideas

• How SME plans fit into FP6 instruments

• How to overcome potential problems

• Who can help

Funds for SMEs

1,7 billion Euros

How SME plans fit into FP6

Aim Instrument New product STREP, CRAFT Next generation product IP Group problem IP, CRP

Participation IP, CRP, STREP,

CRAFT Writing experience E Get ideas none

Name Target

Duration (years)

Scale (MEuro)

IP

integrated project

integrate critical mass of activities and resources to

generate applicable breakthroughs

over 3 3-7

CRP

collective research projects

research carried out by SME groupings to address common problems, develop standards,

diagnosis, safety equipment etc.

2-3 2-5

STREP specific targeted research

improve exisiting or develop and/or prove viability of new

products, processes or services

2-3

1-2

CRAFT co-

operative research

SME's assign research and innovation activities to R&D

performers

1-2 0.5-2

E evaluator work as an evaluator of project proposals training

Encourage SME participation

Participation of SME groupings Evaluation criteria related to SME Targeting of calls in areas relevant for

SME Pre-allocation budget for take-up

measures Possibility to extend FP6 contracts to

include new SME

Integrated project & problems

Multi-national corporations (MNC) are probably main players

MNC see SME roll in Integrated Projects as subcontractors and not partners. Because:– risks of including SME are high (long project)– MNC will be responsible for failure– SMEs want high level ownership but offer low

level financial contribution– value from including SMEs is seen to be low

Risks of including SME

Risk of including SME is high compared to value

Risks are hard to decrease what about increasing value?

Value of including SME

Percieved Benefits

(Cost + Harm)

VALUE =

Benefits MNC can offer

Benefits of including SME

Benefits SME can offer

Income

Costs

Benefits MNC can offer Costs

Income Income Income

CLIE

NT

How many of SME skillsskills and resources and resourcesallow to “sellsell throughthrough”?

TESTING

APPLICABLE KNOWLEDGE

IDEAS

What if SME could constantly develop innovative improvement ideas?

Fortunately there are methods to do it

IDEA

TRIZ: Based on more than 2 million patents 40 main conflicts were found

(like: speed increase vs loss of information) 40 main solutions to these conflicts

(like: speed vs loss of information problem solutions can be copying)

35 trends in technology evolution(like: point-line-curve-3D surface or commodity-product-service-experience-transformation)

TESTING

APPLICABLE KNOWLEDGE

IDEA

Advantages:– Is in public domain– Makes innovation systematic– Allows derive knowledge from other fields– Allows to find markets to your solutions

outside traditional fields– Is applicable in software development– Makes SMEs more willing to give up greater

share of ownership of their idea– Allows long term partnership with MNC

TESTING

APPLICABLE KNOWLEDGE

IDEA

CLIENT NETWORKCLIENT NETWORK

Knowledge about clients Readiness to modify product for a

segment Test-marketing Clients who are ready to pay for R&D

TESTING

APPLICABLE KNOWLEDGE

IDEA

FUTURE SUB-CONTRACTOR

Testing and developing capabilites and skills for being a perfect sub-contractor for the new generation product

TESTING

APPLICABLE KNOWLEDGE

IDEA

Relevance to MNC

Decision is that SMEs have to be included into Integrated Projects

Including SMEs as partners is strongly encouraged

Evaluators know that it is not easy and look for “just on paper” partnerships

Relevance to MNC

Risk and include SMEs as dummiesOR

Develope a non-traditional co-operation model where SMEs are

true value creators

Who can help?

GOAL

supportsupport sharingsharing and implementationimplementation of innovative innovative solutionssolutions in European SMEs

IRC network

Support offeredSupport offered FindingFinding partners with neededwith needed capabilities,

know-how, products or client network FindingFinding partners who needwho need your

capabilities, know-how, products or client network

SupportSupport for negotiations, contracts and IP Know-howKnow-how about financial support

opportunities

IRC network

ESTIRC consultant contact

Kalev Kaarna

SA Archimedes

Kompanii 2, Tartu

Phone: +372 7 300 338

E-mail: kalev@irc.ee

Thank You!