Horizon 2020 funds high-potential innovation through a dedicated SME instrument, which offers seamless business innovation support under the section Societal Challenges and the specific part Leadership in Enabling and Industrial Technologies (LEITs).
Provided with about € 3 billion in funding over the period 2014-2020, the SME Instrument helps high-potential SMEs to develop groundbreaking innovative ideas for products, services or processes that are ready to face global market competition. Available to SMEs only, which can however organise a project in the way that best fits their business needs – meaning that subcontracting is not excluded – the new scheme has opened a new highway to innovation through phased, progressive and complimentary support.
What support is available?
The dedicated SME instrument's supports close-to-market activities, with the aim to give a strong boost to breakthrough innovation. Highly innovative SMEs with a clear commercial ambition and a potential for high growth and internationalisation are the prime target.
The SME Instrument offers small and medium-sized businesses the following:
- Business innovation grants for feasibility assessment purposes (optional phase I): EUR 50,000 (lump sum) per project (70% of total cost of the project);
- Business innovation grants for innovation development & demonstration purposes (possible phase II): an amount in the indicative range of EUR 500,000 and 2,5 million (70% of total cost of the project as a general rule);
- Free-of-charge business coaching (optional) in order to support and enhance the firm’s innovation capacity and help align the project to strategic business needs;
- Access to a wide range of innovation support services and facilitated access to risk finance, to facilitate the commercial exploitation of the innovation.
Phased Support
Phase 1. Concept & Feasibility Assessment
Idea to concept (6 months)
The European Union will provide €50 000 in funding, and carry out a feasibility study in order to verify the technological/practical as well as economic viability of the proposed disruptive innovation or concept with considerable novelty to the industry sector in which it is presented (new products, processes, design, services and technologies or new market application of existing technologies).
The SME will draft an initial business proposal (around 10 pages).
Phase 2. Demonstration, Market Replication, R&D
Concept to Market-Maturity (1-2 years)
Assisted by the EU, the SME will further develop its proposal through innovation activities, such as demonstration, testing, piloting, scaling up, and miniaturisation.
It will also draft a more developed business plan (around 30 pages).
Proposals will be based on a business plan developed on phase 1 or otherwise. The EU aims to contribute between €0.5 million and €2.5 million.
Phase 3. Commercialisation
Prepare for Market Launch
SMEs will receive extensive support, training, mentorship and facilitating access to risk finance as the project is further polished into a marketable product.
Additional support and networking opportunities will be provided by Enterprise Europe Network (EEN).
The EU will not provide additional direct funding in this phase.
