Download - Lowendalmasaï - Funding Innovation

R&D AdvisoryA global approach to boost innovation

Via A. da Recanate 1, 20124 Milano

Tel. +39 02 80583223

Fax. +39 02 80583227

www.lowendalmasai.com

Lowendalmasaï - Copyright 2014 ® - 2

R&D Advisory

Some opportunities

│ Agenda

Lowendalmasaï at a glance


São Paulo

Mumbai

Sydney

Hanoi

Shanghai

Tokyo

Astana

Moscow

Tel Aviv

Tunisi

Izmir

Istanbul

Consulting Office Sourcing Office Strategic Partner

London

Madrid

Paris

Milan

Rome

Düsseldorf

Copenhagen

Barcelona

Lisbon

Bratislava

Prague

Oslo

Geneva

Amsterdam

Thessaloniki

400 EMPLOYEES IN THE WORLD

2,500 ACTIVE CLIENTS FROM ALL BUSINESS SECTORS

20 YEARS OF EXPERIENCE

We support our Clients at local and global level providing innovative solutions which lead to measurable and sustainable results

CorporateProfile

Enterprise Cost Management: we aim at reducing enterprise costs generating cash and lightening tax burden, without resorting to cuts or human capital reductions


Our areas of expertise are characterized by an efficient combination of strategy and pragmatism

Enterprise Cost Management

WORKING CAPITAL

OPTIMIZATION

FISCA

L COST

OPTIM

IZATI

ON

INNOVATIONFINANCING

SOCIAL CO

ST

OPTIM

IZATION

PURCHASING & COST

PERFORMANCE


Lowendalmasaï remuneration model (fixed and variable fees) is orientated to success and based on tangible and measurable results

Results

%LowendalmasaïVariable Fee

Lowendalmasai key assets

Lowendalmasaï key success factors

• Lowendalmasaï success fee is based on reached and validated results

• We always align our objectives with the client’s

• Lowendalmasaï aims at providing effective and durable results, as we base our success on the client’s satisfaction

Operational support• Coaching during

implementation• Doers, not sayers

Know How• Successful methodology• Cost optimization

specialization• Business sector expertise

Results• Tangible and

measurable results• Partnership

Collaboration with the

Client• Culture based on listening• Relationship with

operational contact people

Lowendalmasaï garantees:


We are proud of our prestigious Client portfolio, which includes both international groups and middle-sized dynamic companies

Transport Logistics & Services

Automotive & Aerospace

Energy and Oil & Gas

Chemical-Pharma & Healthcare

Food Beverage & HoReCa

Retail Distribution and Consumer Goods

Banking Finance Insurance

Luxury & Fashion

IT Electronics & Appliances

Industry & Construction

Advertising, Publishing & Services

Our Clients


│ Agenda

R&D Advisory

Some opportunities



• Tax reliefs have been introduced since the 80’s•

• There are two main forms of tax incentives :• Tax credit

• Either as a volume amount (x% of qualified expenditures)

• Or as an incremental amount (x% of expenditures above a base level, usually based on the expenditures of the 2 or 3 preceding years)

• Superdeduction• R&D expenditures are multiplied by a

coefficient before being subtracted to the operational result – resulting in lower corporare taxation (superdeduction x tax rate = volume amount of R&D tax credit)

• Most countries have a definition of eligible project that are similar to the definition of the Frascati Manual

• Funding is a set of instruments to boost innovation and competitiveness overcoming potential market failures

• Such instruments exist worldwide at different levels: international, national, local

• Amounts and requirements depend on specific regulations mostly related to the achievement of technological targets

• There are two main forms of funding:• Direct Funding:

• the contribution is a percentage of the project total budget and there is no obligation to return

• Credit Facility:• The contribution has the form of a credit

up to 100% of the total budget with no or facilitated interest rate

│ Introduction on R&D tax reliefs and fundingTax reliefs and funding represent two aspect of a strategy to boost R&D

and Innovation at international, country and local level

Tax Relief Funding


• Solution not obvious for someone having a good professional knowledge of the industry

• Risk of failure

• Solution above the existing state-of-the-art for products, processes and services

• Significant improvement between before and after the project

• Education of R&D personnel (engineers, PhDs…)

• Knowledge management

• Tests, experiments, trials, iterations…

INNOVATION

TECHNICALDIFFICULTIES

SCIENTIFICMETHODOLOGY

Eligible expenses

│ R&D: a common definition

Even though rules can be different, the R&D definition from Frascati Manual is accepted worldwide


│ Our approach

One single team for a global world Anticipate issues

instead of trying to solve them

See funding and facilitations from a strategic point of view

Get the chance to exploit hidden opportunities if observed at country level

Thanks to its “glocal” approach Lowendalmasaï is able to maximize the benefit emerging from international synergies and ensuring effectiveness at local level…


│ The added value

…which means widening the innovation effort and reducing its cost

ExampleBusiness Plan 2014

Scenario 1: as is

• 4 projects proposed• The budget allows only

the project A to be financed

• The others cannot be run

A

BC

2M€ 0,8M€

0,7M€

D

0,5M€

Scenario 2: results

• Also project B can be run• Result: one step beyond

expectations!

A

BC

2M€ 0,8M€

0,7M€

D

0,5M€

Identification of opportunities

• An EU funded programme gives the opportunity to rise up the 70% of project A

• 400k€ can be now allocated on Project B

• Through a tax relief is possible to get a 50% refund of project B

A

BC

1,5M€

D

0,5M€

0,8M€

2M€


Interviews

Understanding of the

development strategy

Data Collection

Kick-off Meeting

Phase 1

Data collection

Check-up of opportunities

Overview of technical

implications

Feasibility study

“As Is” Photography

Phase 2

Assessment

Creation of possible

scenarios

Funding quantification

Potential funds

Phase 3

“To be” proposals

Follow-up and reporting

Dossiers preparation and submission

Caring of institutional relations

Support in creating partnership

Phase 4

Implementation

│ Methodology

To properly meet clients’ needs Lowendalmasaï developed a comprehensive methodology starting with a strategic overview

Sworn certification of R&D expenses


│ Agenda

R&D Advisory

Some opportunities



R&D Tax Credit

Total budget 600.000.000 €

Duration 2014 2015 2016

Up to 2.500.000 €/year

Tax Credit50% of the increase in annual

R&D expenses

The credit can generate up to 7,500,000 € of savings

annual expenditure

increasePotential benefits

2016201520142013

= investment level

= potential benefit

Base research

Industrial research

Experimental development

Eligible activities

Development of new products, processes and services or improvement of existing ones

Eligible expenses

Labour cost Machineries

Research in cooperation with Universities and Reasearch

CentersContractual research

Acquired or licensed know-how and patents

│ Italian R&D Tax Credit: some detailsThe brand new enforced R&D Tax Credit is an incremental one with a

potential benefit of 2,5m€ per year


│ IRAP: R&D personnel cost deducton

Tax deduction

Beneficiaries

Eligible expenses

Relief

Companies of any size and belonging to any sector on the national territory

Cost of employees in charge of:

• Base research

• Applied research and industrial development

Tax base deduction of R&D related personnel cost

Example of potential benefit

Employees

Personnel cost

500

24m€

Potential benefit

180k€

Thanks to a correct classification of R&D costs it can be possible to get a tax deduction related to the cost of employees actually performing R&D activities

Source: Italian National Statistical Institute: last survey shows that the average proportion of employees dedicated to R&D in Italian companies is included between the 20% and the 40%

370k€


R&D Innovation

Non-Profit 100% 100%

Profit 100% 70%

+ Additional flat rate: 25% Direct Costs

Lowendalmasaï proposal

• Roadmap and strategy

• Support in creating the consortium and in outlining the project

• Identification of already existing consortium

• Technical supervision of proposals

• Lobbying

• Training

What is it It is the financial instrument of the European Commission to boost research and innovation

Duration 2014 - 2020

70B€Budget

3 Pillars Excellent science

Industrial leadership

Societal challenge

Funding per project

│ Horizon 2020

The EU launched the new funding program to boost research and innovation with a total budget of 70B€ and a lot of opportunities for all industry sectors


Lowendalmasaï offers to its clients an international insurance which intervene in case of sanctions

Quality guarantee of the work performed

€ 5.000.000 coverage cap in

case of administrative

sanctions

Support in case of inspections by

responsible bodies

│ Continuous support

Lowendalmasaï Italia

Via Antonio da Recanate 1 – 20124 Milano

Tel: +39 02 80 58 32 23 – Fax: +39 02 80 58

32 27

www.lowendalmasai.com

Paris - HQEUROATRIUM

7, rue Emmy Noether93400 St Ouen

France T : 33 (0) 1 83 72 72 00

London5th Floor Bridewell Gate

9 Bridewell PlaceEC4V 6AW – London,

United Kingdom Tel. +44 (0) 203 697 81 00

LisbonRua da Misericórdia 76,

1200-273,Lisbon PortugalT: (+351) 213 210 219

DüsseldorfLouise-Dumont-Str. 5 D-40211, Germany

T: +49 (0) 211 71 06 75 0

MadridAvenida de Bruselas, 7,

28108,Alcobendas, Spain T : +34 91 319 28 75

BarcelonaTorre Inbisa

Plaça Europa, 9 – Planta 14-AL’Hospitalet de Llobregat

08908 Barcelona - SpainTel: (+34) 93 201 07 00

AmsterdamMauritsstraat 11

2011 VN, Harlem, NetherlandT: +31 23 511 2980

ShanghaiHong-Kong Plaza, 283 Middle

Huaihai Road, Room 1503,Shanghai 200021, China

T: +86 (21)63411255

TokyoKitasando DT Bldg. 5F,

4-16-7Sendagaya Shibuya-ku, TOKYO 151-0051 - JapanT : +81 (0)3 6661 4501

RomeVia Salaria, 58

00198, Rome, Italy

Download - Lowendalmasaï - Funding Innovation

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