Scottish Funding CouncilHorizon 2020 SME Engagement Scheme

Guidance Notes AY2014/15

About the Scheme

Eligibility Companies not registered in Scotland & Spin Outs Can a company apply for more than one award? Value of Award

Finance

Eligible Costs VAT

Application form

Scope of Applications How to submit Timescales for start/end dates How are collaborations chosen

Payment

Final reports Payment of grant

Data Sharing

Freedom of Information De Minimus Rules & State Aid

H2020 – THE BIGGER PICTURE

Horizon 2020 is a new, €70 billion European funding programme which will support research and innovation and drive the creation of new growth and jobs in Europe. The programme will run from 2014 to 2020 and will combine the current Framework Programmes for Research and Technical Development, the innovation related activities of the Competitiveness and Innovation Framework Programme (CIP) and the European Institute of Innovation and Technology (EIT)

Support for Research and Innovation under Horizon 2020 will: Strengthen the EU’s position in science by boosting top level research in Europe and

increasing funding for the European Research Council Strengthen industrial leadership in innovation through major investment in key

technologies, greater access to capital and support for SMEs Address major societal challenges such as climate change, developing sustainable

transport and mobility, making renewable energy more affordable, ensuring food safety and security, and coping with the challenge of an ageing population by bridging the gap between research and the marketplace.

Horizon 2020 will present new opportunities for international co-operation and cross collaboration across Member States and will be complemented by measures to complete and further develop the European Research Area. All of these measures will be aimed at breaking down barriers to create a genuine single market for knowledge, research and innovation. Horizon 2020 presents a significant opportunity for companies throughout Scotland.

Horizon 2020 will be divided into three main areas:

Excellent science Competitive industries - through strengthening leadership in enabling and industrial

technologies, and greater access to capital and support for SMEs Tackling societal challenges, including

o Health, demographic change and well-being o Food security, sustainable agriculture and forestry, marine and maritime and

inland water research, and the bioeconomy o Secure, clean and efficient energy o Smart, green and integrated transport o Climate action, environment, resource efficiency and raw materials o Europe in a changing world - inclusive, innovative and reflective societies o Secure societies - protecting freedom and security of Europe and its citizens

Details for specific calls can be found here: http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/index.html

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What is the Horizon 2020 SME Engagement Scheme?

The Horizon 2020 SME Engagement Scheme is aimed at supporting Scottish based SMEs to explore opportunities of Horizon 2020 funding and apply for particular schemes or calls, with the assistance of a Scottish Higher Education Institute (HEI).

The proposed programme of activity should lead to applications for H2020 funding that will benefit the business and the Scottish economy. The Horizon 2020 award is seen as an initial step on the “journey of engagement” for the business to access H2020 funds with other agencies likely to provide additional support if the H2020 application is successful e.g. Negotiation of contracts.

The H2020 SME Engagement Scheme can award up to £5,000 for an individual project. The Scheme is specifically intended to encourage companies through support for fact finding, travel to meet with potential partners, admin support and use of university expertise.

The support provided to eligible companies through Scottish Higher Education Institutions will be drawn from Scottish Funding Council.

KEY PRINCIPLES

The purpose of the scheme is to encourage SMEs to engage more effectively with European Funding, under H2020.

Academics or European officers within HEIs can offer expertise and experience to advise and facilitate appropriate consortium building and support towards full H2020 application for the SME.

The award will be paid to the HEI on submission of a completed final report and HEI costs will be reimbursed by the SFC (please note the grant will not be paid to the SME or any in kind costs reimbursed.)

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HORIZON 2020 SME ENGAGEMENT PROCESS

ELIGIBILITY

All SMEs (including social enterprises) with main business operations in Scotland (it is anticipated that these will hold a registration commencing SC) are eligible to partner with a HEI under the H2020 scheme. By SME we refer to organisations that are registered companies, employ between 1- 250 employees and have an annual turnover not exceeding 50 million euro.

Reference Source: http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf

The rationale for the award being targeted specifically at registered companies is that they are likely to have a more sophisticated structure to embrace more readily the concept of

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Complete application form and email to application@interface-

online.org.uk

Due diligence and eligibility checks will be performed by

Interface

Application submitted to SFC for consideration

SFC confirm approval of grant via confirmation email

Applicants notified that further information is required.

Applicants submit further information for consideration

SFC notify applicants of decisionProject commences

innovation and partner with other organisations in a collaborative bid to the European Commission.

Collaborations with organisations within the “third sector” are eligible so long as they meet the definition and registration requirements for an SME as set out above.

For the Agrifood sector, businesses that are solely engaged in primary production, the cultivation of crops and husbandry of livestock, are not eligible for support under de minimis, unless they are able to show that they have the capacity to undertake R&D activity that will have a wider impact within the Agrifood sector, for example by selling the product/service to other businesses, not just for use on your own farm. If you are involved in any of the above activities, make sure your application shows us clearly how you will use the idea in this wider way.

There are options available for Scottish SMEs to ‘pool’ awards e.g. multiple SMEs working with one or more academic partners in developing the same H2020 application.

For Companies not registered in Scotland

If the company is not registered in Scotland then additional information must be supplied prior to submission of an application (see Appendix 1). This information must include the following details:

the company’s presence and activity in Scotland; background to the company: what do they do, the company’s trading status? ; the number of employees, remit, website details; how the H2020 award will focus on the development of the company’s activity in

Scotland; how they would take forward the outputs from the H2020 project – i.e. impact to

Scottish operations?

Spin outsIf you are a Spin Out then please complete the pre-submission information and send to applications@interface-online.org.uk to check eligibility.

Sole TradersWhile sole traders are not excluded from this SFC scheme, it will be necessary, as in all applications, to outline the credibility of their future H2020 application given the historical evidence which strongly suggests that sole traders are not awarded EU funds as they are deemed to have insufficient capacity to successfully participate in the programmes and deliver projects to the benefit of Europe.

If in doubt about the eligibility of the company please seek further clarification from Interface prior to preparing a submission; applications@interface-online.org.uk

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Can a company apply for more than one H2020 Award?

Companies in conjunction with an HEI partner can apply for more than one H2020 SME Engagement award. Please note that the HEI must be the lead applicant. However, only one application by the Company can be “live” and on-going at any point in time. i.e. A satisfactory final report must have been submitted from a previous H2020 SME Engagement award prior to a new application for funds being submitted.

Can a company apply if it has no university partner in Scotland?

A company intending to apply to a H2020 call either under a call for a single SME application (e.g. SME instrument) or in a planned consortium with no Scottish university partner can still apply for support for exploratory and preparatory activities through the H2020 scheme. A Scottish university will be identified to offer assistance: by the company itself, or with the help of Interface.

FINANCIAL INFORMATION

What is the Value of the award?

The award for an individual programme of work towards an identified H2020 application opportunity is for up to £5000, with a minimum of £1000, and will be paid upon submission (and sign off) of a final report proforma by the supporting academic institution (sent to applications@interface-online.org.uk ) and approval by the Scottish Funding Council. The SMEs are expected to match the grant contribution with an in kind contribution only (time, resources etc.)

It is anticipated that applications to the scheme will be submitted around 6 months in advance of a H2020 call closing date to ensure sufficient time to scope up the application and support the SME engagement during the period leading up to the call closing. The effectiveness of offering support for programmes of work over considerably shorter periods will be assessed on a case-by-case basis.

All expenditure must be clearly accounted for in a final report. Applicants should note the guidance on VAT set out below.

HEIs supporting the SME participation should use the application form to set out the exact costs of activity by both the SME and the HEI. (In terms of value for money e.g. staff time, materials, advanced purchase standard class travel etc.) The contribution from the SME is an in kind contribution only and these costs will not be reimbursed by the SFC.

Please note that the award is paid directly to the HEI and not the SME. The award can only be used for work carried out by HEI staff or any services they have purchased i.e. booking flights for the SME/arranging travel for the SME. Further information can be found in the eligible costs section below.

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SFC would not expect the HEIs to conduct this activity at a loss and they should set out their rates accordingly. Full economic costing (FEC) will inform this process. Equally, SFC would expect HEIs to justify the costs and will look at the proposal with an appropriateness and value for money test.

What costs are eligible?

Eligible costs include:

Exploratory meetings for the SME with partners in other European Countries to prepare the H2020 proposal

Travel for the SME to attend European information days, brokerage events directly related to the project objectives, relevant discussions with European Commission officials or similar.

HEI staff time to scope up project application for the SME (setting the budget, market analysis, first feasibility studies, lab visits)

Due diligence work to identify other collaborative partners e.g. HEIs and companies Participation in training sessions or information about the chosen theme for the Call HEI Administrative time e.g. to arrange meetings, book flights, arrange

accommodation etc. for the SME. Travel and subsistence – this should be in line with HEI rules on travel and

subsistence

A breakdown of all costs for the actual work completed and other associated costs eg. Travel will be submitted with the final report and invoice. Eligible expenditure should be for activity explicitly set out in the approved application.

It is the responsibility of the HEI that the day rates included for staff costs are appropriate for the skill set / sector. A request to substantiate these rates with evidence of appropriateness may be made on submission of the application for auditing purposes.

For the avoidance of doubt, the following activities are, as for the standard Innovation Vouchers, not eligible for support in the H2020 Scheme:

o Standard training courses.o Software purchases. o Aid that would promote/ subsidise the cost of exports. o Internships for students of knowledge institutions.o Sales and marketing activitieso Design and production of advertising materials including websites and mobile

applications if these are to be used for sales and marketing

In addition, the H2020 scheme should not be used to support:

Third-party consultancy costs: the support for the SME should derive from university expertise

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Academic-only applications: the awards are intended to assist SME engagement with H2020

HEI travel to attend European meetings – unless reasons are fully justified. HEI input on H2020 proposal, this scheme can only support SME engagement.

PREPARING AND SUBMITTING APPLICATIONS

Application form

The application form has 2 main sections1. Partner details and declaration; and2. Details of the proposed programme of activity

All applications should 'aim at' particular calls under H2020, these being:Excellent Science, Competitive Industries and Tackling Societal Challenges and this information must be included on the application form. See below link to further information on the calls;http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/index.html

(When completing the form, please ensure correct email addresses and phone numbers are included). It is anticipated that the HEI partner will submit the application on behalf of the partner company.

For guidance please ensure that your application includes the following information:

Details of the proposed programme of activity:

Provide background information on the company and the context, aims and scope of the proposed collaborative project

Details of the specific H2020 call for proposals which are being aimed for. Outline why H2020 funding is appropriate for the company and academic partner? Outline how the proposed H2020 application fits with the strategic plan for the

company Timescale – please note that this needs to be realistic e.g. 6 months in advance of a

call closing

Description of how the award will be used:

Provide full details of the key activities and milestones, tasks and time scales for the period of the project clearly showing the contribution / roles from the company (in kind) and the HEI partner.

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Please include here the value (£) of contributions requested from the grant and being contributed by the company –in kind.

Scope of applications

It is anticipated that strong proposals would: Demonstrate a strong opportunity for a successful submission to a H2020 call

resulting in European funding being won by a Scottish SME. Develop, or further develop, a long term relationship between the company and a

Scottish HEI though this is not a requirement of the scheme. Provide an opportunity to develop new collaborative partnerships with European

HEIs and companies.

The SFC expects all applications to 'aim at' particular calls under H2020 or apply under the broader SME instrument which has broad areas addressing societal challenges. The SFC or Enterprise Europe can offer advice on calls.

How to submit an application?

The information on the chosen project must be forwarded by the HEI commercialisation or European office contact to colleagues at Interface: applications@interface-online.org.uk who will then perform due diligence. A decision on the award will be communicated by the Scottish Funding Council within 3 weeks. (Based on the date that the final version of the application is received by SFC).

The Scottish Funding Council reserves the right to turn down any application should it be deemed not to match the published criteria or overall purposes of the scheme. SFC may in some cases ask applicants for further information to clarify applications. SFC is not obliged to enter into a dialogue with the applying HEI to explain its decision.

Project timescales

H2020 awards are intended to fund short-term programmes of activity, however, both partners must be realistic in terms of time scales and setting a proposed completion date.

When selecting project start and end dates, please take in to consideration the following points:

3 weeks should be left from submission to approval by SFC (assuming there is sufficient information in the proposal to assess).

Please ensure that the timescales for revisions, approvals and holidays have been taken into account in nominating start and finish dates.

The closing date of the call for proposals or latest date that the SME intends to complete its application to an open call.

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SUBMISSION DATES 2014-15

Applicants are encouraged to submit on a regular basis with deadlines of 1st Monday of each month.

Agreed programmes of activity should generally be completed no more than 6 months after start date.

POST AWARD PROCEDURES

What happens if the circumstances change?

If for any reason the planned programme of activity changes, a Change Request form (Appendix 2) must be completed and sent to applications@interface-online.org.uk

Please be advised that if you do not notify Interface of any changes to the programme of activity, i.e. change of partnership, additional activities, changes to the call or timescales etc. then the SFC are under no obligation to make any payment towards the project.

Following the exploration stage, if the SME/HEI decides not to pursue with that particular H2020 application, the monies need not be paid back.

Final report and project completion

All final reports must be submitted to Interface using the address applications@interface-online.org.uk who will check them and liaise with the institution if required prior to passing them over to the SFC for payment. Please do not send directly to SFC as this will result in delays in processing.

The full and complete document should be submitted when making the final report. This means that we require the original application, final report and costing section as one document. HEIs should not raise a separate invoice (or include any separate documentation); section 3 of the final report proforma constitutes an invoice for the SFC payment purposes and must be signed off by the academic or commercialisation contact. Failure to do so will lead to a delay in payment being made.

The final report and invoice needs to be submitted to applications@interface-online.org.uk within 4 weeks of the agreed completion date for the programme of activity so, again, please be realistic with the proposed completion date.

In addition the HEI should inform applications@interface-online.org.uk of the outcome from the H2020 application once the decision has been made.

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Following a review of the final report the SFC may consult with the HEI and company teams to produce a case study following the completion of H2020 applications based on non-confidential information. The case studies will be used to promote the benefit of the scheme to other organisations. Please be advised that the case study will be produced unless you opt out of this.

When is the grant paid?

The grant is payable to the HEI and will be paid on agreement of the completed final report and invoice for the costs incurred. The final report must clearly outline how the grant was spent e.g. travel, accommodation, proposal preparation etc. Payments eligible for grant must have been incurred and defrayed by HEIs.

Failure to submit the final report proforma within 4 weeks of the nominated end date may result in the grant not being paid by SFC.

Are the awards subject to VAT?

VAT which is recoverable, by whatever means, is ineligible, even if it is not actually recovered by the final beneficiary or individual recipient. Irrecoverable VAT can be claimed as an eligible cost provided the claim is substantiated by appropriate evidence from the organisation’s auditors or accountants. It is at the discretion of the individual HEI and their internal procedures that the proposed scheme of activity is classified research or consultancy.

CONFIDENTIALITY, DATA SHARING AND INTELLECTUAL PROPERTY

Joined Up Government and Freedom of Information

The Scottish Funding Council may share information about projects with the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise and any other appropriate organisation in the interests of developing and promoting the H2020 Scheme.

The Scottish Funding Council is subject to the Freedom of Information (Scotland) Act 2002 and as such may be requested to disclose information regarding the H2020 Scheme. Award recipients will be consulted before any decision to disclose information is taken. However, any refusal to disclose may be appealed to the Scottish Information Commissioner.

De Minimus Rules and State Aid

The assistance for a Knowledge Exchange Business Assist Support Award constitutes State aid as defined under Articles 87 and 88 of the Treaty of Rome and is being granted as ‘de minimis’ aid under Commission Regulation EC 1998/2006 (the "de minimis" aid regulation).

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European Commission rules prohibit any undertaking from receiving more than €200,000 ‘de minimis’ aid over any period of three fiscal years. Any ‘de minimis’ aid granted over the €200,000 limit may be subject to repayment with interest.

If the SME partner has received any ‘de minimis’ aid over the last three years (from any source) they should inform the higher education institution with which they intend to collaborate immediately with details of the dates and amounts of aid received. Furthermore, information on this aid must be supplied to any other public authority or agency asking for information on ‘de minimis’ aid for the next three years.

For the purposes of the ‘de minimis’ regulation, the award letter must be retained for 3 years from the date on the letter and produce it on any request by the UK public authorities or the European Commission. (You may need to keep the award letter longer than 3 years for other purposes.)

The best place to refer to for state aid information is the BERR website for definitions and information, exemptions etc.http://www.berr.gov.uk/whatwedo/businesslaw/state-aid/rules/frameworks/page28712.htmlYou can also refer to the European Union online’s website: http://ec.europa.eu/comm/competition/state_aid/reform/reform.html

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Appendix 1

Scottish Funding Council H2020 SME Engagement Scheme

PRE-SUBMISSION BACKGROUND INFORMATION

AY2014/15

You should complete this form if the following applies to you:

Companies not registered in Scotland

You are a spin out

You need to check eligibility

If any of the above applies then additional information must be supplied prior to submission of an application. This information must include the following details:

o the company’s presence and activity in Scotland;o how the award will focus on the development of this element of the company’s activity;o background to the company: what do they do, the company’s trading status? ;o the number of employees, remit, website details; ando how they would benefit from European funding and build on the ?

Please send the information requested above to applications@interface-online.org.uk to confirm eligibility, prior to submission of a full application.

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Appendix 2Scottish Funding Council

H2020 SME Engagement Scheme - Project Change Request Form

Company Name University Name Requested by

Date Requested H2020 call being addressed

Change Request Description(Describe the change)

Proposed Revised Start date

Proposed revised End date

(Reason for the request)

(Priority)

HighMediumLow

(Impact of not making the change)

Date form receivedChange request approved / deniedAction to be takenThe final report and invoice needs to be submitted to applications@interface-online.org.uk within 4 weeks of the agreed completion date of the programme of activity so please be realistic with the proposed completion date.

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