SMEs, including social enterprises and cultural actors, can build their growth on business model innovation, taking into account new opportunities arising from servitisation, from individual empowerment, from a more collaborative economy, from opening up government data and services and from the pervasive use of new technologies. A change of paradigm from ownership to access, from individual consumption to shared functionalities can be applied in several sectors benefiting from digital technologies and ensuring more sustainable lifestyles to EU citizens particularly in cities. A similar paradigm shift is happening in the relationship between government, citizens and businesses, where societal actors take on a more proactive role in the design and delivery of public services. One of the main challenges is to attract business to use public platforms to create more value as current business models do not adequately exploit the benefits of participation and collaboration with government. New ways of creating, producing, consuming, using, educating, learning, caring, moving and living are emerging in European cities. New ways of exploiting tangible and intangible cultural heritage are made possible. News ways of creating innovative public services, using open data and open public services provide new business opportunities. SMEs developing and adapting new business models play a key role in these transformations. The specific challenge addressed by this topic is to enable SMEs in traditional and new sectors, collaborative economy and creative sectors, cultural heritage and the social economy as well as collaborative public service creation to innovate and grow across traditional boundaries, through new business models and organisational change.Scope:
The SME instrument consists of three phases, including a coaching and mentoring service for beneficiaries. Participants can apply to phase 1 or directly to phase 2.
In phase 1, a feasibility study shall be developed in order to verify the technological/practical as well as economic viability of an innovation idea/concept with considerable novelty to the industry sector in which it is presented (new products, processes, design, services and technologies or new market applications of existing technologies). The activities could, for example, comprise risk assessment, market study, user involvement, Intellectual Property (IP) management[[This is not limited to the costs of acquiring and enforcing European or international IPR titles but could include auditing and risk management schemes to protect IP assets across planned supply and distribution chains and more generally IP valorisation plans to enhance return on investment and lever commercial investment into the relevant project.]],
innovation strategy development, partner search, feasibility of concept and the like to establish a solid high-potential innovation project aligned to the enterprise strategy and with a European dimension. Bottlenecks in the ability to increase profitability of the enterprise through innovation shall be detected and analysed during phase 1 and addressed during phase 2 to increase the return in investment in innovation activities. The proposal should contain an initial business plan based on the proposed idea/concept. It should outline the specifications of a more elaborate business plan, which is to be the outcome of the project, and the criteria for success.
Funding will be provided in the form of a lump sum of EUR 50.000. Projects should last around 6 months.
In phase 2, innovation projects[[In the case of SMEInst-05-2016-2017, research type activities in medical application and clinical validation, including support for clinical studies and trials, will be predominant and will necessitate reimbursement at 100%. The Technology Readiness Levels indication does not apply.]]
will be supported that address the specific challenges identified and that demonstrate high potential in terms of company competitiveness and growth underpinned by a strategic business plan. Activities should focus on innovation activities such as demonstration, testing, prototyping, piloting, scaling-up, miniaturisation, design, market replication and the like aiming to bring an innovation idea (product, process, service etc.) to industrial readiness and maturity for market introduction, but may also include some research. For technological innovation, Technology Readiness Levels of 6 or above (or similar for non-technological innovations) are envisaged; please see part G of the General Annexes.
Proposals shall be based on an elaborate business plan. Particular attention must be paid to IP protection and ownership; applicants will have to present convincing measures to ensure the possibility of commercial exploitation ('freedom to operate').
Proposals shall contain a specification for the outcome of the project and criteria for success. They will include an explanation of how the results of the supported project are to be commercialised and of what kind of impact on the company is expected.
The Commission considers that proposals requesting a contribution from the EU of between EUR 0.5 and 2.5 million[[In the case of SMEInst-05-2016-2017, phase 2 proposals can request a contribution from the EU of between EUR 1 and 5 million.]]
would allow phase 2 to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts (higher or lower). Projects should last between 12 and 24 months.
Phase 3 of the SME Instrument aims to increase the economic impact of the funding provided by the SME Instrument phase 1&2 grants and by the business coaching. Phase 3 is not subsequent to phase 1 and/or 2, but provides specific support to SME instrument beneficiaries during and after phase 1 or 2.
All support under phase 3 of the SME instrument will be accessible through a single, dedicated entry point, which will serve as an information portal and a networking space.
This platform will offer access to two main strands of services:
In addition, phase 3 will create opportunities for partnering, networking and training, which are set out in the Dedicated Support Actions at the end of this call.
SME instrument beneficiaries are also offered dedicated business innovation coaching and mentoring support. This service is facilitated by the Enterprise Europe Network and delivered by a dedicated coach through consultation and signposting to the beneficiaries. The coaches are recruited from a central database managed by the Commission and have all fulfilled stringent criteria with regards to business experience and competencies.
Throughout the three phases of the instrument, the Network will complement the coaching support by providing access to its innovation and internationalisation service offering. This could include, for example, depending on the need of the SME, support in identifying growth potential, developing a growth plan and maximising it through internationalisation; strengthening the leadership and management skills of individuals in the senior management team and developing in-house coaching capacity; developing a marketing strategy or raising external finance.Expected Impact: