INNOVATION IN SUPPORT TO SMEs CIP PROGRAMME AND

INNOVATION IN SUPPORT TO SMEs CIP PROGRAMME AND THE EXPERIENCE FROM ANDALUSIA Nicolás Cuesta Santiago Andalusian Development and Innovation Agency

GENERAL PRESENTATION 1. CIP PROGRAMME 2007 -2013 MAIN ELEMENTS 2. ANDALUSIA’S EXPERIENCE IN INNOVATION SUPPORT

CIP: GENERAL PRESENTATION • CIP: Merge, under a single framework, a number of established Community Programmes, including: * Multi-annual Programme for Enterprise and Entrepreneurship (MAP) * Innovation related activities of 6 th Framework Programme for R&D * Promotion and demonstration of eco-innovation from the LIFE Environment programme * Stimulation of new ICT innovations, delivered through the e-TEN, e-Contentplus and MODINIS programmes * Promotion of energy innovation and efficiency and the uptake of new technologies covered by the Intelligent Energy-Europe (IEE) programme

CIP: GENERAL PRESENTATION • Main EU instrument for promoting entrepreneurship and innovation, supporting high-growth innovative SMEs • Developmental pathway – bridging the gap between research and the market • Bringing new technologies to the market / testing the new use of existing innovative technologies

GENERAL PRESENTATION CIP’s MAIN OBJECTIVES * Increase the competitiveness of enterprises, in particular SMEs; * Foster all forms of innovation including eco-innovation; * Reinforce the development of a sustainable, competitive, innovative and inclusive information society; * Promotion of new forms of energy efficiency and new and renewable energy sources in all sectors.

CIP: 3 pillars, 4 goals Competitiveness and Innovation Framework Programme 2007 – 2013 1. Enterprise (particularly SME) competitiveness 2. Innovation and eco-innovation 3. Competitive, innovative and inclusive information society 4. Energy efficiency and renewable energy sources Entrepreneurship and Innovation Programme (EIP) Intelligent Energy Europe Programme (IEE) Information and Communication Technology Policy Programme (ICT)

CIP budget 2007 -2013 1. Entrepreneurship and Innovation Programme € 2 166 m of which for eco-innovation € 430 m of which financial instruments € 1130 m 2. ICT Policy Programme € 728 m 3. Intelligent Energy Europe Programme € 727 m Total for CIP € 3 621 m • This is 60 % increase in annual spending on actions related to competitiveness and innovation by 2013 compared to 2006 • Original Commission proposal set a budget of € 4. 2 bn

CIP: GENERAL PRESENTATION • CIP is made up of three sub-programmes, each with it’s own management committee: * Entrepreneurship and Innovation Programme * ICT Support Programme * IEE Programme • The Entrepreneurship and Innovation Programme Committee (EIPC) will play a strategic role in setting the overall direction of CIP, and coherent overall implementation.

CIP: Entrepreneurship and innovation Main objectives * * * Improved access to finance Easier cross-border cooperation of SMEs More innovation and eco-innovation Better entrepreneurship and innovation culture Improved policy development

Entrepreneurship and innovation Main instruments * Financial instruments * Business support services (EIC and IRC networks) * Innovation networks (Pro-INNO Europe, Europe INNOVA) * Pilot projects and actions * Analysis and monitoring of good practices * Policy exchange and learning between Member States

CIP financial instruments • High growth and innovative SME facility (GIF) * Equity investments in innovative SMEs * Early-stage investments (GIF 1) * Expansion investments (GIF 2) • SME guarantee facility (SMEG) * Guarantees for debt, microcredit, equity, securitisation • Capacity building scheme (CBS) * Helping seed capital funds * Helping banks and other institutions * Implemented with international financial institutions

Funding sources Financial instruments CIP budget € 1. 1 bn JEREMIE funding EIB funds € 1 bn Managing MS funds European Investment Fund (EIF) Investments of Capacity (at least) € 1. 5 bn building Guarantee funds (at least) € 0. 5 bn Other investors EIF selects its financial intermediaries based on capability, history and solidity Venture capital fund Min. investment in SMEs: € 7 bn Guarantor Bank Min. lending to SMEs: € 23 bn

CIP 2007 EIP 2007 Work Programme and Support Measures v 8 March EC Decision v. EIP WP v 23 implementing measures v. Financial instruments (EIF): 124 Mio € v. Call network for services v. Eco-innovation v. Reduction of regulatory/administrative costs + 19 remaining measures 13

ELEMENTS TO EVALUATE CIP v. Management structure – enhanced role of the EIPC v. Enhanced evaluation processes v. Coherent Eco-innovation actions across the whole of CIP v. Horizontal use of cross-cutting instruments v. Clarified the complemetarity of CIP with other EU programmes, in particular with FP 7 and Structural Funds. v Welcome initiatives to help improve the environment for entrepreneurship and innovation 14

ELEMENTS TO EVALUATE CIP is positioned strongly towards those instruments geared towards delivery benefiting business in a number of ways: – – Increased support for equity and risk capital financing; micro credit financing improved role for Business Angels New integrated business and innovation support service network offering advice and assistance to business on EU opportunities – Actions to encourage SMEs participation and the take up 7 th Framework Programme for R&D opportunities – Funding for ‘market replication’ projects to help business test ‘just proven’ new innovative technologies for their 15 EU market readiness

Links · · · Financial instruments – www. eif. europa. eu Enterprise policy – ec. europa. eu/enterprise/ Innovation policy – ec. europa. eu/enterprise/innovation/ Policies on access to finance – ec. europa. eu/enterprise/entrepreneurship/financin g Euro Info Centres – ec. europa. eu/enterprise/networks/eic. html 16

Andalusia’s experience in Innovation support v v v ANDALUSIA THE NEW AGENCY THE ANDALUSIA GLOBAL GRANT (SGA) THE REGIONAL INNOVATION SYSTEM CONCLUSION 17

Andalusia’s experience in Innovation support Andalusian area: 87. 268 m 2 (17, 3% of Spain; 2% of EU ) v The population is 7, 8 M of inhabitants v 500. 000 and 700. 000 live in the cities of Malaga and Seville respectively, in the East and West region. v 8 administrative provinces: Almería, Cádiz, Córdoba, Granada, Huelva, Jaén, Málaga and Seville (capital city) 18 v

Andalusia’s experience in Innovation support Agencia de Innovación y Desarrollo de Andalucía IDEA (Agencia IDEA), is a new model of regional development agency, attached to the Regional Ministry for Innovation, Science and Enterprise, which brings together the experience accumulated by the Instituto de Fomento de Andalucía (Andalucia Development Institute, created in 1987) and which marks out new ways in which to reach one consensual objective: to make Andalusia an avant-garde region in the field of the most advanced economies. MISSION: To contribute to the economic and social development of our region, offering the best services to Andalusian companies, to the entrepreneurs and to the Junta de Andalucia (Andalucia Regional Government), encouraging business spirit, innovation, and co-operation within the system of science-technology-business and the competitiveness of our 19 productive structure.

Regional Development Agency NEW STRATEGIC CONCEPTS: Governance. Innovation and territorial intelligence. Public private partnership. Entrepreneurship. Top class business support services. The contribution of the Agencia IDEA to the development of Andalusia has been through two elements and with the support of the ERDF: - The Andalusia Global Grants (SGA) - The establishment of a Regional Innovation System 20

Andalusia Global Grant - It belongs to the Integrated Operational Programme for Andalusia (IOPA 2000 -2006). - AGENCIA IDEA= Intermediary body. - The procedures for the use of the global grant is the subject of an agreement between the managing authority and the intermediary body. - The Agencia IDEA has managed three global grants: • 1991 -1993 ( 78 Meuros) • 1994 -1999 ( 308 Meuros) • 2000 -2006 ( 446 Meuros – ERDF: 333, 096 M€) - Its main objective is to support and promote regional SMEs - Typology: -> Creation of companies -> Modernization of companies -> Competitive co-operation 21 -> R+D+I

Regional Innovation system Innovation constitutes one of the main driving forces of economic growth and favours the increase of productivity through the improvement of Andalusian enterprises competitiveness. Agencia IDEA is encouraging the Innovation and its Protection in order to enhance the technology level of Andalusian enterprises and contributes to the establishment of a Regional Innovation System, in the majority of cases, with the co-financing from ERDF, by means of: – Two Technological Parks (Seville and Malaga), an Industrial Park in Cadiz and an aeronautical industry Park in Seville. – Business Innovation Centres – Innovation and Technology Centres 22

Andalusia’s experience in Innovation support CONCLUSIONS v The accomplishment of PPP helps to increase the efficiency in the utilization of the Funds. v The management of Venture Capital with criteria of market and the obtaining of capital gained derivative from the Funds, generate private investors’ confidence and will enable their participation in other Funds. v For certain typologies such as Seed Capital, it is very difficult to obtain the participation of private investors so they must be tackled through public funds (e. i. CAMPUS). v The Global Grant is an excellent tool for the implementation of measures in favour of SMEs because of its flexibility, specialization, stability and agility in the procedures. v The use of specialized instruments such as Global Grants or JEREMIE initiative seem adapted to support SMEs and Innovation in the next programming period 23

THANK YOU CONTACT DETAILS Nicolás Cuesta Santiago Andalusia Development and Innovation Agency E-mail: ncuesta@junta-andalucia. org 24