Swiss start-ups get access to EUR3 billion of funding from Horizon 2020

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Stefan Kyora

02.01.2017
Euro

Swiss researchers and organisations will now be able to fully participate in Horizon 2020, the European Union's research and innovation funding programme, on equal terms with entities from EU Member States and other associated countries. The most important change for start-ups: Swiss companies can benefit from the Horizon 2020 SME Instrument.

Since 1 January 2017, Switzerland is again fully associated to Horizon 2020. Until now, Switzerland has only been associated to parts of the programme. The change is due to Swiss ratification, on Friday 16 December 2016, of the Protocol extending the EU-Switzerland Free Movement of Persons agreement to Croatia, which was the condition for Swiss association to all areas of Horizon 2020.

The partial association had several disadvantages for Swiss SMEs and start-ups. An important disadvantage was the uncertainty regarding the role of Swiss companies in Horizon 2020 projects. Another lesser known but also very important disadvantage was that Swiss companies were excluded from the SME instrument which was launched in 2014 to support innovative SME. As Switzerland is now again an Associated Country Swiss start-ups and SME are eligible to participate and receive funding from the European Commission.

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.

During the first two years of implementation (2014-2015), more than 1200 SMEs were selected to receive funding under the SME instrument call; as such, 513 million Euros were invested in the success of innovative SMEs. By the end of Horizon 2020, the SME instrument should have supported some 7500 SMEs to get their innovations delivered onto the market.  

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.

More information about Horizon 2020 can be found on the website of Euresearch.

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