Medical Technologies Launchpad Wales
COMPETITION R&D FUNDING – FULL STAGE BRIEFING
22 January 2015
HELEN FEATHER
Competitions Executive
Health and Safety
Introductions
• Helen Feather, Competitions Executive
• Barry Shaw, Competitions Executive
• Neil Morgan, Lead Technologist, Medical Technologies
Agenda
• Introductions
• Recap of Stage 1
• Q&As
• Application criteria & process
• ****Coffee break****
•
•
•
•
Funding
Your project costs
Submitting your application & the way forward
Q&A (Process)
Medical Technologies Wales Launchpad
COMPETITION R&D FUNDING – FULL STAGE BRIEFING
22 January 2015
Neil Morgan
Lead Technologist
Launchpad Competitions
– 2014/15
• Tech City 2 – London &
Cambridge IoT (£1m budget)
–opened 16th June 2014
• Harwell Space 2 (£1m
budget)
–opened 30th June 2014
• North East Process Industries
(£1m budget)
–opened 1st September 2014
• Medical Technologies Wales
(£1m budget)
–opens 27th October 2014
• Digital cluster tbc (£1m
budget)
–will open March 2015
Background
The UK has a strong and diverse manufacturing base but
SMEs in this sector still face significant challenges:
–a declining UK-based supply chain
–skills shortages
–reduced access to finance
–changes in global procurement policies
–an economic and cultural climate that makes it difficult
to attract investment in manufacturing and materials
technologies.
Clusters can increase the productivity of the companies in
the area, by driving innovation in the field, and by
stimulating new businesses in the field
Launchpads
• Launchpad competitions support the cluster through
–R&D project funding
–Business support
–Attracting new investment
–Growth of the cluster through new partnerships
• Launchpad competitions are open to SMEs that:
–Are in the cluster
–Plan to start up in the cluster
–Move into the cluster
–Collaborate with a company already in the cluster.
Connecting to Business Support
• Growth Coaching
• Delivery through existing coaching programmes
• Focus on project activities around business development, access to finance or
growth through innovation
• Aimed at senior leadership teams of suitable high-growth companies
• Mentoring
• Delivery through mentoring partner organisation
• Focus on one-to-one support and guidance from experienced professional
• Aimed at individual founders / senior leaders
• Entrepreneurial Skills training
• Delivery at local level
• Focus on skills for strategy development, access to finance, customer
engagement
• Aimed at senior leadership / mid-level team members
Cluster
There is no precise boundary – this is about interactions on a
common theme but participants must:
•
•
•
locate their project teams in the cluster
partner with businesses in the area, or
take advantage of the facilities that are available there
Competition Scope
We are looking for medical technologies that do
not achieve their intended action purely through
pharmacological, immunological or metabolic
means
Or not drugs or vaccines
Competition Scope
• What do we mean by Medical Technologies?
• ‘any instrument, apparatus, appliance, software, material or other article,
whether used alone or in combination, including the software intended by its
manufacturer to be used specifically for diagnostic and/or therapeutic
purposes and necessary for its proper application, intended by the
manufacturer to be used for human beings’
• Or – Medical technologies that do not achieve their intended action purely
through pharmacological, immunological or metabolic means
Competition Scope
The scope of the Launchpad is therefore very broad and may
be defined as medical technologies (not drugs or vaccines)
that:
• diagnose, prevent, monitor, treat or alleviate disease
• diagnose, monitor, treat, alleviate or compensate for an injury or
disability
• investigate, replace or modify the anatomy or a physiological
process
• control conception
Questions & answers
Scope
Application process
Helen Feather
Recap on eligibility
Video Submission
Launchpad
Type of Competition
Two Stage
Project composition
Single or
Collaborative
Funding available
Assessment
£1m
Full Stage Application
Project Size
Up to £250k
Approx % Funding
for business
60%for SMEs
Anticipated Project
length
Up to 18 months
Application form
10 marked
questions
Assessment and
moderation panel
Notifications
Full stage application includes:
• 10 question written application form
• Appendices
• Finance details for each partner
Types of project
Commercialisation
Prod. Prototype
System Qual.
System Dev.
Technology Demo
Technology Development
Feasibility
Blue sky
Research
Councils
FUN
IND
Innovate UK and its co-funders funding
Market readiness
EXP
Commercial Investment
Venture Capital
Stage One Feedback
• You have received the comments from the assessors.
• These are meant to be constructive and useful in assisting you
to produce a successful application.
• Contradiction is meaningful – is your proposal as clear or as
well justified as you believe?
• Comments are NOT a check list of points which must be
answered or argued in the Full Stage application.
• If they are not useful then disregard the comment.
Application form
Full stage process
• Your full stage application uses a different system
• You will have received an email from [email protected]
with an application form along with a user id and password to
access your secure area on our competitions portal.
Secure area
Enter your login details
and accept the T and
Cs. Click the Login
button at the bottom.
Application form structure
The Application is broken down into sections:
Please refer to the
Competition Guidance
Gateway: Scope
Does the project fit the scope of the competition?
Section One:
Business Proposition
What is the business proposition that you are trying to
address and exploit?
Section Two:
Project & Partners Details :
What will the project entail?
Who are your project team members and what are their
credentials?
Section Three:
Funding & Added Value
Is the project value for money?
Why do you need public sector funding for this project?
Finance Summary Table
Table of project partners , each with project costs and the
funding requested
Project Summary
Summary of Proposed Project (Not Scored)
Question
Guidance
Please provide a short summary of
the content and objectives of the
project including what is innovative
about it.
This is an opportunity to provide a short summary
of the key objectives and focus areas of the project.
It is important that this summary is presented in
reference to the main outline of the project, with
sufficient information to provide a clear
understanding of the overall vision of the project
and its innovative nature.
This summary is not marked, but provides a
summary of your proposal for the benefit of the
Assessors.
This part of the application is not marked
Public Description of the Project
Public Description of the Project (Not Scored)
Question
Guidance
If your application is successful,
Innovate UK will publish the
following brief description of your
proposal. Provision of this
description is mandatory but will not
be assessed.
To comply with Government practice on openness and
transparency of public-funded activities for projects in
receipt of grant, Innovate UK has to publish
information relating to funded projects. Please provide
a short description of your proposal in a way that will
be comprehensible to the general public. Do not
include any commercially confidential information, for
example Intellectual Property or patent details, in this
summary
Whilst this section is not assessed, provision of this
public description is mandatory. Funding will not be
provided to successful projects without this.
This part of the application is not marked
Gateway Question: Scope
How well does the project fit the competition?
Scope Gateway question
Question
Guidance
Key points:
Gateway question: Scope - How
does this application align with the
specific competition scope?
All applications must align with the specific
competition scope criteria as described in the
relevant competition Brief.
•
“must align”
•
“clear majority of the
project’s objectives
and activities”
Note: To demonstrate alignment, you need to show
that a clear majority of the project’s objectives and
activities are aligned with the specific competition.
In forming their judgment on this, the assessors will
also consider whether the application addresses the
research objectives and topics it claims to. It is
important, therefore, for you to understand fully the
background, challenge and scope of the
competition, as outlined in the Competition Brief.
Don’t write
yourself out of
scope...!
Section 1
The business proposition
Question 1
What is the business opportunity that this project
addresses?
Question 2
What is the size of the market opportunity that this project
might open up?
Question 3
How will the results of the project be exploited and
disseminated?
Question 4
What economic, social and environmental benefits are the
project expected to deliver to those inside and outside of
the consortium and over what timescale?
All questions are equally weighted (10 marks per question)
Business Proposition – key points
Question 1
What is the business opportunity that this project addresses?
Question 2
What is the size of the market opportunity that this project might
open up?
• Have you identified a viable business opportunity?
• Is it clear you understand the dynamics of the market?
• Has the “size of the market” been quantified and where possible, has
evidence been given?
• Is the business need and market realistic and addressable by the
project?
Business Proposition – key points
Question 3
How will the results of the project be exploited and disseminated?
Question 4
What economic, social and environmental benefits are the project
expected to deliver to those inside and outside of the consortium
and over what timescale?
• Is it clear how your consortium plans to exploit the results?
• Is it clear how your consortium will benefit from the project?
• Have you quantified the value of the output and how it will be
disseminated?
• Who else will benefit from the project and how?
• Will there be any social or environmental impacts? If these are negative
how will they be mitigated?
• Sustainability implications?
Section 2
The Project details
Question 5
What technical approach will be adopted and how will the
project be managed?
Question 6
What is innovative about the project?
Question 7
What are the risks (technical, commercial and
environmental) to project success? What is the project’s risk
management strategy?
Question 8
Does the consortium have the right skills and experience
and access to facilities to deliver the intended benefits?
All questions are equally weighted (10 marks per question)
Project Details – key points
Question 5
What technical approach will be adopted and how will the project be
managed?
Question 6
What is innovative about the project?
• Have you described the main technical objectives, methodology and the
project plan?
• Have you explained how the project will result in substantial and lasting
changes?
• Does the project present both commercial and scientific innovations?
• Have you provided evidence such as patent search of this innovation?
The UK Intellectual Property Office says 80% of published patents are lapsed and
estimates that 30% of European R&D expenditure is wasted!
Project Details – key points
Question 7
What are the risks (technical, commercial and environmental)
to project success? What is the project’s risk management
strategy?
• Have you identified the risks for your project; technical,
commercial, managerial, environmental and others?
• Have you outlined how the risks will be managed and
mitigated?
Innovation is risky!– what is important is whether you have identified the
risks and how you plan to mitigate them!
Project Details – key points
Question 8
Does the consortium have the right skills and experience and
access to facilities to deliver the intended benefits?
• Why are you the consortia best placed to do this project?
• Have you adequately demonstrated your consortia’s proven
track record?
• Have you successfully completed other innovative R&D
projects?
• Do you have the ability within the consortia to develop and
exploit?
Section 3
Funding and added value
Question 9
Question 10
What is the financial commitment required for
the project?
How does the financial support from the Innovate
UK and its funding partners add value?
All questions are equally weighted (10 marks per question)
Funding – key points
Question 9
What is the financial commitment required for the project?
• Do not simply write out the finance table!
• Have you explained the funding model & cost break down for the
project?
• Is the budget realistic and appropriate? – underestimating cost is as
bad as overestimating costs
• Have you explained and justified any significant costs e.g.
subcontracting or travel?
• Have you articulated and quantified the amount of investment
required to deliver the project?
Funding – key points
Question 10
How does the financial support from Innovate UK and its funding
partners add value?
• Will Innovate UK investment increase the amount of Research
and Development undertaken in the UK?
• Have you explained and justified why you are not fully funding
the project yourselves?
• Have you explained how the project would be undertaken
differently with Innovate UK investment?
• What are the implications of Innovate UK funding? What does it
mean to the project, idea and exploitation?
Finance Summary Table
Finance Summary Table
1
2
Organisation name
Company
registration
number
3
Enterprise
category
4
5
6
7
8
Postcode
Contribution to
project by each
organisation
(£)
Funding sought
from Innovate UK
(£)
Other funding
from public
sector bodies
(£)
Total
(£)
Lead org.
Please Select
0
0
0
0
Partner 1
Please Select
0
0
0
0
Partner 2
Please Select
0
0
0
0
Partner 3
Please Select
0
0
0
0
Partner 4
Please Select
0
0
0
0
Partner 5
Please Select
0
0
0
0
Partner 6
Please Select
0
0
0
0
Partner 7
Please Select
0
0
0
0
Partner 8
Please Select
0
0
0
0
Partner 9
Please Select
Partner 10
Please Select
Partner 11
Please Select
Partner 12
Please Select
Partner 13
Please Select
Partner 14
Please Select
Partner 15
Please Select
Partner 16
Please Select
Partner 17
Please Select
Partner 18
Please Select
Partner 19
Please Select
Partner 20
Please Select
Project cost summary
0
0
0
0
0
0
0
0
(for each project
participant)
0
0
0
0
1. Organisation
name
0
0
0
0
0
0
0
0
2. Organisation
registration
number
0
0
3. Enterprise00 category 00
0
0
4. Postcode 0
0
0
0
0
0
0
0
5. Contribution
to
project
by
each
organisation
0
0
0
0
6. Funding sought
from Innovate
UK
0
0
0
0
0
0
0
7. Other funding
from public
sector
bodies 0
0
0
0
0
Total (£)
8. Total
Appendices
Appendix
Guidance
Appendix A
Up to 5 sides of A4
Use Appendix A to provide additional information to support Section 1
of the application form: The Business Proposition. You may wish to
include graphics describing the nature of the problem, market
dynamics and/or exploitation plans.
Appendix B
Up to 5 sides of A4
Use Appendix B to provide further information to support Section 2 of
the application form: The Project Details. You may include, for
example, a Gantt chart, risk analysis table, project management
structure and/or details of evidence for innovation.
Appendix C
Up to ½ side of A4 for each
partner and subcontractor
Use Appendix C to provide details of the specific expertise and track
record of each project partner and each subcontractor to address
Question 8 of the application form.
Application Assessment
All applications are assessed by
independent reviewers drawn from
industry and academia
What do they look for?
•
•
•
•
Clear and concise answers
The right amount of information
•
not too much detail
•
no assumptions
Quantification and justification
That the applicant has the right people
with the right bright idea and the means
to exploit its potential
Final question for assessors
Recommendation
Recommended
Would you recommend this project for funding and if not
why not?
Key Dates
Time line
Dates
Stage 2 Opens
12 January 2015
Feedback to successful applicants
16 January 2015
Submission of Full stage application – including
finance forms & appendices
Noon 11 February 2015
Decision to applicants
20 March 2015
New projects workshop
Date and location TBC
Forms Required
Full Stage
•Application form
• Industry partner finance form
• Appendices (Optional)
Contact us:
[email protected]
Competition Helpline: 0300 321 4357
www.innovateuk.gov.uk
_connect Network:
https://ktn.innovateuk.org
Coffee break
Funding
Barry Shaw
Funding Criteria
We will fund up to 60% of eligible costs for industrial research projects
Projects can last up to 18 months and should be led by micro or small
companies.
We expect successful projects to attract their external funding for the remaining
40% of the costs from traditional or alternative sources. This could include
equity investment from business angel, venture capital or corporate investors,
debt finance from banks or other lenders, and development contracts with
customers, suppliers or other suitable partners, as best meets their long-term
funding needs.
Total Funding Limits
Worked example – £250k total cost project:
Project costs involving 2 SME partners doing industrial research.
Total eligible
project cost
Maximum % of
eligible costs which
may be claimed as
grant
Innovate UK
Grant
Project
contribution
Business (SME)
£180,000
60%
£108,000
£72,000
Business (SME)
£70,000
60%
£42,000
£28,000
Total
£250,000
-
£150,000
£100,000
Project Costs
• Business & non-academic partners
– Eligible Project Costs
– Partner Finance Form
Eligible Project Costs
(applicants / non-academic partners)
Labour Costs
Overheads
Materials
Capital Equipment Usage
Sub-Contracts
Travel & Subsistence
Other Costs
- Other eligible direct costs not included in the above headings
 Contributions in kind
 IP filing costs up to £5,000 (SME only)
Labour Costs
Eligible:
-Staff working
directly on
project.
-Paid by PAYE
-NI, pension, nondiscretionary
costs.
Ineligible:
-Dividends
-Bonuses
-Non productive
time
Labour Costs: Micro Companies
New rule with effect from competitions opening from 1st April 2014:
For directors of micro companies not operating a payroll, in line with EC
rules, we allow:
• Labour costs must be calculated using a maximum of:
– 8 hours per day
– 5 days and up to 40 hours per week
– £22 per hour.
•
All costs arising as a result of using the above calculation must be paid to the
Director through a business payroll and subject to Income Tax and National
Insurance at source
•
Time worked on the project must be supported by timesheets, payroll and
project records providing an audit trail
Overheads – 3 ways to calculate
-20% of Labour
Costs.
-Overheads
calculator
-Own calculations
Eligible Overheads
Indirect labour costs
- Board & senior management – the percentage of their time where they
are involved in your projects but are not included as individuals in the
direct labour costs
- Admin and support staff – where not included in direct labour costs
Recruitment costs
General supplies and IT – not linked to production or service delivery
Corporate fees and expenses – IPR maintenance, insurance, photocopying
Site expenses – building rental, taxes, security and cleaning
Utilities – careful not to include production equipment energy or supply
costs
Ineligible Overheads
Χ
Χ
Χ
Χ
Χ
Χ
Production or service delivery costs – any costs associated with the
way in which the company makes its money. This would include all
items used to calculate gross margin and cost of sale.
Marketing and sales costs – these again count in the cost of sales
Non-bookable R&D time – non productive time or non-chargeable
time of technical or support personnel
Entertainment and hospitality
New IP protection costs (from other projects)
Any headings that are being charged for directly within the project
– such as training, T&S
Material Costs
Eligible:
Directly
used in
the
project
• Once ‘Yes’ is selected from the drop down option the table will
appear
Capital Equipment usage
Eligible:
-Used in the
project or
shared with
day-to-day
production
-Re sale value
Sub-Contract costs
Eligible:
-Justified and
quantified
-UK based
Travel & Subsistence Costs
Eligible:
Directly
linked to
the project
Other Costs
Costs that
could not be
added under
previous
headings.
Do not double
count
• Once ‘Yes’ is selected from the drop down option the table will
appear
Ineligible Project Costs
Χ
Χ
Χ
Χ
Χ
Χ
Χ
Input or Output VAT
Interest charges, bad debts, profits, advertising, entertainment
Hire purchase interest and associated service charges
Profit earned by a subsidiary or by an associate undertaking work
sub-contracted out under the project
Inflation and contingency allowances
The value of existing assets such as IPR, data, software and other
exploitable assets that are contributed to the project by any
collaborator
Independent Accountant’s Report Fees
Partner Finance Forms
• Each applicant or non-academic partner claiming a grant must
complete a Partner Finance Form.
• IMPORTANT: Figures on the individual Partner Finance Forms must
total the same as those shown on the Finance Summary Table on the
application form.
• The form includes a tab for each cost category which needs to be
completed. The figures in each cost category tab populates the
summary/total fields.
• Form must show the status as “complete” before submitting.
Submitting your application
& the way forward
The application submission process
Via competition website
1
REGISTER
2
DOWNLOAD
documents
- Finance Forms
3
COMPLETE
documents
Take your time, use all space provided
4
UPLOAD documents
5
NOTIFICATION
received
6
FEEDBACK received
Don’t leave it to the last minute.
On date provided
Within 4 weeks of receiving your notification
Full stage process
• Your full stage application uses a different system
• You will have received an email from [email protected]
with an application form along with a secure userid and password
to access your secure area on our competitions portal.
Secure area
Enter your login details
and accept the T and
Cs. Click the Login
button at the bottom.
Public area
Click Login to
access the Secure
area
Naming
a) Your documents should contain your unique application number
(e.g. App12345.docx)
b) Appendices begin with APPENDIX and supplied in PDF format (full
stage only).
Format
a) Application Form submitted as a Word file (.doc /.docx)
Full stage only:
a) Finance Forms submitted as Excel file (.xls /.xlsx)
b) Appendices submitted as PDF file
Check: your application number matches your login username number.
Secure area
Enter your login details
and accept the T and
Cs. Click the Login
button at the bottom.
Click Upload and
follow the onscreen instructions.
• Once second stage deadline reached, your written application
is sent for written assessment
• We will notify you of the outcome of your full stage application
on 20 March 2015
• Successful applications will receive a letter of intent to fund –
to be used to assist securing additional funding
Issued for both successful and unsuccessful applicants within 4 weeks of
receiving your notification
Word document
Uploaded to your
secure area
Not issued via email
Submission Summary
Feasibility Studies
Type of Competition
Launchpad – two submissions
Project Composition
Single or collaborative with industrial
partners
Project Size (indicative)
Anticipated Project length
Application form
Up to £250k
Up to 18 months
10 marked questions
Appendices
Yes
Finance Form for each partner
Yes
Questions & answers