Yorkshire Forward Industrial Research and Development Award for Large Companies

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Yorkshire Forward Industrial Research and
Development Award for Large Companies
Information Day 20 April 2006
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Introduction

• Safety notices
• Purpose of the day
• People Introductions
• Agenda

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People Introductions The Programme Team

• Yorkshire Forward
• Hilda Coulsey, Manager RD Awards
• Narinder Jandu, IRD Scheme Administration
• Louise Roberts, On-line Application Process

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Agenda

• Introduction to the Award Yorkshire Forward
  Aims
• Overview of Programme Application Stages
• Overview of Programme Timescale
• Proposal Assessment Assessment Criteria
• Outline Application Process
• QA
• Close
• Lunch 1200 to 1300 hrs

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The Yorkshire Forward Industrial Research
Development Award for Large Companies An
Introduction to the Award
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Background

• Regional investment by businesses in RD is about
  1/3 of the national average
• In response Yorkshire Forward has adopted a
  strategic and business focused approach to
  support RD in the region
• An Award scheme has been created under the EU
  framework and funds of c18.5m secured for
  Regional RD investment
• The funds are in place for the period to 31 March
  2008 and are targeted at Large Companies active
  in the Region or for inward investing companies

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Aims

• To encourage research and development in large
  companies
• To accelerate the pace of innovation in large
  companies
• To strengthen the scientific and technological
  base of the region
• To encourage companies to take a major leap in
  technology and to support the additional
  challenge and risk
• To drive wealth creation through the exploitation
  of science and technology
• We recognise the link between investment in
  innovation and sustainable economic growth

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Windows 2000 was launched across the globe in one
day
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There is more computing power in a greetings card
singing happy birthday than existed on planet
Earth back in 1950
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The -er and more customer

• Faster, lighter, cheaper, safer, healthier,
  cleaner, smaller, bigger, brighter, better,
  softer
• More environmentally friendly, entertaining,
  accessible, portable, ergonomical, economical,
  exciting, taste

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• Post-it notes now come in 18 colours, 27 sizes,
  56 shapes and 20 fragrances
• In 2 years Boeing has halved the time to build a
  747 from 18 months to 9
• Seiko produce over 5000 separate watch models

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• In 1996 Sony launched 5000 new products more
  than 2 products per working hour
• In Sweden the no of beers has increased from 50
  to over 350 in 10 years
• Proctor and Gamble employ more scientists than
  Harvard, Berkley and MIT combined

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Yorkshire Forward funding

• Highest quality projects will be funded, there is
  proposal assessment processes and hence it is a
  competition
• We aim to invest the remainder of the 18.5m this
  call
• Offers will be made to successful applicants
  based on EU maximum limits
• Successful applicants will be monitored against
  project progress milestones

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We look forward to working with you
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The Yorkshire Forward Industrial Research
Development Award for Large Companies Overview
of Programme and Application Stages
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Programme Objectives

• Promote investment in Industry led
  pre-competitive research and development
• Support projects which improve industry
  competitiveness and deliver real economic
  benefit to the Yorkshire and Humber Region
• Increase industry collaboration and the
  cross-fertilisation of ideas
• Increase the ease with which industry can engage
  with the Award

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Principles of the of the Scheme

• Best Practice Identified and Implemented
• Confidentiality
• Full confidentiality assured throughout the
  process
• Objectivity
• Transparent, objective and fair processes
• Responsive
• Rapid and fixed response time applicants know
  what to expect by when
• Professionalism
• Credible programme and team

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Principles of the of the Scheme

• Regional benefit
• Economic benefit to flow back to the Yorkshire
  and Humber
• Robust and equitable
• Independent assessment, confidential, free from
  conflict of interest
• Quality
• Applications will be assessed in a competition
  based on objective scoring
• Flexible
• In terms of spend, industries, technologies,
  timing of programme, calls for applications

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Delivering the Programme

• Dedicated programme team to deliver the programme
• Ease the burden on applicants in the submission
  and evaluation process
• Innovative application and assessment techniques
  being used to ensure speed of response and
  objective evaluation
• Two stage Application Process
• Outline Proposal (Open)
• Full Proposal (Invitation Only)

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Delivering the Programme (continued)

• 9 -12 weeks to Financial Review potential Grant
  offers
• Independent expert assessors will be used
• 21 Industry to Academic
• Competitive process
• Online submission of applications
• Assessment criteria
• Relevance to the Call
• Potential Impact
• Innovation and Risk
• Project Organisation and Management

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Definition of Eligible RD Projects

• RD Projects led by a Large Industrial Company to
  undertake

Industrial Research Project

• Aimed at helping companies to gain new knowledge
  that enables future development of innovative
  products and processes
• Projects will involve planned research with the
  purpose of acquiring new knowledge that will
  allow the development of new products/ processes/
  services /significant improvements of existing
  ones
• Work will form the basis of later development and
  will not itself result in a prototype, a product
  that can be take to the market place

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Definition of Eligible RD Projects

• RD Projects led by a Large Industrial Company to
  undertake

Pre-Comp. Development Project

• Aimed at helping companies implement the results
  of earlier research for the development of new,
  altered or improved products, processes or
  services, including the creation of a
  pre-production prototype which cannot be used
  for commercial purposes.
• Projects will not be for routine or periodic
  changes made to products, production lines,
  manufacturing processes, existing services and
  other operations.
• Development Projects will result in an advanced
  prototype and will help to confirm (or otherwise)
  commercial viability

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Eligible Proposals

• Large Companies (250) only, companies must have
  a balance sheet total exceeding 27m or an annual
  turnover exceeding 40m.
• Have a presence in the Yorkshire and the Humber
  Region or firmly intend to inwardly invest.
• Industrial led projects only, cannot be led by
  Universities
• Benefits of the project to accrue in part or in
  full to the Yorkshire and the Humber Region

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The Yorkshire Forward Industrial Research
Development Award for Large Companies Applicatio
n Stages
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Call Notice

• www.YFIRD.org
• Open Call scope (except for applicants with at
  least 3 awards)
• Industry led projects with economic impact
• Project size between 0.5m and 2m of maximum
  length 18 months
• Funding scale is variable up to a maximum of 50
  of eligible project costs
• 4th Call opened on 10th April 2006
• Call closes 12 May at 1200

As a discretionary Award Yorkshire Forward
reserves the right to award more or less funding
as needed.
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Process Flow Chart Outline Proposal
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Process Flow Chart Full Proposal
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Process Flow Chart Financial Review Award
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Assessment Process Overview

• Independent assessors appointed
• Mix from industry and academic
• With commercial and technical expertise
• Currently reviewing interested parties
• Confidentiality agreements
• Conflicts of Interest identified
• Proposals scored
• Top proposals invited to next stage
• Brief summary feedback provided

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Confidentiality / Document Retention

• Confidential commercial information
• Not passed on to any third parties
• Documents will not be returned by Yorkshire
  Forward
• Documents will only be retained for successful
  Proposals
• Documents stored and destroyed in accordance with
  normal Yorkshire Forward procedures

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The Yorkshire Forward Industrial Research
Development Award for Large Companies Overview
of Programme Timescale
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Call Notice Key Dates

• Competitive processes with an anticipated success
  ratio at Full Proposal stage being 1in 2 to1 in
  3
• Outline Proposal applications must be submitted
  by 12th May 2006 (12 noon)
• Full Proposal opens 5th June until noon on 10th
  July 2006
• Full Proposal briefing Thursday 8th June am
• Financial due diligence during August
• Offer letters Aug/ Sept
• Online Application is available at www.yfird.org

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The Yorkshire Forward Industrial Research
Development Award for Large Companies Assessment
Criteria
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Assessment Criteria

• General comments
• Proposals will be assessed in relation to their
  ability to meet Yorkshire Forward requirements
• Guidance notes are provided
• Applicants must use their own skills and
  experience to develop responses
• Applicants must substantiate and quantify
  statements made with facts and figures
• OP/FP difference in detail of assessment

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Criteria 1 Relevance to Call

• A good response would address.
• Clear link to and align with RES
• Clear project scope linked to technology themes
• Research objectives and how these are met
• Clear and quantified regional benefit
• A poor response would be limited to..
• Some link to RES
• Overview but output objectives unclear
• Some regional benefit but quantum unclear

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Criteria 2 Potential Impact Risk

• A good response would address.
• Clearly defined and quantified market need and
  target market
• Clearly demonstrated and substantiated commercial
  relevance
• Identified how economic benefits of
  commercialisation would accrue to region
• Described the balance between social and
  environmental impact with clear steps to mitigate
  the negative
• A poor response would be limited to..
• Some evidence of market demand but impact and
  probability not quantified
• Description with no clear definition of target
  market
• A commercial exploitation strategy not supported
  by market demand
• Some regional benefits but not quantified
• Limited consideration to environmental or social
  impact

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Criteria 3 Innovation Risk

• A good response would address.
• An innovative project which is demonstrated to be
  technically feasible
• Intellectual property ownership is addressed
• Technical, managerial and commercial risks are
  defined and a mitigation strategy is clear
• Demonstrates a clear track record and experience
  in commercialising RD
• A poor response would be limited to..
• Innovation does not push existing boundaries
• Description of risks but no mitigation is
  included
• Indicated resources to be committed but no detail
  of skills to be utilised
• A track record in exploiting research but not RD
  projects

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Criteria 4 Project Organisation and Management

• A good response would address.
• Clear case for funding made and impact of grant
  on project is clear and substantiated
• Proven track record in managing projects of scale
  and complexity proposed
• Clear roles and responsibilities and a project
  leader identified
• Defined value added by consortium/sub
  contractors/partners
• A poor response would be limited to..
• Limited additionality or described impact of
  funding
• Scale and complexity of project exceeds track
  record
• Formal roles and responsibilities are not
  identified
• No indication of financial commitment made by
  applicant

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Information Security Confidentiality

• Electronic submission of application documents
• Audit trail associated with every document and
  interaction
• Assessor confidentiality and potential conflicts
  of interest
• Open Government Freedom of Information
• Data Protection Act 1998
• Information provided to other co-funding bodies
• Information released into the public domain by YF
  on confirmation of project funding
• Information released into the public domain
  during, on completion and after the project
  lifecycle

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The Yorkshire Forward Industrial Research
Development Award for Large Companies On-Line
Application Process
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The Yorkshire Forward Industrial Research
Development Award for Large Companies QA
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QA

• Eligible Organisations
• Eligible / Ineligible Costs
• RD Tax credits
• Open the floor to general queries

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Eligible Organisations

• Large Company consistent with the EU definition.
• The basic criteria are
• A company with over 250 employees (either in the
  company or the company's group as a whole) and
• With either a balance sheet in excess of 27
  million Euros or annual turnover of in excess of
  40million euros (either in the company or the
  company's group as a whole)

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Eligible and Ineligible Costs
Eligible

• Personnel (on RD activity)
• Overheads
• Instruments
• Equipment
• Property
• Sub-contracts/consultancy services for RD
• Materials supplies

• Training Costs
• Preparation of technical reports
• Licensing in new technologies
• Patent Costs (as part of YF project)
• Project Management
• Travel and Subsistence
• Other external direct costs and other costs

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Eligible and Ineligible Costs
Ineligible

• Profit
• Bonuses
• Interest charges, bad debts, advertising,
  entertaining
• Dividend payments

• Loss of salaries, revenue and consultancy income
• Production and sales costs
• Recoverable VAT

Guide documents give more detail
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RD Tax Credits

• How are RD Tax Credits affected by the
  discretionary grants offered under this Award?
• Grants received under this Award are Notified
  State Aids. Applicants are advised to see the
  relevant tax bulletinwww.inlandandrevenue.gov.uk
  /bulletins/tbse_2002.htmi
• where detailed advice is given about the effect
  that Notified State Aids have on the RD
  expenditure qualifying for RD Tax credits

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The Yorkshire Forward Industrial Research
Development Award for Large Companies Close