"I'M FROM THE GOVERNMENT, I'M HERE TO HELP" Tom Tumilty Innovation Policy Unit Scottish Executive En

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"I'M FROM THE GOVERNMENT, I'M HERE TO HELP"Tom
TumiltyInnovation Policy UnitScottish Executive
Enterprise, Transport and Lifelong Learning
Department0141 242 5549tom.tumilty_at_scotland.gsi
.gov.uk
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WHY do we do what we do?

• Knowledge Economy Report
• Framework for Economic Development in Scotland
  (FEDS)
• Smart, Successful Scotland refreshed Nov 04
• Scottish Scientific Advisory Committee

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SMART, SUCCESSFUL SCOTLAND

• Essential themes remain
• Growing Businesses
• Skills and learning
• Global connections
• But need to take into account new challenges of
  sustainability and closing the opportunity gap

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SMART, SUCCESSFUL SCOTLAND

• GROWING BUSINESSES
• Innovative companies growing in scale
• Improved productivity requires continued
  innovation in products and processes,
  exploiting science and harnessing the skills of
  our people

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SCOTLAND/DTI COLLABORATION

• Existing collaborations in, e.g.
• LINK
• Faraday Partnerships
• Knowledge Transfer Partnerships (KTP)
• Collaborative RD Programme
• Knowledge Transfer Networks
• Co-funding opportunities

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SCOTLAND/DTI COLLABORATION

• Technology Strategy
• Fits with FEDS and SSS
• Key areas fit Scotlands strengths, e.g.
• Life sciences
• Energy
• Micro and nano-technology
• Lasers
• Advanced materials

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WHAT do we do in Scotland that's different?

• PROOF OF CONCEPT
• SMART/SPUR/SPURPLUS
• ITIs
• SPAF PACER
• SCORE SEEKIT
• ICASS

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WHAT do we do in Scotland that's different

• SCOTTISH CO-INVESTMENT FUND
• BUSINESS GROWTH FUND
• INVESTMENT READINESS PROGRAMME
• THE INTELLECTUAL ASSET CENTRE

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Proof of Concept Programme

• 49 million fund over 7 years
• Available to universities, research institutes,
  SABRI's and NHS trusts
• Pre-seed development gap funding
• 172 projects funded, 28.1 million committed.
• 65 projects completed, 10 spin-outs, 3 start-ups
  formed, further 20 at pre company formation
  stage, 14 concluded licensing deals.

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Proof of Concept Programme

• PoC integrating well within the wider pipeline of
  public support. Of completed projects, 14 SMART
  awards granted ( further 4 applications being
  made), 24 individuals receiving SEn/ RSE
  Enterprise Fellowships.
• 65 completed projects received 9.8m of PoC.
  Since completion, have attracted further 18.3 m
  of additional funding (13.2m of which is
  private).

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SMART SPUR Objectives

• To encourage and facilitate the formation of
  viable, durable, science and technology-based
  small businesses
• To stimulate small and start-up businesses to
  invest in highly innovative technology projects
• To stimulate established medium-sized businesses
  to invest in highly innovative technology to
  develop new products and processes which benefit
  the national economy

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SPURPLUS Objectives

• Small and medium sized businesses attempting to
  develop world-beating products and processes.
• Projects which involve expensive leading edge
  technology e.g. telecommunications and
  biotechnology
• 1 million projects

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INTERMEDIARY TECHNOLOGY INSTITUTES (ITIs)

• Market-based, pre-competitive research in areas
  of high potential for Scotland
• 3 sectors Techmedia, Life Sciences and Energy
• 450 million over 10 years
• Commission research, locally and worldwide
• Aim to build high-growth, sustainable,
  technology-based companies.
• First contracts let for all 3 institutes (10
  projects, valued at 64.4M)

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SCOTTISH PROPOSAL ASSISTANCE FUND (SPAF)

• Designed to increase Scottish business
  participation in European Framework Programme 6
• Administered by IRC Scotland
• 900 K available over 3 year period
• Assists with costs of buying in expertise to
  increase likelihood of success in applications to
  FP6

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PACER

• Similar to SPAF but for science base
• Administered by SHEFC
• 900 K over 3 years
• Assists with costs of co-ordinating or
  participating in FP6 projects

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SCORE SEEKIT

• Key objectives are
• to increase the competitiveness of SMEs through
  support for product or process development
• To encourage co-operation between enterprises and
  research establishments
• To help effect wealth creation from the science
  base

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SCORE

• Supports collaborative R D projects jointly
  undertaken between Scottish SMEs and public
  sector research bodies
• Supports projects from virtually any industrial
  or technological sector
• Pre-competitive development activities
• Duration 6 to 18 months
• SME partner must be main co-ordinator
• 50 of eligible costs up to total project cost of
  70K
• 4 SCORE 4 SEEKIT projects funded so far
• On target for 15 SCORE 10 SEEKIT projects

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SEEKIT

• To encourage productive knowledge transfer
  activities between Science Base SMEs
• Typical actions include
• Develop knowledge transfer links between HEIs,
  Research Institutions SMEs
• Encourage the dissemination application of new
  and existing knowledge, processes and
  technologies
• Help the commercialisation of RD from science
  base to benefit of SMEs

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SEEKIT

• Applications must be submitted by an eligible
  public body
• Projects must fit with the aims and objectives of
  the programme
• Projects should be able to attract co-finance
  from European Structural Funds
• Additionality
• Up to 70 of project costs, the balance of
  funding normally to be met by European Structural
  Funds
• No pre-determined project size

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ICASS

• ICASS provides a specialist counselling service
  for Scotlands inventors and innovative small
  businesses.
• ICASS is delivered throughout all of Scotland via
  a network of advisors holding regular local
  clinics.
• ICASS offers information and advice and support
  to clients on a range of subjects such as
  Intellectual Property Rights (IPR), product
  development processes, funding and licensing.

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Early-Stage Equity Investment Package

• Scottish Co-Investment Fund (SCF)
• Initially, 20 million programme of co-investment
  in range of new and existing private sector-led
  equity funds addressing funding gap of up to
  500,000. Fund boosted to 45m by ERDF funding.
• investment on 50 basis with approved Fund
  Managers (22). Potential investment level of some
  90m.
• 50 companies assisted to date, 9m invested which
  has levered in 22.4m of private sector support.
• Scottish Enterprise administers SCF but decisions
  on investments in individual businesses are a
  matter for the Fund Managers who administer the
  individual funds.
• Public sector investments on same commercial
  terms as the private sector.

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Early-Stage Equity Investment Package

• Business Growth Fund
• originally a loan scheme for businesses with
  viable projects that could not secure funding
  from traditional sources, has been redesigned as
  a debt and equity vehicle.
• Provides funds up to 50 of the costs of an
  investment proposal in the 20k-100k range,
  repayable/redeemable over 5 years, offering
  opportunities to companies to obtain investment
  at the lowest end of the funding range.
• Fund is administered by Scottish Enterprise, and
  under an agreement with HIE, operates
  Scotland-wide.
• 61 companies assisted in year to 31 March 2005
  receiving just under 5m

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Early-Stage Equity Investment Package

• Investment Readiness Programme
• helps growth businesses with the cost of
  developing proposals to a stage and quality at
  which they are likely to succeed in attracting
  equity investment.
• funding available, 50 of the cost to a maximum
  of 10,000.
• Important to stimulate demand side.
• Some 150 companies utilised the programme through
  the Enterprise Networks. Not intended to be
  volume approach.

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National Intellectual Asset Centre

• Raises awareness of the benefits of good IA
  management
• Company formed by SEn HIE to operate it funded
  by a grant from NIU
• Based in Sky Park, Glasgow

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"I'M FROM THE GOVERNMENT, I'M HERE TO HELP"Tom
TumiltyInnovation Policy UnitScottish Executive
Enterprise and Lifelong Learning Department0141
242 5549tom.tumilty_at_scotland.gsi.gov.uk