Funding competition European Partnership on Innovative SMEs – Eurostars 3, call 3

UK registered organisations can apply for a share of up to £2.5 million for collaborative research with organisations from participating Eureka Eurostars members countries.

Competition opens: Wednesday 13 July 2022
Registration closes: Thursday 15 September 2022 1:00pm

This competition is now closed.

Description

This competition is for UK businesses that want to apply to Call 3 of Eureka Eurostars. Please visit the Eureka call for proposals web page if you are not a UK applicant.

Innovate UK, part of UK Research and Innovation, is investing up to £2.5 million to fund collaborative research and development (CR&D) projects focused on industrial research.

This competition is open in theme and we will fund projects from all sectors, which meet eligibility criteria. Your project must have high market potential and develop at least one of the following:

innovative products
technology-based applications
technology-based services

Projects must include at least one partner from within the Eurostars network.

In applying to this competition you are entering into a competitive process.

The lead applicant must submit the Eurostars application by 1pm (13:00) UK time on the deadline stated.

Your project team must submit the Eureka Eurostars project application form on the Eurostars Project Management Platform website by 14:00 Central European time (13:00 UK time) on 15 September 2022

Funding type

Grant

Project size

UK applicants can apply for total grant of up to €360,000 for each project.

Who can apply

Your project

To apply, you must fulfil the six eligibility criteria:

Your consortium is led by an innovative SME from a Eurostars country.
Your consortium includes entities from at least two Eurostars countries, the entities concerned must be independent from each other.
The budget of the SME(s) from a Eurostars country, excluding subcontracting, is 50% or more of the total project cost.
No single participant or country is responsible for more than 70% of the project budget.
The project duration is 36 months or less.
The project has an exclusively civilian purpose.

UK registered SME’s can apply for a total grant of up to 360,000 euros for each eligible UK project partner or 60% of total eligible project costs, whichever is the least.

To be eligible for grant funding from Innovate UK your collaboration:

must include at least one UK registered business micro, small or medium sized enterprise (SME)
must include at least one eligible partner from one of the Eureka Eurostars members countries participating in the competition
can include other UK registered organisations

Your project:

can last up to 36 months
start date depends on the national funding procedures of the Eureka Eurostars members involved in the selected projects
must be collaborative

Eureka terminology and roles

The terminology differs between Eureka and Innovate UK. In the Innovate UK application the ‘project lead’ is responsible for the entire project but Eureka uses the term ‘main participant’. For partners in the collaboration Eureka uses ‘other participants’.

Even if the project lead is from a participating Eureka member other than the UK, the UK registered partners can still claim funding from Innovate UK. These collaborations must include at least one UK registered SME.

UK organisations

In the UK, only UK registered innovative SMEs are eligible for funding. More than one UK SME can be involved in each project.

These conditions must be met by each of the UK innovative SMEs. They must:

not be dormant
be able to resource your participation

Innovate UK will not fund any other types of organisations, including:

academic institutions, including universities
research and technology organisations (RTOs)
charities
large businesses

These organisations can take part but must self-fund or use funds from other sources.

You must follow the Eurostars eligibility criteria and the Innovate UK eligibility criteria detailed in this competition at the application deadline and throughout your project:

UK SMEs will only receive funding for one live Eurostars project at a time. If you have an existing live project, then you must self-fund your participation in this application.
UK partners must be separate, non-linked legal entities.
UK partners must have been trading for 12 months at the competition application deadline.
All UK funded work must be carried out in the UK and your project costs must be incurred in the UK.
UK subcontracting is capped at 20% of the UK partners’ total eligible costs.
UK-led projects must be managed by an innovative SME. You cannot subcontract project management.
Your labour costs must be on a pay as you earn (PAYE) basis, following the PAYE rules section.
Overheads are capped at 25% of labour costs.

Subcontractors

Subcontractors are allowed in this competition but they must not account for more than 20% of the UK partners’ total eligible costs. Subcontractors can be from anywhere in the UK. Where subcontractors are non-UK based, please justify why you are unable to use a UK alternative.

We would expect subcontractor costs to be justified and appropriate to the total eligible project costs.

Partners not claiming funding

A non-grant claiming UK partner cannot lead on a project.

Your collaboration can include organisations from Eureka members that are not participating in this funding competition provided:

they have secured full funding elsewhere
you describe in your application why and how they will be involved and where they have secured financing from

PAYE rules

If you do not currently operate a company PAYE scheme and are working directly on the project, you can include your labour as an eligible cost.

This must be in line with the European Commission policy and meet the following conditions:

your labour costs must be calculated using a maximum of 8 hours per day, 5 days per week, 40 hours per week, and £22 per hour
your costs must be recorded through the business accounts
your project time must be supported by timesheets and project records

Overall Eurostars project team

The organisations from participating Eurostars countries must meet the funding and eligibility conditions of their respective national funding bodies. These will be published on the Eureka call for proposals web page when this competition opens. These organisations must apply through their own funding bodies and not through the Innovation Funding Service.

Each partner must carry out all of their funded work within the Eurostars member from which they receive funding, for example the UK for Innovate UK funding.

Any work which you wish to do outside of the UK, must be authorised by Innovate UK prior to your project starting, if you are in receipt of funding.

You must provide justification by email to support@iuk.ukri.org as soon as possible before you start your application and no later than the application deadline.

Your request will be passed on to the Programme Manager. They will decide whether to approve your request. If you have not requested approval or your request has not been approved by us, these costs will not be eligible for funding and must be self-funded.

Previous applications

You can use a previously submitted application to apply for this competition.

We will not award you funding if you have:

failed to exploit a previously funded project
an overdue independent accountant’s report
failed to comply with grant terms and conditions

Subsidy control (and State aid where applicable)

This competition provides funding in line with the UK's obligations and commitments to Subsidy Control. Further information about the UK Subsidy Control requirements can be found within the EU-UK Trade and Cooperation agreement and the subsequent guidance from the department of Business, Energy and Industrial Strategy (BEIS).

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. Please see our general guidance to check if these rules apply to your organisation.

Further Information

If you are unsure about your obligations under the UK Subsidy Control regime or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must at all times make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.
This aims to regulate any advantage granted by a public sector body which threatens to, or actually distorts competition in the United Kingdom or any other country or countries.

If there are any changes to the above requirements that mean we need to change the terms of this competition, we will tell you as soon as possible.

Funding

We have allocated up to £2.5m to fund innovation projects in this competition.

For industrial research projects, you could get funding for your eligible project costs of:

up to €360,000 or 60% project costs, whichever is lower if you are a micro, small or medium-sized business

For more information on company sizes, please refer to the company accounts guidance. This is a change from the EU definition unless you are applying under State aid.

If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Your proposal

Your collaborative R&D proposal must demonstrate:

a clear game-changing or disruptive innovative idea leading to new products, processes or services
a strong and deliverable business plan that addresses (and documents) market potential and needs
sound, practical financial plans and timelines
good value for money, which will always be a consideration in Innovate UK funding decisions
a clear, evidence-based plan to deliver significant economic impact, return on investment (ROI) and growth through commercialisation, as soon as possible after project completion
clear, considerable potential to significantly benefit the UK economy or national productivity
the benefit of participants from the countries working together and how this adds value
a clear definition of where intellectual property (IP) can be used and shared between the participants and countries
a clear route to market within 2 to 3 years of project completion

Projects we will not fund

We will not fund projects that:

work on non-civilian technologies
are not in scope
do not meet Innovate UK’s and Eurostars eligibility criteria
do not submit all mandatory documentation
dependent on export performance – for example giving a subsidy to a baker on the condition that they export a certain quantity of bread to another country
dependent on domestic inputs usage – for example if they insisted that a baker use 50% UK flour in their product

13 July 2022: Competition opens
18 July 2022: Online briefing event: watch the recording
15 September 2022 1:00pm: Competition closes
15 September 2022 1:00pm: Registration closes

Before you start

Text update 22 July 2022: we have changed the instruction to submit an Innovate UK application as it is not required.

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Your Innovate UK application will be ineligible if you do not upload the appendices on questions 8 and 9, including the completed Eureka project application.

UK led consortium

If you are a UK lead applicant, you must complete the Eureka application on behalf of your project following the process on the Eureka call for proposals web page on the Eureka website.

Non-UK led consortium

If your consortium is led by an organisation from a non-UK participating Eureka member, one of the UK grant claiming partners must be the Innovate UK lead applicant. They will submit the Innovate UK application. Only include UK organisations in the application.

More information about the application process for non-UK Eureka members is provided on the Eureka call for proposals web page once the competition opens.

What we will ask you

The application is split into 3 sections:

Project details.
Application questions.
Finances.

1. Project details

This section provides background for the assessors and is not scored.

Application team

Decide which organisations will work with you on the project. Invite people from those organisations to help complete the application.

Team members must each complete an Equality Diversity and Inclusion survey. The lead applicant must complete their survey to submit the application.

Application details

The lead applicant must complete this section. Give your project’s title, start date and duration.

Subsidy basis

Will the project, including any related activities you want Innovate UK to fund, affect trade between Northern Ireland and the EU?

You and all your project partners must respond and mark this question as complete, before you can submit your application.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail, and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope it will be immediately rejected and will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score your answers to these questions except for question 1. You will receive feedback from them for each question.

Your answer to each question can be up to 400 words long. Do not include any website addresses (URLs) in your answers unless we have explicitly requested a link to a video.

Question 1: Eureka application (not scored)

You must upload a copy of your completed Eureka application as an appendix. It must be in a PDF format. The font must be legible at 100% zoom.

Type ‘Eureka application attached’ as your answer.

Question 2. Need or challenge

What is the business need, technological challenge or market opportunity behind your innovation?

Explain:

the main motivation for the project
the business need, technological challenge or market opportunity
whether you have identified any similar innovation and its current limitations, including those close to market or in development
any work you have already done to respond to this need, for example if the project focuses on developing an existing capability or building a new one
the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations, using our Horizons tool if appropriate

Question 3. Approach and innovation

What approach will you take and where will the focus of the innovation be?

Explain:

how you will respond to the need, challenge or opportunity identified
how will you improve on the similar innovation that you have identified
whether the innovation will focus on existing technologies in new areas, the development of new technologies for existing areas or a totally disruptive approach
the freedom you have to operate
how this project fits with your current product, service lines or offerings
how it will make you more competitive
the nature of the outputs you expect from the project (for example report, demonstrator, know-how, new process, product or service design) and how these will help you to target the need, challenge or opportunity identified

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 4. Team and resources

Who is in the project team and what are their roles?

Explain:

the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking
the resources, equipment and facilities needed for the project and how you will access them, particularly in the light of any continuing COVID-19 restrictions
the details of any vital external parties, including subcontractors, who you will need to work with to successfully carry out the project
the current relationships between project partners and how these will change as a result of the project
any roles you will need to recruit for taking into account the impact of COVID-19 restrictions on the team structure

You can submit one appendix. This can include a short summary of the main people working on the project to support your answer. It must be a PDF and can be up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 5. Market awareness

What does the market you are targeting look like?

Describe:

the target markets for the project outcomes, any other potential markets (domestic, international or both)
the size of the target markets for the project outcomes, backed up by references where available
the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes
the target markets’ main supply or value chains and business models, and any barriers to entry that exist
the current UK position in targeting these markets
the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or explain:

what the market’s size might to be
how your project will try to explore the market’s potential

Question 6. Outcomes and route to market

How are you going to grow your business and increase your productivity into the long term as a result of the project?

Explain:

your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position
your target customers or end users, and the value to them, for example why they would use or buy your product
your route to market
how you are going to profit from the innovation, including increased revenues or cost reduction
how the innovation will affect your productivity and growth, in both the short and the long term
how you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business model
your strategy for targeting the other markets you have identified during or after the project

If there is any research organisation activity in the project, describe:

your plans to spread the project’s research outputs over a reasonable timescale
how you expect to use the results generated from the project in further research activities

Question 7. Wider impacts

What impact might this project have outside the project team?

Describe, and where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:

external parties
customers
others in the supply chain
broader industry
the UK economy

Describe, and where possible, measure:

any expected impact on government priorities
any expected environmental impacts, either positive or negative
any expected regional impacts of the project

Describe any expected social impacts, either positive or negative on, for example:

quality of life
social inclusion or exclusion
jobs, such as safeguarding, creating, changing or displacing them
education
public empowerment
health and safety
regulations
diversity

Question 8. Project management

How will you manage your project effectively?

Explain:

the main work packages of your project, indicating the lead partner assigned to each and the total cost of each one
your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome
the management reporting lines
your project plan in enough detail to identify any links or dependencies between work packages or milestones, taking into account the possible impact of further COVID-19 restrictions

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF, can be up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 9. Risks

What are the main risks for this project?

Explain:

the main risks and uncertainties of your project, including the technical, commercial, managerial and environmental risks, providing a risk register if appropriate
how you will mitigate these risks
any project inputs that are critical to completion, such as resources, expertise, data sets
any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage this

You must submit a risk register as an appendix to support your answer. It must be a PDF and can be up to 2 A4 pages long. The font must be legible at 100% zoom.

Question 10. Added value

How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on the organisations involved?

Explain:

what advantages would public funding offer your project, for example, appeal to investors, more partners, reduced risk or a faster route to market (this list is not exhaustive)
the likely impact of the project outcomes on the organisations involved
what other routes of investment have you already approached
what your project would look like without public funding
how this project would change the R&D activities of all the organisations involved

Question 11. Costs and value for money

How much will the project cost and how does it represent value for money for the team and the taxpayer?

In terms of your project goals, explain:

your total project costs
the grant you are requesting
how each partner will finance their contributions to your project
how this project represents value for money for you and the taxpayer
how it compares to what you would spend your money on otherwise
the balance of costs and grant across the project partners
any subcontractor costs and why they are critical to your project

Finances

Each UK organisation in your project must complete its own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.

For full details on what costs you can claim, see our project costs guidance.

Background and further information

Data sharing

This competition is jointly operated by Innovate UK, your partner country and Eureka (each an “agency”).

Your submitted application and any other information you provide at the application stage can be submitted to each agency on an individual basis for its storage, processing and use. Any relevant information produced during the application process concerning your application can be shared by one agency with the other, for its individual storage, processing and use.

This means that any information given to or generated by Innovate UK in respect of your application may be passed on to Eureka and vice versa.

Innovate UK and Eureka are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, and Eureka will be data controllers for personal data submitted during the application.

Innovate UK complies with the requirements of GDPR, and is committed to upholding the data protection principles, and protecting your information. The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Extra help

If you want help to find a project collaborator, contact the Innovate UK KTN or the Enterprise Europe Network.

If you need help with the Eureka project application form, contact Eureka directly.

If you need more information on submitting to Innovate UK, email us at support@iuk.ukri.org or call the competition helpline on 0300 321 4357,

Our phone lines are open from 9am to 5pm, Monday to Friday (excluding UK bank holidays).

About Eureka

Eureka is an intergovernmental network launched in 1985. Its aim is to support market-oriented R&D and innovation projects by industry, research centres and universities across all technological sectors. It has 45 member states, including the European Union, represented by the European Commission.

With its flexible and decentralised network, Eureka offers project partners:

rapid access to skills and expertise across Europe
national public and private funding schemes

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