KETs Impact: SME instrument brings innovative food supplement to market

The recent SusChem White paper ‘Impact: Key Enabling Technologies (KETs) in Horizon Europe’ included a number of success stories highlighting publicly funded innovation involving KETs and the SusChem News blog is featuring a selection of these fruitful 'SusChem inspired' initiatives.

KETs are technologies selected for their ability to address global challenges, support the development of new products, and stimulate economic growth.

Sustainable chemistry is essential to the technological advance of KETs including advanced materials, advanced manufacturing technologies, industrial biotechnology, micro and nanoelectronics, nanotechnology and photonics. SusChem's key enabling technologies provide the critical building blocks for the solutions needed to achieve a sustainable low carbon circular economy. You can find out more here.

Our penultimate KETs success story number focuses on a project, LIFEOMEGA, funded under the Horizon 2020 SME Instrument to develop an innovative food supplement consisting of a high concentrated emulsion of the Omega-3 fatty acid EPA (Eicosapentaenoic Acid). Omega-3 is utilised as a treatment in psoriasis, arthritis, asthma, multiple sclerosis, chronic inflammatory, cancer, high blood Triglycerides (TGs), retinal diseases and cardiovascular failure.

LIFEOMEGA Project

Developing an innovative highly concentrated Omega 3 food supplement

EU SME Instrument supports breakthrough innovation project with market-creating potential

Solutex is an innovative SME continuously investing in research and innovation to offer high quality products for nutritional and pharmaceutical industries. Solutex is in the forefront of research in Omega-3 to improve the quality of life and nutrition of cancer patients. LIFEOMEGA-cancer, considered as one chemotherapy essential nutrient co-adjuvant, is one of the latest products. The scale up of technology to Technology Readiness Level (TRL) 8, has been made possible with EU SME funding. 

How was the breakthrough innovation achieved?

For an SME, partnerships with both RTOs and large companies is key to long-term success. Solutex has a partnership for a commercial agreement with one the most important pharmaceutical groups in Spain. Collaboration with hospitals and clinics has been essential for the success of the project and to carry out the clinical trials needed. After the preliminary research, carried out with company’s own resources, Solutex successfully applied for a Phase-I SME Instrument, and for a Phase-II SME instrument. The funding received has been fundamental to develop the final product and the scale-up.

Impact

• The social impact for cancer patients’ treatments is very important. With the new product, the quality of life of cancer patients is improved. Chemotherapy effects become tolerable and hospitalisation time is reduced. 
• The new product is an essential nutrient adjuvant in chemotherapy. The medical benefits of the product are appreciated. Preliminary findings show that Omega-3 supplement increases chemotherapy effectiveness. 

With the funding received, the time to the market was reduced by about three years, a parameter of paramount importance for an SME. Additionally, it brings the opportunity to open to new markets and new partnerships in the pharma and nutraceutical sectors. 

More information

LIFEOMEGA: Innovative highly concentrated Omega-3 Food Supplement (Horizon 2020 / SME Instrument 1 GA number 683658)

LIFEOMEGA: Innovative highly concentrated Omega-3 Specialized Nutrition Product (Horizon 2020 / SME Instrument 2 GA number 755889)

Read the SusChem White Paper ‘Impact: Key Enabling Technologies (KETs) in Horizon Europe’

New Commission guide combines Strategic and Structural funding

The European Commission has issued a new guide on how European Funds for Strategic Investments (EFSI - a key element of the Juncker Investment Plan) and European Structural and Investment Funds (ESIF) can be combined at project and financial instrument level, for example as an investment platform, to support risky and innovation-driven European projects.

The 24-page guide entitled ‘European Structural and Investment Funds and European Fund for Strategic Investments complementarities – Ensuring coordination, synergies and complementarity’ will be of great interest to all SusChem stakeholders developing large scale investment projects under EFSI.

Through a number of illustrative examples, the Guide describes how combining funds is possible for projects supported either under the EFSI 'Infrastructure and Innovation Window' or under the 'SME Window'. In addition an in-depth example of a 'layered fund' is provided in one of the annexes of the guide combining ESIF and EFSI in the case of investment platforms.

In the next few years, EFSI and ESI Funds will be able to finance significant levels of investment in Member States and their regions. They are both set to play an essential role in the delivery of European policy objectives. While rationale, design, legislative framework and timeframe for implementation are different, there is considerable scope for ensuring coordination, synergies and complementarity for additional investments. This guide provides an overview of these possibilities so that stakeholders are well informed.

The funds
The European Fund for Strategic Investments (EFSI) was established by the European Commission in partnership with the European Investment Bank and the European Investment Fund (EIB and EIF – the 'EIB Group') to mobilise at least EUR 315 billion of additional finance for investment in higher-risk projects over three years.

Member States are also now starting the implementation of multiannual programmes co-financed by the European Structural and Investment Funds (ESIF) for the 2014- 2020 programming period. In total, more than EUR 450 billion will be invested in Europe through ESIF in this period.

EU Finance for SMEs to embrace Circular Economy

On 10 December at the European Investment Bank's conference 'Financing the Circular Economy', EU Commissioner for Environment, Maritime Affairs and Fisheries, Karmenu Vella, presented some instruments to facilitate access to credit for businesses, in particular for small and medium enterprises (SMEs), to help them shift towards the circular economy model.

At the conference in Luxembourg the European Commission, the European Investment Bank and the Ministry of Economy of Luxembourg signed an amendment to the InnovFin Delegation Agreement that will enable higher-risk, yet innovative sustainable business models to access credit through InnovFin - an EU finance support programme under Horizon 2020.

At the conference Commissioner Vella highlighted that: "Today's event is all about making real changes on the ground. We want to give businesses more certainties when they innovate. New ideas also mean taking risks. The EU will help companies take the innovative risks needed to make real breakthroughs with more durable, repairable and more resource-efficient products".

You can access more details of the conference here, including the agenda. The full text of Commissioner Vella’s speech can be found here and you can watch a video recording of the conference here.

InnovFin 
Under Horizon 2020 the European Commission and the European Investment Bank Group (EIB and EIF) launched a new generation of financial instruments and advisory services in 2014 to help innovative firms access finance more easily. Until 2020, "InnovFin – EU Finance for Innovators" will offer a range of tailored products which will make available over EUR 24 billion of financing support for research and innovation (R&I) by small, medium-sized and large companies and the promoters of research infrastructures. This finance is expected to support up to EUR 48 billion of final R&I investments.

Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions.

SusChem, Finance and SMEs

Coinciding with the #SusChem2015 stakeholder event earlier this year, SusChem published a new Guide to Innovation Funding for SMEs in Europe (left). The publication outlines five dedicated SME funding schemes (including InnovFinn) and describes how SusChem can help SMEs get involved with collaborative research and innovation projects.

The platform also ran a dedicated SME Open Innovation and brokerage workshop as part of the 2015 Stakeholder event.

'Seal' identifies project proposals which merit funding from alternative sources

TODAY – 13 October 2015 the European Commission has launched a new initiative called "Seal of Excellence". This new scheme will allow regions to recognise the quality label awarded to promising project proposals submitted under Horizon 2020 and promote their access to different funding sources like the European Structural and Investment Funds (ESIF) and other national or regional investment programmes. By introducing this new label, the European Commission wants to improve the synergies between EU funding for regional policy and for research.

The initiative was launched today by Commissioners Corina Creţu, responsible for Regional Policy and Carlos Moedas, responsible for Research, Science and Innovation, at the OPEN DAYS - Week of European Regions and Cities.

Commissioner Corina Creţu said: "For 2014-2020, €100 billion worth of investments from the European Regional Development Fund will foster research and innovation, including over €32 billion earmarked to support SMEs, start-ups and entrepreneurs, the main drivers of innovation in Europe. The Seal of Excellence will help identify and support innovative projects and help them grow and compete internationally."

Commissioner Carlos Moedas said: "EU regions are already a major investor in quality research and innovation in Europe. Through the Seal of Excellence they can benefit from the world class Horizon 2020 evaluation system to easily identify the best projects in their regions to support with their  funds".

The "Seal of Excellence" quality label will be awarded to promising projects submitted under Horizon 2020 which could not secure funding due to budgetary constraints but received high assessment scores in the demanding and independent evaluation process. In its pilot phase, the "Seal of Excellence" will first be given to proposals by small and medium enterprises (SMEs) submitted under the SME instrument of Horizon 2020. The action could then be extended to cover more areas of Horizon 2020.

How does the 'Seal of Excellence' work in practice?

The Horizon 2020 'SME instrument' has been selected for the introduction of the 'Seal of Excellence' because of the relevance to regional and national funders, as the project proposals are mostly led by a single SME and address small scale R&I actions close to the market with a clear territorial impact.

The action concerns, for this initial ‘pilot’ phase, only proposals applying for the SME instrument and in particular all those SME instrument proposals evaluated above the quality threshold (13 or more out of 15 in Phase 1, or 12 or more out of 15 in Phase 2) but not receiving Horizon 2020 funding. Later on it could be extended to cover more areas of Horizon 2020. A holder of the certificate can then approach alternative funding sources (regional, national, private or public) and presents the certificate as a label of a high-quality project proposal.

What should the SMEs expect?

While the Commission certifies with the seal the quality of the proposals according to Horizon 2020 criteria, it may not always be the case that, at local level, the SME will find funding schemes ready to provide the required support and, where they have been established, funding will not be automatic simply based on the recognition of the seal.

Further information on funding opportunities can be obtained at the local/national level either directly with the Managing Authorities or through Europe Enterprise Network and National Contact Point network.

Interested in implementing the 'Seal' approach?

In order to allow for exchanges of know-how, the European Commission has established a 'Community of Practice' exploring the best ways to implement funding schemes in support of high-quality projects with the 'Seal of Excellence' through ESIF or other sources. The 'Community of Practice' is reserved for National or Regional authorities that have a funding power for Research and Innovation actions. It is also open to other Funding Agencies for Innovating SMEs (including private banks and investors).

National or Regional authorities that can provide funding for Research and Innovation, interested in being part of the Europe-wide 'Community of Practice', can send an Expression of Interest by e-mail.

Background

Horizon 2020, the EU's research and innovation funding programme between 2014 – 2020, offers nearly €80 billion in investments for research and innovation projects to support Europe’s economic

competitiveness. At least 20%, or nearly €9 billion from the programme's 'leadership in industrial technologies' and 'societal challenge' pillars, is expected to benefit SMEs directly in the form of grants, including via the "SME Instrument".

Since 2013, the new rules governing investments under the European Structural and Investment Funds call for a more strategic and synergetic use of different EU funds for a greater impact on growth and jobs. With a budget of €450 billion for the 2014–2020 period, the European Structural and Investment Funds invest in key growth-generating areas such as innovation, support to SMEs, training and education, social inclusion and the low-carbon economy.

The OPEN DAYS – the European Week of Regions and Cities are co-hosted by the European Commission and the Committee of the Regions. From 12 to 14 October 2015, 6,000 representatives

from Europe's regions and cities are gathering in Brussels for the 13th annual OPEN DAYS to exchange their views on how to fully exploit the potential of Cohesion Policy in terms of growth and job creation.

More information: Go to http://ec.europa.eu/research/regions/index.cfm or download the flyer: http://ec.europa.eu/research/regions/pdf/seal_of_excellence_flyer_2015.pdf .

Download the Seal of Excellence Fact Sheet.