ERDF SchemesOperational Programme I

2007-2013

ERDF Innovation Actions Grant Scheme (Innovation)

Overview

1. The Malta Enterprise ERDF Schemes2. The ERDF Innovation Actions Grant

Scheme 3. The Application Form4. The Notes to Applicants 5. Contact Details

1. The Malta Enterprise ERDF Schemes

The objectives for each scheme are outlined below:

International Competitiveness – to support enterprises tap into new markets.

Small Start-up – to facilitate the setting up and growth of innovative knowledge based small start-up enterprises.

e-Business Development – to assist SMEs make use of ICT in their daily business operations.

Innovation Actions (Environment) – to support SMEs invest in environmentally-friendly technologies.

Innovation Actions (Innovation) – to support SMEs develop innovative processes, products and services.

R & D Grants – to assist enterprises invest in industry driven projects to be in a better position to develop new products and processes.

ERDF Innovation Actions GrantScheme (Innovation)

Incentive Guideline

2. Incentive Guideline

- Aim- Eligible Sectors- Ineligible Sectors- The Scheme- Eligible Costs- Additional Provisions

2. Incentive Guideline

Aim:

To help SMEs meet today’s business challenges by stimulating innovative processes, products and services and organisational innovations.

2. Incentive Guideline

Eligible Sectors:

Small, and Medium-sized Enterprises (SMEs)

2. Incentive Guideline

Ineligible Sectors: Government controlled or owned entities Undertakings engaged in:

the primary production of agricultural products the retail sector tourism activities the coal industry the steel industry the gaming industry shipbuilding financial services the synthetic fibres sector

Undertakings in difficulty

The Scheme:Minimum Project Value: € 50,000Co-financing of eligible costs:

Type of Enterprise

Co-financing

RateMinimum

Grant Value

Medium-sized Enterprise 40% €20,000

Small Enterprise 50% €25,000

SMEs active in the Transport Sector 30% €15,000

2. Incentive Guideline

2. Incentive Guideline

Eligible Costs:

a. Consultancy Services

b. Investment costs in Tangible and Intangible Assets

2. Incentive Guideline

Eligible Costs:a. Consultancy Services

i. Consultancy and services required for implementing IMTs, which include:- lean management techniques- quality management- technology watch and audits- technology transfer- business process re-engineering- benchmarking.

ii. Consultancy and services required in relation to process, product or organisational innovation.

2. Incentive Guideline

Eligible Costs:b. Investment costs in Tangible and

Intangible AssetsInvestment costs which should result in:

i. the diversification of output of the enterprise

ii. a fundamental change in the overall production process.

2. Incentive Guideline

Costs NOT considered eligible:

- Refurbishing- Replacements of existing

equipment / machinery- Maintenance

2. Incentive Guideline

Additional Provisions:The following additional provisions shall apply to any costs that may be supported: i. Tangible assets shall include plant, machinery and equipment. ii. Intangible assets means assets acquired in

relation to the transfer of technology and may include the acquisition of patent rights, licences, know-how or unpatented

technical knowledge.iii. All assets including intangible assets must be

included in the Capital Assets Register.

2. Incentive Guideline

Additional Provisions: iv. Investments in second hand equipment are

not eligible. v. Costs related to the generation of energy through renewable energy sources and energy saving measures are not eligible. vi. All funding will be based on reimbursement

of eligible costs.vii. All funding must be on costs incurred by the

applicant after the aid is granted.viii. All consultancy or services must be subcontracted and must not be of a continuous or periodic nature, nor relate to the enterprise’s usual operating expenditure, such as routine tax consultancy services, regular legal services or advertising.

ERDF Innovation Actions GrantScheme (Innovation)

The Application Form

3. The Application Form

- How to apply

- Application Form Structure

3. The Application Form

How to apply:Documents to refer to:

3. The Application Form

- Application Form and all relevant annexes have to be type-written, signed and dated

- To be deposited in the relevant Tender Box at Malta Enterprise reception, San Gwann

- An acknowledgement of receipt of application will be issued upon submission of application

3. The Application Form

Application Form Structure:

a. Applicant Detailsb. Project Detailsc. Horizontal Prioritiesd. Annexese. Personal Data Protectionf. Declarationg. Notes to the Application Form

3. The Application Form

a. Applicant Details:- Thorough description of the applicant

and corresponding contact details, including a description of the key products and services provided and an outline of the applicant’s main markets.

3. The Application Form

b. Project Details:- Thorough description of the innovative

project, including how the project will be implemented from a HR and financial resource perspective, the expected benefits and any preparatory work already undertaken by the applicant.

3. The Application Form

c. Horizontal Priorities:- The Horizontal Priorities of environmental

sustainability and equal opportunities are cross-cutting themes defined by the EU that will be used to evaluate all projects under the ERDF Innovation Actions Grant Scheme (Innovation).

- This section will request the applicant to outline how the project will address environmental sustainability issues and equal opportunities.

3. The Application Form

d. Annexes: Annex 1 – Project Cost Annex 2 – Costs Breakdown – Consultancy

Services Annex 3 – Costs Breakdown – Investment

Costs in Tangible and Intangible Assets Annex 4 – Disbursement Plan Annex 5 – Enterprise Size Declaration Annex 6 – Audited Financial Statements Annex 7 – Permits and Approvals Annex 8 – Supporting Documentation

3. The Application Form

Annex 1 – Project Cost

3. The Application Form

Annex 2 – Costs Breakdown – Consultancy Services

3. The Application Form

Annex 3 – Costs Breakdown – Investment Costs

3. The Application Form

Annex 4 – Disbursement Plan

3. The Application Form

Annex 5 – Enterprise Size DeclarationDetermines the type of enterprise applying, whether it’s large, medium, small or micro enterprise and will also determine if the applying enterprise is autonomous, partner or linked.

3. The Application Form

Annex 6 – Audited Financial Statements

The Financial Statements required are the latest full version Audited Financial Statements or the Management Accounts (Profit & Loss Statements/Income Statement and Balance Sheet/Statement of Assets and Liabilities) certified by a certified public accountant.

In the case of a start-up not having the above documentation a Business Plan (which should include a Profit & Loss Account/Income Statement, Cash Flow Projections and a Balance Sheet/Statement of Assets and Liabilities) would suffice.

3. The Application Form

Annex 7 – Permits and ApprovalsApplicant will show proof of permits and approvals from relevant government entities.Projects in need of permits and approvals, should submit a copy of the application for the relevant permits with the application form. Following evaluation, the short listed applicants would need to submit such permit prior to the issuing of the Letter of Approval.

3. The Application Form

Annex 8 – Supporting Documentation (if applicable)

Any supporting documentation (preparatory work and correspondence) need to be attached as Annex 8.

ERDF Innovation Actions GrantScheme (Innovation)

The Notes to Applicants

4. The Notes to Applicants

- Call for Applications

- Eligibility Check

- Evaluation Process

- Letter of Approval

4. The Notes to Applicants

Call for Applications

- This is a competitive call with a total budget of € 1.5 million

- The call for Applications is published on ME website

www.20millionforindustry.com

- Closure of Call - 12noon of Wednesday, 11th March, 2009

4. The Notes to Applicants

Eligibility Check- Application shall be complete- Application shall fit one or more of the

focus areas of the scheme- Applicant has honoured any obligations

set by ME- Within State Aid parameters- Project need to comply with the laws pertaining to the actions being proposed- Applicant is eligible- The project will be completed within 24

months.

4. The Notes to Applicants

Evaluation Process:

i. Preliminary Evaluation (35%)- Risk Appraisal- Extent of need for support- Holistic nature of the project

ii. Strategic Evaluation (65%)- Thematic Priorities

- Project Impact- Innovation- Operational Programme I Indicators- Employment

- Horizontal Priorities- Environmental Sustainability- Equal Opportunities

4. The Notes to Applicants

i. Preliminary Evaluation (35%)

- Risk Appraisal – 20%

a. Age of organisation – 5% - the longer the enterprise has been established,

the higher the score.b. The duration of the project – 5% -

longer projects may carry more risk.c. Project Investment Costs vis-à-vis

applicant’s Net Assets – 5% - level of financial risk.

d. Commitment and capacity to implement – 5% - level of preparatory work, internal project management structures and

financial resources.

4. The Notes to Applicants

- Extent of need for support – 10%determined through the size of the enterprise and whether it forms part

of a network or is a start-up.

- Holistic Nature of Project – 5% - marks are awarded in line with the number

of eligible actions to be implemented.

4. The Notes to Applicants

ii. Strategic Evaluation (65%)- Thematic Priorities – 55%

a.Project Impact – 25% - expected benefits from the project.

b. Project Innovation – 10% - the innovative nature of the project with regards to the potential to develop new products,

processes and services will be assessed.c. Operational Programme I Indicators – 10%

- the degree to which the project contributes to increasing the number of SMEs launching new or improved products.

d. Employment – 10% - potential to ensure job retention and create new employment

in the future.

4. The Notes to Applicants

- Horizontal Priorities – 10%a. Environmental Sustainability - 5% -

project to address issues such as carbon neutrality and climate

change, water, waste, air quality and nature protection where applicable.

b. Equal Opportunities – 5% - involvement of disadvantaged

groups in the project; increased participation of females, ensuring accessibility for all

and family friendly measures.

4. The Notes to Applicants

Letter of Approval: Value of Grant Respective Co-financing Rate Details of Project and corresponding financial plans Compliance with EU Council Regulations:

- Eligible Costs- On-the-spot checks by various National and EU Audit

Authorities- Retention of all documentation in a separate file up to

31/12/2020 (including the application form & annexes)- Retention of equipment as per Article 57 (1) for 5 years

- Opening of a separate bank account- Conformity with publicity obligations

Only fully implemented projects will be fully reimbursed otherwise grant will be reclaimed back from the beneficiary.

4. The Notes to Applicants

Publicity Guidelines

- The beneficiary is responsible of informing the public about the assistance obtained from the funds.

- Acceptance of funding is also an acceptance of their inclusion in the publication of the list of

beneficiaries, the names of the operation and the amount of funding allocated to the operation.

- Commemorative plaques shall be installed indefinitely at a site accessible to the general public.

- Any equipment / websites / brochures benefiting from such funding should display the

corresponding logos in line with the Publicity Guidelines.

5. Contact Details

Further information on the scheme, may be obtained by contacting Malta Enterprise during office hours.

Postal Address: Malta Enterprise Enterprise Centre Industrial EstateSan GwannSGN 3000Malta

Tel: +356 2542 3432Fax: +356 2542 3401

Website: www.20millionforindustry.come-mail:marianne.copperstone@maltaenterprise.com

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