Scottish Enterprise Innovation Support Pipeline

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Scottish EnterpriseInnovation Support Pipeline

• Ian McCoull
• Director of Innovation Operations
• Competitive Business
• Scottish Enterprise
• ian.mccoull_at_scotent.co.uk
• http//www.scottish-enterprise.com/sedotcom_home/s
  ervices-to-business/ideas-and-innovation.htm

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Scottish Enterprisehttp//www.scottish-enterprise
.com/
A public agency with a statutory duty to
undertake economic development for lowland
Scotland, covering 95 of the countrys
population and industry

• Comprises
• 12 Local Enterprise Companies
• Business Shops
• 22 Overseas Offices

• Our Strategy
• Smart, Successful Scotland
• 3 Key Objectives
• Global Connections
• Growing Business
• Skills Learning

• Annual expenditure of around 500m (including
  60m from EU)
• Around 1500 staff

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Smart Successful Scotland

• Global Connections
• greater digital connectivity
• increased global involvement
• a globally attractive location
• more people choosing to live and work in Scotland

• Growing Business
• greater entrepreneurial dynamism and creativity
• more e-business
• increased commercialisation of research and
  innovation
• global success in key sectors

• Learning Skills
• improve the operation of the labour market
• the best start for all young people
• narrow the unemployment gap
• improve demand for high quality in-work training

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Innovation System in Scotland
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Pipeline of Innovation Support (All)
Production
Productisation

Pre- Production
Industry Development
Prototype Development
Industry Research
Experimental Development
Academic research
Applied Research Strategic Specific
Basic Research Pure Orientated
Scottish Enterprise
Time to Market (scales according to sector)
Scottish Executive
Pipe Line
RAE Funding
Example
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Pipeline of Innovation Support (SE)
Production
Co Invest
Productisation

Pre- Production
RD Plus
SCIS
Industry Development
Ent Fellow
Prototype Development
ITIs
Industry Research
POC
Experimental Development
Academic research
Applied Research Strategic Specific
Basic Research Pure Orientated
Scottish Enterprise
Time to Market (scales according to sector)
Scottish Executive
Pipe Line
RAE Funding
Example
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Proof of Concept (POC)
Production
Productisation

Pre- Production
Industry Development
Prototype Development
Industry Research
POC
Experimental Development
Academic research
Applied Research Strategic Specific
Basic Research Pure Orientated
Time to Market (scales according to sector)
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Proof of Concept

• A Definition
• Funding via Proof of Concept allows the
  development of intellectual property to take
  place in a way which
• extends applicability of that property
• improves confidence in its anticipated
  commercialisation
• underpins the validity of its claims and which
  demonstrates value.
• The Basics
• All HEIs, RIs and NHS Trusts are eligible to
  apply
• Proposals must show commercial potential and meet
  Cluster priorities
• Up to 100 grant
• Projects are 50k - 200k
• Maximum duration 2 years
• 2 stage selection process

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What Has Been Achieved to Date - Key Statistics
Proof of Concept

• Five funding rounds completed
• 691 applications since inception (Rounds I-VI)
• 23.7m awarded
• 146 projects funded
• Over 340 jobs created
• 11 new companies formed, a further 28 in the
  pipeline
• 12 licence deals signed, a further 16 in the
  pipeline

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Spinout Company, 2003
Proof of Concept
brinker technology

• 18 month project
• Aberdeen University
• Proof of Concept - 149k
• SE/RSE Fellowship Award - 45k
• SMART Award - 50k
• Joint Industry Project/
• Private income - 1m

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Spinout Company, 2002
Pipeline Example
Molecular pharmacology

• 18 month project
• Glasgow Caledonian Uni.
• Proof of Concept - 122k
• SMART funding - 50k
• SE/RSE Fellowship Award - 45k
• 0.575m from Braveheart VC
• and the Scottish Co-Investment Fund

Perf-Exion
Software engineering
Optical technology
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Spinout Company, 2002
Pipeline Example
Molecular pharmacology

• 18 month project
• Glasgow Caledonian Uni.
• Proof of Concept - 122k
• SMART funding - 50k
• SE/RSE Fellowship Award - 45k
• 0.575m from Braveheart VC
• and the Scottish Co-Investment Fund

Perf-Exion
Software engineering
Optical technology
Scottish Enterprise
Scottish Executive
Pipe Line
RAE Funding
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ITI Scotland
Production
Productisation

Pre- Production
Industry Development
Prototype Development
ITIs
Industry Research
Experimental Development
Academic research
Applied Research Strategic Specific
Basic Research Pure Orientated
Time to Market (scales according to sector)
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What the ITIs are

• 450M project over 10 years
• Explicitly and expressly market-driven and
  demand-led
• Central mission of anticipating future market
  opportunities and developing the technologies
  that are going to yield viable applications.
• Each ITI will be a Hub employing about 15
  people conceiving, commissioning, and supporting
  pre-competitive research
• Focussed in three markets where Scotland already
  has established technology strength and
  reputation
• energy, life sciences, and communications/digital
  media.
• Surfacing and exploiting the white space
  between each ITI

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ITI Scotland

• How they operate?
• Market foresighting
• By utilising global networks and sources, each
  ITI manages a sophisticated foresighting process.
  
• This is the basis for identifying areas of market
  opportunity on which the technology development
  activities of the ITI focus.
• Technology development
• ITIs define the knowledge required to develop
  pre-competitive technology, focusing on the areas
  identified in the foresighting activity.
• Knowledge acquisition involves a number of areas
  including assessment of existing IP and
  commissioning specific new research.
• Membership 
• Structured to encourage access by a wide company
  base in Scotland and internationally,
• membership provides access foresighting
  information and the opportunity to actively
  participate in programme development.

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ITI Scotland

• Some Projects
• ITI Life Science
• Bio-markers for Home Test Kits.
• 3D Cell Based Assay.
• ITI Energy
• Next generation batteries.
• Low cost Hydrogen Storage.
• ITI Tech media 
• Machine Readable Security Tagging
• Games based Learning
• www.itiscotland.co.uk

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Pipeline of Innovation Support (All)
Production
Productisation

Pre- Production
RD Plus
SCIS
Industry Development
Prototype Development
Industry Research
Experimental Development
Academic research
Applied Research Strategic Specific
Basic Research Pure Orientated
Time to Market (scales according to sector)
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RD PLUS

• Why RD Plus
• Of the 512m RD expenditure in Scotland, a
  significant proportion, 76.3, comes from
  businesses with over 400 employees
• Scotland has roughly 200 large businesses
  carrying out RD
• What is RD Plus
• The first scheme of its kind in the UK to support
  RD in larger companies
• It can support NEW RD which would otherwise not
  happen in Scotland.
• Allows provision of a discretionary grant to
  large Businesses to support eligible RD value
  of up to 25 of total eligible costs.

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RD PLUS
RD PLUS

• Key Requirements
• That the research and development is of strategic
  importance to the company.
• Additionality, which must include the creation or
  safeguarding of RD jobs
• The RD must represent a significant innovation
  for the company,
• The project focuses on global market
  commercialisation from a local base with a high
  level of local diffusion,
• The economic rationale for assistance includes
  long term capacity building and sustainability to
  improve the companys competitiveness through RD

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Small Company Innovation Scheme

• Why SCIS
• Our innovative small to medium companies may need
  support in developing new products or processes.
• What is SCIS
• Under the scheme, support is available to
  companies who can demonstrate that the proposed
  development
• Involves the development of a product or process
  that is new to the company.
• Involves technical risk to be addressed by the
  applicant company the resolution of which will
  influence the outcome
• The applicant owns, or has the rights to exploit,
  the required intellectual property
• Viable commercial prospects for the end product
  or process realistic and effective routes to
  market.
• For RD activity a discretionary grant of up to
  25,000 per project may be available.

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Pipeline of Innovation Support (All)
Production
Co Invest
Productisation

Pre- Production
Industry Development
Prototype Development
Experimental Development
Academic research
Applied Research Strategic Specific
Basic Research Pure Orientated
Time to Market (scales according to sector)
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Description
Scottish Co-investment Fund

• Fund size gt90 million
• 20m SE, 25m ERDF, 45m private sector
• Investment period 5 years to April 2009
• Type early stage, high growth
• 20,000 - 500,000 per company
• 2 million deal ceiling
• Co-Invest, alongside private sector partners

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How SCF works
Scottish Co-investment Fund

• Company submits investable proposition to Partner
• After due diligence, Partner notifies SCF team of
  deal
• SCF team check for eligibility draft legals
• Notify Partner of SCF approval
• SCF team check final legals and raise cheque

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Fund Activity
Scottish Co-Investment Fund

• Number of deals to date 81
• SCF SE investment 9.7m
• Private Sector investment 24.1m
• Average SCF SE investment 120,000
• Deal type biotech, tech, electronics, energy
• Deal stage start up and early stage
• Deal range 20,000 - 2m

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Spinout Company, 2002
Pipeline Example
Molecular pharmacology

• 18 month project
• Glasgow Caledonian Uni.
• Proof of Concept - 122k
• SMART funding - 50k
• SE/RSE Fellowship Award - 45k
• 0.575m from Braveheart VC
• and the Scottish Co-Investment Fund

Perf-Exion
Software engineering
Optical technology
Scottish Enterprise
Scottish Executive
Pipe Line
RAE Funding