| What is the mandate of the INNOVATION/SMEs Programme for Financing Innovation? |
The INNOVATION/SMEs programme is managed by the Innovation directorate of DG Enterprise and has a legal mandate under the Council Decision on the 5th Framework Programme and its Workprogramme to promote the exploitation of RTD results as well as the emergence of a favourable environment for financing the exploitation, adaptation and dissemination of technology. This includes the interlinking of financiers, investors and technology sources as well as initiatives to mobilise private capital for the financing of innovation. This introduction highlights a number of activities organised in this field by the Innovation directorate of DG Enterprise.
| Activities promoting Venture Capital and new Stock Markets for High Growth, Innovative Companies |
Innovation and Technology Equity Capital (I-TEC)
Launched in July 1997 in cooperation with the European Investment Fund, I-TEC aims to foster investment in early stage, innovative technology projects by private Venture Capital operators. The I-TEC Network of Venture Capital Funds gathers funds, which have committed to invest at least 25% of their capital in such projects.
Support to the establishment of specialised networks of financiers and investors
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Since 1984, the Innovation directorate of DG Enterprise has supported actively the establishment and development of the European Venture Capital Association (EVCA), which currently gathers more than 400 professional Venture Capital operators. The Innovation directorate of DG Enterprise represents the European Commission on the Board of the EVCA.
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From 1994, the Innovation directorate of DG Enterprise supported the creation of the European Association of Securities Dealers (EASD), today representing some 75 investment banks and market professionals. New Stock Markets for High Growth, Innovative Companies such as EASDAQ and EuroNM find their origins in these initiatives.
| Activities promoting the exploitation and financing of RTD results |
The Gate2Growth Initiative
The prime objective of the Gate2Growth Initiative is to support innovative entrepreneurs in Europe. In addition, Gate2Growth aims to assist service providers improve their capacity to assist entrepreneurs by fostering networking and the exchange of experience and good practice at European level. These include early stage technology venture capital investors, managers of technology incubators, managers of industrial liaison and technology transfer offices linked to universities and research centers, academics in entrepreneurship, finance research and teaching. Gate2Growth thus provides tools, infrastructure and support services directed to innovative entrepreneurs as well as to their supporters.
Transnational Investment Fora
Transnational Investment Fora bring together innovative SMEs and potential investors. 16 such fora have been organised across Europe, in cooperation with the European Venture Capital Association and with national innovation agencies, involving more than 500 innovative companies. The concept has been integrated in Community RTD programmes (e.g. Esprit, Brite-Euram), and additional events are planned. The FIT Policy Exchange Project
The FIT Policy Exchange Project aims to organise a systematic exchange of good practice in Financing Innovation between Member States? policy makers and market operators. Six subjects (expanding) are to be covered in the coming months, with workshops and dissemination activities (see events for more information).
Training Seminars on Financing Innovation
The INNOVATION-SMEs programme organises training seminars for project officers and participants in Community RTD programmes. These seminars are given by a venture capitalist, a banker, a high tech entrepreneur,... More than 150 participants have already attended these seminars and additional events are planned.
LIFT
The LIFT pilot project provided a helpdesk on financing of innovation to support and direct participants in Community RTD programmes in the exploitation of results, as well as to assist thematic RTD programmes in establishing links with financiers and investors. LIFT was operational from mid-1999 to the end of 2001..LIFT functions have been extended in the Gate2Growth Initiative
| Dissemination and exchange of good practice |
Surveys, studies and workshops
Analysis performed include: the performance of Venture Capital in Europe; securitisation of guaranteed loans to NTBFs; the potential market for IPOs in Europe; support by EU banks to innovation financing; non-regulatory barriers to development of new capital markets for NTBFs "Corporate Venturing in Europe"; ... Copies can be ordered from the publications section.
Pilot projects and networks
Experimental pilot projects and networks are being conducted jointly with financiers, covering: Venture Capital models for the microsystems and photovoltaic industries; Technology Rating and appraisal; Technology Performance Financing; spin-out and spin-off from research institutes and universities;...
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