Enhancing the innovation management capacity of SMEs in Bavaria

Project Information

InnoBavaria_5

Grant agreement ID: 879864

DOI

10.3030/879864

Project closed

EC signature date 2 December 2019

Start date 1 January 2020

End date 31 December 2021

Funded under

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Total cost

€ 442 482,50

EU contribution

€ 442 482,50

Coordinated by

INDUSTRIE- UND HANDELSKAMMER FUR MUENCHEN UND OBERBAYERN
Germany

Periodic Reporting for period 1 - InnoBavaria_5 (Enhancing the innovation management capacity of SMEs in Bavaria)

Reporting period: 2020-01-01 to 2021-12-31

Summary of the context and overall objectives of the project

Within Europe’s economy, SMEs play a major role for employment and economic growth. Strengthening and maintaining the SMEs’ international competitiveness and innovation capacity therefore is of vital interest for Europe’s society. Increasing globalisation and rapid progress of emerging economies, boosted by digitalisation and well-developed transport logistics, put an increasing pressure on the economy in Europe. The requirements for sustainability and for a “greener economy” were intensifying this challenging situation. Defending their technological and market lead against new and ambitious competitors, requires European enterprises to adapt their business and innovation strategies and to constantly invest in innovating their products, processes, and services. This situation became extremely challenging in 2020-2021 by the COVID-19 pandemic.

Overall objective of the support action project was to increase the efficiency and effectiveness of investments (both private or public) in research, development, and innovation. Specifically, SMEs in the region of Bavaria had to be enabled to check and further develop their business and innovation strategy, and to perform innovation activities effective and efficient. Their ability to generate ideas, to select and translate the most promising ideas into projects, and to bring these projects to a long-term sustainable economic success had to be increased, as well as their ability to identify potential risks and to take suitable counter measures. This was achieved by the delivery of well-defined services packages to the SMEs, targeting: i) the enhancement of their innovation management capacity and the removal of potential innovation gaps and bottlenecks, ii) the planning and steering of their digital transformation, and iii) the integration of sustainability into their innovation and business strategy.

Start Ups and scaling up companies are currently changing the game in our region. The solid regional innovation support ecosystem allows young scientists to become entrepreneurs and try to create a real impact from their ideas, making them profitable. The European funding Program “European Innovation Council” is the only possibility to financially cover the whole innovation way. Specially targeted by the young companies is the funding instrument “EIC Accelerator”, which allow them the way to cover the valley of death between the prototyping and the commercialisation and overcome the critical phase of growing and scaling up the business model. All awarded companies accepted the Business Acceleration Services and the support of key account managers, as the perfect combination of financial and non-financial support for a sustainable growth.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The project offered support service packages to SMEs in Bavaria in two different lines: “Key Account Management” (KAM) and “Enhancing innovation management capacity” (EIMC). Both lines of support were offered by qualified senior innovation experts and by applying proven specialised tools and methods.

Key Account Management services was offered to SMEs receiving funding from H2020 European Innovation Council and the new pilot Programme from July 2019 onwards. Until now, all companies benefiting from the Accelerator Pilot instrument were supported – all of them accepted the services. There is only one beneficiary from the EIC Pathfinder Instrument. The KAM services helped them to detect and analyse their internal and external weaknesses that might hinder their exponential and sustainable growth and the commercialisation of the product resulting from the funded innovation projects. In order to find the way to cover these needs, external business coaches were identified in the dedicated official data base and connected to the company. As the Business Coaches are completely financed by the European Commission, the beneficiaries showed opener to work with them. EIC Accelerator beneficiaries are more demanding than the beneficiaries of SME-I Phase 1, as they are in an advanced life cycle phase. This factor together with the lack of availability of the best coaches, made the processes longer as usual. The more the companies were prepared for the need analysis, the better was the cooperation with the coach.

Enhancing Innovation Management Capacity service was offered to SMEs who wanted to check and further develop their business and innovation strategy and to increase their ability to manage and implement (digital) innovation processes and/or sustainable business activities successfully. It covered an individual assessment of the status of either innovation management, performance in digital innovation or sustainability aspects in their business and innovation strategy, a benchmarking against other SMEs, and the joint development of an individual action plan for improving it. The service was based on the internationally established tools Innovation Health Check (IHC), IMP³ROVE Innovation management Assessment (IMA), Digital Innovation Quotient (DIQ) and Corporate Sustainability Navigator (CSN).
Both KAM and EIMC Services were successfully delivered to SMEs in the region of Bavaria.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Over the project term 2020-2021, support service packages were delivered to 83 SMEs in Bavaria, 37 KAM clients and 46 EIMC clients.

The services supported the SMEs to increase their strategic and operational capability to innovate in an international environment, by analysing the individual situation of the SMEs with an independent and critical view from outside, by comparing it against good practices of other SMEs, and by stimulating practical improvements for the company.

Direct impact of KAM services for SME clients comprises e.g. the outline of the internationalisation strategy, the design and implementation of team building measures; workshops on leadership, multidisciplinary and multicultural communication and stablish first contact with key stakeholders. Intellectual Property Rights and protection of the potential patents was a very demanded topic as well as pathing the way for the transition from prototype to a final. There are evident differences between SME-I Phase 1 beneficiaries and the “Accelerator” ones. The first ones are focused on the business plan and on the identification of market segments and customers. The second ones are very focused on the conditions of the international markets, personal resources to reach this objective, marketing and the protection of the IPR assets. With this support companies were able to start thinking mid-term and strategically, opening their actions to new markets and internal processes.

Direct impact of EIMC services on SME clients comprised: The improvement and development of vision and (digital) innovation strategies/business models. The improvement of idea generation and idea management. Improved focus on new markets, partnerships and (digital) products or services. Improvement of interaction with external partners and (digital) ecosystems. Awareness raising and implementation of sustainable business activities. As a result of this improvements, the SME clients expect a stronger position on the markets and an increase in profitability and growth.

Synergies were created intensively with EU COSME activities. The KAM and EIMC services were fully integrated in the Enterprise Europe Network’s service portfolio, namely the provision of advisory and partnering services.

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