Periodic Reporting for period 1 - INNOINVEST (Co-creation better SME support through improving the process of investments in innovative ideas)
Reporting period: 2021-02-01 to 2022-01-31
The innovative SMEs especially those who are trying to implement the advanced innovative technologies have problems with finding business and financial partners for funding. Although the corporates attitude is positive and the companies are becoming more open to cooperation with SMEs, most of the collaboration attempts fail due to the different mindsets between entrepreneurial SMEs and the process-oriented corporations that avoid risk with regard to new technologies. (World Economic Forum 2018).
Besides the possibility of obtaining both VC short-term capital support as well as long-term equity financing, is also extremely important for SMEs in order to ensure the time to achieve profitability and is possible thanks to starting cooperation with business partners during the investment process. (Expert Advisory Group on Innovation in SMEs final report).
The main goal of the INNOIVEST project is to increase the innovation agencies efficiency in the field of capital investment management and financial support for innovative SMEs that are launching new innovative products/technologies (R+D) by finding tools and methods to improve the investment process, especially by facilitating the SMEs cooperation with corporate companies.
Throughout the project, four innovation agencies (IAs) worked on the whole investment process for SMEs’ innovative technologies/solutions to ensure the best quality in the selection of the SMEs and their management staff and proposals. Moreover, a special emphasis was put on the validation process to ensure the SMEs feedback from the potential business partners and facilitate them to start the cooperation with corporate companies and acquire the financial (short or long term) support. Innovation agencies involved in the project worked using twinning+ adapted methodology and this way developed a Design Options Paper covering the whole investment process including the selection of the SMEs, evaluation, validation leading to obtaining the capital by SMEs.
Besides the possibility of obtaining both VC short-term capital support as well as long-term equity financing, is also extremely important for SMEs in order to ensure the time to achieve profitability and is possible thanks to starting cooperation with business partners during the investment process. (Expert Advisory Group on Innovation in SMEs final report).
The main goal of the INNOIVEST project is to increase the innovation agencies efficiency in the field of capital investment management and financial support for innovative SMEs that are launching new innovative products/technologies (R+D) by finding tools and methods to improve the investment process, especially by facilitating the SMEs cooperation with corporate companies.
Throughout the project, four innovation agencies (IAs) worked on the whole investment process for SMEs’ innovative technologies/solutions to ensure the best quality in the selection of the SMEs and their management staff and proposals. Moreover, a special emphasis was put on the validation process to ensure the SMEs feedback from the potential business partners and facilitate them to start the cooperation with corporate companies and acquire the financial (short or long term) support. Innovation agencies involved in the project worked using twinning+ adapted methodology and this way developed a Design Options Paper covering the whole investment process including the selection of the SMEs, evaluation, validation leading to obtaining the capital by SMEs.
The INNOINVEST project applied peer review and joint co-creation combined approaches within the framework of the TWINNING+ process (INNOPARTNERING Forum, Twinning Advanced: Twinning+). The process started with the collection and analysis of the innovation investment markets in the partner’s regions or countries. Four two-day thematically focused workshops comprising peer review (day 1) and design (day 2) formed a consistent co-creation process dealing with each stage of the model investment process. At each workshop the end-users i.e. SMEs were engaged in presenting their experiences. The workshops were interwoven with contacts with SMEs to obtain additional feedback for the workshop results. Each workshop contributed to one chapter of the design option paper, that at the end of the project was compiled by the coordinator and consulted with the partners at the final meeting and then improved at several iterations.
The INNOINVEST design option paper gives overall information to any interested parties on who is involved in the investment process run by IAs. The paper presents an improved approach that can strengthen the position of innovation centres on the national and international arena as a high value-added business support organisation active in the investment area. Their activities on one hand can limit the risk of investment in highly innovative SMEs solutions. On the other, the approach has the potential to improve the IA’s efficiency in their support given to the SMEs in the most important aspects in the development of their businesses. These aspects cover improved access to the capital, transparency and fairness of investment deals, fast and professional application and coaching process, valuable feedback on their business ideas, access to potential business partners i.e. corporates that can be the clients or collaborators. The INNOINVEST partners have concrete plans to implement the result of peer learning activities developed in the Design Option Paper. The project results will be also communicated and disseminated among the others IAs.