Business models and Access to finance for clusters

Page 1

International Days Training Session

26 & 27 February 2014, Vilnius Nicolai Sederberg Rottbøll


Self Introduction: Who am I? Basically •

39 years old homo sapiens sapiens

Some specific characteristics • • •

Extremely curious and learning driven Bohemian neurons embedded in an cleantech-structured brain (or the other way round) Sensitive to the human side of people

What have I done so far? • Confederation of Danish Industries (DI) • Copenhagen Capacity • Copenhagen Cleantech Cluster (CCC) • International Cleatech Network (ICN) • Quercus Group


Quercus Group

“Trusted Advisors in Regional Economic Development”

www.quercus-group.com


Co-trainers and case providers Peter Bjørn Larsen Copenhagen Cleantech Cluster Linas Eriksonas Cluster for Plastics and Novel Materials Algis Galdikas Photovoltaic Cluster Valerie Ayache and Severine Lebreton Medic@lps


Who are we today? a)Name, organisation, position, country b) Expectations of the next two days (30 seconds version)


Programme

Business models, Inter-cluster Collaboration and Cluster Labelling Innovate Project 2nd International Training 26th-27th February 2014 Vilnius


Wednesday 26th 09.00 - 09.15

Welcome, introduction to programme and participants

09.15– 10.15

Module 1: Business models for running a cluster: - Overall strategic considerations for clusters - What services should clusters offer its members?

10.15 – 10.45

Coffee break

10.45 – 11.15

Cases: Member services in practice: - Case 1: Copenhagen Cleantech Cluster/ Peter Bjørn Larsen - Case 2: Medic@lps/ Valerie Ayache and Severine Lebreton - Case 3: Cluster for Plastics and Novel Materials/ Linas Eriksonas

11.15 – 12.00

Group exercise: - How to develop a strong value proposition towards members?

12.00 – 13.00

Lunch break


13.00 - 13.45

Wrap-up on group exercise

13.45 – 14.30

Module 2: Access to finance for clusters and members: - Financial models of clusters - EU funds – and how to find you way in the EU jungle - Criteria for different sources of finance

14.30 – 15.00

Break

15.00 – 15.45

Cases: Business models and financial setups for clusters: - Case 1: Copenhagen Cleantech Cluster/ Peter Bjørn Larsen - Case 2: Medic@lps/ Valerie Ayache and Severine Lebreton

15.45 – 16.45

Group Excercise: How to get access to finance (case of your selection)

16.45 – 17.00

Wrap-up on day 1


Thursday 27th 09.00 - 09.15

Wrap-up from day 1 and introduction to day 2

09.15– 10.00

Module 3: Inter-cluster collaboration: - Cross sectoral cluster cooperation - Inter cluster collaboration – how to go international

10.00 – 10.15

Break

10.15 – 11.15

Cases: Inter-cluster collaboration: - Case 1: Copenhagen Cleantech Cluster/ Nicolai Rottbøll - Case 2: Cluster for Plastics and Novel Materials/ Linas Eriksonas - Case 3: Medic@lps/ Valerie Ayache and Severine Lebreton

11.15 – 11.30

Break

11.30 – 12.00

Group exercise

12.00 – 13.00

Lunch break


Thursday 27th

13.00 – 14.00 Module 4: Cluster labelling: - What is cluster labelling - Why cluster labelling - Types of certification - Pros and cons 14.00 – 14.45 Cases: Cluster labelling: - Case 1: Copenhagen Cleantech Cluster/ Peter Bjørn Larsen - Case 2: Cluster for Plastics and Novel Materials/ Linas Eriksonas 14.45 – 15.15

Break

15.15 – 15.45

Group exercise and discussion

15.45– 16.15

Wrap-up and final remarks


Module 1: Business models for running a cluster: Business models, triple helix, NABC analysis, cluster organisation, strategic choices, services.


Module 1: Business Models for running a cluster




Clusters drive innovation, productivity and competitiveness through collaboration between business, research institutions and public authorities.

! “[Clusters are] geogra-phic concentrations of interconnected enterprises, specialised suppliers, service providers, firms in related industries, and associated institutions (for example univer-sities, standards agencies, and trade associations) in particular fields that compete but also co-operate.� Michael Porter, Harvard Business School, USA


Industry

Academia/ Research

State/Reg. government


Competitive companies are prerequisites for a competitive region & vice versa

Competitiveness at the company level

• Business case and organisational and operational excellence

Competitiveness at the Industry/sector level

• Clusters

Competitiveness at the national level

• Macro policy excellence


Growing a company is complex • • • • • • •

Export promotion Market analysis Language skills Legal assistance Standards Export guarantees Exchange rates

• • •

New Technology Organisation & New modes of production Legal contracts

• • • •

Improved productivity? New Markets ?

Adm. Predictability Comp. Banking sector Skilled staff Support programs

• • •

New materials New skills Human skills development

Better ROI ? New product line ?

Business success ?


Financial considerations behind your business model • Public funding: • •

Local, National funds Development, regional funds (EU, World Bank etc.)

• Private/Industry funding: • • •

Member fees (What make members willing to pay?) Paid activities (What activities should be paid?) Sponsors (What make sponsors willing to pay?)

Funding opportunities


Rule No. one:

Make sure that you can answer the ”What’s in it for me” – question for each financial source – by understanding their interests and pains


Service portfolio:

What services should a cluster offer for its members?


Membership Fees • Why should the members pay a fee? – Value proposition – What is it for members?


Value proposition “Robotdalen supports innovators, entrepreneurs, researchers and businesses in developing and commercializing their robot innovations” “We offer competence within product development, technical analysis, simulation, business development and market development”


Value preposition

“CleanTech North provides member companies with a wide range of unique benefits that will assist them in expanding and growing their business to be successful in Canada and within the global market.�


 Be aware of: • Have a value proposition before a fee • Return on investment is often not clearly defined at early stages of cluster development • Some members do not have the resources


How to determine the membership fee? • members’ will to pay • according to the size of the member • low fee: paid services • high fee: services included • Need of member: how valuable does the member consider your service


Paid Services Payment for services offered by management and also usable for external players: • • • • • •

training courses meetings measures of recruitment matchmaking events among others


Sponsors

• Local champions • Special events


Service for members • • • •

Networking Events Securing funding Marketing International services


Medical Valley Cluster

Current Financing

Possible Future Financing

Membership fees: €200 to €5,000 /member

7%

15%

Management Contracts, incl. an Innovation Centre

26%

30%

Sponsors, four premium

16%

30%

Public funding: EU, national and Bavarian State agencies

51%

25%

Total Funding

€763,000

€763,000


Understanding your cluster

• Clusters differ greatly in terms of focus, access to resources, sectors, activities, organisation and priorities. • Which priorities characterize your cluster?


“Personal business partner” • Focus on services that support the single member company’s business •

Operates as a consultant firm

Employees have experience from private companies in the cluster


“Investor” • Consortium of companies that want to invest •

Focus on single companies, not the cluster as such

Members deliver services to start-ups and entrepreneurs


“Minimalistic and member driven” • 1 employee only •

Very active members that organise themselves in working groups

Tiny budget


“Project developer” • Facilitates the formation of consortiums which initiates and fund large projects •

Outsourcing daily operations to private company

Board of Directors take active part in project development


“Lobbyist” • Members get influence, but no services •

Focus on political framework conditions

Focus on large projects that create concrete results


“Networks and branding” • Activities are focusing on creating networks between members and internationally •

Life Science Ambassador Program with 12 international clusters

Strong brand


Strategic choices #1

Services

Political activist Outside-in

development

Pacifist Inside-out

Branding

Network

Business

Technology

Focus

Diversity


Strategic choices Services

#2

Political activist

Outside-In

Development

Pacifist

Inside-Out

Branding

Network

Business

Technology

Focus

Diversity


Strategic choices Services Political activist

#3

Outside-In

Development Pacifist

Inside-Out

Branding

Network

Business

Technology

Focus

Diversity


Strategic choices Services Political activist Outside-In

#4

Branding

Business Focus

Development Pacifist Inside-Out

Network

Technology Diversity


Strategic choices Services Political activist Outside-In Branding

#5

Business

Focus

Development Pacifist Inside-Out Network

Technology

Diversity


Strategic choices Services Political activist Outside-In

#6

Development Pacifist Inside-Out

Branding

Network

Business

Technology

Focus

Diversity


Benefits of a Service Portfolio

intensifying and stabilizing interaction between cluster members

reduce the time and costs spent by cluster members

allow cluster members to focus on their core activities


The way you organise yourselves is critical for achieving your vision, mission and goals – and thus for implemeting your business model


Example 1: ”Programme leader” The cluster manages a large project with partners Cluster Cluster organisation

Board 

Partner #11

Partner #10

Partner #9

Partner #8

Partner #7

Partner #6

Partner #5

Partner #4

Partner #3

Partner #2

Partner #1

Secretariat   

Services to stakeholders

Services to stakeholders

The role of the board is to act as stearing committee to ensure project output The Secretariat is the daily project manager and facilitates cooperation between project partners Stakeholders have access to services for free Finances consist of public funds (regional + international) Offer to members: Sponsor contract, visibility/ branding


Example 2: ”Consultancy firm” The cluster delivers a number of services to paying members Cluster Cluster organisation

Board 

Paying members

Services

Secretariat

  

Stakeholders (potential members)

The role of the board is to ensure that the secretariat delivers valuable services to members The responsibility of the Secretariat is to provide members with services and lokk after their interests Stakeholders get access to services if the sign up for membership Finances comes from paying members who recieves services in return Offer to members: Services/ consultancy service


Example 3: ”Developer/ facilitator” The cluster develops a number of projects and facilitates cluster cooperation Cluster Cluster organisation

Board Paying members

€ Impact

Sekretariat

  

Stakeholders (potential members and project participants)

The role of the board is to point out the strategic direction for the development of the cluster The role of the Secretariat is to delevop projects that create value for members and the cluster. Some projects are driven by the secretariat, others are driven by partners Stakeholders are invited to participate in projects Finances come from paying members (small percentage), main finances ”by project” Offer to members: Influence on new projects, Invitation to participate actively in the projects


Learning from Module 1: • Clusters differ greatly (no single recipe) • Don’t do anything before you know the passions and pains of the companies • Create your business model and organise your cluster in a way that serves the passions and pains of companies best



Cases, Member Services in practice: • Case 1: Copenhagen Cleantech Cluster Presented by Peter Bjørn Larsen • Case 2: Medic@lps Presented by Valerie Ayache and Severine Lebreton • Case 3: Cluster for Plastics and Novel Materials Presented by Linas Eriksonas


Group exercise: How to develop a strong value proposition toward members?


NABC analysis/ pitch N – Need A – Approach B – Benefit C – Competition


N - need

 Which need(s) do you solve – and for whom?


A - approach

 How are we solving/ tackling that need ?  What’s the uniqueness of our solution? (describing your solution/ project/ service)


B - benefit

ďƒź How does the customer (member) benefit from your solution/ service? ďƒź What is the effect of what we do?


C - competition

ďƒź Why is our solution better that other solutions?


Formulate the NABC of your cluster… …or organisation (how do your organisation support clusters?) Groups of 4



Module 1: Group exercise: How to develop a strong value proposition toward members? Wrap-up


Module 2: Access to Finance


Module 2: : Access to finance for clusters and members: Financial models; private funding, membership fees, services; public funding, EU funds


Financial considerations • Public funding: • •

Local, National funds Development, regional funds (EU, World Bank etc.)

• Private/Industry funding: • • •

Member fees (What make members willing to pay?) Paid activities (What activities should be paid?) Sponsors (What make sponsors willing to pay?)

Funding opportunities


Rule No. one:

Make sure that you can answer the ”What’s in it for me” – question for each financial source – by understanding their interests and pains


Public or Private Funding? There is NO single recipe % Membership fees

% Public Funding

Cluster 55Âş, IT, Sweden

50%

50%

Images & RĂŠseaux, Rennes, France

56%

44%

Green Building Cluster, Lower Austria

30%

70%

Automotive Region Stuttgart, Germany

70%

30%

Cluster

Source: Cluster Development: The Go-to Handbook 2012


But there is one tendency‌

Source: The Cluster Initiative Greenbook 2003


Public Funding

Find your way in the EU JUNGLE


EU Funding 2014-2020 New Plan


Types of EU funding 2 types: ďƒ˜ Funds whose management is shared between the EU and the Member States (Structural and Cohesion Funds) ďƒ˜ Funds which are managed centrally by the European Commission (research, environment and external action funds)


DG “Fundings” DGs (Department Generale) of the EU Commission where you can apply for funding for your cluster: • • •

DG Regio DG Research DG Enterprise

List of DG’s in Europe


3 DG’s &Cluster Development DG Regio

Structural Funds

-Cohesion

Fund

-ERDF -Social Fund

DG RTD (Research & Innovation) HORIZON 2020

DG ENTR (Enterprise Industry) COSME


Smart Specialisation Platforms & RIS3 WHAT ARE THEY & WHAT DO THEY STAND FOR?

National/regional research and innovation strategies for smart specialisation (RIS3) are integrated, place-based economic transformation agendas.


RIS3:What’s in for the clusters?


SMART SPECIALISATION PLATFORMS

Online S3 platform


Where is Lithuania on the map‌

Lithuania: Towards a RIS3 strategy(RIS3)


‌towards the RIS3 strategy


3 DG’s &Cluster Development DG Regio

Structural Funds

-Cohesion

Fund

-ERDF -Social Fund

DG RTD (Research & Innovation) HORIZON 2020

DG ENTR (Enterprise Industry) COSME


ERDF

(European Regional Development Fund)

Innovation and research

Support for small and medium sized enterprises

Digital agenda

Low-carbon economy

(European Regional Development Fund)


Territorial Programs International InterReg Europe (1) Transnational (13)

ERDF

Cross Border (53)


Cross Border Co-Operation

AIM: •

reduce the negative effects of borders as administrative, legal and physical barriers

tackle common problems and exploit untapped potential

Cross border cooperation programmes


Cross Border Co-operation Deals with: o

Entrepreneurship (especially the development of SMEs, tourism, culture and cross-border trade)

o

Natural resources

o

Links between urban and rural area

o

Transport and communication networks

o

Infrastructure

o

Employment and equal opportunities work


Case: Bringing neighbors closer to Latvia •

Latvia - Lithuania Cross Border Cooperation Programme


Case points

Sustainable and equal socioeconomic development in border regions

Co-finances up to 85% of the total eligible project costs

Project partners : national, local, regional, NGO’s


Interregional Co-operation AIM: •

Builds networks : develop good practice and facilitate the exchange and transfer of experience by successful regions Showcases what regions do well to the benefit of those still investing

E.g. INTERREG IV C (2007-2013)

-

enables EU regions to work together 2 priorities : innovation and the knowledge economy + environment and risk prevention ERDF contribution: €321 million.


Interregional Co-operation URBACT II “Urban Act”

ESPON "European Spatial Planning Observation Network"

INTERACT II

• Local and regional level • Thematic networks and working groups between cities, conferences and the development of tools • ERDF contribution: €53 million Countries: EU-27, Norway and Switzerland

• Scientific information for the development of regions and larger territories :applied research, analysis and tools • ERDF contribution: €34 million Countries: EU-27, Norway, Switzerland, Iceland and Liechtenstein

• Provides training, services and tools to programme managers and administrators of co-operation programmes in order to improve the management of these programmes • Countries: EU-27, ERDF contribution: €34 million.


Interregional Co-operation Applications for Funding:

• Useful links:

1. Program funding 2. Country specific information: Lithuania


CASE CLOE-Clusters linked over Europe •

ABOUT CLOE


Case Points

Informal alliance of clusters all around Europe

Create a European network of clusters

Workshops

Network


Transnational Co-operation

AIM: •

regional development, developed from analysis at a European level

•

communication corridors, flood management, international business and research linkages, and the development of more viable and sustainable markets


Transnational Co-operation Deals with:

Innovation (SME’s)

Environment (water resources, rivers, lakes, sea)

Accessibility (telecommunications + networks)

Sustainable urban development


CASE The Baltic Sea Region • •

EU Strategy for the Baltic sea region (video) Baltic sea region program success story


Case Points •

8 EU Member states

Development towards a sustainable, competitive and territorially integrated Baltic Sea Region (BSR) by connecting potentials across borders

Environmental pressures

Safety and security


Wrap-up: Co-operation programs Application for funding

•

Joint Technical Secretariats of the cooperation programmes.

•

Contact data of the Joint Technical Secretariats can be found here


3 DG’s &Cluster Development DG Regio

Structural Funds

-Cohesion

Fund

-ERDF -Social Fund

DG RTD (Research & Innovation) HORIZON 2020

DG ENTR (Enterprise Industry) COSME


Social Fund •

People

Improving employment and education opportunities across EU

Covers all EU regions

~€ 74 billion for 2014 -2020 (€ 3 billion allocated to the Youth Employment Initiative)

European Social Fund rules

ESF website


Social Fund

•

4 AREAS:

1. Strengthening employment & mobility 2. Better education 3. Giving a change to all 4. Better public services


3 DG’s &Cluster Development DG Regio

Structural Funds

-Cohesion

Fund

-ERDF -Social Fund

DG RTD (Research & Innovation) HORIZON 2020

DG ENTR (Enterprise Industry) COSME


Cohesion Fund •

Member States whose Gross National Income (GNI) per inhabitant is < 90 % of the EU average

Strengthens economic and social disparities

Promotes sustainable development

~€ 66 billion

Rules for the Cohesion Fund


Cohesion Fund Forecast


Cohesion Fund •

2 AREAS:

1. trans-European transport networks e.g.: infrastructure projects under the Connecting Europe Facility

2. environment: renewable energy or transport


3 DG’s & Cluster Development DG Regio

Structural Funds

-Cohesion

Fund

-ERDF -Social Fund

DG RTD (Research & Innovation) HORIZON 2020

DG ENTR (Enterprise Industry) COSME


Horizon 2020 •

Biggest EU Research and Innovation program – nearly €80 billion – available over 7 years (2014 - 2020) – Horizon 2020 access

Aims to increase Industrial Leadership by: – Supporting key technologies e.g.: microelectronics, advanced manufacturing, etc. across existing and emerging sectors – Supporting the increase of innovative SMEs in Europe.


Horizon 2020

Find the area where u want to apply


4 step-Application process 1. Submit your proposal -online 2. Find your partners -~ 3 partners -partner search options 3. Evaluation by experts -evaluated by a panel of independent specialists in their fields -5 months duration 4.Grant agreement - what research & innovation activities will be undertaken the project duration, budget, rates and costs, the European Commission's contribution, all rights and obligations -3 months for signing the grant agreements


CASE :

How plants evolved and what it means to our food supply

Case Link


3 DG’s &Cluster Development DG Regio

Structural Funds

-Cohesion

Fund

-ERDF -Social Fund

DG RTD (Research & Innovation) HORIZON 2020

DG ENTR (Enterprise Industry) COSME


COSME

EU program for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs)

The fund goes to financial institutions->clusters

Running: 2014 -2020

Budget: €2.3bn

COSME at a glance


COSME


COSME

Access to Finance •

2 programs:

1. The Loan Guarantee Facility 2. The Equity Facility for Growth •

Finance at a glance:

Better access to finance for Small and Medium-sized Enterprises (SMEs)


Financial considerations • Public funding: • •

Local, National funds Development, regional funds (EU, World Bank etc.)

• Private/Industry funding: • • •

Member fees (What make members willing to pay?) Paid activities (What activities should be paid?) Sponsors (What make sponsors willing to pay?)

Funding opportunities


Private/Industry Funding • Membership fees • Paid activities • Sponsors



Module 2: Cases, business models and financial setups for clusters • Case 1: Copenhagen Cleantech Cluster Presented by Peter Bjørn Larsen • Case 2: Medic@lps Presented by Valerie Ayache and Severine Lebreton


Group discussion


Learning from Module 2: • Define financial strategy (including ”what’s in it for me” scenarios) • Before charging fees, define a value proposition • Make sure to be in line with your RIS strategy when applying for EU funds


Wrap-up from Day 1: •

Module 1: Business models for running a cluster: – Business models, triple helix, NABC analysis, cluster organisation, strategic choices, services.

Module 2: Access to finance for clusters and members: – Financial models; private funding, membership fees, services; public funding, EU funds


• Thank you for day 1!


Group exercise International collaboration: Write a draft pitch on an international cluster-to-cluster project that you want to get financed by the EU -

Why should you work internationally? What should the outputs of international cooperation be? What’s in in for the EU? What’s the ideal financial model for your cluster. Why?


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.