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Competitiveness OP - Portugal

Implementing business support schemes at regional level (I)

Nelson de Souza

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NRSF- Portugal Incentive Schemes

for Investment in Enterprises 9 October 07

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Strategic options

1. Lessen the importance of state aids in the global budget

2. Reduce aid intensity

3. Focus on priorities

4. Favour SME

5. Simplified administrative management

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REGIONAL DEVELOPMENT STRATEGIES

URBAN DEVELOPMENT STRATEGIES

COMPETITIVENESS AND TECHNOLOGY POLES

CLUSTER STRATEGIES

COLLECTIVE EFFICIENCY STRATEGIES

Incentive schemes NRSF

Global architecture HORIZONTAL INCENTIVE SCHEMES (IS)

IS R&TD Enterprise

research and development

IS InnovationProductive

investment in innovation/entre

preneurship

IS SME Qualification

I ntangible compe-titive factors

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NRSF Incentive Schemes

IS R&TDIncentive Scheme

for Research and Technological Development

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IS R&TDType of projects

Enterprise R&TD Individual projectsCo-promoted projects Mobilising projects R&TD voucher

Collective R&TD R&TD project promoted by a business association “representing” SME

Internal R&TD competences

R&TD teamsR&TD centres

R&TD valorisation Demonstrative projects

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IS R&TD Incentive rates

A. GENERAL RATESA. GENERAL RATES (Enterprises)• Base Rate - 25%

• Additional: – 10 p.p. (medium enterprise) or 20 p.p. (small enterprise)– 15 p.p. (cooperation projects)– 25 p.p. (industrial research – further from the market)

B. SPECIFIC PROJECTS’ RATE (Enterprises)• R&TD voucher – 75%• R&TD teams and centres– 50%

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IS R&TDIncentive type

A. General type• Non refundable

B. Specific cases• Enterprise R&D projects – 25% of the incentive exceeding €1 M shall be granted as

refundable;• R&TD Centres – refundable incentive; 80% may be considered as non refundable if re-

invested in R&D activities.

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NRSF Incentive Schemes

IS Innovation Incentive Scheme for Innovation

(Productive Investment)

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IS Innovation Type of projects

Product innovation - Producing new or conside-rable improved goods and services;

Process innovation – Adopting new or considera-ble improved production, logistics, distribution, organizational or marketing processes and methods;

High added value activities – Increasing produc-tion capacity in activities with a high technological contents or with dynamic international demand;

Qualified entrepreneurship – Creation of enterprises with qualified resources or developing activities within highly dynamic growing sectors.

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• Base rate: 35% +

• Additionals: – 10 p.p. (medium enterprise) or 20% (small

enterprise)– 10 p.p. (collective efficiency strategies)

• Refundable incentive; may be changed into non refundable depending on project performance, up to a 75% maximum ceiling.

IS InnovationIncentive rates and type

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NRSF Incentive Schemes

IS Qualification of SME Incentive Scheme for the Qualification and

Internationalisation of SMEs

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1. Individual project, submitted by a SME;

2. Joint project, submitted by a public body, a business association, or a body from the STS;

3. Cooperation project, submitted by several SME or a SME-led consortium;

4. Innovation Voucher, submitted by a SME for the purchase of innovation support services from STS bodies .

IS SME Qualification

project nature

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Creation, fashion & design

Development and product, services and processes engineering

Industrial property Organisation and

management of information and communication technologies (ICT)

Quality Environment

Internationalisation Innovation Energy diversity and

efficiency Digital economy Sales and marketing Social responsibility

and health and safety at work

Equal opportunities

IS SME QualificationType of projects

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• Base rate: 35% +

• Additionals: 10 p.p. (small enterprise) 5 p.p. (collective efficiency strategies) 5 p.p. (cooperation projects)

• Refundable incentive, with absolute ceilings per project.

IS SME Qualification Incentive rates

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Final remarks

1. Aids more focused on priorities2. Selectivity assured by the process

management3. Horizontal aids: R&D, Innovation

and SME4. Possibility of specific strategies:

clusters, poles and urban projects5. The same policy for different

public players (national and regional)

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Governance

Alfredo Marques

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National Framework

• Portuguese regions eligible under different objectives

• Lisbon agenda as the paradigm

• Different territorial levels for the management of aid schemes

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National Aid Schemes

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Share of Tasks

Competitiveness Factors PO

Micro+

Small Companies

Medium +

Large Companies

Regional PO

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Decision Procedure

FINANCING DECISION

IV V VI

I II III

PROJECT SUBMISSIO

N NRSF Incentive

Internet PORTAL

FINANCING PROGRAM

ME

PROJECT ASSESSMEN

TSpecialised agencies•R&D•Tourism•FDI•SME+Other

FINANCING DECISION

Selection Committee:

CFPO + Regional PO + Specialised

Agencies

Approval by the management

authority

CONTRACTIN

G AND FOLLOW-UP

Specialised public agencies +

management authority

FINANCING PROGRAMM

ECFPO – medium and large enterprisesREGIONAL PO – micro and small enterprises

First step Second step