lowendalmasaï - funding innovation
DESCRIPTION
Lowendalmasaï is an international management consulting company which helps enterprisesto improve their business through cost management efficiency that enhance their long term performance and finances their growth, while protecting human capital. We had a wide presence in Europe, with own offices in France, Italy, Spain, Portugal, UK, Germany and the Netherlands, and outside Europe in China and Japan. In Italy the Group offer is structured along the business lines: Innovation Financing, Labour Cost, Fiscal, Purchasing & Cost Performance and Working Capital. Furthermore we developed a widespread network which allows us to support our clients in most European countries plus USA, Tunisia, Israel, Turkey and India. On R&D advisory we are able to support our client France, Italy, Spain, UK, Germany, Netherland, Belgium, Turkey, Ireland, Poland, Serbia, Israel, Tunisia, India, China, Brazil. Lowendalmasaï has 20 years of experience in consultancy and operates in R&D advisory since more than 11 years during which has gained experience in preparation submission and management of international and EU funding programs (including consortium definition), tax reliefs, patent box schemes. For info: [email protected] M. +39 348 6657917TRANSCRIPT
R&D AdvisoryA global approach to boost innovation
Via A. da Recanate 1, 20124 Milano
Tel. +39 02 80583223
Fax. +39 02 80583227
www.lowendalmasai.com
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R&D Advisory
Some opportunities
│ Agenda
Lowendalmasaï at a glance
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São Paulo
Mumbai
Sydney
Hanoi
Shanghai
Tokyo
Astana
Moscow
Tel Aviv
Tunisi
Izmir
Istanbul
Consulting Office Sourcing Office Strategic Partner
London
Madrid
Paris
Milan
Rome
Düsseldorf
Copenhagen
Barcelona
Lisbon
Bratislava
Prague
Oslo
Geneva
Amsterdam
Thessaloniki
400 EMPLOYEES IN THE WORLD
2,500 ACTIVE CLIENTS FROM ALL BUSINESS SECTORS
20 YEARS OF EXPERIENCE
We support our Clients at local and global level providing innovative solutions which lead to measurable and sustainable results
CorporateProfile
Enterprise Cost Management: we aim at reducing enterprise costs generating cash and lightening tax burden, without resorting to cuts or human capital reductions
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Our areas of expertise are characterized by an efficient combination of strategy and pragmatism
Enterprise Cost Management
WORKING CAPITAL
OPTIMIZATION
FISCA
L COST
OPTIM
IZATI
ON
INNOVATIONFINANCING
SOCIAL CO
ST
OPTIM
IZATION
PURCHASING & COST
PERFORMANCE
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Lowendalmasaï remuneration model (fixed and variable fees) is orientated to success and based on tangible and measurable results
Results
%LowendalmasaïVariable Fee
Lowendalmasai key assets
Lowendalmasaï key success factors
• Lowendalmasaï success fee is based on reached and validated results
• We always align our objectives with the client’s
• Lowendalmasaï aims at providing effective and durable results, as we base our success on the client’s satisfaction
Operational support• Coaching during
implementation• Doers, not sayers
Know How• Successful methodology• Cost optimization
specialization• Business sector expertise
Results• Tangible and
measurable results• Partnership
Collaboration with the
Client• Culture based on listening• Relationship with
operational contact people
Lowendalmasaï garantees:
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We are proud of our prestigious Client portfolio, which includes both international groups and middle-sized dynamic companies
Transport Logistics & Services
Automotive & Aerospace
Energy and Oil & Gas
Chemical-Pharma & Healthcare
Food Beverage & HoReCa
Retail Distribution and Consumer Goods
Banking Finance Insurance
Luxury & Fashion
IT Electronics & Appliances
Industry & Construction
Advertising, Publishing & Services
Our Clients
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│ Agenda
R&D Advisory
Some opportunities
Lowendalmasaï at a glance
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• Tax reliefs have been introduced since the 80’s•
• There are two main forms of tax incentives :• Tax credit
• Either as a volume amount (x% of qualified expenditures)
• Or as an incremental amount (x% of expenditures above a base level, usually based on the expenditures of the 2 or 3 preceding years)
• Superdeduction• R&D expenditures are multiplied by a
coefficient before being subtracted to the operational result – resulting in lower corporare taxation (superdeduction x tax rate = volume amount of R&D tax credit)
• Most countries have a definition of eligible project that are similar to the definition of the Frascati Manual
• Funding is a set of instruments to boost innovation and competitiveness overcoming potential market failures
• Such instruments exist worldwide at different levels: international, national, local
• Amounts and requirements depend on specific regulations mostly related to the achievement of technological targets
• There are two main forms of funding:• Direct Funding:
• the contribution is a percentage of the project total budget and there is no obligation to return
• Credit Facility:• The contribution has the form of a credit
up to 100% of the total budget with no or facilitated interest rate
│ Introduction on R&D tax reliefs and fundingTax reliefs and funding represent two aspect of a strategy to boost R&D
and Innovation at international, country and local level
Tax Relief Funding
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• Solution not obvious for someone having a good professional knowledge of the industry
• Risk of failure
• Solution above the existing state-of-the-art for products, processes and services
• Significant improvement between before and after the project
• Education of R&D personnel (engineers, PhDs…)
• Knowledge management
• Tests, experiments, trials, iterations…
INNOVATION
TECHNICALDIFFICULTIES
SCIENTIFICMETHODOLOGY
Eligible expenses
│ R&D: a common definition
Even though rules can be different, the R&D definition from Frascati Manual is accepted worldwide
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│ Our approach
One single team for a global world Anticipate issues
instead of trying to solve them
See funding and facilitations from a strategic point of view
Get the chance to exploit hidden opportunities if observed at country level
Thanks to its “glocal” approach Lowendalmasaï is able to maximize the benefit emerging from international synergies and ensuring effectiveness at local level…
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│ The added value
…which means widening the innovation effort and reducing its cost
ExampleBusiness Plan 2014
Scenario 1: as is
• 4 projects proposed• The budget allows only
the project A to be financed
• The others cannot be run
A
BC
2M€ 0,8M€
0,7M€
D
0,5M€
Scenario 2: results
• Also project B can be run• Result: one step beyond
expectations!
A
BC
2M€ 0,8M€
0,7M€
D
0,5M€
Identification of opportunities
• An EU funded programme gives the opportunity to rise up the 70% of project A
• 400k€ can be now allocated on Project B
• Through a tax relief is possible to get a 50% refund of project B
A
BC
1,5M€
D
0,5M€
0,8M€
2M€
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Interviews
Understanding of the
development strategy
Data Collection
Kick-off Meeting
Phase 1
Data collection
Check-up of opportunities
Overview of technical
implications
Feasibility study
“As Is” Photography
Phase 2
Assessment
Creation of possible
scenarios
Funding quantification
Potential funds
Phase 3
“To be” proposals
Follow-up and reporting
Dossiers preparation and submission
Caring of institutional relations
Support in creating partnership
Phase 4
Implementation
│ Methodology
To properly meet clients’ needs Lowendalmasaï developed a comprehensive methodology starting with a strategic overview
Sworn certification of R&D expenses
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│ Agenda
R&D Advisory
Some opportunities
Lowendalmasaï at a glance
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R&D Tax Credit
Total budget 600.000.000 €
Duration 2014 2015 2016
Up to 2.500.000 €/year
Tax Credit50% of the increase in annual
R&D expenses
The credit can generate up to 7,500,000 € of savings
annual expenditure
increasePotential benefits
2016201520142013
= investment level
= potential benefit
Base research
Industrial research
Experimental development
Eligible activities
Development of new products, processes and services or improvement of existing ones
Eligible expenses
Labour cost Machineries
Research in cooperation with Universities and Reasearch
CentersContractual research
Acquired or licensed know-how and patents
│ Italian R&D Tax Credit: some detailsThe brand new enforced R&D Tax Credit is an incremental one with a
potential benefit of 2,5m€ per year
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│ IRAP: R&D personnel cost deducton
Tax deduction
Beneficiaries
Eligible expenses
Relief
Companies of any size and belonging to any sector on the national territory
Cost of employees in charge of:
• Base research
• Applied research and industrial development
Tax base deduction of R&D related personnel cost
Example of potential benefit
Employees
Personnel cost
500
24m€
Potential benefit
180k€
Thanks to a correct classification of R&D costs it can be possible to get a tax deduction related to the cost of employees actually performing R&D activities
Source: Italian National Statistical Institute: last survey shows that the average proportion of employees dedicated to R&D in Italian companies is included between the 20% and the 40%
370k€
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R&D Innovation
Non-Profit 100% 100%
Profit 100% 70%
+ Additional flat rate: 25% Direct Costs
Lowendalmasaï proposal
• Roadmap and strategy
• Support in creating the consortium and in outlining the project
• Identification of already existing consortium
• Technical supervision of proposals
• Lobbying
• Training
What is it It is the financial instrument of the European Commission to boost research and innovation
Duration 2014 - 2020
70B€Budget
3 Pillars Excellent science
Industrial leadership
Societal challenge
Funding per project
│ Horizon 2020
The EU launched the new funding program to boost research and innovation with a total budget of 70B€ and a lot of opportunities for all industry sectors
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Lowendalmasaï offers to its clients an international insurance which intervene in case of sanctions
Quality guarantee of the work performed
€ 5.000.000 coverage cap in
case of administrative
sanctions
Support in case of inspections by
responsible bodies
│ Continuous support
Lowendalmasaï Italia
Via Antonio da Recanate 1 – 20124 Milano
Tel: +39 02 80 58 32 23 – Fax: +39 02 80 58
32 27
www.lowendalmasai.com
Paris - HQEUROATRIUM
7, rue Emmy Noether93400 St Ouen
France T : 33 (0) 1 83 72 72 00
London5th Floor Bridewell Gate
9 Bridewell PlaceEC4V 6AW – London,
United Kingdom Tel. +44 (0) 203 697 81 00
LisbonRua da Misericórdia 76,
1200-273,Lisbon PortugalT: (+351) 213 210 219
DüsseldorfLouise-Dumont-Str. 5 D-40211, Germany
T: +49 (0) 211 71 06 75 0
MadridAvenida de Bruselas, 7,
28108,Alcobendas, Spain T : +34 91 319 28 75
BarcelonaTorre Inbisa
Plaça Europa, 9 – Planta 14-AL’Hospitalet de Llobregat
08908 Barcelona - SpainTel: (+34) 93 201 07 00
AmsterdamMauritsstraat 11
2011 VN, Harlem, NetherlandT: +31 23 511 2980
ShanghaiHong-Kong Plaza, 283 Middle
Huaihai Road, Room 1503,Shanghai 200021, China
T: +86 (21)63411255
TokyoKitasando DT Bldg. 5F,
4-16-7Sendagaya Shibuya-ku, TOKYO 151-0051 - JapanT : +81 (0)3 6661 4501
RomeVia Salaria, 58
00198, Rome, Italy