Overall objective

Purpose

The project has three specific objectives:

• 1. Support the State Agency of Ukraine for Investment and Development >>>

  • This component will address the critical issue of funding innovation processes in Ukraine. Activities will be based on three tasks: support to the funding of intermediary organisations such as technology networks, information and relay centres; the setting-up of financial schemes for innovation processes such as development activities, patenting and licensing, spin-offs from academies, universities and companies, start-ups of innovative SMEs; capacity building for SAUID in order to make this organisation familiar with the best practices of the EU and other developed countries.

    Task 1: Support to the funding of intermediary organisations

    The innovation infrastructure needs diversified intermediary organisation for technology transfer channelling information on innovative products and processes of Ukrainian or foreign research centres and companies. The SAUID should become able to provide solutions for the funding of these intermediary organisations based on best international practices. The main activities and outputs of this task could be:

    • Analysis of the existing situation of intermediary organisations for technology transfer in Ukraine under the consideration of funding and regulatory issues
    • Analysis of the best international practices of funding intermediary organisations which are relevant for Ukraine
    • Study visits to relevant countries for analysing the processes of creation and running of intermediary organisations under the consideration of funding issues
    • Establishment of a handbook of alternative funding solutions for these intermediary organisations
    • Initiate the elaboration of a legal and regulatory framework
    • Launch pilot experiences in the funding of intermediary organisations in connection with other EU funded projects devoted to this issue
    
    

    Task 2: The setting-up of financial schemes for innovation processes

    Several innovation processes such as the development of research outputs, the patenting and licensing of innovations, the creation of ventures by spin-offs from academies, universities and companies, or mere start-ups of innovative SMEs suffer from the lack of adapted funding solutions. The SAUID should be able to understand the needs and the possible solutions based on international experience and should elaborate the funding schemes and their corresponding regulatory support. The main activities and outputs of this task could be:

    • Analysis of the existing situation regarding the development of research outputs, the patenting and licensing of innovation, the creation of ventures by spin-offs from academies, universities and companies, or start-ups of innovative SMEs in Ukraine in consideration of funding and regulatory issues
    • Analysis of the best international practices of funding these activities and business incubators which are relevant for Ukraine
    • Study visits to relevant countries for analysing the innovation processes in consideration of the funding issues
    • Initiate the elaboration of a legal and regulatory framework
    • Launch pilot experiences in the funding of these innovation processes and business incubators in connection with other EU funded projects devoted to this issue
    
    

    Task 3: Provide capacity building to the SAUID

    This task aims at making this organisation familiar with the best practices of the EU and other developed countries and also transition countries regarding Venture Capital and Loan Guarantee Funds, as well as all the funding of innovation support. This will be done through on the job training and study tours to relevant countries to examine the best practices The main activities and outputs of this task could be:

    • Provision of policy advice in the work, programming and management of the SAUID
    • Development of training sessions about relevant issues of innovation processes and policies, innovation regulation and funding
    • Provision of training in policy advice and relevant regulatory drafting activities
    • Study tours for discovering best practices for innovation agencies
    • Study tours for learning about innovation funding instruments
    
    

    Task 4: Provision of adequate training and training infrastructure on innovation financing for managers

    • Establishing a training system for managers / local experts in innovation financing with the support of international experts from the EU Member States; Organization of seminars in the regions for representatives of the regional administration; companies and relevant institutions;
    • Organization of management support and monitoring.

• 2. Assist the development of Venture Capital Funds in Ukraine >>>

  • Small companies' access to finance, particularly venture capital, is a crucial element in the innovation process. Venture capital is needed to support high-risk investments in small, technology-based firms, which often have no access to traditional financial institutions. A Venture Capital Fund is a pooled investment vehicle that invests in enterprises that are too risky for the standard capital markets or bank loans. It is also relevant for large companies in a transition situation, with a large investment gap. Regulatory reform in financial markets is a prerequisite to improving the supply of venture capital. In Ukraine this VCF requires western capital participation to be accepted and successful

    Task 1: Preparation of the VCF

    • Collecting European, American and other relevant experiences in VCF issues
    • EU study tour for analysing EU best practices
    • Definition of the relevant concept of VCF for Ukraine
    • Organization of a PR campaign (national and international) to make the innovation sector in Ukraine more attractive for investments and to organize international networking
    • Support to the drafting of required regulatory documents
    
    

    Task 2: Establishment and launching of the VCF

    • Support to the drafting of founding documents of VCF
    • Building of a round table of investors
    • Official launching and advertising of the VCF
    • Provision of support to the management and the running of the VCF
    • Monitoring the establishment and launching
• 3. Support the development of two Loan Guarantee Funds for innovative projects and institutions as pilot projects in two regions >>>
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    The SAUID provides support to innovation projects through its local branches but the total number of projects is not high and has to deal with limited financial means. However, almost all regions are trying to develop a consistent strategy towards research and innovation e.g. research institutes, techno parks, universities and hi-tech companies. Loan guarantee funds for innovative and technology oriented SME business do not exist.

    Task 1: Preparation of the LGF

    • Collecting European experiences in LGF issues
    • EU study tour for analysing EU best practices
    • Definition of the relevant concept of LGF for Ukraine
    • Identification of target regions
    • Organization of a PR campaign (national and international) to make the innovation sector in Ukraine more attractive for investments and to organize international networking;
    • Support to the drafting of required regulatory documents
    
    

    Task 2: Establishment and launching of the LGF

    • Support to the drafting of founding documents of LGF
    • Building of a round tables of investors
    • Official launching and advertising of the LGF
    • Provision of support to the management and operation of the LGF
    • Monitoring the pilot projects
    • Drafting documents for the dissemination of the pilot experiences to other regions