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The establishment of the Innovation Voucher initiative was a key recommendation of the Small Business Forum in their report ‘Small Business is Big Business’, writes Victor Andrews The Small Business Forum’s Terms of Reference place considerable emphasis on achieving greater economic growth from the small business sector, within which, there is a significant subset that has both the capacity and the ambition to grow. However, the Forum found relatively few small businesses have either the technical expertise or the financial resources to develop, absorb or exploit new knowledge of a scientific or technical nature. The Forum recommended that those small Irish companies in possession of these critical ingredients must use their existing knowledge to boost productivity and enhance performance. To motivate small businesses to take their first innovative steps, the Forum recommended the establishment of a pilot Innovation Voucher initiative and Enterprise Ireland was given responsibility to drive this pilot scheme. THE AIM OF THE INITIATIVEThe objective of the Innovation Voucher initiative is to drive an on-going innovation cultural shift within small enterprise by promoting and encouraging a transfer of knowledge between Ireland’s public knowledge providers and the small business community and creating greater synergies between the two.The initiative is designed to encourage small companies and public knowledge providers to work together on specific innovation questions and projects related to the company’s needs. The company may use the new knowledge to innovate a product, production process or service. To be successful in an application for an Innovation Voucher, the company’s project must require an innovative solution, provide additional value for the company and have on-going benefits. Under the first phase of the pilot scheme launched on 21st March 2007 by Minister for Enterprise, Trade and Employment, Micheal Martin T.D, 200 innovation vouchers worth €5,000 each, have already been allocated on a semi-competitive basis to small businesses. If the cost of the project exceeds the value of the Innovation Voucher, any additional costs must be negotiated between the small business and the knowledge provider. Enterprise Ireland’s only involvement is to manage the application process and supply the voucher. Any small business is free to join with other small businesses also in receipt of an Innovation Voucher to work with a knowledge provider in solving an issue of common concern. ELIGIBILITYAll small enterprises are eligible to apply for a voucher providing they have fewer than 50 employees and have either an annual turnover and/or an annual balance sheet total not exceeding €10 million. Small enterprises in the transportation and agricultural sectors are excluded in line with State aid guidelines.KNOWLEDGE PROVIDERSThe knowledge providers are public research bodies, made up mainly of the Institutes of Technology and the Universities (Teagasc’s Moorepark facility are also included). There are now 21 knowledge providers based all over Ireland available to work with the companies that receive innovation vouchers.PERMITTED USESVouchers can be exchanged for knowledge transfer projects from the knowledge provider. A knowledge transfer project is defined as one that transfers knowledge of a scientific, technological or innovative nature that it is new to the small enterprise. The company may then use the new knowledge to innovate a product, process or service.INELIGIBLE ACTIVITIESThe Innovation Voucher may not be used to cover the costs of standard training courses, software purchases, or aid that would promote or subsidise the cost of exports. It cannot be used for internships for students, design and production of advertising material or for any sales activities.HOW THE PROCESS WORKSThe company downloads a simple application form at www.innovationvouchers.ie outlining the knowledge question it wants answered. Once approved, the Innovation Voucher will be issued by Enterprise Ireland. The company then sources a knowledge provider from the list published on www.innovationvouchers.ie. Agreement will be reached by the business and the knowledge provider on the exact cost of the service required and the work is undertaken.Once the project has been completed, the knowledge provider will invoice the company for the cost of the service. The company will then give the knowledge provider the Innovation Voucher plus any extra amount as per their agreement on the cost of the service. LONG TERM GOALSThis initiative is a pilot because Enterprise Ireland wants to evaluate the first year before deciding how to proceed. Also, it will be necessary to develop a proper balance between the level of bureaucracy in operating the initiative and sufficient control to stop poor use of the vouchers. 200 vouchers were issued under the first phase of the pilot, which ran from 21st March until 30th April 2007. The second phase opened on 2nd July and ran until 31st July 2007. There are plans for a third phase in October 2007.
Published in the September 2007 Issue of Irish Entrepreneur |
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| © 2007 Irish Entrepreneur Irish Entrepreneur is published by Morrissey Media Ltd. 3 Dublin Road, Naas, Co. Kildare. T: + 353 45 866200 F: + 353 45 883709 E: info@irishentrepreneur.com |
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FROM MOTIVATION TO INNOVATION