ACADEMIC EXPERTISE FOR BUSINESS (A4B)

Knowledge Exploitation Capacity Development

THE PATENT AND PROOF OF CONCEPT FUND (PPOC) APPLICATION FORM

Guidance for Applicants

INTRODUCTION

A4B is a six year programme of support funded by the Welsh Assembly Government and European Structural Funds aimed at providing a simplified, integrated package of support for knowledge transfer from academia to business. A4B brings together a suite of already successful programmes into one, overarching programme, improving on previous capabilities.

A4B consists of the best elements of the Knowledge Exploitation Fund (KEF), Centres of Excellence for Technology and Industrial Collaboration (CETIC), Know How Wales (KHW) and Accelerate Clusters (AC). These previously separate programmes have successfully worked with both Higher Education Institutions and, where appropriate, Further Education Institutions over the last seven years, delivering knowledge transfer to Welsh industry and businesses.

This new strategic approach to supporting Knowledge Transfer will also enhance the existing collaboration with HEFCW in the delivery of Third Mission aims and objectives. A4B will provide a single strategic fund to support Third Mission knowledge transfer projects that will build on the infrastructure funding provided by HEFCW.

The aim of the overall programme is to promote a high value-added economy and to maximise the economic impact of academia and business through technology transfer and the creation of a stronger science, engineering and technology base with clear commercial potential. This will be achieved by the adoption of new processes, systems and services, or by improving substantially those already produced or installed. In turn, this will lead to the creation of high value jobs and ultimately, a value-added economy.

The PPOC aims to fill the funding gap between basic early research and thestart of the market exploitation process. This funding will enable the testing of technology to determine its potential for commercialisation and will lead to supporting the development of intellectual property rights (IPR) including registrations of patents, designs, copyright etc.

For the purpose of PPOC the early commercialisation process has been simplified into a three stage process of: Evaluation, Technical Development and Early Commercialisation. PPOC funding is to develop a Proof of Concept (POC) demonstration (stage two of the process) and only supports ideas that are patented, or are patentable. Below is a brief description of the three stage process.

Stage one: Evaluation is conducted within the Institution. This stage is designed to evaluate the proposal and determine whether to proceed to the Technical Development phase of the POC.

The process startswith anacademic having a valid concept of how aresearch discovery, made during research undertaken at the Institution,may be applied in a commercial or industrial situation.

A valid concept is a patented or patentable research discovery with a distinctive commercial or industrial application aimed at a proven market that is aimed at the development of a new or improved product, process or service.

The concept’s underlying IPRareestablished and evaluated. Only where it is considered that the concept can be adequately protected is further evaluation and development of the concept undertaken.

Once the soundness of the concept’s IPR has been established then the market potential is investigated. This often involves the appropriate use of experts to verify the true potential of the target application. This phase proves that a target market is of potential value.

The next phaseis further market analysisin order to understand thetechnical requirementsthat would have to be demonstrated toprove the concept. This analysis is used to confirm the technical development plan foraPOC.

Only approved concepts that have gone through the Institution’s technology vetting procedures go forward to the Technical Development stage (stage two). Therefore, it is expected that only proposals that are well evidenced will proceed to the technical development phase of PPOC.

Stage two:Technical Developmentis the research and development stage of PPOCaimed at proving the concept.

The POCisevidence based planned research and development programme aimed at demonstratingthat the concept is capable of achieving the performance enhancement of the target products, processes and services required by the market. The development should be beyond pure research but still some way from the market, in other words bridging the gap between pure research and the end of the research and development stage.

The main outcome from the POC stage is, therefore, an appropriate demonstration that theconcept provides the performance enhancements required by the market. Other outcomes would include:

  • An improved patentability position
  • the validity of its claims underpinned
  • the protection extended
  • extended applicability
  • Reduced technical risk.
  • A clearer route to market

Typical performance indicators, outputs and results from a PPOC may be:

  • A physical demonstrator
  • Appropriate research results
  • Products, processes or services registered
  • New or improved products, processes or services launched
  • Patent/s filed
  • Projects transferring environmentally friendly technology

Stage three:Early Commercialisation involves commercial activity using the POC demonstration to move the commercial process forward. This stage is not funded by PPOC. Typical outcomes from this stage would be the development of:

  • A Licence
  • Spinout
  • Further funding to continue the development of the concept

ELIGIBILITY CRITERIA

All applications must meet the following conditions, in order to be eligible for consideration for funding in this round:

  • Activity must only benefit the Institution and comply with the State Aid Rules (see Annex 2 for further information)
  • Applicant must be a Welsh HE or FE academic institution
  • The scope of the project must fall within the definition of a POC
  • Applications must demonstrate strategic importance to Wales and in particular highlight the potential economic impact that may result from the future knowledge transfer project being evaluated in terms of new or improved products, processes or services registered or launched.
  • The project must have the support of the Institution to provide the necessary resources to both complete the project and to undertake the subsequent exploitation of the project outputs.
  • Expendituremust be accurately profiled and all costs justified.
  • Applications will need to demonstrate that the Welsh Assembly Government’s and Structural Fund’s cross cutting themes have been considered by the integration of appropriate actions. Please see below for further information.

CROSS CUTTING THEMES

Along with the European Community the Welsh Assembly Government has a long-standing commitment towards equal opportunities, and equal treatment between men and women, aiming to eliminate all forms of discrimination. In addition environmental sustainability underpins both the Welsh Assembly Government’s and all of the Structural Funds Programmes, therefore, it is expected that all projects will fully reflect this aspect when improving the Welsh economy.

The 2007-2013 Structural Funds Programmes have the potential to make a real difference to all of the people and the environment in Wales by building on the success of the 2000-2006 Programmes. Therefore, where appropriate applicants will be required to build into work packages milestones to address how the project will:

  • promote equal access for all to the education, training and employment opportunities and Employment Programme regardless of gender, disability, ethnic origin, religion or belief, age, sexual orientation and with regard to the bilingual nature of many of the communities within the region, and
  • promote environmental sustainability and
  • fully integrate environmental sustainability into the project plan.

Please see Annex 4 for further details.

PROJECT OUTPUTS

Applicants will be expected to set and achieve challenging targets in the following areas:

  • Demonstrator tested
  • Products, processes or services registered
  • New or improved products, processes or services launched
  • Gross Jobs created
  • Projects transferring environmentally friendly technology

-Reducing emissions of greenhouse gases to help limit the extent of climate change and help adapt to its effects (see 2.1 Annex 4)

-Promoting sustainable transport (see 2.2 Annex 4)

-Promoting the efficient use of natural resources (see 2.3 Annex 4)

-Promoting biodiversity and the sustainable management of the land, sea and inland waters (see 2.4 Annex 4)

-Minimising the risk of pollution and other environmental hazards thereby safeguarding the health of communities and the environment (see 2.6 Annex 4)

Further information on the performance indicators, outputs, results and evidence requirements can be found in Annex 5.

WHO CAN APPLY?

You can apply for PPOC funding if you are a member of a Welsh HE or FE Institution’sacademic staff andthe project is supported and approved by the Vice Chancellor (or such other person notified by the VC to the Welsh Assembly Government). A representative of the Knowledge Transfer Office/Group is required to take responsibility for the market and IPR information provided on this application form. The academic is responsible for the technical detail and for overall project management.

PPOC operates on a “no State aid” basis - see Annex 2 for further details.

WHAT FUNDING IS AVAILABLE?

The maximum funding per applicationwill be £50,000, over a maximum funding period of 12 months.

The funding can be used to develop the POC as defined above.

The funding can be used to support the following activities:

  • Patent filing
  • POC demonstration

Applications may be submitted at any time.

ELIGIBLE EXPENDITURE

Eligible revenue costs include:

  • Costs of staff employed on A4B project
  • Equipment with asset life < 1 year
  • Consumables
  • Stationery / Office supplies
  • Postage / Telephone / Fax
  • Contract Services
  • Depreciation of equipment
  • Equipment lease costs
  • Irrecoverable VAT

Applicants will need to ensure all purchases are in line with the Structural Funds Procurement Legislation detailed in Annex 6.

Ineligible revenue costs include:

  • Costs relating to commercial / retail activities
  • Costs already claimed in other projects
  • Staff costs not relating to project operation
  • Recoverable VAT
  • Insurance
  • Notional “lost opportunity” costs

HOW YOUR APPLICATION WILL BE CONSIDERED

  • An electronic copy of the application should to be sent to
  • Your application will be subject to A4Breview procedures. The application will be checked by the A4BAppraisal Team for completeness and eligibility. Compliance with all eligibility conditions does not guarantee that funding will be awarded.
  • Eligible and complete applications will then be subject to independent assessment (IA) and will be sent fora preliminary assessment of patentability.
  • Following a successful independent assessment, the application will be subject to further internal assessment which will assess strategic fit, economic benefit, value for money and project viability.
  • Should the application be approved the applicant will be invited to submit a hard signed copy of the application form.
  • The completed application should be submitted to: Academic Expertise for Business (A4B), Welsh Assembly Government, Llys-y-Ddraig, PenllergaerBusinessPark, SWANSEA, SA4 9HL

Please see Annex 1 for details of Assessor’s report format.

  • The IA report will be reviewed by the A4B Appraisal Team. Any concerns that are raised by the reviewer will communicated to the applicant for comment. If necessary the response from the applicant may require further review by the IA.
  • Following the internal review any concerns will be communicated to the applicant and once all concerns have been dealt with an appraisal report will be written by the A4B Appraisal Case Officer.
  • The appraisal report, application, IA report and all other related documentation will be submitted for a funding decision. The decision will be made by delegated A4Bofficers following Welsh Assembly Government operating procedures using the assessment criteria.
  • Applicants will be notified by emailfollowing the decision.

Further information on completion of forms is available from the A4B Appraisal Team.

The final proposal document itself will become the project plan and will be the document upon which the Funding Agreement between the Welsh Ministers and the Institution is based.

FURTHER INFORMATION

If you have any questions about the application procedure (e.g. how your application is progressing or the funding decision that is made) please contact the A4B Appraisal Team.

EVALUATION STUDIES AND PUBLICITY

The PPOC programme will be subject to future monitoring, auditing and evaluation studies and it will be a condition of funding that all applicants and partners will take part in future evaluations and audits. Applicants may also be asked to participate in any future publicity campaigns.

Successful projects will be subject to the A4B quarterly review process. It is expected that A4B officers and / or their representatives will be allowed to attend both project management and steering group meetings as and when appropriate. This is a condition of funding. For full details please see A4B Operational Guidance. Please also be aware that continued funding is dependent on satisfactory quarterly reviews.

The following notes refer directly to some of the numbered sections in the PPOC application form.

APPLICATION FORM GUIDANCE

Please complete the form as fully as possible responding to all questions. Provide concise and specific answers to the questions, summarising background information.

Please be aware that application forms which are incomplete or lacking in sufficient detail may not be considered by the panel. Funding is awarded by competition, and compliance with all eligibility conditions does not guarantee that funding will be awarded.

The following notes refer directly to some of the numbered sections in the PPOC application form.

Front Page

When completing the first page of the application, applicants should be aware of the following:

Please fill in the TOTAL amount of funding requested.

Provide contact details for the Project Director. The contact name and other details provided will be entered on our database and used for all future correspondence unless you subsequently notify us otherwise, so please ensure the appropriate member of staff is nominated. In most cases, the contact person should be the budget holder and/or the main point of contact for queries relating to the project.

Head of School / Faculty of Support

A short written statement by the Head of the sponsoringSchool or Faculty is required. The statement must refer to the importance of the project to the Institution, the likely success and how the Institution will support the programme.

Endorsement

The application must be endorsed by the Vice Chancellor/Principal (or such other person nominated by the VC/Principal to the Welsh Assembly Government) to confirm that this project:

-is fully supported by the Institution

-does not duplicate any other application to the Welsh Assembly Government

-is in line with the Third Mission or commercialisation strategy of the Institution

Question 1

Provide an Executive Summary of the proposed PPOC Project.

The Executive Summary section of the PPOC Application Form calls for a synopsis of the whole application. This section will be used in any publicity campaign.

In answering this question, the applicant should:

-Provide a clear and succinct description of the project

-Identify the primary purpose (justification) for which funding is requested (e.g. to solve a problem? to exploit an opportunity?)

-Identify key project objectives (SMART)

-Identify clear outputs

Question 2

Explain why intervention from the Welsh Assembly Government is necessary by providing details of previous/current funding (both public and private) and explain why public funding is essential to the achievement of the project objectives.

Typically these could be EU framework funding, Research Council grants, Government grants, HEFCW grants, collaborative support with industry and direct grants from industry.

This question is trying to justify the need for Welsh Assembly Government intervention and support in order to deliver the project to a reasonably acceptable standard.

In answering this question, the applicant should:

-Provide detail of all previous funding that has contributed to the development of the research related to this proposal.

-Indicate if this project has been the subject of any previous application for funding that has been turned down.

-In addition to this application, is this project proposal the subject of any other current, intended or anticipated grant or funding application from the public or private sector? If so, please detail.

-explain and quantify how the project will provide additional results over and above what is currently achieved

-confirm that support is essential to ensure delivery of the project to a reasonably acceptable standard

Question 3

Provide a brief statement on the importance of the PPOC Project to the Welsh economy?

In answering this question, the applicant should:

-Provide details of how the project would lead to new or improved products, processes or services launched or registered and ultimately be of benefit to the Welsh economy

-Outline how, through the project delivery, the academic research could potentially benefit Welsh industry

-Explain how the project fits with the relevant Welsh Assembly Government strategies (Wales Spatial Plan, Innovation Action Plan, Science Policy for Wales (2006).

Question 4

Describe the technical development and explain how the current concept was formulated.

In answering this question, the applicant should:

-Outline the research path that led to the development of the concept and include:

-Why the original research was undertaken

-What was developed and who developed it

-Where it was developed and over what period.

- Provide a clear description of what the research discovery is at the centre of the proposal.

- Describe how the research discovery works in terms understandable to a person without expertise in your field.

- Identify the key novel features and inventive step that the POC is dependent on for its success. (The novelty and inventiveness should be explained in sufficient detail to allow a Patent examiner to determine potential patentability.

When answering this question refer to the section entitled ‘Technical Assessment’ in Annex 1.