5.2. The Impact of Public Governance in Supporting the IE
This paragraph discusses the impact of public governance in supporting the IE through the five driving forces that are essential for a thriving IE, i.e., funding, sophisticated demand, human capital, specialized infrastructure, and culture and incentives [
18].
Funding
“Money is not the most important thing. What is more important is to have the opportunity to collaborate with LE with whom I would never have come in contact otherwise” (source: i-SMEs survey).
PITCCH funding was not provided in a single structure but was rolled out through three rounds, as shown in
Table 3. In the first and second rounds of CCs, funding was provided entirely by the European Community through the PITCCH Consortium. However, in the third Round of CCs, a mixed model was adopted, with part of the financing coming directly from the LE that subscribes to the CC and part coming from public funds. This model was established to evaluate the performance of the project without public funds, with the goal of building a sustainable Pan-European Innovation Network that would continue beyond the end of the 36-month project. Some i-SME participants pointed to financial support as an important factor in increasing participation, but all of them agreed that the opportunity to directly engage with LEs, share risk, and establish use cases and references were far more important than funding. However, some i-SMEs noted that the budget was often not proportional to the effort required for the 6-month project, especially if the solution developed for the LE was not part of the SME’s core activities. Despite this, most i-SMEs were eager to be part of the initiative, hoping to attract LEs in the future and valuing the opportunity to explore new collaboration opportunities. Therefore, the funding approach was designed as an incentive to promote participation in the program rather than as a financial means to cover all costs for the innovation project.
Sophisticated demand
“The application form makes it difficult to understand how to structure the proposal. Thanks to the plenary and one-to-one sessions set up by the Consortium, we better understood the expected results” (source: i-SMEs survey).
The CCs were designed to address the most advanced technologies, such as nanotechnology, micro/nano-electronics, industrial biotechnology, and advanced materials, which span various business sectors, including digital, industry and space, health, energy and mobility, and bioeconomy. This technological complexity led to information asymmetries between LEs and i-SMEs, as i-SMEs often struggled to fully understand the needs of LEs in terms of CC description and expected results. To address this information gap, the Consortium reviewed the initial CC concept and provided ongoing support to i-SMEs through various tools, such as plenary and one-to-one catch-up sessions. The plenary sessions provided general tips and advice for i-SMEs to effectively present their solutions to target LEs, while the one-to-one sessions focused on individual i-SME presentations.
Specialized infrastructure
“Technology centers (TCs) as facilitators change the tone of the dialogue from B2B pressure to community collaboration” (source: i-SMEs survey).
Within the PITCCH IE, the main stakeholders are LEs and TCs. During the preliminary stages of collaboration with LEs, i-SMEs were able to engage with TCs by selecting a suitable TC from a list on the digital platform. Beginning in the second Round of CCs, i-SMEs benefited from the specialized infrastructures of TCs thanks to the funds made available by the public initiative. Specifically, in addition to receiving €5,000 in funding as CC winners, i-SMEs received a voucher/grant of €10,000 to engage TCs.
TCs acted as facilitators for more structured collaborations between LEs and i-SMEs. In addition to their role as intermediaries, they supported i-SMEs with access to advanced research infrastructure and expertise in key enabling and digital technologies, such as solution integration, testing, and scaling-up pilot lines. By interacting with both LEs and i-SMEs, TCs were able to better interpret the needs of i-SMEs and translate them into technology requests. Through their engagement, the Consortium helped i-SMEs bridge the gap between internal and external knowledge and contributed to the definition of cutting-edge projects that could potentially be translated into competitive products and services.
Interviews with i-SMEs revealed that they had a positive perception of the presence of TCs, as they facilitated the interaction with LEs and gave the project a greater sense of collaboration. However, many i-SMEs preferred a more flexible type of TC engagement that would allow them to better allocate the received funding to cover the various stages of the innovation process. As a result, the third round enabled i-SMEs to use the €10,000 grant freely.
Human capital
“Unlike some other challenges I’ve faced, this one gave us valuable training and support to pitch our solution” (source: i-SMEs survey).
The Consortium offered moderation and training services to help i-SME representatives effectively pitch their solutions to LEs. The training was provided through plenary and one-to-one sessions with i-SMEs, aimed at sharing best practice techniques for planning, structuring, rehearsing, and delivering a pitch. In addition, to streamline the process of i-SME pre-selection and the subsequent 6-month project execution, the LE needs were translated into specific technical requirements and discussed with i-SMEs.
Culture and incentives
“The PITCCH process is refreshing and straight to the point. It has the advantage that you can easily judge if it’s your cup of tea” (source: i-SMEs survey).
The Consortium fostered a culture of trust and cooperation by establishing the PITCCH digital platform as an open hub for information sharing and engagement. This arrangement created a sense of community within the IE, addressing the common skepticism among i-SMEs that their high-innovative solutions would not be given a chance and that no resources would be allocated to developing these new technologies.
In recognition of the role of intellectual property rights (IPRs) as an incentive to participate in the initiative, the Consortium developed a cooperation agreement process to protect i-SME proprietary knowledge. This process prevented conflicts between LEs and i-SMEs over IPRs, specifically avoiding the scenario in which LEs would demand IPRs without any compensation for the i-SME. The IPR system created a cultural approach aimed at ensuring the necessary protections for the i-SMEs to exploit their innovation efforts and investments.
Interviews with i-SMEs emphasized their appreciation of the CC system for participating in the initiative and confirmed the sense of community facilitated by the mediation of the Consortium, which reduced the pressure associated with the information-asymmetric interaction with LEs.