2014 12 grant process

1 Main Focus of the Foundation’s Grant Policy

Requirements for Projects 100%

75% 25%

50%

50%

25% 75%

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The grant is provided to help achieve the objectives of the next stage

Project stage – technology readiness level

The project stage needs to be determined in line with the Foundation’s Grant Policy

О

Only cash is accepted as Co-investor’s contribution •  Contribution to the Participant’s share capital (for LLC) •  Cash contribution to the Participant’s property (for LLC) •  Acquisition of the Participant’s shares (for joint stock

companies) •  Donation of cash to the Participant (for foreign Co-

investors)

R&D

IP

Commercia-‐liza3on

Project Team

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The requirements for projects, deadlines, and budgets in the text of the Grant Policy are exhaustive

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2

Key Requirements for Project Scope* *these may change depending on the stage of the project and the Participant’s focus area

R&D

IP

Commercializa3on

Project Team

•  Specification for the Project’s product or technical description of the first results of research

•  R&D plan

•  Formalized relations with IP authors •  Confidentiality requirements in place •  Prepared list of third parties’ IP required for Project

implementation •  IP protection in place (patent applications, patents) •  IP risks analyzed

•  Competitive advantages substantiated •  Scope of target performance objectives defined •  Project Team formed with the necessary management,

research, and international experience

3 Requirements for the Grant Recipient

The Project must comply

with

•  requirements of local regula3ons of the Founda3on •  project eligibility criteria for the Grant (see Slide 5) •  law requirements of the Russian Federa3on

The Par4cipant must be

prepared to

•  describe and prove the compe33veness of the Project •  improve the Project if required by the Founda3on • meet all the Founda3on’s requirements at every stage of preparing and filing the documents and during Project implementa3on

Successful comple4on of

•  internal audits by the Founda3on’s offices •  external audits by experts from the Founda3on’s pool of experts •  examina3on by the Founda3on’s Grant CommiQee (approval of the Grant)

4 Project Eligibility Criteria for the Grant

Project Concept/Know-How

Implementation of the Project Concept

Team

R&D solution with a high potential for achieving

fundamentally new results on a global scale

Patentable solutions

Project Concept in line with the Foundation’s innovation priorities and main business

areas

Technology’s applicability confirmed by the Foundation’s experts and its desirability in

the current situation

Properly structured Project implementation concept, business strategy, and commercialization plan

Understanding of the Project’s risks and a developed risk

diversification strategy

Grant Recipient’s cost estimate and full Project budget

compliant with the Foundation’s requirements

Productive Project Team with a full range of necessary competencies: research;

international promotion; robust business management;

administration, etc.

Project Team having a leader and a research champion capable of inventing and

successfully commercializing the Project’s product

5

1. Application 2. Grant Memorandum 3. Due Diligence 4. Grant

Committee

The Grant Committee makes a decision on

grant approval

Overall Funding Process

Project improvement (a Mini-grant may be issued)

Substantiated refusal

The Participant prepares a presentation in the required format

and submits it via App.Sk.ru

or

The Foundation checks the set of

documents for fullness

10 days

The Foundation decides whether to accept or reject the

application

The Participant e-mails the Grant

Memorandum with attachments to

[email protected]

The Foundation’s offices conduct an

audit and an external examination

no more than 90 (+10) days The Participant

receives the examination results

Preparation for the meeting of the Grant

Committee

~ 1.5 months ~ 2 weeks

6

1. Formal check 2. Internal examination

3. External examination

4. Draft decision of the Grant Committee

The Grant Committee makes a decision on

grant approval

Internal Examination of Project Materials by the Foundation. Due Diligence

The Participant prepares a presentation in the required format

and submits it via App.Sk.ru

The Foundation checks the set of

documents for fullness

10 days

The Foundation decides whether to accept or reject the

application

The Participant e-mails the Grant

Memorandum with attachments to

[email protected]

The Foundation’s offices conduct an

audit and an external examination

no more than 90 (+10) days The Participant

receives the examination results

Preparation for the meeting of the Grant

Committee

~ 1.5 months ~ 2 weeks

Grant and Expert Office(GEO) -‐  mee4ng the deadlines -‐  using approved forms -‐  consistency, no conflic4ng data -‐  full set of documents Security Office: ⁻  Ini4al data analysis

Finance – the financial part Legal – the legal part IP Management Centre (IPMC) – IP protec4on part Security – other risks GEO: -‐  commercializa4on -‐  team -‐  implementa4on risks -‐  objec4ves and ac4on plan

Due diligence of the Par4cipant’s documents, including an independent research examina4on of the Project’s Concept by experts engaged by the Founda4on

GEO and Cluster: -‐  consolida4on of informa4on

received at all the stages of examina4on

-‐  preparing and finalizing the draQ decision of the Grant CommiRee

7

1. Formal check 2. Internal examination

3. External examination

4. Draft decision of the Grant Committee

Examination of Grant Recipients’ Projects

total number of experts in the

Founda3on pool 1,059

5 key areas:

Energy efficiency

Nuclear technologies

Space technologies and telecommunica3ons

Biomedical technologies

Strategic computer technologies

Capacity:

•  Improved project quality

• Increased aQen3on from the professional community

• Access to new markets

• BeQer compe33veness

The expert list is formed on a compe44ve basis:

•  Preliminary selec3on

(scoring)

• Selec3on including competencies test

• The expert is responsible for the quality of

examina3on

Parameters:

Competencies by area:

• Research: over 750 • Engineering: over 550 • Business: over 300

At least 3 persons apply to get on the expert panel on a

daily basis

312 experts

409 experts

119 experts

517 experts

518 experts

8

Report submission

Part of the Grant Issued

Examination by the Foundation

In the event of negative expert opinions, the final decision on the

Report is made by the Grant Committee

Submission of Project Stage Completion Reports

Improvements to the Report

Iden3fica3on of bad faith Grant Recipients

The Participant prepares a report in the approved format

The Foundation makes a decision of whether to continue the

funding

or

To be sent to the cluster as hard copy and in digital form

10 days from completion

The Foundation checks the documents and accepts them

for examination 10 days from receipt up to 60 business days

A small amount of funding is provided to cover cash gaps

9

Grant Committee Project Approval Statistics

Applica4ons examined by the Grant CommiRee from the Founda4on’s incep4on un4l December 31, 2013

BMT cluster: A total of 38, including 23 approved for RUB 2,910.0 mln

ICT cluster: A total of 72, including 53 approved for RUB 3,348.0 mln

ST cluster: A total of 18, including 7 approved for RUB 416.5 mln

NT cluster: A total of 24, including 15 approved for RUB 801.5 mln

EE cluster: A total of 45, including 29 approved for RUB 2,107.2 mln

A total of RUB 9,583.2 mln of grants approved

RUB 902.6 mln Total grants approved in 2013

RUB 3,529.0 mln Total grants approved in 2012

RUB 4,692.0 mln Total grants approved in 2010–2011

A total of RUB 7,215 mln paid

out

RUB 4,247.6 mln paid out


RUB 436.0 mln paid out






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Key Reasons for Project Rejection by Grant Committee

nega3ve expert opinions

no viable commercializa3on prospects

no sustainable research and engineering components

weak project presenta3on at Grant CommiQee mee3ng

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Foundation Monitoring System for Project Participants’ Work

Desk audits - conducted based on Research Reports - the first level of the Foundation’s monitoring system for Project Participants’ work

Field inspections - conducted in the event of negative findings at desk audit level - second monitoring level

Examination of Project Stage Completion

Reports

Key prob

lems Inappropriate spending (e. g. funds used for

Voluntary Health Insurance, bonuses, renova3on)

Contracts with affiliates in breach of the Grant policy

Accoun3ng data inconsistent with the data of the Grant Recipient ‘s Stage Comple3on Report

No research in place

Failure to provide requested documents; failure to provide access to the Par3cipant’s premises

Substan3al changes in the Project’s parameters submiQed when the Par3cipant Status was awarded

Cons3tuent documents authorizing ac3vi3es other than research Foundation’s

response to detected problems

Sending a request to address the problem Cancelling the Participant Status Demanding return of funds Reporting the issue to law enforcement authorities

Follo

w-‐up metho

ds

2014 12 grant process

Investor Relations

Transcript of 2014 12 grant process