Funding

SECTION I: ESTIMATION OF COSTS

Secţiunea I: Estimarea costurilor

1 Taking into account the rest of the cost evaluation please provide an overall estimation of the total costs for full deployment/production of the R & D result.


… in terms of IPR protection


IPR national protection by patent RO 122506 B1/2009 means costs of about 8000 euros.

For a possible protection by European patent, the estimated costs are about 27000 euros

…in terms of product development
The costs related to additional researches, to designing, achievement and test of the functional model are estimated to about 120000 euros.
…in terms of mass production
The costs related to prototype designing, achievement and test, to serial product designing, to manufacturing technology designing and implementation, to product test and certification are estimated to about 800000 euros.
… in terms of marketing
The costs related to marketing are estimated to about 120000 euros/year.

Marketing can control more and more of the variables by means of which the company can act for getting the maximum efficiency. These variables may be market study, advertising and product price.

2 Based on the above assessment as well as the marketing information please provide the correct estimation of the price for R&D product in correlation with costs
Year 1 Year 2 Year 3 Year 4 Year 5
Fixed costs


1585000 1215000 2250000 4326000 7920000
Personnel


390000 390000 430000 473000 545000
Other running costs


63000 121500 225000 432600 792000
Marketing costs


126000 121500 121500 121500 121500
TOTAL EXPECTED COSTS


2164000 1848000 3026500 5353100 9378500
Price per Unit


700 675 625 600 550
Type of Unit


Ecological air conditioning installations
Number of Units


1500 3000 6000 12000 24000
TOTAL Expected Revenues 1050000 2025000 3750000 7200000 13200000
CASH FLOW REQUIRED (REVENUES-COSTS)


-1114000 177000 723500 1846900 3821500
TOTAL CAPITAL required for five years


Capital required for starting the business: about 5000000 euros

Capital required for covering the total estimated costs: about 21700000euros

SECTION 2: QUALITATIVE FACTORS

4 Dimension of identified target groups

Detailed comment

The target market is developed and activates many manufacturing companies in the field of air conditioning installations, but none of these companies produces ecological air conditioning installations; they produce installations achieved using a technology with Freon (Chlorofluorocarbon) type coolants, which are environment polluting gases.

The Romanian market of air conditioning installations cumulates around 50 million euros/year. Romania has recorded a market increase in the last years due also to the fact that international companies, determining an increase of the performance standards, have entered the market; the real estate investments are more and more correlated to air conditioning.

However, the effects of financial crisis have been felt lately in the air conditioning products market too, fact which has been reflected in sales decrease.

Having in view the identified target market (household consumers, companies from different industry sectors, public institutions), the target market dimension is relatively large, focused on diverse activity field.

Taking into account the amount of about 50 million euros/year for the air conditioning installations in Romania, the product aims in the first stage to cover 6% of this market.

6 Evaluation of financial Risks for R&D result

Detailed comment

We assess as average the financial risk of the research result, having in view the high costs imposed by the achievement of a competitive technology on the market. In this context, an adequate market study, reflecting the real trends of consumers and companies regarding the purchase of an ecological air conditioning installation, is necessary.

Since getting some favorable results from selling ecological air conditioning installations assumes selling a number of products which is higher and higher every year, this should be correlated with the demand for products on the market and with the influence of conjectural factors (crediting policy, income level, financial crisis etc.)

The competitors which can promote products at lower prices and quality level are another risk factor. The price difference can be counteracted by advantages and high qualities of the installation.

The risks associated to the differentiation strategy, including a possible imitation by competitors and the change of consumer preferences should be taken into account.

SECTION 3: IDENTIFICATION OF FINANCING SOURCES

After evaluating all the above mentioned criteria, please tick the best financing source for the achievement of R&D result (i.e. own capitals, banking credits, venture capital, business angels, etc)

1. European Funding

1. Fonduri europene

Define relevance of the product with the following potential funding sources and comment


1. Sectoral Operational Programme Increase of Economic Competitiveness

2. Seventh Framework Programme – FP7

3. INTERREG

4. Others

National Funding


1. National Plan for Research, Development and Innovation

2. Sectorial Plan for RDI (Ministry of Economy)

3. Nucleu Programme (National Authority for Scientific Research)

4. Others


3 Private funding


1. Own capitals

2. Banking credit instutions

3. Business Angels

4. Others

4. Others
As regards the necessary funding sources, delimitation should be made between the preliminary testing stage and the launching into production itself. For the preliminary testing stage and achievement itself, structural funds (Sectoral Operational programme “Increase of Economic Competitiveness” POS CCE),  National Plan for Research, Development and Innovation – PN II  ,  FP7  and Research Development Sectoral Plan of the Romanian Ministry of Economy, Commerce and Business Environment can be used.

For the stage of launching into manufacturing, structural funds can be accessed by Operational Programme. An important alternative is represented by private investors (business angels, having the necessary financial resources and willing to support new technological idea).

Nowadays, the banking credit institutions are not a viable alternative, taking into account the requirements and guarantees imposed for granting the credits; however, they are still a possibility for the future.

For promoting and valorizing the research result, the programmes INTERREG, SEE, having as objective the cross border cooperation, are also useful; they offer another regional prospect for the valorisation of the research result.

SECTION 3: FINAL EVALUATION

It is requested a final evaluation considering the funding opportunities you believe most suitable for the exploitation of the R&D result, considering the possibility of the creation of a spin-off, further research, in particular, a cost/benefit analysis and a financial projection for the R&D result, type of collaboration identified (i.e. Licensing Agreement, Technical Cooperation, Joint Venture, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, Joint further development)…
Scientifically, the “Ecological Air Conditioning Installation”, as a research result, has led to the increase of the competitiveness of the Romanian research activity, in priority fields of European and international research.

Economically, it leads to the broadening of the product offerings, both at domestic level and at regional and European level. A prospect with huge economic benefits could open to the ecological air conditioning technology with pressurized air, under the circumstances of imposing – by mutual agreements for environment protection – the decrease of the manufacturing of air conditioning apparatus with Freon.

Socially, it leads to the development of human resources in research development. So, the prospect of training the new researchers, candidates for a doctor or master degree, in priority fields of research which need no interdisciplinary knowledge is opening.

Because it is product patented at national level, the next step regarding the intellectual property is getting a European patent. The costs implied by getting the patent can be met by the institution where the researcher works. As regards the stage of prototype testing and achievement, external funding sources (structural funds, national funds and private investors) should be considered, and technical cooperation would be an advantage.

In the stage of launching into manufacturing, the possibilities of achieving the products are mainly based on a production contract.

Decision of evaluation (Please tick  as appropriate)


X The R&D has a high potential of exploitation


The R&D result needs minor revisions
The R&D result needs moderate revisions
The R&D result needs major revisions
The R&D result has no potential of exploitation

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