SMEs

"Perspectives of SME participation in FP 7“

SEE Innovation - workshop

Sofia, 9th February 2006

Henrik DamEuropean Commission

DG Research, Research and SME unit

SMEs

1.- Outline FP7

2.- SMEs in FP7•Optimized participation for SMEs

•Strengthened SME specific actions

•Article 169 Initiative

•SME Outline, Rules for participation

3.- Further information

Main topics

SMEs

OutlineFP7 (2007 –

2013)

SMEs

What’s new ?

Main new elements compared to FP6 (COM proposal Apr ’05):

• Annual budget doubled (EUR 5 billion ►10 billion)

• Basic research (~ EUR 1.5 billion per year)• Simplification of procedures• Logistical and administrative tasks

transferred to external structures

SMEs

Specific Programmes

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

JRC (nuclear)JRC (nuclear)

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

JRC (non-nuclear)JRC (non-nuclear)

EuratomEuratom

+

FP7 2007 - 2013

SMEs

9 Thematic Priorities1. Health2. Food, agriculture and biotechnology3. Information and communication technologies4. Nanosciences, nanotechnologies, materials and new

production technologies5. Energy6. Environment (including climate change)7. Transport (including aeronautics)8. Socio-economic sciences and the humanities9. Security and space

Cooperation – Collaborative researchCooperation – Collaborative research

SMEs

SMEs in FP7

SMEs

• SMEs are at the core of European industry and a key component of the innovation system and in the chain of transforming knowledge into products, processes and services

• European SMEs are faced with increasing competition in the internal market and globally and therefore need to increase their knowledge and research intensity and internationalize

• Member States actions relevant to SMEs often do not encourage or support trans-national research cooperation and technology transfer

• Actions at EU level are necessary to complement and enhance the impact of actions taken at national and regional level

SMEs in FP7 proposal

SMEs

0

10

20

30

40

50

60

70

Basic SMEs

Technology adopting enterprises

Leading Technology users

Technology pioneers

%

no or few R&D

activities

adapt existing

techs - low innovative

SMEs

develop or combine existing techs on

an innovative

level

high level research activities

SME categories

Source: EURAB’s report on “SMEs and ERA”

SMEs

SMEs in FP7 proposal Outline

A broad approach to promote participation of SMEs in EU research actions

• Optimized participation of SMEs across the specific programmes

• Strengthened SMEs specific actions in the “Capacities” programme: “Research for the benefit of SMEs”

• Article 169 initiative in the field of research performing SMEs, building on EUREKA: “Eurostars”

• Competitiveness and Innovation Programme: complementary services encouraging the participation of SMEs in FP7

SMEs

• “Cooperation” programme:

– SME research needs and potential are taken into account in developing content of thematic areas, and topics of particular interest to SMEs will be further identified in work programmes

– Improved and simplified financial and administrative

procedures

– Increased flexibility in choosing the appropriate funding scheme

– Joint Technology Initiatives will encourage the involvement of SMEs, where appropriate.

Optimized participation of SMEs (I)

SMEs

• “People” programme:

– Special emphasis on the involvement of SMEs – “Industry-academia partnerships and pathways”: dedicated

scheme for knowledge sharing in partnerships between the public and private sector, including in particular SMEs.

To open and foster dynamic pathways based on longer term co-operation programmes with a high potential for increasing knowledge-sharing and mutual understanding of the different cultural settings and skill requirements of both sectors.

• “Ideas” programme:

– SMEs will also be able to participate in this programme: individual teams from SMEs may compete on grounds of excellence.

Optimized participation of SMEs (II)

SMEs

Strengthened SME specific actions Objectives

• Strengthening innovation capacities of SMEs and their ability to benefit from research

• Enhancing the contribution of SMEs to the development of new technology based products and markets by helping them to:

- Outsource their research activities- Increase their research effort- Extend their networks- Better exploit research results- Acquire technological know-how

SMEs

Strengthened SME specific actions Target population

Two specific actions to support SMEs or SME associations in need of outsourcing research will be pursued with increased budget:

• Research for SMEs:all SMEs that need to outsource research activities- mainly low to medium technology SMEs with little or no research capability- research intensive SMEs that need to outsource research to complement their core research capability

• Research for SME associations: SME associations which are normally best placed to know or identify the common technical problems of their members

SMEs

Strengthened SME specific actions Activities (I)

Research for SMEs:

• Support of small groups of innovative SMEs to solve common or complementary technological problems.

• Relatively short term projects centred around the innovation needs of the SMEs which outsource research to RTD performers

• Demonstrate a clear exploitation potential for the SMEs concerned

SMEs

Strengthened SME specific actions Activities (II)

Research for SME associations:

• Support to SME associations to develop technical solutions to problems common to a large number of SMEs in specific industrial sectors or segments of the value chain

• For example, research needed to develop or conform to EU norms and standards, and to meet regulatory requirements in areas such as health, safety and environmental protection

• Projects, with a duration of several years, must be driven by the SME associations and promote the effective dissemination and take-up of results

SMEs

Strengthened SME specific actions Activities (III)

Common features of the two SME specific actions:

• Other enterprises and end-users can participate if it is in the interest of the SMEs or SME associations

• In addition to research, projects should include activities to promote take-up and effective exploitation of research results, such as testing, demonstration, training, technology transfer, knowledge management and IPR protection

• Special rules will apply for ownership and access rights for the two SME specific actions.

• Actions in the entire field of science and technology (bottom-up approach)

• Evaluation of SME specific project proposals will take due account of the expected economic impact for the SMEs, within overall criteria of excellence, impact and implementation

SMEs

Strengthened SME specific actions Budget

• FP7 Commission proposal: overall budget of 1,901 million euro

• More than doubling of the average annual budget for SME specific actions

• This budget includes possible EU contribution in support of Article 169 initiative

SMEs

Article 169 initiative for the joint implementation of national research programmes in the field of Research Performing SMEs is identified in “Capacities” Specific Programme

– The aim will be to launch and implement joint R&D programme for the benefit of research performing SMEs with the objective to boost their research and innovative capacity: “EUROSTARS”

– Building on EUREKA it will stimulate and support trans-national R&D projects led by research performing SMEs

– Complements other SME-targeted actions carried out under FP7

– The Community will provide financial support to the initiative and will participate in the implementation process in an appropriate manner

– Dedicated implementation structure will be set up

– Separate decision on the basis of Article 169

Article 169 initiative

SMEs

SMEs in FP7 proposalConclusion

Member States initiative

Optimized participation of SMEs

More than doubling the budget of the two SME

specific actions

Special emphasis on SMEs and dedicated

scheme

Article 169 for research performing SMEs

In particular "Cooperation" programme

"Capacities" programme "People" programme "Capacities" programme

Research performing SMEs

Research outsourcing SMEs

Mainly research performing SMEs

Research performing SMEs

Thematic areas Bottom-up approach Industry-acedemia

pathwaysMarket oriented, bottom-

up approach

Community Actions

Four complementary pillars of SME support in FP7

SMEs

SME Outline, Rules for participation

• Definition of micro, small and medium-sized enterprises (SMEs) provided in Commission Recommendation 2003/361/EC applies

• Community financial contribution– Research and technological development activities, max 50% of the

total eligible costs.– For public bodies, secondary and higher education establishments,

research organisations and SMEs, max 75% of the total eligible costs.– Frontier research actions reimbursed at 100% for all entities. – All other activities, (e.g. training, coordination and support actions)

reimbursed up to 100% for all entities.

SMEs

Further information

SMEs

• EU research: http://europa.eu.int/comm/research• Seventh Framework Programme: http://

europa.eu.int/comm/research/future/index_en.cfm• Information on research programmes and projects:

http://www.cordis.lu• RTD info magazine:

http://europa.eu.int/comm/research/rtdinfo/• Information requests:

research@cec.eu.int

Information

SMEs

• CORDIS: http://sme.cordis.lu/research/fp6_support.cfm

• SME TechWeb: http://sme.cordis.lu/research/fp6_support.cfm

• SME National Contact Points: http://sme.cordis.lu/assistance/ncps.cfm

SME information

SMEs

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