Dr Bernd Reichert Head of Unit Small and Medium-Sized Enterprises Research Directorate General European Commission R&D funding for SMEs in the 7th Framework Programme

Why should SME participate in the R&D Framework Programme? Internationalization of SME –New business partners, new markets Best resources for technological innovation SMEs are best suited to take up new market opportunities for which they need new technology

Basic SMEs 70% Technology adopting enterprises 20% Leading Technology users <10% Technology pioneers <3% % None or few R&D activities Adapting existing technologies – low innovative SMEs Developing or combining existing technologies on an innovative level High level research activities Categories of SMEs Source: EURABs report on SMEs and ERA

Opportunities for SMEs R&D-performing SME R&D Outsourcing SME Cooperation Research for the benefit of SMEs FP7 Measures with Member States

Typology of SMEs in the FP

Specific Programmes Cooperation – Collaborative research People – Human Potential Ideas – Frontier Research Capacities – Research Capacity Joint Research Centre Euratom + FP

SMEs are encouraged to participate in collaborative research project within the theme-driven FP7 Cooperation programme In order to form a favourable environment, a target of 15% SME participation has been set This representing an amount of about 5 bn until 2013 Simplified financial and administrative procedures (e.g. 75% funding rate for SME, reduced requirements for audit certificates) Identification of areas and specific measures of particular interest to SME in the individual work programmes SME support in FP7 Cooperation programme

The 15% budget target

Industry-academia partnerships and pathways support cooperation between academia and industry encourage SME participation through: Staff secondments between academia and industry Temporary hosting of experienced researchers from outside academia_en.html SME support in FP7 People programme

Research for the benefit of SMEs Objectives: Strengthen the innovation capacities of SME to develop new products and markets by outsourcing of research Target group: Research for SMEs: –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 representing their members and their common technical problems bottom-up approach, no thematic focussing SME support in FP7 Capacities

EUROSTARS: Article 185 Initiative EUREKA initiative with a joint programme, based on national schemes. Supporting trans-national, multi-partner R&D projects initiated and led by at least two R&D- performing SMEs (bottom-up approach). Budget: EUR 300 M from participating countries + EUR100 M from the Community between 2008 and For more information: Eurostars Joint Programme

A few words on best practice SMEs that engage strongly in the project benefit strongly Project with a clear exploitation perspective from the outset have a greater chance to exploit at the end. SMEs that coordinate projects will more likely commercialise if the research results are positive. Discuss and decide IPR aspects from the beginning and agree to it. From the SME point of view: look for partners wiling to provide IPR (e.g. institutes of technologies rather than universities) Activities at European level are not manageable for a single small company: A strong support environment is necessary, incorporating National Contact Points, Enterprise Europe Network, FP7 consultants, etc.

10 tips for participating in Framework 7 1.Regard the Framework Program as a means of expanding your organizations R&D rather than as a source of money. 2.Consider whether there is coherence between the research strategy and goals of your company and the objectives of the work the EU wants to fund. 3.Be prepared to accept losses. 4.Proposal preparation and consortium development should begin before calls open. 5.Build the project consortium from existing networks and relationships. This helps to create trust. 6.Ensure that the consortium has a first-rate coordinator, with a strong scientific reputation, proven organization and project management skills. 7.Read the work program for the call you are interested in carefully. 8.Address all the evaluation criteria and tailor your proposal to what those people assessing your proposals will be looking for. 9.Aim to deliver value for money with a realistic requested budget. 10.Seek advice from your national contact point.

Thank you very much for your attention