1. EARTO Annual Conference “Innovation in SME’s” Lisbon, 3 March 2006 Lino Gomes Fernandes

2. Evolution of total R&D spending, at constant prices, by sector of execution (1982-2001) “Innovation in SME’s”

4. Business R&D Annual growth rate, 1995-2001 (1995 PPP dollars) OECD Science, Technology and Industry Scoreboard 2003 - Towards a knowledge-based economy “Innovation in SME’s”

5. Favorable Evolution of the Technological Balance “Innovation in SME’s”

6. Distribution of Enterprises between “Traditional R&D Executers” and “New” according to Type and Source of Capital Traditional R&D Executers “New” SMEs56%70% Large National Groups 13%7% Public Enterprises10%5% Foreign Enterprises 21%18% 100% Source: Science & Technology Observatory “Innovation in SME’s”

7. 11% 15% 23% 32% 18% 0% 5% 10% 15% 20% 25% 30% 35% 0%5%10%15%20%25%30%35%40% Spending A.G.R. 11% 15% A.G.R of Researchers (FTE) SME Large National Groups Public Enterprises Foreign Enterprises SME Groups 2001 Types of Enterprise According to Source of Capital – A.G.R. of R&D Spending and Researchers (1995 – 2001), Weight of Spending on R&D Source: Science & Technology Observatory “Innovation in SME’s”

8. Growth of Innovative Enterprises fostered by the organisation of SME´s into Enterprise Groups SME Groups “Innovation in SME’s”

9. Increase of the Number of Innovative Enterprises “Innovation in SME’s”

10. 37% 31% 32% 24% 52% 37% 49% 15% 7% 4% 25% 0% 10% 20% 30% 40% 50% 60% SMESME GroupsLarge National GroupsPublic EnterprisesForeign Enterprises Total % Enterprises without support Distribution of Enterprises without support Percentage of “Traditional” R&D Performers and “New” Enterprises without Public Support and their Distribution by Category and Source of Capital “Innovation in SME’s” Source: OCES -Science & Technology Observatory

11. Intramural R&D Activity “Innovation in SME’s”

12. Public Support for the promotion of Cooperation towards Innovation “Innovation in SME’s”

13. ... with International Entities Public Support for the promotion of Cooperation towards Innovation “Innovation in SME’s”

14. Distribution of Spin-offs by Founding Date Source: OCES (preliminary data), 2006 “Innovation in SME’s”

15. Distribution of Spin-offs by Founding Date and Technological Areas Source: OCES (Preliminary data), 2006 “Innovation in SME’s”

16. NEOTEC Program – New Technology Based Enterprises Application Sectors Source: AdI, 2006 Agro, Food, Forest13% Transforming Industry29% Construction8% Internet13% Health17% Tourism8% Other Services8% Productive Means96% Consumer Goods4% Total100% “Innovation in SME’s”

17. Level of Widening of Entrepreneurial R&D “Innovation in SME’s”

19. Enterprise Distribution by type of Support Received 66% 8% 18% Participate in Projects Part..Projects and SIFIDE* Only SIFIDE Without Support * SIFIDE – Fiscal Incentives for Entrepreneurial R&D

20. 57% 40% 3% 59% 37% 3% 70% 28% 2% 41% 56% 3% 67% 29% 4% 56% 41% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SMESME GroupsLarge National Groups Public Enterprises Foreign Enterprises. All Distribution of Project Participation by Type of Financing Program of the Different Types of Enterprise and according to the Source of Capital Structural Funds UE F.P. Eureka without support.

21. Percentage of Projects that involve the participation of Portuguese Universities*, State Laboratories or Technological Centres 64% 61% 74% 47% 39% 40% 82% 24% 12% 28% 1% 5% 39% 26% 1% 33% 2% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% PharmaceuticalNon-electric Machinery Agro-FoodTextilesSoftwareConsultancyAgriculture PT UniversitiesState LabTechnological Centres * Includes Interface Institutions