1. SMEs "Perspectives of SME participation in FP 7“ SEE Innovation - workshop Sofia, 9th February 2006 Henrik Dam European Commission DG Research, Research and SME unit

2. 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

3. SMEs Outline FP7 (2007 – 2013)

4. 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

5. SMEs Specific Programmes Cooperation – Collaborative research People – Human Potential JRC (nuclear) Ideas – Frontier Research Capacities – Research Capacity JRC (non-nuclear) Euratom + FP7 2007 - 2013

6. SMEs 9 Thematic Priorities 1.Health 2.Food, agriculture and biotechnology 3.Information and communication technologies 4.Nanosciences, nanotechnologies, materials and new production technologies 5.Energy 6.Environment (including climate change) 7.Transport (including aeronautics) 8.Socio-economic sciences and the humanities 9.Security and space Cooperation – Collaborative research

7. SMEs SMEs in FP7

8. 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

9. SMEs 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”

10. 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

11. 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)

12. 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)

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. SMEs SMEs in FP7 proposal Conclusion

21. 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.

22. SMEs Further information

23. 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

24. 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

25. SMEs THANK YOU FOR YOUR ATTENTION