Dr Bernd Reichert

Head of Unit

Small and Medium-Sized Enterprises

Research Directorate General

European Commission

R&D funding for SMEs in the7th 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

0

10

20

30

40

50

60

70

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: EURAB’s 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

Technology Developpers

Technology Networkers

Legend:

Specific Programmes

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

Joint Research CentreJoint Research Centre

EuratomEuratom

+

FP7 2007 - 2013

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

http://cordis.europa.eu/fp7/home_en.html

SME support in FP7 “Cooperation” programme

The 15% budget target Percentage of EU Contribution going to SMEs

FP7-Cooperation Programme, Signed Grant Agreements1 October 2010

10,7

%

8,2%

14,3

%

23,8

%

18,3

%

8,7%

18,0

%

4,4%

12,2

%

21,1

%

14,3

%

14

,6%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

Source: CORDA data on signed Grant Agreements, (*) with adjustments for services using other data systems, and excluding the contrbution to ESA from the SPA Theme

Overall: includes ESA, JTIs and "General Activities"

% - 1/10/2010 10,7% 8,2% 14,3% 23,8% 18,3% 8,7% 18,0% 4,4% 12,2% 21,1% 14,63% 14,34%

HEALTH KBBE ICT NMP ENERGY ENV TPT* SSH SPA* SECCOOP-

THEMESCOOP-Overall

Target: 15%

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

http://cordis.europa.eu/fp7/people/industry-academia_en.html

SME support in FP7 “People” programme

Research for the benefit of SMEsObjectives: 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

http://cordis.europa.eu/fp7/capacities/research-sme_en.html

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 2013.

For more information: https://www.eurostars-eureka.eu/

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 inFramework 7

1. Regard the Framework Program as a means of expanding your organization’s 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