1 Research and SMEs in the 6th Framework Programme Xabier Goenaga DG Research - European Commission Brussels, October 15th, 2002.

2 MOTOR OF EUROPES CHANGING ECONOMY GENERATING by GENERATING NEW PRODUCTS & TECHNOLOGIES High tech SMEs create two-times more innovations per employee than large companies GENERATING by GENERATING NEW PRODUCTS & TECHNOLOGIES High tech SMEs create two-times more innovations per employee than large companies SUPPORTING THE by SUPPORTING THECOMPETITIVENESS OF LARGE COMPANIES 50% of SMEs are subcontractors SUPPORTING THE by SUPPORTING THECOMPETITIVENESS OF LARGE COMPANIES 50% of SMEs are subcontractors CREATING by CREATINGEMPLOYMENT SMEs and especially micro-firms are the main source of new jobs CREATING by CREATINGEMPLOYMENT SMEs and especially micro-firms are the main source of new jobs E UROPEAN SMEs ~ T HEIR I MPORTANCE

3 Completion of Economic & Monetary Union Globalization of Economy Completion of Economic & Monetary Union Globalization of Economy SMEs NEED TO: Internationalize strategy Modernize their production systems and products Widen their networks of knowledge suppliers SMEs NEED TO: Internationalize strategy Modernize their production systems and products Widen their networks of knowledge suppliers Widening of the knowledge base required for core business Widening of the knowledge base required for core business Increasing technological content of products and services Increasing technological content of products and services EU RTD PROGRAMMES: An OPPORTUNITY for SMEs EU RTD Programmes allow SMEs to simultaneously: improve their technological base improve their technological base develop new transnational partnerships develop new transnational partnerships widen their knowledge base widen their knowledge base EU RTD Programmes allow SMEs to simultaneously: improve their technological base improve their technological base develop new transnational partnerships develop new transnational partnerships widen their knowledge base widen their knowledge base

high-tech SMEs: high RTD intensity high-tech SMEs: high RTD intensity medium/low-tech SMEs: limited RTD intensity medium/low-tech SMEs: limited RTD intensity TOTAL SMEs received 1.4 billion Euro SMEs received 1.4 billion Euro F RAMEWORK P ROGRAMME ( ) Participation of SMEs

5 SME MEASURES in FP5: Challenging Euro-myths Participation is risky : More than SMEs have submitted proposals in FP5, 38% have been selected, are participating (2.450 in Expl. Aw, in CRAFT)Participation is risky : More than SMEs have submitted proposals in FP5, 38% have been selected, are participating (2.450 in Expl. Aw, in CRAFT) Participation is expensive : On average a FP5-CRAFT (700 k EU cont, 6 partners) requires some 70k of own investment per SME. On average, SMEs can anticipate 3.5 of economic return per invested in CRAFT.Participation is expensive : On average a FP5-CRAFT (700 k EU cont, 6 partners) requires some 70k of own investment per SME. On average, SMEs can anticipate 3.5 of economic return per invested in CRAFT. EU RTD is for large firms : 77% of contractors are small enterprises (<50 employees)EU RTD is for large firms : 77% of contractors are small enterprises (<50 employees) EU RTD is for high-tech industry : 35% of CRAFT participants come from more traditional sectors (agro-industry, construction, mining, textile or wood). 21% from Cohesion countries (E, EL, IRL, P).EU RTD is for high-tech industry : 35% of CRAFT participants come from more traditional sectors (agro-industry, construction, mining, textile or wood). 21% from Cohesion countries (E, EL, IRL, P). EU RTD is for a close-club : 65% of SMEs were newcomers to EU RTD programmes, 63% newcomers to public R&D programmes, 50% of projects were new collaborationsEU RTD is for a close-club : 65% of SMEs were newcomers to EU RTD programmes, 63% newcomers to public R&D programmes, 50% of projects were new collaborations

6 Encouraging SMEs to participate in FP6 Appropriate information and assistance to potential SME participants Specific measures taken to involve the SMEs in the 7 thematic priorities (Integrated Projects, Networks of Excellence, STRP) Specific schemes in the form of actions on collective and cooperative research on any area 1 2 3

7 The 7 thematic priorities (11,285 M, >15 % for SMEs) 1 - Life sciences, genomics and biotechnology for health 2 -Information society technologies 3 -Nanotechnologies 4 -Aeronautics and space 5 -Food quality and safety 6 -Sustainable development 7 -Citizens and governance

8 Traditional instrumentsNew instruments Specific Targeted Research Projects Coordination actions Specific support actions Integrated projects Networks of excellence Article 169 To implement the thematic priorities: the FP6 instruments

9 Objective = to allocate at least 15% of the 7 thematic priorities budget to SMEs Special measures to encourage SMEs Participation in the new types of projects Special focus on SMEs Specific measures taken in Integrated Projects, Networks of Excellence and STRP (7 thematic priorities) 1

10 Specific measures taken in Integrated Projects, Networks of Excellence and STRP (7 thematic priorities) Targeting of calls in areas relevant for SMEs Participation of SME groupings Evaluation criteria related to SMEs Pre-allocated budget for take-up measures Possibility to extend contracts to include new SMEs Encouraging SMEs to participate in FP6 1

11 Dissemination of results Participation of SME Groupings in the FP6 new instruments (particularly IP) RTD performers / technology suppliers Beneficiaries of TAKE UP MEASURES: Training of SMEs executives / technical staff ï Assessment/trial/validation of promising technologies ñ Easier access to/transfer of best practices for early use & exploitation of technologies SME groupings involved in management

12 SME Groupings or Associations could: having pre-allocated budget select SMEs in a latter stage for take-up measures Participation of SME Groupings in the FP6 new instruments (particularly IP) ï From contract stage, not having identified SMEs for take-up measures ï If at the proposal / contract stage, represent individual SMEs to be identified

13 Specific schemes in the form of actions on Collective and Cooperative Research (any topic) Cooperative Research (CRAFT) Individual SME Encouraging SMEs to participate in FP6 2 Collective Research Industrial associations or industry groupings

14 European Commission DG Research Co-operative Research FP6-General Aspects Definition Scope Scale Duration of projects limited number of SMEs from different countries assign research and innovation activities to research performers any subject across the whole range of science and technology CRAFT budget = 295 M individual CRAFT projects between 0.5 and 2 M 1-2 years

15 European Commission DG Research In a CRAFT project there must be AT LEAST three independent SME participants established in two different Member States or Associated States, of which at least one shall be established in a Member State or Associated Candidate Country, two RTD performers independent from the SME participants and established in two different Member States or Associated States, of which at least one shall be established in a Member State or Associated Candidate Country. IN ADDITION, Other enterprises and end-users may participate to the project. Participants

16 European Commission DG Research CRAFT-Other conditions Special eligibility criteria regarding the balance between the contribution of SMEs and other enterprises and end-users The costs of a single SME participant will not be greater than 40% of the combined costs of the SME participants The SME participants which are not independent from each other will count as one SME participant for the application of this rule. up to 60% of the costs may be from SMEs and other enterprises and end-users of the same country For SMEs and other enterprises and end-users

17 European Commission DG Research Research and innovation Consortium management CRAFT-Activities and EC contribution ActivitiesEC contribution Up to 50% Up to 100%

18 COLLECTIVE RESEARCH NEW FRAMEWORK PROGRAMME ( ) Research carried out by research performers on behalf of industrial associations / groupings on themes of interest to large sectors and communities of SMEs Typically between 2 to 5 M and a duration of 2 to 3 years. Indicative budget: 100 M

19 Pilot action Step 1 cut-off date September 2001 Step 2 evaluation March proposals negotiated COLLECTIVE RESEARCH FIFTH FRAMEWORK PROGRAMME ( )

20 COLLECTIVE RESEARCH NEW FRAMEWORK PROGRAMME ( ) Can address any subject across the whole field of Science & Technology Addressing common problems/ challenges (e.g. environmental/safety issues) Pre-normative research Reinforcing technological basis of entire sector(s) Development of technological tools (e.g. diagnosis, safety equipment)

21 COLLECTIVE RESEARCH NEW FRAMEWORK PROGRAMME ( ) Who can participate? At least - 2 National Industrial Associations/groupings, OR 1 EEIG, OR 1 European Industrial Association/grouping In addition both of the following - SME core group At least 2 RTD Performer from Member States or Associated States

22 COLLECTIVE RESEARCH NEW FRAMEWORK PROGRAMME ( ) EC Contribution: Research and Innovation - up to 50% Training - up to 100% Consortium Management - up to 100%

23 Horizontal Activities Involving SMEs ( ) Open Call for proposals: End 2002 CRAFT: four indicative deadlines (3/03, 11/03, 11/04, 11/05) Collective: three indicative deadlines (3/03, 2/04, 2/05). 2-step approach: –Step 1: Outline providing the essential aspects (SME interest, European nature,..) –Step 2: Detailed proposal

24 Comparison of the projects sizes CRAFTSTRP Collective research IPNoE In term of budget, duration, size of consortia

25 Participation in IST/ FP5 in terms of project size 0% 5% 10% 15% 20% 25% 30% 0-25 M2.5-5 M5-7.5 M M> 10 M total project cost SMEs in particular project size / all participants in particular project size

26 Appropriate information and assistance to potential SME participants SME website and helpdesk SME National Contact Points (NCP) Economic and Technological Intelligence Specific Support Actions (7 thematic priorities) Encouraging SMEs to participate in FP6 3

27 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) In the knowledge-based economy, ETI is a vital component of competitive research & innovation strategies. In the 6th FP this activity is to be stepped up from those carried out in the 5th FP.

28 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) Content A Specific Support Action scheme aimed at innovation promotion in SMEs, in particular by means of activities aimed at facilitating the creation of SME Groupings with similar innovation needs and the participation of SMEs/SME Groupings in Integrated Projects and Networks of Excellence, specific targeted research projects, CRAFT and Collective Research;

29 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) support for activities concerning the gathering, analysis and dissemination of information on S&T developments, applications and markets which may be of assistance to the innovation players; identification and dissemination of best practice with regard to economic and technological intelligence.

30 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) Deliverables Networks, databases, web sites, studies Number of SMEs audited New partnerships for joint action in FP6

31 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) Scale and Duration Typically, the total project costs of each specific support action may be within the range of 0.2 to 2 million Euros. The duration of a project will be determined by the time necessary to obtain its objectives. Typically, the duration might be expected to be 1 to 3 years. Only exceptionally and in duly justified cases, will the duration exceed 3 years.

32 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) Consortium The number of participants can not be less than three independent legal entities established in three different Member States or Associated States, of which at least two shall be established in Member States or Associated candidate countries.

33 ECONOMIC AND TECHNOLOGICAL INTELLIGENCE NEW FRAMEWORK PROGRAMME ( ) Open Call for proposals: End 2002 Three indicative deadlines (4/03, 4/04, 4/05)

34 SME-Helpdesk SME-Helpdesk European Commission Research Directorate General Rue de la Loi, Brussels, Belgium Telephone:+(32-2) Telefax:+(32-2) Website: SME National Contact Points SME National Contact Points Complete list:sme.cordis.lu/assistance/NCPs.cfm SMEs F RAMEWORK P ROGRAMME VI ( )