1. “SMEs and FP7” Statement to the EPP Hearing on FP7 22nd September 2005 by Prof. Dr. Theo Gumpelmayer Vice-President, EARTO – European Association of Research and Technology Organisations President, ACR – Austrian Cooperative Research

2. “SMEs and FP7” Seven European trade associations representing over half a million SMEs from many sectors of the European economy have made practical proposals for a better Framework Programme.

3. “SMEs and FP7”

4. Three key arguments We have to get European SMEs investing much more in R&D. Europe has too few SMEs that build successful continental and global businesses A better-balanced Framework Programme is needed that does much more to stimulate knowledge and business growth amongst the much larger community of medium-tech SMEs

5. “SMEs and FP7” The key conclusion and recommendation: FP7 should target three principal communities of SME, with a budget of at least €1 billion each: Medium-tech SMEs with European and global growth potential - and needing R&D support in order to be able to innovate successfully - using an instrument like CRAFT Medium- and low-tech SMEs facing growing international competition and increasing European regulatory burdens, using an instrument like Collective Research, and Hi-tech SMEs with longer-term European and global growth potential, using an instrument like STREPs - but, unlike the current STREPs in the Priority Thematic Areas, operated in a bottom-up manner because these SMEs’ need shorter-term research identified from market needs.