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

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“Research and SMEs in the 6th Framework Programme”

Xabier GoenagaDG Research - European Commission

Brussels, October 15th, 2002.

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MOTOR OF EUROPE’S CHANGING ECONOMYMOTOR OF EUROPE’S CHANGING ECONOMYMOTOR OF EUROPE’S CHANGING ECONOMYMOTOR OF EUROPE’S CHANGING ECONOMY

by GENERATINGGENERATING

NEW PRODUCTSNEW PRODUCTS& TECHNOLOGIES& TECHNOLOGIES

High tech SMEs create two-times more innovations

per employee than largecompanies

by GENERATINGGENERATING

NEW PRODUCTSNEW PRODUCTS& TECHNOLOGIES& TECHNOLOGIES

High tech SMEs create two-times more innovations

per employee than largecompanies

by SUPPORTING THE SUPPORTING THECOMPETITIVENESSCOMPETITIVENESS

OF LARGEOF LARGECOMPANIESCOMPANIES

50% of SMEs aresubcontractors

by SUPPORTING THE SUPPORTING THECOMPETITIVENESSCOMPETITIVENESS

OF LARGEOF LARGECOMPANIESCOMPANIES

50% of SMEs aresubcontractors

byCREATINGCREATING

EMPLOYMENTEMPLOYMENT

SMEs and especiallymicro-firms are the

main source of new jobs

byCREATINGCREATING

EMPLOYMENTEMPLOYMENT

SMEs and especiallymicro-firms are the

main source of new jobs

EEUROPEANUROPEAN SMEs ~ T SMEs ~ THEIRHEIR I IMPORTANCEMPORTANCE

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• Completion of Economic & Monetary Union

• Globalization of Economy

• Completion of Economic & Monetary Union

• Globalization of Economy

SMEs NEED TO:

• Internationalize strategy

• Modernize their productionsystems and products

• Widen their networks of knowledge suppliers

SMEs NEED TO:

• Internationalize strategy

• Modernize their productionsystems and products

• Widen their networks of knowledge suppliers

Widening of theknowledge base required

for core business

Widening of theknowledge base required

for core business Increasingtechnological content of products and services

Increasingtechnological content of products and services

EU RTD PROGRAMMES: An OPPORTUNITY for SMEsEU RTD PROGRAMMES: An OPPORTUNITY for SMEs

EU RTD Programmes allow EU RTD Programmes allow SMEs to simultaneously:SMEs to simultaneously:

• improve their technological baseimprove their technological base

• develop new transnational partnershipsdevelop new transnational partnerships

• widen their knowledge basewiden their knowledge base

EU RTD Programmes allow EU RTD Programmes allow SMEs to simultaneously:SMEs to simultaneously:

• improve their technological baseimprove their technological base

• develop new transnational partnershipsdevelop new transnational partnerships

• widen their knowledge basewiden their knowledge base

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• 10.000 „high-tech“ SMEs: 10.000 „high-tech“ SMEs: high RTD intensityhigh RTD intensity

• 10.000 „medium/low-tech“ SMEs: 10.000 „medium/low-tech“ SMEs: limited RTD intensitylimited RTD intensity

TOTALTOTAL

++ 20.000 SMEs 20.000 SMEsreceived received

1.4 billion Euro1.4 billion Euro

FFRAMEWORK RAMEWORK PPROGRAMME (1996-2001)ROGRAMME (1996-2001)Participation of SMEsParticipation of SMEs

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SME MEASURES in FP5: Challenging Euro-mythsSME MEASURES in FP5: Challenging Euro-myths• ““Participation is risky”Participation is risky” : :

More than 19.000 SMEs have submitted proposals in FP5, 38% have More than 19.000 SMEs have submitted proposals in FP5, 38% have been selected, 7.300 are participating (2.450 in Expl. Aw, 4.850 in been selected, 7.300 are participating (2.450 in Expl. Aw, 4.850 in CRAFT)CRAFT)

• ““Participation is expensive”Participation is expensive” : : On average a FP5-CRAFT (700 k€ EU cont, On average a FP5-CRAFT (700 k€ EU cont, 6 partners) requires some 70k€ of own investment per SME. On 6 partners) requires some 70k€ of own investment per SME. On average, SMEs can anticipate 3.5 € of economic return per € invested average, SMEs can anticipate 3.5 € of economic return per € invested in CRAFT.in CRAFT.

• ““EU RTD is for large firms”EU RTD is for large firms” : : 77% of contractors are small enterprises (<50 employees)77% of contractors are small enterprises (<50 employees)

• ““EU RTD is for high-tech industry”EU RTD is for high-tech industry” : : 35% of CRAFT participants come 35% of CRAFT participants come from more traditional sectors (agro-industry, construction, mining, from more traditional sectors (agro-industry, construction, mining, textile or wood). 21% from Cohesion countries (E, EL, IRL, P).textile or wood). 21% from Cohesion countries (E, EL, IRL, P).

• ““EU RTD is for a close-club”EU RTD is for a close-club” : : 65% of SMEs were newcomers to EU RTD programmes, 63%65% of SMEs were newcomers to EU RTD programmes, 63% newcomers to public R&D programmes, 50% of projects were new newcomers to public R&D programmes, 50% of projects were new collaborationscollaborations

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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

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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

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Traditional instrumentsNew instruments

Specific Targeted Research ProjectsCoordination actions

Specific support actions

Integrated projectsNetworks of excellence

Article 169

To implement the thematic priorities: the FP6 instruments

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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)

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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


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Dissemination of results

Participation of SME Groupings in theFP6 new instruments (particularly IP)

RTD performers / technology suppliers

Beneficiaries of TAKE UP MEASURES:

Training of SMEs executives / technical staff

Assessment/trial/validation of promising technologies Easier access to/transfer of best practices forearly use & exploitation of technologies

SME groupings involved in management

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SME Groupings or Associations could:

• having pre-allocated budget

select SMEs in a latter stage for take-up measures

Participation of SME Groupings in theFP6 new instruments (particularly IP)

From contract stage,

• not having identified SMEs for take-up measures

If at the proposal / contract stage,

represent individual SMEs to be identified

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Specific schemes in the form of actions on Collective and Cooperative Research (any topic)

Cooperative Research (CRAFT)

Individual SME


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Collective Research

Industrial associations or industry groupings

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European CommissionDG 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

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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 performersindependent 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

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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

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Research and innovation

Consortium management

CRAFT-Activities and EC contribution

Activities EC contribution

Up to 50%

Up to 100%

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COLLECTIVE RESEARCHNEW FRAMEWORK PROGRAMME

(2002-2006)

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€

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Pilot action• Step 1 cut-off date September 2001

• Step 2 evaluation March 2002

• 5 proposals negotiated

COLLECTIVE RESEARCH FIFTH FRAMEWORK PROGRAMME

(1998-2002)

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(2002-2006)

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)

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(2002-2006)

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

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(2002-2006)

EC Contribution:

• Research and Innovation - up to 50%

• Training - up to 100%

• Consortium Management - up to 100%

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Horizontal Activities Involving SMEs (2002-2006)

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

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Comparison of the projects sizes

CRAFT STRP Collectiveresearch

IP NoE

In term of budget, duration, size of consortia

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Participation in IST/ FP5 in terms of project size

01000

20003000

400050006000

70008000

900010000

0-25 M 2.5-5 M 5-7.5 M 7.5-10 M > 10 M

total project costs

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SMEs All participants

0%

5%

10%

15%

20%

25%

30%

0-25 M 2.5-5 M 5-7.5 M 7.5-10 M > 10 M

total project cost

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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)


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ECONOMIC AND TECHNOLOGICAL INTELLIGENCE

NEW FRAMEWORK PROGRAMME(2002-2006)

• 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.

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ECONOMIC AND TECHNOLOGICAL INTELLIGENCENEW FRAMEWORK PROGRAMME

(2002-2006)

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;

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ECONOMIC AND TECHNOLOGICAL INTELLIGENCENEW FRAMEWORK PROGRAMME

(2002-2006)

• 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.

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Deliverables

• Networks, databases, web sites, studies

• Number of SMEs audited

• New partnerships for joint action in FP6

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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.

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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.

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Open Call for proposals: End 2002

Three indicative deadlines (4/03, 4/04, 4/05)

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SME-HelpdeskSME-Helpdesk

European CommissionEuropean CommissionResearch Directorate GeneralResearch Directorate GeneralRue de la Loi, 200Rue de la Loi, 2001049 Brussels, Belgium1049 Brussels, Belgium

Telephone:Telephone: +(32-2)2984160+(32-2)2984160Telefax:Telefax: +(32-2)2957110+(32-2)2957110E-Mail:E-Mail: [email protected]@cec.eu.intWebsite:Website: www.cordis.lu/smewww.cordis.lu/sme

SME National Contact PointsSME National Contact Points

Complete list:Complete list: sme.cordis.lu/assistance/NCPs.cfmsme.cordis.lu/assistance/NCPs.cfm

SMEsSMEsFFRAMEWORK RAMEWORK PPROGRAMME ROGRAMME VIVI

(2002-2006)(2002-2006)

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

Documents

new smes

hightech smes

creatingemployment smes

identified smes

participation of smes

smes specific measures

smes special measures

mediumlowtech smes