SMEs say yes to Framework

SMEs across Europe gave their backing to Framework Programme 7 (FP7), saying it “stands out for its increased attention towards SMEs” – but cautioned that it must avoid the funding pitfalls that emerged over the life of the preceding programme.

This is the view of UEAPME, the European SME employers’ industry body representing companies from across the EU. In total UEAPME has 78 member organisations, covering over 11 million enterprises with 50 million employees.

Last week the UEAPME Research and Innovation Committee, meeting in Brussels, welcomed the FP7 proposals as amended by the European Parliament in its debate on the programme, held late in June.

But the committee called for the wording in SME-specific programmes to be beefed up to prevent money that is supposed to be ring-fenced for small companies being assigned to research organisations.

As it stands, FP7 allocates more than €5 billion for SME-related research in the 2007-2013 period in two main categories, Cooperation, and Capacities – Research for the benefit of SMEs.

Cooperation looks fine

UEAPME experts said they are particularly satisfied by the clause stating that at least 15 per cent of funding under the heading of Cooperation should be assigned to SMEs.

“Without such a concrete budget decision, all other amendments concerning SMEs would become rhetoric,” said Rainer Neumann, Chairman of the UEAPME Research and Innovation Committee.

“Lessons learnt from FP6, show that a stricter definition of SME is needed to avoid research organisations employing fewer than 250 staff benefiting from part of this budget heading, which should be reserved for businesses only.”

If the elements of the programme that are designed for SMEs are oversubscribed, the revised FP7 suggests an adjustment mechanism to redirect money towards areas of highest demand.

This is particularly important to SMEs, which often passed the quality mark under FP6, but were then denied funding for their projects because budgets had run out.

Make the threshold count

“Under the previous programme, only one SME proposal out of ten reached the financing stage. FP7 should aim to back all proposals ranking above the quality threshold – therefore, the Commission should not reduce the specific budget line below the €1.328 billion recommended by the European Parliament,” continued Neumann.

FP7 will include representatives from SMEs in the decision-making procedures around Technology Platforms. UEAPME said it appreciates this amendment and stressed that while single SMEs often do not have the adequate resources to participate directly in Technology Platforms, their role is essential in establishing the strategic research agenda.

“By introducing the 15 per cent clause and the redirection system to sustain oversubscribed budget lines, the Parliament supported the main requests made by UEAPME,” said Neumann.