EU reaches target of directing 15 per cent of research funding to SMEs

The European Commission has delivered on its promise to increase the share of the Framework Programme 7 R&D budget going to Small and Medium Enterprises (SMEs), according to figures released last week.

In total, SMEs are in line to receive 15.3 per cent from the budget of €16.3 billion committed so far under the Seventh Framework Programme (FP7).  This surpasses the goal set by the European Parliament and European Council, with the €2.4 billion having been awarded to almost 8,900 SMEs by 1 January 2012.

And SME funding is estimated to remain above 15 per cent for the rest of the period of FP7, thereby meeting the commitment made by the European Commission.

"The commitment to the 15 per cent budget target for SMEs is a commitment to growth and jobs,” said Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn, “We have now reached that target and will remain committed to it.”

The Commission has put in place a number of special measures to encourage SMEs to apply for FP7 funding. These include ring-fenced budgets for SMEs and choosing research topics that are particularly relevant for smaller companies. As a result the last months of 2011 saw a significant increase in the budget share allocated to SMEs, and the Commission says it will strengthen such measures further in the future.

In addition to the 17,000 or so SMEs that are expected to receive FP7 research funding by the end of the programme, many more SMEs will benefit from the results of these projects.

Further findings in the 8th SME Progress Report on SME participation include:

• In 73 per cent of research projects funded at least one SME is involved
• 17.6 per cent of participants in FP7 projects are from SMEs
• each SME participates in 1.6 different research projects on average
• each research project consortium has on average 11 partners, of which two are SMEs
• 10 per cent of projects are coordinated by an SME            
• € 774 million goes directly to SMEs under the Capacities programme
• € 167 million goes to SMEs under the People programme

A study by the Commission published 16 January showed that between 2002 and 2010, 85 per cent of new jobs in the EU were created by SMEs. The Commission said meeting the 15 per cent budget target will therefore contribute further to competitiveness and growth

SME participation in FP7