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Decision No 182/1999/EC of the European Parliament and of the Council of 22 December 1998 concerning the fifth framework programme of the European Community for research, technological development and demonstration activities (1998 to 2002)

3. THIRD ACTIVITY

HORIZONTAL THEME ‘PROMOTION OF INNOVATION AND ENCOURAGEMENT OF SME PARTICIPATION’

Innovation is a key factor in industrial competitiveness, sustainable social and economic development and job creation. The aim is to promote innovative activities, including the creation of innovative enterprises, and to facilitate the dissemination and exploitation of research results and support technology transfer.

Small and medium-sized businesses are important vectors and actors in innovation. The development of SMEs can make a vital contribution to economic and social development, new economic activities, job creation and competitiveness. SMEs must therefore be provided with easier access to the advanced technologies which they need, and to the opportunities offered by the Community’s as well as the Member States’ research programmes.

Promotion of innovation and SME participation, although not synonymous, are closely linked. As far as possible, this theme will therefore be implemented by means of joint action covering both areas. Furthermore, the activities carried out in this programme will be complementary to activities undertaken within Member States and to activities to promote innovation and encourage SME participation carried out elsewhere in the framework programme, and will therefore support, supplement and, as appropriate, give direction to these various efforts.

1. General objectives

(a) Promotion of innovation

- to help implement innovation policies in the European Union, in particular by contributing to the creation of an environment conducive to innovation,

- to enhance public awareness of the benefits of innovation,

- to improve the economic and social impact of framework programme research activities by ensuring better dissemination and exploitation of their results, as well as the transfer and dissemination of technology from various sources, taking account of the needs of customers and users,

- to facilitate access of programme participants (particularly SMEs), through provision of information and advice, to instruments which support innovation.

(b) Encouraging SME participation

- to stimulate SME participation in the research programmes and technology transfer to SMEs — both SMEs active in research and high technology and those with little or no research capability but with substantial technological needs and a capacity to absorb new technologies; to help SMEs throughout the European Union to develop their technological capabilities, taking into account also specific problems of SMEs in less-favoured regions,

- to assist SMEs in setting up transnational networks and partnerships for the absorption and diffusion of new technologies,

- to encourage the development of transnational links between SMEs, large companies, research centres and universities.

2. Actions specific to the horizontal programme

(a) Promotion of innovation

- identification and dissemination, in concert with the other programmes of the framework programme, of adequate mechanisms to facilitate, in the life-cycle of projects, the exploitation, private financing and transfer of technologies and results produced, while guaranteeing protection of the knowledge acquired,

- development, validation and implementation of methodologies for technology transfer actions integrating the technological, economic and social aspects of innovation and, where necessary, transnational dissemination and exploitation of results not stemming from the thematic programmes (taking account of the particular characteristics of each sector of activity),

- coordination of studies and analyses carried out in various fora and integration of their results, with a view to establishing a common reference framework in the area of innovation policy.

(b) Encouraging SME participation

- management of a single complementary entry point for SMEs — for all the research programmes — in the Commission’s departments, making use of existing support networks in Member States; definition and management of common tools facilitating SME participation in the programmes (fullest possible use of electronic methods for information dossiers, submission of proposals, ‘help line’, specialised Intranets to stimulate SME participation in innovation, etc.); provision of information on programmes and training on proposal preparation;

- increasing involvement of SMEs at all stages in the consultation/assessment process; where appropriate, their representative associations may also be consulted; ensuring a structured and rapid feedback system for all applicants; assistance for the establishment of consortia; simplifying procedures and further increasing the efficiency of contract and payment arrangements; and improving transparency,

- permanently open calls for proposals for measures specific to SMEs, such as exploratory awards or cooperative research activities,

- assistance to SMEs in identifying their current and future technological needs and provision of information and advice with a view to meeting those needs.

(c) Joint actions for innovation/SMEs

- actions at Community level for the rationalisation and coordination of networks providing information and assistance on the Community’s research and innovation activities; management, in concert with the other programmes of the framework programme, of the support network for innovation and technology transfer, making best use of the innovation relay centres and the CRAFT focal points; consolidation of mechanisms for gathering and disseminating information, such as the CORDIS information service,

- provision of information and advice, as well as pilot activities, in the areas of:

- intellectual property rights,

- access to private finance, notably venture capital funds,

- the creation of innovative start-ups, principally via European organisations and funds (European Investment Fund, European Investment Bank, and the Eurotech Capital scheme).

The objective of the pilot activities will be to improve the existing capacities for information, advice and analysis and to facilitate access to existing public and private instruments at national or Community level without providing financial subsidies to enterprises or creating a competing financial instrument;

-identification and promotion, in concert with the other programmes of the framework programmes, of best practice and innovation.

3. Interaction with related actions in the other framework programme activities

(a) Promotion of innovation

- encouraging preparation for the exploitation and dissemination of results during the research phase,

- ensuring consistency between activities to foster innovation under the other programmes and those carried out in this programme,

- coordination of the activities of the ‘innovation units’ to be set up under the thematic programmes, with the aim of supplementing the innovation dimension of the implementation of programmes (e.g. in the selection and monitoring of projects) and securing, as appropriate, the follow-up of technology transfer, including technology transfer projects with a demonstration effect.

(b) Encouraging SME participation

Support for SME participation in RTD and demonstration activities to be carried out in the programmes:

- ‘cooperative research’ activities enabling at least three mutually independent SMEs from at least two Member States jointly to seek the resolution of their common technological problems internally or by entrusting it to third legal entities with appropriate research capacities,

- activities to support and encourage SME participation in collaborative and cooperative research projects (for example on the basis of ‘exploratory awards’ respecting the needs of SMEs for a flexible and easily accessible support system.

Support for ensuring and improving dissemination and exploitation of results within the thematic programmes.

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