SME participation in the Fourth Framework Programme
About 99.8% of all enterprises in Europe are SMEs (small and medium-sized enterprises). These SMEs are responsible for 66% of employment and 65% of economic turnover in the European Community. In the light of increasing global competition, many SMEs are being forced to internationalize their strategies and to innovate. This means, among other things, having access to new technologies or developing these technologies themselves. The research programmes of the European Union offer these companies a good vehicle for achieving their goals. In particular, a number of special measures aimed at facilitating the participation of SMEs in European research programmes were introduced under the Community's Fourth Framework Programme for Research and Technological Development. These "Technology Stimulation Measures for SMEs" include: - Exploratory awards, providing SMEs with financial support for the preparation of project proposals (search for partners, market and innovation surveys, feasibility studies); - A scheme of cooperative research whereby groups of low and medium-tech SMEs facing similar problems or opportunities, but with little or no research capacity of their own, can out-source the required RTD work to a third party (e.g. University or research organization). The Technology Stimulation Measures for SMEs are implemented via an open call for proposals allowing SMEs to submit proposals at any time during the year. The application material (information package, application forms) has been simplified and is considered user-friendly. At the level of the Member States, a decentralized network of "Focal Points" has been established to inform SMEs and provide assistance for the preparation of project proposals and search for partners. The introduction of these measures has led to a significant increase in SME participation in Community research programme. In 1995, the first year of the Fourth Framework Programme, shared-cost projects selected for funding totalled 4,625 SME participations compared to 6,276 for the whole of the Third Framework Programme which ran from 1990 to 1994. Indeed, SME participation accounted for 58% of all industry participation in the Community research programmes in this year. A review of the figures for 1995 shows that the industrial programmes (BRITE/EURAM, ESPRIT and Telematics Applications) account for 75% of all SME participations. The special SME measures account for 25% of all SME participations. In 1995, some 2,500 SMEs submitted proposals under the Technology Stimulation Measures. Most of these (60%) were small enterprises (less than 50 employees). Larger SMEs (250 to 500 employees)represent 6% of contractors and belong to the more traditional sectors (construction, mining, textile and wood).