How is the SMEs position in EC funded research & development projects?

Multimedia products are mainly produced by small and medium enterprises (SMEs) in Austria as well in Europe. On the other side it is increasingly difficult for small organisations to gain advantages in IST research & development projects for a successful market implementation. The structures of the IST programmes have been identified increasingly incompatible with the needs of small enterprises, so far even including them. The current IST programme is not designed for small innovative companies. It privileges the big research networks and the big players. Instruments like the ‘Networks of Excellence’ are not targeting multimedia companies and producers and very few of the programme lines tendered are suitable for Small and Medium Enterprises.

SMEs are confronted with various difficulties to fulfil the requirements of participation as well to gain satisfactory synergies and advantages in programmes as defined in FP 6.

A substantial hurdle for SMEs to participate is their tendential low organisational and financial resources. In fact the co-financing model of most EC projects is not easy to handle for SMEs in terms of pre-financing project activities. Despite this entrance hurdles programme lines and projects do not meet the needs of SMEs and the market in certain aspects. Critical aspects and factors have been identified as follows:

Since companies and business models are of rapid change nowadays, ‘long term’ (e.g. 3 years) EC projects not necessarily go along with the development of companies; theoretical and practical needs do not always meet in EC funded projects, being too theoretical orientated with a lack of practical impact and business relevance; A hindering aspect for the exploitation of full synergies for SMEs is the fact that the IST programme includes no mechanism that enables to build up on existing solutions, to add innovative aspects to existing. Projects within IST so far always have to start with something new from zero.

As result of these aspects real innovation is often realised by small innovative enterprises in co-operation with strong players besides EC programmes. Therefore the challenge is to find ways how to enable enterprises to get real advantage of EC projects and to increase the number of companies being involved in projects.

How can SMEs take advantage of EC funded research & development projects?

Despite the critical aspects and factors for SMEs participating in EC funded research & development projects, current or past participants in one or several projects gained great benefits and precious experience they won’t miss. A vital and basic benefit and value of each participation is the co-operation within the project consortium on the European level (beyond the national market) and to gain inside in the latest development in the field of research as well the market side. Participation can offer rich perspectives but Small and Medium Size Enterprises and Organisations shall be aware of the following aspects:

The first project a company or institution is doing first of all brings experience in handling intercultural cooperation as well intercultural exchange. This experience is essential for the success of EC projects and valid and useful for further other international co-operations.

The clear positioning of the role within the consortium is essential as well as the definition of the project targets of the company or organisation. Targets should consider multi-dimensional aspects (not only the financial and revenue side) and might differ from one project to the other.

Recommendations:

The following recommendations can be made for research conducted under the EC on the basis of this ACTeN Business Roundtable:

Since the definitions of FP6 were indicated as not very ‘SME friendly’ within the FP7 the IST programme should therefore specially include and consider small but real innovative companies by creating a parallel (special) programme with focus on the integration of SMEs, which is defining clear conditions for the participation of big players in cooperation with small companies and enabling that practical working and orientated companies (SMEs) get higher significance and importance within projects.

Current models of project structures, goals and consortium models should be called into question and relevant projects in co-operation with SMEs and players beside EC programmes should be analysed and taken into consideration to develop new models and structures. E.g. an instrument that enables setting up projects on an existing structure (clients, partners, organisational structures, already developed solutions) with quick results of market relevance.

The time to the market of innovative developments should be shortened by effective co-operations (in EC project terms by effective consortia) ranging from basic research to ‘rapid prototyping’ by companies and the industry.

Market relevance of EC funded research & development projects should be taken in even closer consideration and business orientation should be seen as essential for the development and competitiveness of Europe’s industries and companies.

Despite the causality of success is not always obvious at first sight in research and development projects there should be made strong efforts to create a kind of balance sheet of project results.

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