COUNCIL RESOLUTION

of 27 November 1995

on small and medium-sized industrial enterprises (SMEs) and technological innovation

(95/C 341/02)

THE COUNCIL OF THE EUROPEAN UNION,

NOTING that the Treaty establishing the European Community sets the objective of achieving competitiveness in Community industry and promoting its scientific and technological bases, with special reference to SMEs,

STRESSING, on the one hand, the relationship between the competitiveness of enterprises and research, technological development and innovation and, on the other hand, the major role played by SMEs in the process of technological innovation,

RECOGNIZING the capital importance of SMEs to the European Union's economy and, especially in the case of smaller enterprises, to the creation of jobs, and the great capacity of SMEs for adaptation to structural changes in the market,

RECALLING that in the 'Initiative on Growth` (1993) and the White Paper on Growth, competitiveness and employment it is recognized that measures must be taken to promote the international dimension of SMEs and strengthen their technological potential and their adaptation to the internal market,

RECALLING that the European Council meeting in Cannes on 26 and 27 June 1995 stressed the fundamental role played by SMEs as a factor for social stability and economic dynamism, and asked the Commission to submit a report on the policies being developed on the subject at present and on measures to improve their effectiveness, in particular through fiscal measures to encourage their creation, measures to reduce their administrative burdens and encourage their participation in training and research programmes,

NOTING the Council resolution of 10 October 1994 on giving full scope to the dynamism and innovatory potential of small and medium-sized enterprises including the craft sector and micro-enterprises, in a competitive economy (1),

NOTING the Commission communication of 30 September 1993 on R& D policy and SMEs,

NOTING the reports by the European Parliament (May 1993) and the Industrial Research and Development Advisory Committee, which describe the disadvantageous situation of SMEs, insist that they be involved in the international R& D system and propose measures to encourage it,

NOTING the proceedings in progress at the Commission on the definition of SMEs,

I

(a) RECOGNIZES that the internationalization and globalization of economic relations and the increase in competition on the world market make it necessary to facilitate access to technology for SMEs;

(b) RECOGNIZES the necessity of acquiring the new technologies and of access to innovation for industrial and service enterprises, particularly the traditional ones;

(c) NOTES that from the technological point of view there are three groups of industrial SMEs:

1. technology-producing SMEs, in which intangible factors are of great importance and which develop R& D activities and participate actively in them;

2. SMEs that consume or use technology, which translate the results of research and technological development into applications. This group is of crucial relevance in the achievement of commercial results;

3. SMEs with limited research and development capacities which, however, need to incorporate in their production processes and products the advances made notably by the preceding groups as their survival and competitiveness depend on this;

(d) ALSO NOTES the need for SMEs in the traditional sectors, from any of the aforementioned groups, particularly in the European Union's less favoured regions, to be involved in the process of technological innovation;

(e) POINTS OUT that in the conclusions adopted at its meeting on 7 April 1995 on high-technology industries and enterprises, in which it stresses that amongst the latter SMEs play an important role, measures appropriate to such enterprises are specified;

(f) NOTES that there is a need to create and strengthen more technology-based SMEs in Europe;

(g) CONSIDERS that both SMEs that use technology and those that have limited R& D capacities should become more important in the European Union's science and technology system and benefit more from the results achieved within it;

II

INVITES THE COMMISSION TO:

(a) take into account, in its present work on the definition of SMEs, the particular problems faced by technology-based SMEs;

(b) provide statistical studies on the participation of SMEs in the Community's programmes and, in particular, establish criteria that will help to distinguish independent SMEs from those that are subsidiaries of large enterprises;

(c) assess and report on the progress of existing Community measures intended to facilitate access to technological innovation for SMEs. In collaboration with the Member States, further develop those measures, and, when necessary, devise appropriate measures that will contribute to the achievement of that end, and in particular:

1. access to information and advice:

- improve systems for the dissemination of technological information, Community programmes and their results so that they are especially aimed at SMEs, taking advantage of existing Community and national, regional and local networks,

- promote the use of technological information services, in order to help SMEs in identifying the technologies they need,

- encourage the use by SMEs of a high-quality supply of consultancy services in the field of strategic management, quality, finance, R& D and innovation,

- increase the efficiency of partner search instruments and improve their coordination;

2. cooperation

- facilitate industrial cooperation between enterprises, particularly between technologically advanced and traditional enterprises, with the aim of applying technical successes in the marketplace as quickly and extensively as possible, resulting in an improvement of the competitiveness of Community industry in general,

- facilitate cooperation between large enterprises and SMEs, including subcontractors, in technological developments facilitating the inclusion of SMEs in Community R& D projects,

- facilitate cooperation between higher education institutions as well as research and technological centres and SMEs;

3. technology

3.1. increase real, effective participation by SMEs in R& D programmes. In particular:

- make the Commission's consultation of SMEs and/or their associations the rule,

- encourage high quality leadership and effective participation by SMEs in framework programme shared-cost projects,

- continue the process started of harmonizing management procedures, simplifying formalities and improving and speeding up payments and contracts,

- continue its efforts in making the selection procedures and the composition of selection bodies more transparent;

3.2. taking into account the complementarity between the framework R& D programme and Eureka, strengthen the relations between them, especially through the exchange of information on projects and greater fluidity in institutional contacts;

3.3. facilitate training in new technologies for SME staff and entrepreneurs, in the framework of existing instruments;

3.4. strengthen measures to disseminate and transfer technology in close collaboration with the Member States, taking advantage of existing networks and structures. Such measures would be intended to cover the SMEs' technological requirements, in particular:

- the use of the technological infrastructures available,

- intermediate bodies to identify requirements, give advice and carry out technological exchanges between SMEs,

- cooperative research for those SMEs with little or no R& D capacities,

- the incorporation and adaptation of new technologies in SMEs;

4. networks and work in networks

- carry out, in collaboration with the Member States, the consolidation and optimization of existing networks in which industrial SMEs and/or their associations participate, together with other social and economic entities, involving service enterprises; where appropriate, encourage the development of the networks that are required;

5. better use of existing financial measures

- examine alternative financial arrangements to facilitate development and participation by SMEs in activities connected with R& D and technological innovation, such as risk capital or soft loans,

- provide the possibility, in the case of R& D Programmes, of better targeted financing for SMEs, particularly for the smaller ones;

(d) study in detail ways of coordinating the relevant Community policies and, if appropriate, develop, within the framework of existing programmes, further actions in favour of SMEs;

III

UNDERTAKES TO:

have a debate, during the second half of 1996, to analyze and review, on the basis of a Commission report the results and progress with the implementation of the measures specified in this resolution.

(1) OJ No C 294, 22. 10. 1994, p. 6.