EN Official Journal of the European Union CE 84/761

(2004/C 84 E/0858)

WRITTEN QUESTION E-0101/04

by Marjo Matikainen-Kallström (PPE-DE) to the Commission

(22 January 2004)

Subject: Position of SMUs in the system for the funding of the EU's research activities

One of the objectives of the Sixth Framework Programme for Research is to enhance the competitiveness of the EU and for many years now SMUs have been recognised as the real generators of such improved competitiveness.

Nevertheless, the number of SMUs taking part in the Sixth Framework Programme has decreased substantially. The large-scale measures provided for by the Framework Programme, such as the IPs, (integrated projects) put firms off and the networks of excellence are often regarded as being primarily intended for universities and similar bodies. The Fifth Framework Programme made specific provision for SMUs in the form of the CRAFT instruments, offering undertakings a gateway to international cooperation. Unfortunately, the proportion of funding earmarked for CRAFT has been drastically reduced under the Sixth Framework Programme, giving rise to merciless competition among undertakings and needlessly raising the threshold for the award of funding.

Parliament has repeatedly urged that 15 % of the funding under the Framework Programme should be reserved for SMUs, a call which unfortunately has gone unheeded. For its part, the Commission has falsified the statistics, massaging them by categorising as SMUs, for example, non-profit-making undertakings, which may seemingly also include university foundations and other similar bodies.

As a result of this window dressing, the statistics have a better look, apparently showing an SMU participation rate of more than 10 % in many sectors. This clearly does not reflect either the original intention or the original spirit of the framework programmes, given that non-profit-making undertakings make no contribution whatsoever to the competitiveness of the EU.

Barely a day goes past without another fine speech being made about the brilliant future awaiting SMUs. However, their position needs to be improved here and now, given their vital importance for the competitiveness of the EU, for employment and for national economies in general.

What measures does the Commission intend to take in order to encourage participation by ordinary SMUs in European research projects?

Answer given by Mr Busquin on behalf of the Commission

(4 March 2004)

Through the Decisions on the 6th Framework Programme (FP6) and on the Specific Programmes ‘Integrating and Strengthening the Foundations of the European Research Area’ and ‘Structuring the European Research Area’, SME-participation is strengthened and stimulated:

— at least 15 % of the budget allocated to the seven Priority Thematic Areas (PTA) is to be granted to SMEs (± EUR 1700 million). This represents a major increase of this target which had been set at 10 % for the 5th Framework Programme (FP5);

— EUR 430 million are devoted to horizontal research activities involving SMEs;

— The horizontal research activities involving SMEs and/or SME-associations include co-operative research (CRAFT) (± EUR 320 million) and collective research (± EUR 110 million).

Economic and Technological Intelligence activity (ETI) is one of the activities within the Research and Innovation part of the Specific Programme ‘Structuring the European Research Area’. The major purpose of the ETI-projects is to create the right conditions for SMEs to participate in FP6-projects.

In addition, it must be highlighted that the Commission has been pro-active in stimulating and promoting SME-participation in FP6:

— a first initiative has been the creation of a dedicated SME-NCP-network. Through this network, SMEs and the research community at large are being informed and stimulated to combine their efforts in participating in FP6;

— a second initiative has been the creation of a Commission SME Task Force involving all the services involved in the operational management of FP6. The major objective of this Task Force is to monitor SME-participation in FP6 and to propose new initiatives or corrective measures to further promote SME-participation.

During the first FP6 implementing year, it must be mentioned that:

— following the first calls for horizontal research activities in FP6, about 1 070 SMEs will be awarded a research contract;

— following the first calls for proposals in FP6 PTA, about 2 450 SMEs will be awarded a research contract.

— the Commission launched a first call for proposals for ETI in April 2003. As a result of the first call, 20 projects have been retained which will receive a total funding of EUR 20 million. The projects cover a range of industrial sectors and the first ETI-projects have started their activities.

Although the relevant calculation for the achievement of the 15 % target is the allocation of Community financial contribution to SMEs at the end of the projects, monitoring of SME participation in FP6 is already done at different stages from proposal submission, evaluation and selection, until final distribution of EU financial contribution between contractors.

As a consequence, and according to the results of the first FP6 PTA calls, a number of corrective measures are currently under discussion in the SME Task Force. They include:

— making Workprogrammes more SME-friendly;

— topping up of new instrument projects from the first calls;

— integrated Projects (IP) dedicated to SMEs.

The implementation and timing of the above described measures or other initiatives will depend on the needs and resources of the PTA involved.

Furthermore, two large scale European Networks, namely the IRC Network and the Euro Info Centres, continue to provide information and support to a large number of SMEs of any size operating within all European countries (including the Accession Countries) and have been doing so for many years. Both Networks contribute significantly to increasing awareness on research and innovation within the SME community. Moreover, in the area of knowledge transfer to SMEs that is particularly important for their competitiveness in today's global environment, around 50 000 technology profiles were published and 500 trans-national technology transfers were reported by the IRC Network in 2002.

Finally, as far as the definition of small and medium sized enterprise (SME) is concerned, it must be highlighted that the definition applicable for FP5 and for FP6 is the one given in the 1996 Commission Recommendation 96/280/EC (1) based on the following four criteria: number of employees (< 250), annual turnover (<EUR 40 million) or annual balance sheet total (<EUR 27 million), and independence. It is this definition that legally has to be applied for the production of statistical data on SME-participation.

The concept of enterprises as being any entity engaged in an economic activity and irrespective of its legal form corresponds to the concept of ‘enterprise’ used constantly by the Court of Justice and the Commission in the field of competition and state law. In reply to the Honourable Member's concern, it is therefore possible that certain non-profit organisations legally have to be considered as SMEs too.

Furthermore, new SME definition has been adopted by the Commission, and will enter into force on 1 st January 2005. In this new definition, the ceilings for annual turnover/balance sheet total are increased to EUR 50 million and EUR 43 million respectively, and guidelines are given for the calculation of the number of employees. In addition, the concept of independence has been further developed and three categories of enterprises are identified: autonomous, partner and linked.

(1) Commission Recommendation 96/280/EC of 3 April 1996 concerning the definition of small and medium-sized enterprises, OJ L 107, 30.4.1996.