Council Resolution of 27 November 1995 on small and medium-sized industrial enterprises (SMES) and technological innovation
Date: 1995-11-27
Institutions: Council of the European Union
Subjects: EU aid, competitiveness, economic development, new technology, small and medium-sized enterprises, technological change













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31995Y1219(02)

Council Resolution of 27 November 1995 on small and medium-sized industrial enterprises (SMES) and technological innovation  


Official Journal C 341 , 19/12/1995 P. 0003 - 0005 





COUNCIL RESOLUTIONof 27 November  1995on 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; IIINVITES 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. technology3.1. 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; IIIUNDERTAKES 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.