Research for SMEs : creating knowledge for growth.
Date: 2007-04-16
Institutions: Directorate-General for Research and Innovation
Subjects: EU financing, EU programme, EU research policy, competitiveness, innovation, investment, small and medium-sized enterprises

Does my organisation qualify as an SME?                    

What else do you need to know?                             

K

If you can answer ‘Yes’ to all four questions, your organisation qualifies 

SME TechWeb

as an SME under the EU definition.

NO

Is the organisation an enterprise, i.e. 
engaged in economic activity?

YES!

Y
O
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R

NO

Does it have fewer than 250 
employees?

YES!

NO

Does it have an annual turnover not 
exceeding $50 million?*
Or
Does it have a balance sheet total* not 
exceeding $43 million?
To answer Yes, at least one of these conditions must 

be fulfilled.

*according to its most recent audited accounts

YES!

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The  SME TechWeb  offers  a  range  of  information  for  SMEs  that  would 

like to take part in EU research. It is designed for technology oriented 

companies wishing to innovate and internationalise. Using clear, simple 

language, offering numerous concrete examples of projects, this website 

will be of particular value to those applying for research funding. Visit it 

now at:

sme.cordis.europa.eu

SME National Contact Points

SME  National  Contact  Points  have  shown  their  worth  in  the  past  as 

providers of information and guidance to SMEs wanting to participate 

in  EU-funded  research.  This  role  will  be  strengthened  throughout  FP7 

(2007-2013). A complete list of NCPs for FP7 is available at:

cordis.europa.eu/fp7/ncp_en.html

.

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General FP7 information

For  information  about  related  research  activities,  calls  for  proposals, 

work  programmes  and  schemes  in  FP7,  please  visit  the  following 

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Is it autonomous?

YES!

comprehensive websites:

Europa: ec.europa.eu/research/fp7/

CORDIS : cordis.europa.eu/fp7/home.html

Contacts 
Martina Daly

Martina.DALY@ec.europa.eu

Research enquiries service:

ec.europa.eu/research/enquiries

For the definition of autonomy, and to learn how your 

enterprise may qualify as an SME even if it is not 

autonomous, see the detailed  definition on the SME 

TechWeb.

RESEARCH FOR SMEs at a glance                          

Objectives

To improve SME competitiveness by investing in the acquisition of 
new knowledge from RTD providers.

Main applicants

Small and medium-sized enterprises

Beneficiaries

SME participants 

Owners of IPR

SME participants by default

Total project budget

Typically €0.5 to €1.5 million

EC funding

75% of research costs, 50 % of demonstration costs, 100% of 
costs for management and other activities2

Number of participants

Typically 5 – 10

Project duration 

Typically 1 to 2 years

2 

The financial support of the Community is in accordance with the Rules for participation 

and will be capped at a value not exceeding 110% of the estimated price to be invoiced by RTD 

providers to SMEs.

creating knowledge 
for growth

The Seventh Framework Programme 
(FP7) provides financial support to 
innovative SMEs investing in the 
acquisition of new knowledge from 
RTD providers to improve their 
competitiveness.

 
 
 
 
 
 
 
 
 
Research for the benefit of SMES                          

Activities supported by RESEARCH FOR SMEs              

Forming a RESEARCH FOR SMEs consortium                 

For many European small and medium-sized enterprises, continued success 

Within the framework of each project, the Research for SMEs scheme 

The  composition  of  the  consortium  must  meet  certain  minimum 

and robust growth is linked to competitiveness in the global economy. Fresh 

will support SMEs in:

requirements.

ideas and novel approaches to business are important for SMEs to compete 

in today’s globalised market. Research is an integral part of this process.

•

Research  and  technological  development  activities.  Research 

undertaken  by  RTD  performers  will  form  the  bulk  of  each  funded 

In  the  Seventh  Framework  Programme  (FP7),  the  European  Commission 

project.  SMEs  will  focus  on  the  testing  and  validation  of  project 

• SME participants
   A  consortium  must  contain  at  least  three  independent  SMEs1 
headquartered  in  three  different  Member  States  or  Associated 

will continue to provide financial support to innovative SMEs investing in 

results,  and  the  preparatory  stages  for  applied  use.  Knowledge 

Countries.  SME  participants  cannot  be  research  centres,  research 

the  acquisition  of  new  knowledge  from  RTD  providers  to  improve  their 

management  and  Intellectual  Property  Rights  protection  will 

institutes, contract research organisations or consultancy firms.

competitiveness.

contribute to a clear economic impact of project findings.

• RTD performers

Under FP7, the funding model used for  Research for SMEs (formerly Co-

•

Demonstration  activities.  These  are  designed  to  demonstrate 

   A consortium must contain at least two RTD performers independent 

operative  Research)  maintains  its  guiding  principle  to  strengthen  the 

the  viability  of  new  technologies  produced  through  the  research 

from  any  other  participant.  They  are  legal  entities  able  to  carry  out 

innovation  capacities  of  SMEs  to  develop  new  products  and  markets 

that  offer  a  potential  economic  advantage,  but  which  cannot  be 

research  and  technological  development  activities  for  the  benefit  of 

through  the  acquisition  of  new  knowledge  from  those  institutions  best 

commercialised directly (e.g. testing of product-like prototypes).

SME  participants.  Examples  are  universities,  research  organisations 

suited to carry out research.

and industrial companies, including research-performing SMEs.

The  relationship  between  participating  SMEs  and  RTD  performers  is  a 

•

Training  and  dissemination  activities.  RTD  performers  will  train 

simple customer-seller one. RTD performers agree to undertake research 

technical  and  managerial  staff  from  the  participating  SMEs, 

• Other enterprises and end-users

on behalf of an international consortium of SMEs, and will be remunerated 

focusing  on  best-practice  utilisation  of  results  and  technologies 

  A  project  consortium  may  additionally  include  “other  enterprises 

for their services by the SMEs with a significant portion of the research 

generated by project research. Dissemination to third parties will 

and end-users” who contribute to the project and aid in solving specific 

costs funded by the EU.

be  accomplished  through  conferences,  publications,  workshops, 

problems of SME participants, though only in a secondary role.

RTD  performers  conduct  research,  SMEs  purchase  the  results  and  it  is 

Co-ordination  of  a  funded  project  may  not  be  subcontracted.  The 

then  up  to  them  to  evaluate,  validate  and  apply  these  to  their  business 

•

Management activities. Over and above the technical management 

organisation acting as co-ordinator must have the necessary capacity 

model.

Principal focus of RESEARCH FOR SMEs                    

of  individual  work  packages,  these  activities  will  provide  an 

and competence to effectively assume all co-ordination responsibilities. 

appropriate  framework  bringing  together  all  project  components 

Co-ordination will normally be assigned to one of the SME participants 

and maintaining regular communication with the Commission.

or RTD performers, however in some cases it may be entrusted to an 

“other  enterprise  and  end-user”  specialised  in  professional  project 

•

Financial support of the Community is in accordance with the Rules 

management.

web-based initiatives, etc.

Projects  aim  to  solve  common  or  complementary  technological  issues 

for participation and will be capped at a value not exceeding 110% of 

facing SMEs. They centre around research needs which SMEs are unable 

the estimated price to be invoiced by RTD providers to SMEs.

to address on their own.

•

IPR.  By  default,  SMEs  retain  full  ownership  of  the  Intellectual 

Participating in RESEARCH FOR SMEs: Calls                  

As Research for SMEs is a bottom-up scheme, research topics span the 

Property  Rights.    The  consortium  may  however  reach  a  different 

The  first  call  for  projects  under  Research  for  SMEs  will  close  on  4 

entire range of science and technology challenges faced by SMEs.

agreement  in  their  own  best  interests,  as  long  as  the  SMEs  are 

September 2007. It is open to organisations in all research fields. For 

provided with all the rights that are required for their intended use 

more  information  on  how  to  submit  a  proposal  and  related  details, 

As  the  focus  of  Research  for  SMEs  is  on  the  strengthening  of  the 

and dissemination of the project results.

please consult DG Research’s SME TechWeb at:

competitiveness  of  SME  participants  and 

improving 

industrial 

competitiveness  across  the  entire  European  Union,  particular  emphasis 

will  be  given  to  the  economic  impact  of  the  results  for  the  participating 

SMEs.  When  conveying  project  results,  participants  are  to  consider  the 
findings’ relevance in the context of EU policies and their capacity to foster 

dialogue beyond the research community, explore wider societal issues and 

address possible synergies with education initiatives.

sme.cordis.europa.eu or cordis.europa.eu/fp7/dc

1 

SME Definition Commission Recommendation 2003/361/EC