New European research programme focuses on SME

FP7, the current EU funding programme for research and development ends on 31 December 2013. Switzerland is associated to FP7 which means that Swiss companies can take part in the programme. From January 2014, EU funding for researchers and their projects will come from a new programme called ‘Horizon 2020’. On 30 November 2011, the European Commission (EC), the body responsible for putting forward new EU programmes released its proposal for Horizon 2020. The EC is proposing a budget of €80 billion for funding projects with a strong focus on societal challenges, innovation and industry participation.

The Horizon 2020 proposal marks an important break with the past: it has a strong integrated focus on innovation and Small and Medium Enterprises (SMEs) are at the heart of the proposal.

The second pillar of the programme ‘Industrial Leadership’ is dedicated to building and consolidating global leadership in key technologies and will specifically support research activities by industry and SMEs. Activities are not restricted to research and development (R&D).

The EC is proposing three sub-programmes:

• The ‘Leadership in enabling and industrial technologies’ programme is designed to maintain and build global leadership in Information and Communication Technologies (ICT), nanotechnologies, advanced materials, advanced manufacturing & processing and space research and innovation.
• The ‘Access to risk finance’ programme includes an EU loan and guarantee service for research and innovation and so will improve access to debt financing. The EC is also proposing EU equity instruments for research and innovation as a way of improving the availability of equity finance for early and growth-stage investments and boosting the development of the EU venture capital market.
• A dedicated ‘SME instrument’ will provide staged and seamless support covering the whole innovation cycle, from concept and feasibility assessment via R&D, demonstration and market replication to commercialisation targeted at all types of SMEs.

Horizon 2020 will take an integrated approach to SME participation and this should result in about 15% of the total budget being devoted to SME which means no less than €12 billion.

The Commission proposal will now be discussed by the Council and the European Parliament, with a view to adoption before the end of 2013.

Information about the current and the next EU research programme can be found at the Euresearch website and in the monthly Euresearch newsletter.