SMEs to Benefit as Seventh Framework Research Programme is Adopted by European Parliament

Brussels, 1 December 2006: EuropaBio, the European Biotechnology Industry Association, welcomes Parliament’s approval of FP7 following the recent flow of initiatives presented by the Commission aimed at supporting the growth of highly innovative and research-intensive SMEs.

The European Parliament has given its final approval to the Seventh Framework Research Programme (FP7), which will be the EU’s main instrument for funding Community scientific research and technological development from 2007 – 2013. The political agreement is based on the Commission’s amended proposal for FP7 (1) and carries a total budget of €54 billion; a large portion of these monies are earmarked to research-related topics covering healthcare, agriculture, food, environment and energy (2).

As to the Commission’s objective to increase the participation of Small and Medium Sized Enterprises (SMEs) in FP7 to at least 15%, several new initiatives will be included to make the programme more SME-friendly. Examples of such initiatives include a higher EU-contribution to the total project costs (75% EU-funding per project compared to 50% under FP6), the establishment of an FP7 guarantee fund (resulting in reduced needs for financial checks and bank guarantees), and improved and simplified financial and administrative procedures (including adapted intellectual property regime).

The adoption of the SME-friendly FP7 follows a recent flow of initiatives presented by the Commission:

· Community Framework for State Aid for Research, Development and Innovation (3), including the adoption of the ‘Young Innovative Enterprises’ (YIE) definition

· Communication on R&D Tax Credits (4)

· Communication on Financing SME growth (5)

“We are glad that all issues on FP7 have been sorted out and that we can now focus our efforts on its actual implementation”, stated Dr. Johan Vanhemelrijck, Secretary General of EuropaBio. He continued, “We are strongly convinced that the implementation of FP7 will provide a significant contribution to the competitiveness of the European bio-industry, as well as to the public welfare and economic growth across Europe”.

Laurens G. Theunis, Manager of EuropaBio’s Emerging Enterprises Council added: “We very much appreciate the efforts of the Commission in making FP7 more accessible to young research-driven companies”. Mr. Theunis continued: “Given the instrumental role of biotech SMEs in new product discovery and development, the biotech industry also very much welcomes the growing political support within the Commission for SMEs. It’s now up to the Member States to follow and build further towards a more competitive biotech industry at a global level.”

For more information, contact

EuropaBio
Adeline Farrelly - Tel: +32 2 735 0313 Direct: +32 2 739 1174
Mobile: +32 475 93 17 24
Email: a.farrelly@europabio.org

Laurens Theunis – Tel : +32 2 735 03 13 Direct +32 739 11 82
Email : l.theunis@europabio.org

Notes to Editors

(1) Amended proposal of the EU Commission for an EU Parliament and Council decision
http://ec.europa.eu/research/fp7/pdf/amended-28_06_06-en.pdf 

In April 2005, the European Commission published the outline of the new framework programme (FP7), in September 2005 a proposal for the research priorities and in December 2005 the 'Rules of Participation'. The budgetary aspects to the programme were adopted in May 2006 by the EU Commission, following agreement on the EU's Financial Perspectives for 2007 to 2013.

The European Parliament adopted the proposals in June 2006, requesting some 1,700 amendments; the majority of which were then incorporated into the Commission's proposal.

(2) Budget breakdown of the Seventh Framework Programme of the European Community
http://cordis.europa.eu/fp7/budget.htm

(3) Community framework for state aid for research and development and innovation http://ec.europa.eu/comm/competition/state_aid/reform/rdi_en.pdf

4) Communication on R&D Tax Credits

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2006:0728:FIN:EN:PDF

(5) Communication on Financing SME growth

http://ec.europa.eu/enterprise/entrepreneurship/financing/publications_documents.htm

About EuropaBio

EuropaBio, the European Association for Bioindustries, has 70 corporate members operating worldwide, 12 associate members, 5 BioRegions and 24 national biotechnology associations representing some 1800 small and medium sized enterprises involved in research and development, testing, manufacturing and distribution of biotechnology products. http://www.europabio.org