Issue No. 347

14 - 20 June 2001

Maltese SMEs show strong interest
in EU-funded research projects

by David Kelleher

Numerous opportunities exist for Maltese companies to take part in EU funded research and development projects, which not only provide European exposure to Maltese businesses but also provide the necessary expertise required and which might not be available locally.
The participation of small- and medium-sized enterprises in EU funded programmes has increased considerably over the past two years, disproving the Euro-myth that EU research programmes are only accessible for large enterprises and universities. According to Achilleas Mitsos, director general of research in the EU, “The facts and figures speak for themselves!”
Ing Felix Grech, the national contact point for the Innovation and SME Programme within the Fifth Framework Programme, told The Malta Business Weekly that the European Union requires research in order to find solutions to problems existing throughout the Union.
“The Fifth Framework launched in 1998 covers four main thematic programmes. These focus on quality of life, user-friendly information society, competitive and sustainable growth, and energy, environment and sustainable development. Research in these areas is promoted as a step towards the solution of problems,” Ing Grech said.
He added that the EU wants research, which results in tangible and implementable results, rather than reports sitting on shelves.
“European economies depend on the Small- and Medium-sized enterprises (SMEs) to function. If you want results to reach the market place and hence really improve the consumer’s life, you have to bring them in as much and as early as possible,” he explained.
In order to promote participation in the programme, the EU has created a specific programme for SMEs. This is done mainly through CRAFT (Cooperative Research Action For Technology).
“The CRAFT programme makes it easier or rather simplifies the process for SMEs to take part in EU research programmes. It is not very difficult to take part and we already have a number of Maltese companies that have shown interest in the programme. Several enterprises have already submitted or are in the process of
submitting a proposal. Maltese companies have shown an interest in projects covering such areas as health care, aquaculture, information technology and environmentally friendly products,” Ing Grech said.
“The programme also assumes that SMEs do not have the capability or enough capacity to carry out the necessary R&D work. Through CRAFT they are encouraged to join forces with other companies, both local and European, and commission a research performer, such as a university or design centre, to actually carry out the research work on their behalf.
The cost of the project can vary between 300,000 euros and 2m euros. The Commission will fund up to 50 per cent of the project’s cost. Normally SMEs contribute in kind rather than cash to the project’s budget.
In order to promote the programme in Malta, and to provide a handholding service to enterprises, an SME platform has been set up. This brings together IPSE Ltd, the MDC, the Small Business Unit, METCO and the Edward Debono Foundation in partnership with the Malta Council for Science and Technology. The MCST carries responsibility for the Fifth Framework Programme.
“Such a platform provides us with not only expertise and resources but also with the crucial direct contact with SMEs in all sectors of industry. The Malta Council for Science and Technology (MCST) is also providing support services to SMEs in participating in the Fifth Framework,” Ing Grech said.
“The CRAFT programme requires that at least one of the parties comes from a member State. Thus a project team could comprise two Maltese companies and one company from a EU state, apart from the research performer. The participation of EU companies is beneficial because it gives the local businesses greater exposure to dealings in the EU. It could also be the start of new markets and business cooperation. Enterprises can also join on-going projects,” Ing Grech said.
Although the Fifth Framework ends next April, CRAFT will not be phased out. According to Research Commissioner Philippe Busquin, “Cooperative Research will be continued, because it brings immediate benefits for the SMEs directly involved, and allows them to network with research performers.”
More information on the Fifth Framework Programme can be found on the website www.cordis.lu. and www.mcst.org.mt. Interested persons are encouraged to contact the MCST on tel 241176.

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