Speech European Commissioner Geoghegan-Quinn: "Horizon 2020 is Open for Business"

Máire GEOGHEGAN-QUINN

European Commissioner for Research, Innovation and Science

"Horizon 2020 is Open for Business"

Information Event on Opportunities for SMEs under Horizon 2020

Brussels, 3 March 2014

Good morning, Ladies and Gentlemen,

Thank you for showing up in such large numbers for this third information event on SMEs in Horizon 2020.

And a warm welcome to the hundreds of SME representatives and SME supporters who are following this event over the web.

All of us here today share the drive and passion to help SMEs innovate and grow, so that they can create added value not only for themselves, but also for the economy and for society at large, in Europe and beyond.

SMEs represent more than 99% of the private sector and they provide two out of three jobs in the private sector - almost 87 million jobs in 2012 - and contribute to more than half of the total value-added created by businesses in the EU - close to 3.4 trillion Euro in 2012, in fact.

Last but not least, SMEs' agility and inherent resourcefulness make many of them very effective incubators for research, development and innovation.

These facts and figures underline once again that SMEs are the backbone and the lifeblood of our economy. They deserve no less than our full attention and the very best tools to help them grow and become more innovative.

However, achieving these aspirations will be impossible without realistic and pragmatic ways of tackling today’s challenges.

Realistic, because even though we know that European SMEs were significantly more resilient in the crisis than bigger businesses, the way up - out of the valley of debt, job loss and business failure - is a long and hard slog.

In 2012 alone, for instance, well over 600,000 jobs in European SMEs disappeared.

So how do we move forward?

In one word: pragmatism.

The European Commission’s most recent report on European SMEs - appropriately entitled “A Recovery on the Horizon?” - argues that “countries characterised by a business-friendly environment, a modern infrastructure, technologically advanced sectors and a highly skilled workforce are expected to recover much faster to pre-crisis levels”.

Those are precisely the assets and strengths that EU programmes and tools have helped to build and will continue to build across all Member States, with renewed and increased emphasis in Horizon 2020 and other EU programmes.

I'm cautiously optimistic about the future.

Why? …because just a couple of months ago we opened a well-resourced toolbox that can boost research and innovation in Europe to unprecedented levels.

You will have guessed that the toolbox I am talking about is Horizon 2020. It is the largest transnational research and innovation programme ever, with nearly 80 billion Euro of funding available over seven years, roughly 30% more in real terms than for FP7!

But it's about more than just the money - vital though this is. It's about what we will do with that money.

To maximise its impact, we have to invest, but smartly, and what is smarter than research, education and innovation? These are the proven recipes for economic recovery, sustainable growth and job creation. In that sense, Horizon 2020 could hardly come at a better time.

Furthermore, Horizon 2020 brings all EU-level funding for research and innovation under one roof. With its integrated approach, Horizon 2020 has been designed to support every stage of the innovation cycle, from lab to market.

Two of the programme's most important themes are simplification and coherence.

From the start of my mandate it has been my top priority to simplify access to EU funding so firms, universities and other entities spend less time on administration and more time on research and innovation. Horizon 2020 applies the same rules across the board, which means it is now much easier to apply for and to participate in projects - and that will in particular benefit newcomers and SMEs.

As for coherence, you know that Horizon 2020 takes a challenge-based, interdisciplinary approach, which is nothing less than the recognition that we must stand together and build on each other’s strengths to solve the big questions of today.

In order to create the right context for that to happen, the EU has been implementing Innovation Union, by revolutionising the way public and private sectors are working together, and by creating an internal market for skills, patents, venture capital, innovation procurement and standard-setting to foster ideas and see them get quickly to market.

This is happening with ever more success and enthusiasm, as you will see at next week’s Innovation Convention.

So as we are breaking down barriers, we will also be less prescriptive about what projects need to do, and in our dealings with the private sector we are focusing more on supporting companies than just projects, and on innovation rather than on pure science.

This means that our eyes are firmly fixed on the value-added that we can create from our R&D.

We have taken great care in creating the right framework for SMEs to be able to develop.

Horizon 2020 stimulates SME participation across the board, yet places a particular focus on close-to-market support.

Great ideas need to be picked up by users, customers and the market before they can really transform our businesses, our economy and our society.

This means more attention in Horizon 2020 to business-driven R&D; to testing, prototyping, demonstration and pilot-type activities; to promoting entrepreneurship and risk-taking, and to stimulating demand for innovative products and services.

And you will know by now that we have put our money not only where our mouth is, but also where our heart is.

As requested by the EU Council and European Parliament, 20% of the budget of the Horizon 2020 priority on “Societal Challenges” and of the specific objective on “Leadership in Enabling and Industrial Technologies” - some 9 billion Euro over the next seven years - should go directly to SMEs.

The new SME Instrument and the new financing options in the form of risk-sharing to support innovative SMEs are just two highlights of the integrated support system that we have created.

The SME instrument is a company-centric initiative that supports growth and job creation in SMEs targeting transnational European or global markets by funding breakthrough innovation.

It is aimed at all types of innovative SMEs that show a strong ambition and potential to develop, grow and internationalise. Only projects of excellent quality that propose ground-breaking innovations with high market potential will be supported.

I am delighted to announce that the call for this new Instrument opens today, and we are looking forward to granting support to the brightest and best ideas from Europe’s most innovative SMEs.

There is no deadline - you can apply at any time for this new scheme, whenever you are faced with a financing gap in developing your high-potential, innovative business concept.

I am also proud to say that next to supporting innovation under the SME Instrument, Horizon 2020 will strongly reinforce loan guarantee and venture capital facilities for innovative SMEs, in conjunction with the COSME programme.

Of course, what I have highlighted just now does not give you the full picture of SME support.

SMEs are encouraged throughout Horizon 2020 to take a leading role in the development of industrial technologies and solutions to societal challenges also by joining consortiums conducting collaborative research, development and innovation.

We will continue to boost R&D-performing SMEs through our involvement in the Eurostars programme, and will indirectly support SMEs through networking actions for policymakers and innovation service providers, such as the European Intellectual Property Rights Helpdesk or the EU Business Innovation Observatory.

Furthermore, we shall further empower the Enterprise Europe Network, to help it in assisting SMEs to access and exploit the many opportunities provided by Horizon 2020.

Ladies and Gentlemen:

At the start of my mandate, I set the ambition for Horizon 2020 to become the most SME-friendly and innovation-driven framework programme in history.

Today, my ambition is well on the way to being realised. I am confident that Horizon 2020 will generate results for SMEs that will far outlive the seven year duration of the programme.

I say this because Horizon 2020 is more integrated than earlier programmes and better attuned to nurturing our best and most innovative entrepreneurs from initial idea right through to market.

We are investing for the long haul. With our phased support under the SME Instrument, we hope and expect to equip innovative SMEs with business skills and resources that will allow them to renew themselves and grow on a continuous basis.

In my contacts with companies and the wider SME support community - several of whose representatives I met this morning - I see the energy and enthusiasm to get down to business, and to make things work like they never have before.

So NOW is the time for us - and the right time for our SMEs - to demonstrate that Europe is ready to tackle its societal challenges, that it can claim industrial leadership, and that it still excels in research and innovation!

I know I can count on you, as ambassadors for Horizon 2020, to relay what you hear today to those who need support the most. Only in that way can we effectively help SMEs to realise their full potential and “encourage innovative dynamism at a European scale” as President Barroso put it in his last State of the Union speech.

Thank you for your attention, and thank you for your commitment to our joint mission.

Horizon 2020 Is Open for Business!