SME view: Participating in EU funded R&I projects : biggest barriers, pains and gains
Hänninen, Laura (2024)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024062023757
https://urn.fi/URN:NBN:fi:amk-2024062023757
Tiivistelmä
European Union (EU) has recognised that research and innovation (R&I) are critical for finding solutions to global challenges, from climate change to cancer, and has been providing funding for strategic R&I since the 1980’s. In the Horizon Europe Framework programme over €95 billion has been pledged to support research organisations and industries in this quest during 2021–2027. At the same time, recurring crises have made the world volatile in recent years, and especially small and medium-sized companies (SMEs) struggle. EU recognises that SMEs are the backbone of the European economy, representing over 99% of all businesses, and their contribution in the R&I is vital to both enhance their own resilience to change and to facilitate the green and digital transition across Europe.
This thesis was commissioned by Spinverse Oy, a Finnish consultancy company, to explore how SMEs experience the EU funding system for R&I, particularly participation in large consortium projects under Horizon Europe. Those views were studied via a survey conducted among SMEs in ongoing EU projects in the bio and agricultural industries. The aim was to find out what is preventing SMEs from applying for funding or joining projects, what are the biggest pain points during project implementation, and what are the gains and benefits from taking part in an EU funded project. The goal was, through these insights, to find ways to attract new SME partners into projects, through potential new support services, but also by sharing information about the gains from the projects and the extensive support available from the EU. Background information was provided through an overview of the evolution of EU funding for R&I, what the current Horizon Europe Framework Programme focuses on, and what the EU is doing to help SMEs prosper in Europe. Brief look at the current status of SMEs in Europe is also provided; their impact on the economy and the issues affecting their growth and innovation capacity.
A qualitative thematic analysis of the survey results, combined with empirical observations, revealed that the issues causing barriers or problems during projects are very similar to those reported by SMEs as in their normal operations: Lack of personnel and administrative burden. Both are clearly size-related issues, and in EU projects the issue is having to find and use resources for something that most of the time is not the company’s core business. However, the survey also revealed that the benefits from participating in projects are far more numerous than the problems, as majority of respondents reported new cross-border networks, increased production, and new markets, in addition to the actual funding received.
Some recommendations were provided for Spinverse in terms of potential support services and materials to attract and engage new SME partners into projects. The question remaining to be answered in further studies would be how to identify those SMEs that are both willing and able to innovate on a level required by the EU.
This thesis was commissioned by Spinverse Oy, a Finnish consultancy company, to explore how SMEs experience the EU funding system for R&I, particularly participation in large consortium projects under Horizon Europe. Those views were studied via a survey conducted among SMEs in ongoing EU projects in the bio and agricultural industries. The aim was to find out what is preventing SMEs from applying for funding or joining projects, what are the biggest pain points during project implementation, and what are the gains and benefits from taking part in an EU funded project. The goal was, through these insights, to find ways to attract new SME partners into projects, through potential new support services, but also by sharing information about the gains from the projects and the extensive support available from the EU. Background information was provided through an overview of the evolution of EU funding for R&I, what the current Horizon Europe Framework Programme focuses on, and what the EU is doing to help SMEs prosper in Europe. Brief look at the current status of SMEs in Europe is also provided; their impact on the economy and the issues affecting their growth and innovation capacity.
A qualitative thematic analysis of the survey results, combined with empirical observations, revealed that the issues causing barriers or problems during projects are very similar to those reported by SMEs as in their normal operations: Lack of personnel and administrative burden. Both are clearly size-related issues, and in EU projects the issue is having to find and use resources for something that most of the time is not the company’s core business. However, the survey also revealed that the benefits from participating in projects are far more numerous than the problems, as majority of respondents reported new cross-border networks, increased production, and new markets, in addition to the actual funding received.
Some recommendations were provided for Spinverse in terms of potential support services and materials to attract and engage new SME partners into projects. The question remaining to be answered in further studies would be how to identify those SMEs that are both willing and able to innovate on a level required by the EU.