Download - EU Funding Opportunities for SMEs in Serbia

7/29/2019 EU Funding Opportunities for SMEs in Serbia

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EU FUNDINGopportunities

SMEsin Seria

for

2013 and eyond


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EU FUNDING OPPORTUNITIES FOR SMEs IN SERBIA

supported by

Deutsche Gesellscha fr Internaonale Zusammenarbeit (GIZ) GmbH

Program for Private Sector Development in Serbia ACCESS

Publisher:

European Project Center - EPC, Belgrade

Authors:

Mirjana LazoviAndrija Pejovi

No. of copies:

1000

Design:

European Project Center - EPC, Belgrade

Prepress:

UGURA Print

Prinng:

UGURA Print, Belgrade

www.cugura.rs

Belgrade, 2012

ISBN: 978-86-84309-33-6

2012.

All rights reserved. No part of this publicaon may be reproduced, stored in a retrieval system

or transmied in any form or by any means, electronic, mechanical, photocopying, recordingscanning or otherwise, except with a prior wrien permission of the publisher or authors.


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ForewordIn January 2011, the programme Assistance to the Compeveness and Compability forthe EU of Serbian SME (ACCESS) commenced within the framework of bilateral develop -

ment cooperaon between the Government of the Republic of Serbia and the Govern-ment of the Federal Republic of Germany. The programme is implemented by DeutscheGesellscha fr Internaonale Zusammenarbeit (GIZ) GmbH and is nanced by the Ger-man Federal Ministry for Economic Cooperaon and Development (BMZ).

With its overall objecve to improve the condions for an enhanced compeveness ofSerbian SMEs on regional and EU-markets, ACCESS is implemented through four compo-nents: Business and investment climate, Development of innovaon systems, Quality in-frastructure, and Absorpon capacity for EU programmes. All four components are linkedin order to reach the objecve of the programme. In this way, intervenons are oriented in

all components alongside selected sectors: ICT, organic agro-industry, construcon materi-als and energy-ecient services, mechanical engineering and environmental technologies.

This Handbook is prepared within Component IV, Absorpon capacity for EU programmesand its overall objecve is to improve the parcipaon of Serbian SMEs in EU funded-pro-grammes, contribung to their long-term compeveness on the regional and EU markets.While Serbias instuonal capacity for the implementaon and promoon of EU funds hasimmensely developed over the years, it is sll evident that there are vast misconceponsin the private sector as to what funds are open to them and how they can apply. Despitethe growing media aenon and references to EU funds, dierences between the pre-

accession fund (IPA) and EU programmes are sll blurred and, with the lack of one stopshop for SMEs, it is apparent that they are not making the best use of potenal funding.

2013 will be the last year for programming of EU-funds under the current EU budget as thenew seven-year EU nancial perspecve will be starng in 2014. Even though this Hand-book cannot perform the role of a one stop shop, it will lay out all the most relevant callsfor proposals for SMEs in 2013, summarising basic procedures, eligibility criteria, nancialrequirements, at the same me providing examples of successful projects from the past.

The specic purpose of this handbook is therefore twofold: to help SMEs make best use of

available funding in 2013 by laying out eligible programmes for next year and to broadlyintroduce the new nancial perspecve 2014-2020. In the wake of the global economiccrisis, support to the private sector will increasingly gain in prominence in terms of EUsupport and it is thus crucial for Serbian private sector to get involved from the very start.

We wish to thank the many individuals at the Serbian Governments European Integra -on Oce, the Ministry of Finance and Economy and the Naonal Agency for RegionalDevelopment who contributed their valuable advice and resources to the creaon of thisHandbook.

Programme DirectorTobias Stolz


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Tale of Contents

1. Introduction 01

2. Instrument for Pre-accession Assistance(IPA) in Seria 03

3. EU programmes availale for Seria 083.1 Seventh Framework Programme forResearch (FP7) 11

3.1.1 Aout the programme (ojectives and components) 113.1.2 Eligiility criteria 143.1.3 Suprogrammes of FP7 173.1.4 Types of funding schemes 243.1.5 Common financial rules forFP7 Programme 28

3.2 Competitiveness and InnovationFramework Programme (CIP) 30

3.2.1. Aout the programme(ojectives and components) 303.2.2 Country criteria 333.2.3 CIP Suprogrammes 33

3.3 Enterprise Europe Network in

Seria 433.4 How the Proposals are sumitted to theEuropean Commission? 45

4. Introduction into the New Financial Frame-work 2014-2020 50

Literature 56


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Introduction

Section 1


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Serbia is facing great challenges in the European Union accessionprocess, namely in terms of having to adjust to the acquis com-munautaire (the total body of EU legislaon). On the other hand,the EU accession process also presents the opportunity to benetfrom the nancial resources of the EU budget. By joining the EU,Serbia will have access to substanal nancial resources to supportdevelopment goals and speed up the growth and development ofits economy and society as a whole. To use these opportuniesboth for public and private sector in the best way, it is importantto understand the workings of the EU Programmes and other avail-able EU funds.

Supporng SMEs is a cornerstone of the EUs drive for growth andjobs. Since 99% of all EU companies are small and medium-sizedenterprises (SMEs), accounng for 67% of jobs, its clear that whatis good for small businesses is good for Europes economy.

The EU Programmes are a series of integrated measures, nancedfrom the general budget of the EU, aiming to strengthen the coop-eraon regarding EU policies for a period of me (currently 2007-2013). All Member States, Acceding and Candidate countries havethe opportunity to parcipate in the programmes, although, as amain condion of parcipaon, an annual fee has to be paid to theEU budget by parcipang states entry cket. Each parcipat-ing country opens a naonal programme contact point(s), oce oragency (either within a competent Ministry or within a separateorganisaon) whose task is the collecon of informaon and me-diaon in order to assist the naonal applicants.

The main dierence between EU Programmes on the one hand,and Instrument for Pre-accession Assistance on the other, is thelaer is focused exclusively on pre-accession countries and sup -ports their accession path towards the EU, while EU Programmesare focused on EU Members States, with the possibility for pre-accession countries to parcipate in selected Programmes, forimplementaon of EU policies in dierent areas.

This Handook provides information on op-

portunities for participation in selected EU pro-

grammes to Serian SMEs

This Handbook givesanswers on the key

quesons:

Where to start?When to apply?How to apply?

01


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This Handbook is primarily designed for two audiences. The rst are entrepreneurs run-ning micro, small or medium-sized enterprises who are interested in applying for EU Pro-grammes aimed at SMEs.

The second audience are the naonal, regional and local ocials who promote and runvarious schemes, process the applicaons and ensure that companies sasfy the eligibil -ity criteria for support.

The Handbook provides up-to-date informaon on the two programmes that are most rel-evant to the private sector and represents an eecve navigaon tool for SMEs in the vastarray of opportunies. Informaon on dierent aspects and support mechanisms avail-able under EU programmes is spread over too many dierent sites and instuons whichcause informaon gathering and research to be dicult and me consuming. Therefore,the aim of this Handbook is to support SMEs in the idencaon and understanding of

the selected EU programmes.

Secon 2 of the Handbook provides informaon on the Instrument for Pre-accessionAssistance (IPA) in Serbia and presents a brief and basic overview of IPA and selected ex-amples of completed project supporng SME sector, as well as IPA related SMEs businessopportunies.

Secon 3 lists out all EU programmes open in Serbia. In this secon we will focus ontwo EU Programmes, in parcular those segments of programmes targeng SMEs: the7th Framework Programme on Research and Development and the Compeveness andInnovaon Programme.

Most EU programmes are implemented through projects. Given that the funding is madeavailable at the European level, the project needs to have a European dimension anexplicit European purpose which gives the project `European added value . However,the way European dimension is specied varies between dierent programmes. Oen,the European Commission (EC) also requires that the results of the project are relevanteven outside the countries included in the project. EU nancing in EU Programmes usuallycovers up to 75% of the total cost of a project. The rest (of co-nancing) comes from ownresources and in some cases, naonal funds, other donors or private sponsors (in certaincases as costs of support sta and oce resources). Bearing in mind all these require-ments and dierences between the programmes, in this secon the Handbook providesdetails on the aims of the programmes, eligibility and nancing criteria, implementaonrequirements, examples of projects in the EU and Serbia (where applicable) and outlinescalls for proposal for 2013.

Secon 4 presents the future of EU Programmes for the 2014-2020 budgetary period byfocusing on the new programmes, as well as the programmes that connue to exist. Fi -nancing of the private sector will gain in prominence in the new budgetary period and it iscrucial for the private sector in Serbia to be fully familiar with new rules and opportuniesfor support.

02


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Instrument for Pre-accession Assistance

(IPA) in Seria

Section 2


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Under the Instrument for Pre-accession Assistance (IPA), the EUnances projects that lead to full harmonisaon of naonal legis-laon with the acquis communautaire (or EU acquis: the accumu-lated legislaon, legal acts and court decisions that constute the

body of EU law), the full applicaon of harmonised legislaon, andpreparaon for implementaon of EU cohesion and agriculturalpolicies. The nancial value of the IPA programme for 20072013totals nearly 11.5 billion, of which 1.4 billion has been allocatedto Serbia.

IPA Components

IPA is made up of ve components which address the priories ofthe beneciary countries.

1. Support for Transion and Instuon-building (provides sup-port to Capacity Building, Instuon Strengthening).

2. Cross Border Cooperaon (provides support Beneciary Coun-tries in the area of Cross Border Cooperaon between them-selves or with Member States).

3. Regional Development (provides support the countries prepa-raons for the implementaon of Cohesion Policy and in par-cular ERDF).

4. Human Resources Development (provides support to prepara-on for Cohesion Policy and in parcular European Social Fund)

5. Rural Development (provides support to preparaon for theCommon Agricultural Policy and related Policies for the Euro-pean Agricultural Fund for Rural Development)

Serbia is sll using support only from rst two components.

Exisng IPA ensures support to Serbian economy through trans-posing EU direcves, enhancing consumer protecon, supporngthe enforcement of intellectual property rights, improving the qual-ity, range and availability of business support services, supporngcluster development, supply chain development, export promoonand innovaon within SMEs and technology transfer through an en-hanced instuonal framework, improvement in the business sup-port infrastructure, strengthening conformity assessment structureand development of instruments for nancing SMEs innovaons,as well as through supporng acvies linking tourism potenal toeconomic development, idenfying the aracveness of tourismproducts and posioning Serbia within the global tourism market.

!IPA is important for

SMEs since it enhances

the overall environ-

ment relevant for

SMEs performanceand at the same me

presents business op-

portunity for SMEs

through implementa-

on of tenders.

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Dierent types of companies in various elds of acvies can benet from IPA funds:consulng, service providers, equipment suppliers, engineering companies, research anddevelopment companies, etc. Parcipaon in the award of IPA procurement (service, sup-

ply and works tenders) or grant contracts is open to all natural and legal persons and in -ternaonal organisaons. As such, natural persons must be naonals of, or legal personsestablished in:

a Member State of the EU or the European Economic Area (EEA) a country that is a beneciary of the IPA , or a country that is a beneciary of the European Neighbourhood and Partnership In-

strument (ENPI) .

The IPA funds are disbursed through the programmes and projects that contribute to the

realisaon of naonal strategic priories and EU policies. Private companies can apply fortenders to implement dierent kinds of projects in which the required tasks cover a widevariety of subjects.

Types of contracts

The types of contracts that may oer opportunies to private companies are:

Services (technical assistance, studies, provision of know-how and training); Supplies (equipment and materials); Works (infrastructure and other engineering works); Secondary procurement (projects implemented through grant schemes).

The calls for tenders are announced by the EU Delegaon and relevant Serbian govern-ment instuons. Parcipaon in the tenders is open under equal terms to all qualiednatural and legal persons. Tender procedures for all kind of contracts established by theEuropean Commission for procurement under the IPA programme are consolidated in thePraccal Guide to Contract procedures for EU external acons (PRAG). PRAG rules alsodene the eligibility criteria for the bidders, which consist of: the rule on naonality, therule on origin of goods, and the rules describing grounds for exclusion.

PRAG rules also dene the eligibility criteria for the bidders, which consist of: the rule onnaonality, the rule on origin of goods, and the rules describing grounds for exclusion.


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For more informaon and praccal advices on how to parcipate on IPA tenders consultmanual prepared by Serbian Europa Integraon Oce:

hp://www.evropa.gov.rs/Evropa/ShowDocument.aspx?Type=Home&Id=536

New IPA

At the beginning of 2012, European instuons adopted a proposal for a regulaon of anew instrument for support which will cover the period 2014-2020. The new instrumentwill connue to focus on delivering on the EU Enlargement Policy, which among otherthings will contain support to private sector development.

The new proposal focuses on the simplicaon of regulaons through the introducon ofprincipal policy areas, instead of components:

Transion process towards Union membership and capacity building; Regional development; Employment, social policies and human resources development; Agriculture and rural development; Regional and territorial cooperaon.

The main dierence between IPA and EU Programmes is that IPA is intended only for pre-accession/accession countries to support them on their way to EU membership, while EUProgrammes are intended to Member States, but open to other countries as well. Themain dierences are between IPA and EU Programmes are listed in the table below:

It is essenal that private enes wishing to parcipatein announced tenders become familiar with PRAG:

hp://ec.europa.eu/europeaid/work/procedures/implementaon/praccal_guide/index_en.htm

IPA EU ProgrammesOpen only for pre-accession/accession coun-tries

Open to EU Member States, but open to othercountries as well

Beneciaries are mainly state instuons,while projects have strong connecon to im-plementaon of the acquis communataire.

Beneciaries of the projects can apart from stateinstuons include SMEs, instutes, nongovern-mental organisaons,. educaon instuons,etc.

Co-nancing is mandatory at the project level Entry cket is paid by the state, while the co--nancing is mandatory at the project level

Selecon of projects are responsibility of cen-tral state instuons

Selecon of projects are responsibility of Euro-pean commission (in some specic cases in con-sultaons with state instuons)


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Some of IPA funded projects in Serbia relevant for SMEs are: Sup -port to Enterprise Compeveness and Export Promoon, Im-proved Serbian SME Compeveness and Innovaon and Innova-on Serbia Project.

Support to Enterprise Compeveness and Export Promoon- SECEP. SECEP is carrying out acvies under three interlinkedcomponents, namely: cluster development, which supports groupsof companies and partner instuons to undertake joint acvi-es leading to improvement of overall business performance andgrowth in compeveness; supply chain development, whichis designed to improve the management processes and businessperformance of individual SMEs from a number of key sectors toenhance their prospects of integraon into internaonal supply

chains; and internaonalisaon, which is focused on enabling SMEsto connect internaonally with foreign business partners by foster-ing the development of cluster and exporter networks.

Improved Serbian SME Compeveness and Innovaon - ICIP.ICIP contributes to the development of the SME sector and im-provement of the compeveness of new and exisng businessesthrough two components. Component 1 of the ICIP, business sup-port to small and medium-sized enterprises, focuses on creang astandardised model of business support services in Serbia and im-proving the business support infrastructure that will enhance thecreaon of more SMEs, and improve their survival rates and com-peveness. Component 2 of the ICIP, compeveness through in-novaon for economic growth, focuses on supporng compeve-ness and innovaon through capacity building of both governmentinstuons and specialist Business Innovaon Support Organisa-ons (BISOs).

The purpose ofInnovaon Serbia Project is to foster the compe-veness of the Serbian economy by improving the link betweenR&D and economic development through the capacity building ofthe Innovaon Fund, implementaon of nancial instruments sup-porng enterprise innovaon by the Innovaon Fund and provi-sion of technical assistance to selected research and developmentinstutes.

More informaoncan be found on:

hp://www.secep.rs

More informaoncan be found on:

hp://www.icip-serbia.org

More informa-

on can be foundon:

hp://www.innova-onfund.rs/?page_

id=1678)


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EU programmesavailale for Seria

Section 3


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EU PROGRAMME/WEBSITE ABOUT THE PROGRAMME

Seventh Framework Programme for Re-search, Technological Development andDemonstraon Acvies FP7

hp://cordis.europa.eu/fp7/home_en.html

EUs main instrument for funding researchin Europe, also designed to respond to Eu-ropes employment needs, compevenessand quality of life

Progress

hp://ec.europa.eu/social/main.jsp?langId=en&catId=327

Financial instrument supporng the devel-opment and coordinaon of EU policy inthe areas of employment, social inclusionand social protecon, working condions,an-discriminaon and gender equality.

Culture

hp://ec.europa.eu/culture/index_en.htm

The programme aims to achieve three mainobjecves: to promote cross-border mobil-ity of those working in the cultural sector;to encourage thetransnaonal circulaonof cultural and arsc output; and to fosterintercultural dialogue.

The Compeveness and InnovaonFramework Programme- CIP

hp://ec.europa.eu/cip/

The programme focuses on support-ing small and medium-sized enterprises(SMEs) in the area of energy eciency andrenewable energy sources, environmentaltechnologies, entrepreneurship and a bet-ter use of informaon and communicaontechnology.

Customs 2013

hp://ec.europa.eu/taxaon_customs/customs/cooperaon_programmes/cus-toms_2007/index_en.htm

The programme gives the naonal customsadministraons of the EU, together withthe European Commission, the opportunityto co-operate in areas of common and highinterest.

EU programmes available for Serbia are listed in the following table:

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Fiscalis 2013

hp://ec.europa.eu/taxaon_customs/taxaon/tax_cooperaon/scalis_pro -gramme/index_en.htm

EU cooperaon programme enablingnaonal tax administraons to create andexchange informaon and experse.

Safer Internet Programme

hp://ec.europa.eu/informaon_socie-ty/acvies/sip/index_en.htm

The programme aims at empowering andprotecng children and young people on-line by awareness raising iniaves and byghng illegal and harmful online contentand conduct.

Life Long Learning Programme

hp://ec.europa.eu/educaon/lifelong-learning-programme/doc78_en.htm

The programme funds acons such as

exchanges, study visits and networkingacvies, intended for all actors involved ineducaon and training.

Europe for Cizens

hp://eacea.ec.europa.eu/cizenship/index_en.php

Through this programme, cizens areinvolved in transnaonal exchanges andcooperaon acvies, contribung todeveloping a sense of belonging to com-mon European ideals and encouraging theprocess of European integraon.

EU PROGRAMME/WEBSITE ABOUT THE PROGRAMME

We will focus on two EU Programmes targeng SMEs: the 7th Framework Programme onResearch and Development and the Compeveness and Innovaon Programme.


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3.1.1 Aout the programme (ojectives and components)

Framework Programmes for Research and Technological Development exist since 1984and so far there have been seven of them (last called FP7). They have all been designedby the European Union to support collaborave research, development and innovaonsin science, engineering and technology. Duraon of this programme corresponds to the

period covering the European Financial (Budget) framework. The total programme budgetis over 50 billion, which represents an increase compared to the previous period 2000-2006 and this trend will connue in the next nancial framework, post 2014. (More onthis in Secon ve)

The Framework Programmes for Research have two main strategic objecves:

to strengthen the scienc and technological base of European industry; to encourage its internaonal compeveness, while promong research that sup-

ports EU policies.

Although at a rst glance one might conclude that these programmes are opened only toresearch instuons and universies, the Framework Programmes are actually open toEU public and private enes of all sizes also allowing parcipaon to enes other thanthose originang from EU Member States. What is more important is that there are nonaonal quotas as the Programmes are operated on a compeve basis with proposalsbeing evaluated by panels of independent experts against set criteria.

The Framework Programme is divided into ve building blocks (subprogrammes) whichspecify subjects/themac areas for funding.

1. Cooperaon

Cooperaon subprogramme fosters collaborave research across Europe and other part-ner countries through projects by transnaonal consora of industry and academia. Re-search will be carried out in ten key themac areas:

Health Food, agriculture and sheries, and biotechnology Informaon and communicaon technologies

Nanosciences, nanotechnologies, materials and new producon technologies

3.1 SEVENTH FRAMEWORK

PROGRAMME FOR RESEARCH (FP7)

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Energy Environment (including climate change) Transport (including aeronaucs) Socio-economic sciences and the humanies

Space Security

2. Ideas

The Ideas programme will support froner research solely on the basis of scienc ex-cellence. Research may be carried out in any area of science or technology, including en -gineering, socio-economic sciences and the humanies.

3. People

The People programme provides support for researcher mobility and career develop-ment, both for researchers inside the EU and internaonally. It is implemented via a set ofMarie Curie acons, providing fellowships and other measures to help researchers buildtheir skills and competences throughout their careers:

Inial training of researchers - Marie Curie Networks Industry-academia partnerships Co-funding of regional, naonal and internaonal mobility programmes Intra-European fellowships Internaonal dimension - outgoing and incoming fellowships, internaonal cooperaon scheme, reintegraon grants Marie Curie Awards

4. Capacies

The Capacies programme strengthens the research capacies that Europe needs if it isto become a thriving knowledge-based economy. It covers the following acvies:

Research infrastructures Research for the benet of SMEs Regions of Knowledge Research Potenal Science in Society Specic acvies of internaonal cooperaon

5. Nuclear Research

The programme for nuclear research and training acvies comprise research, techno-logical development, internaonal cooperaon, disseminaon of technical informaon,and exploitaon acvies, as well as training.

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FP7 prov ides nancial support for transnaonal research for andby SMEs wishing to innovate and improve their compeveness,by enhancing their investment in research acvies to acquire newknowledge for growth. Out of four specic subprogrammes pro-

grammes, three of them have direct relevance for SMEs. These are:

Cooperaon which promote collaborave research; People which develop human potenal; and Capacies which strengthen research capacity.

Just like any other organisaon, research teams (individuals) fromSMEs can also compete in the fourth Ideas subprogramme, but themost typical programmes remain the menoned three.

Allocated funds under this FP7 are spent on grants to research ac -tors all over Europe and beyond, in order to co-nance research,technological development and demonstraon projects. However,in order to complement the naonal research programmes, acvi-es funded from FP7 must have a European added value. Onekey aspect of the European added value is the transnaonality ofacons: research projects are carried out by consora which in-clude parcipants from dierent European (and other) countries.

The Framework Programmes oer valuable opportunies for Ser-bian SMEs and academic researchers to parcipate in high-qualityresearch collaboraons with their European counterparts, withthe support of EU funding. The boom line of this programme is tosupport moving new discoveries and products to commercialisa-on and approval.

Applying to FP7 may seem dicult for companies, due to this mul-level approach and complexity of the programmes. Luckily, in all EUMember States and in the countries associated with FP7, NaonalContact Points (NCPs) have been set up to give personalized helpand advice to researchers and organisaons intending to parci-pate. The best possible way to start this process is to contact yourNCP and explain your situaon and your ideas. The NCPs job is todirect you to the part of FP7 that might be of interest to you and tohelp you with your applicaon. With their support, geng throughthe necessary paperwork will be much easier.

In addion to NCPs, the European Commission has established theEnterprise Europe Network, which funcons as a one-stop shop tomeet all the informaon needs of SMEs and companies in Europe.Services range from expert advice to informaon on EU legislaon,help in nding a business partner, beneng from innovaon net-works in region or informaon on funding opportunies. Contactsof EEN is Serbia are presented on page 43.

NCP Coordinator

for FP7 in Serbia is

Ministry ofEducaon, Scienceand Tehnological

Development

Department forEuropean Integra-on and research

and developmentprograms and

projects in educa-on and science

Nemanjina 22-26,B wing, IV/8

Phone:011/3616-591

www.mpn.gov.rs

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Enterprise EuropeNetwork in Serbia

www.een.rs

more on page 43


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3.1.2 Eligiility criteria

While in principle FP7 parcipants can be based anywhere, thereare dierent categories of countries which may have varying eligi-

bility for dierent work programmes:

EU Member States Associated countries with science and technology coopera-

on agreements that involve contribuons? to the frameworkprogramme budget;

Candidate countries currently recognised as candidates forfuture accession (Serbia falls under this category);

Third countries - the parcipaon of organisaons or individu-als established in countries which are not Member States, can-

didates or associated should also be jused in terms of theenhanced contribuon to the objecves of FP7.

For every themac area of FP7 subprogramme each year duringthe life span of the Framework Programme, Commission developsthe Work Programme, which species in more details the condi-ons regarding the minimum number of parcipants, or addionalcondions on the type of parcipant or place of establishment,other than those specied in the Rules for Parcipaon (documentof the common nature). However the most specic data concern-

ing the applicaon to a grant is in the relevant call for proposal.

There are some general rules to the number of parcipants in theconsora, especially related to the countries they originate from.Therefore it is important to introduce yourself in detail with therelevant work programme and more specically with calls of pro -posals. However the rst precondion is to determine whetheryou fall into the category of SME, according to EU rules.

Work programmesfor the FP7 themes

for 2013 can befound on the

following web page:

hp://cordis.europa.eu/fp7/wp-

2013_en.html

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FP7

Subprogramme

Themacarea

Workprogramme

Call for

proposals


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* Or does it have a balance sheet total not exceeding EUR 43 million?To answer Yes, one of these 2 condions must be met.** AUTONOMOUS ENTERPRISES: My enterprise holds less than 25%(capital or vong rights) in another and/or another holds less than 25% in mine.

Is the organisaon an enterprise, i.e.engaged in economic acvity?

Does it have fewer than

250 employees?

Does it have an annual turnover notexceeding EUR 50 million?*

Is it autonomous?**

YES

Fits EU criteriaas SME

NO

Seek sourcesof fundingelsewhere

Is my company an SME according to EU criteria?

15

There are some general rules to the number of parcipants in the consora, especiallyrelated to the countries they originate from. Therefore it is important to introduce yourselfin detail with the relevant work programme and more specically with calls of proposals.However the rst precondion is to determine whether you fall into the category of SME,

according to EU rules:


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Once you have determined that your organizaon ts in the criteria of eligibility by coun-try and by type of business, you need to know whether you are Research-performingSME or Research-acquiring SME.

Research-performing SMEs are those who have the ability to conduct research in-house and which dedicate at least 10% of their turnover or full-me equivalent (FTE- employed persons) to research and development acvies.

Research-acquiring SMEs are those who need to outsource their research to a uni-versity or research centre, which will perform the research on their behalf.

Depending to which category of SME you fall into you will choose the appropriate sub-programme of FP7.

SMEs which fall in the category of Research-performing SMEs should seek support un-

der the subprogrammes Cooperaon and People, while those which fall in the categoryof Research-acquiring SMEs should seek support under the subprogramme Capacies.

Research

performing SMEs

Cooperaon

People

Research-acquiringSMEs

Capacies

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3.1.3 Suprogrammes of FP7

3.1.3.1 CooperaonThe Cooperaon Programme is the largest component of FP7 with a share of two thirdsof the overall budget. Cooperaon covers collaborave research through transnaonalconsorums in ten themes. Every of 10 listed themes have its own SME strategy. Whilethe main idea of this component is to devote at least 15% of budget funding for SMEs, thisis not uniform throughout the themes. Specicaon of parcipaon of SMEs and avail-able funding is prescribed by the relevant Calls for Proposals. However, expected resultsof the projects funded under Cooperaon must be of interest and potenal benet toSMEs, and the consora should have a signicant share of the requested EC funding going

to SMEs.

Calls for proposals (for more informaon please see Secon 3.1.4) under the prescribedthemes are launched under the dierent funding schemes:

Collaborave projects and networks: Collaborave Projects, Network of Excellence,Coordinaon and Support Acons

Joint Technology Iniaves (JTI): public-private partnership bringing together indus-try, research instuons and the public in a specic area of interest to dene and fundresearch projects.

Coordinaon of naonal research programmes: networks bringing together naonalresearch programmes and agencies to launch transnaonal research acvies (ERA-NET)

Internaonal Cooperaon: integraon of internaonal researchers and research in-stuons into collaborave projects and networks.


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Project example-Cooperaon

FP7 Specic programme: CooperaonResearch theme: Nanosciences, nanotechnologies, materials and newproducon technologiesFunding scheme: Coordinaon (or networking) acons

Project name: 2BFUNTEX - Boosng collaboraon between research centres and in-dustry to enhance rapid industrial uptake of innovave funconal texle structuresand texle-related materials in a mondial market.

2BFUNTEX will exploit the untapped potenal in funconal texle structures and tex-le related materials. It will bring together all innovaon actors in the eld fostering amuldisciplinary approach between universies, research instutes, SMEs (in texle95% of the companies are SMEs) and sector associaons. The 2BFUNTEX team willidenfy technological gaps and will eliminate barriers resulng in a faster industrialuptake of added value funconal materials with new funconalies and improvedperformance, resulng in creaon of new business worldwide.

Project website: hp://www.2bfuntex.euTotal Cost: 1,828,317 EUREU Contribuon: 1,467,500 EURProject Coordinator: UNIVERSITEIT GENT, BEOther partners: 26 partners from 16 European countries - universies, research ins-tutes, SMEs, industrial associaons, naonal innovaon agencies.

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Project example-People

FP7 Specic programme: PeopleResearch theme: Marie Curie Acon: Industry-Academia Partnerships

and PathwaysFunding scheme: Coordinaon (or networking) acons

Project name: IHACSBudget Total Cost: Project cost:443,000 EUREU Contribuon: 443,000 EURProject coordinator: ELECTRONIC SYSTEMS AND SOFTWARE APPLLICATIONS S.A. -SENSAP SA, GROther partners: CENTER FOR RESEARCH & TECHNOLOGY THESSALY, GR

ECOLE POLYTECHNIQUE FEDERALE DE LAUSANNE, CH SENTRONIS AD, RS

Electronic systems for smart power control are being increasingly installed in mod -ern electrically-propelled vehicles, motors, and actuators. The funconality of suchcontrollers relies primarily on electric current sensors capable of monitoring preciselypulsed currents. The IHACS project aims at the development of a new family of verycompact, galvanically isolated, open-loop, wide-band, self-calibrang current sen-sors. The sensors are based on sophiscated mul-axes CMOS HALL magnetometerswith no ferromagnec parts that employ a new, elaborate technique for sensivity

stabilizaon against temperature eects.

3.1.3.2 People

The Marie Curie Acons (People Programme in FP7) are focused on training, mobilityand career development of researchers. Marie Curie Acons are based on the so-called

Industry-Academia Partnerships and Pathways (IAPP) schemes which aim to supportestablishing of the long-term research cooperaon between the public and the privatesector. Funding is provided mainly for sta exchange, recruitment and networking acvi-es but there is also a contribuon to research costs and equipment costs for SMEs. Ap -plicants may be situated in EU Member States, associated countries and third countries.All research areas are eligible, since there are no themac priories. Under these schemesconsorum consisng of one research organisaon from the public sector (university,research centre) and one from the private sector (any size: SME, large company) are themost common, but there is no predened maximum number of parcipants. Proposalsmust include as a minimum at least one organisaon from each sector. The dierent par-

cipang organisaons should be either from at least two dierent Member States or anassociated country and a Member State.


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3.1.3.3 Capacies

The Capacies subprogramme is divided into six broad areas. Oneof these Research for the benet of SMEs is aimed specically at

small to medium-sized enterprises and their associaons wishingto outsource their research. It is intended to strengthen the in-novaon capacies of SMEs and help develop new products andmarkets. Outsourcing will allow SMEs to increase their researcheorts, acquire technological know-how, extend business net-works and improve the exploitaon of research results. Research-acquiring SMEs can receive support as individual SMEs through theResearch for SMEs scheme or as SME associaons through theResearch for SME Associaons scheme.

a) Research for SMEs scheme

This scheme is intended for SMEs that need to acquire researchby outsourcing, such as low to medium technology SMEs with lileor no research capacity, or research intensive SMEs that need tooutsource in order to complement their core research capability.Projects are intended to create new knowledge or produce resultswith clear potenal to improve or develop new products, pro-cesses or services for the SMEs taking part in them.

Within the framework of each project, the Research for SMEsscheme will support SMEs in:

Research and technological development acvies (RTD) arethose which represent the core of the project with a majorcontribuon from the RTD performers. SMEs focus on speci-caons, tesng and validaon of project results and the pre-paratory stages for further use.

Demonstraon acvies (DEMO) are designed to prove theviability of new technologies that oer a potenal economic

advantage but which cannot be commercialised directly (e.g.tesng of product-like prototypes). This is the last develop -ment stage before products or processes enter producon.

Other acvies (OTHER) facilitate the take-up of results bythe SMEs, in parcular training and disseminaon.

Management acvies (MANAG) are a regular part of theproject and provide an appropriate framework that brings to -gether all project components and maintains regular commu-nicaons with the Commission.

Taking into accountthe situaon in

Serbia and the lowlevel of investmentsin research and de-velopment by SMEsin Serbia (less than

1% of GDP), thisprogramme can be

potenally aracveto those companies

seeking externalnancing of R&D

acvies.

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What does this mean in pracce?

This scheme actually funds a typical relaonship between a SMEwhich wants to outsource know-how from RTD performer with

the aim to develop new or to improve exisng products, systems,processes or services. The idea behind is to allow SMEs to furtherdevelop their acvies by buying knowledge from RTD perform-ers who sell their experse and work. The process funcons in away that SMEs are nancing themselves, with their own resources,inial specicaons and, later on validaon and tesng of the ac-quired knowledge.

In this context, the real investment or cost incurred by the SMEsincludes the price they pay for the know-how they wish to acquire:

the Intellectual Property Rights and knowledge developed duringthe project. Part of the occurred costs is actually covered by ECthrough this programme, using the following funding model:

Research and technological development acvies: maximumof 50 % of the eligible costs. However, for SMEs, non-protpublic bodies, secondary and higher educaon establishmentsand research organisaons: a maximum of 75 %.

Demonstraon acvies: maximum of 50% Management and other acvies: maximum of 100%

These types of projects require parcipants from the followingcategories: SME parcipants: At least three independent SMEs, estab-

lished in three dierent Member States or associated coun-tries.

RTD performers: At least two RTD performers which must beindependent from any other parcipant and which can comefrom any country. Examples of RTD performers are universi-es, research organisaons and industrial companies, includ-ing research performing SMEs.

In addion, other enterprises and end-users may parcipate bymaking a parcular contribuon to the project. They must also beindependent from any other parcipant.

The size of the consorum should typically be between ve and10 parcipants. The overall budget of the project should typicallyrange from EUR 0.5 million to EUR 1.5 million and the duraon ofthe project should normally be between one and two years.

Before seng con-sorum make sure

you fully understandIntellectual Prop-erty Rights rules.

More onhp://www.iprhelp-desk.eu/node/1315

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Research for SME Associaons schemeResearch for SME Associaons covers the development of soluons which are commonto a number of SMEs in specic industrial sectors or segments of the value chain throughresearch that cannot be addressed under Research for SMEs. Projects can, for example,

aim to develop or conform to the European norms and standards, and to meet regula-tory requirements in areas such as health, safety and environmental protecon. Projectsmust be driven by the SME associaons, which are given the opportunity to subcontractresearch to RTD performers in order to acquire the necessary technological knowledgefor their members.

Types of acvies

Types of acvies are similar to those intended for individual SMEs, but instead of SMEsthe focus is on SMEs associaons.

Co-nancing rates for this scheme are: Research and technological development acvies: maximum of 50 % of the eligible

costs. However, for SMEs, non-prot public bodies, secondary and higher educaonestablishments, and research organisaons: a maximum of 75 %. (SME associaons,which full any of the above menoned condions, qualify for a higher funding rate)

Demonstraon acvies: maximum of 50% Management and other acvies: maximum of 100%

These types of projects require parcipants from the following categories: SME parcipants: At least three independent SME associaons/groupings, estab-

lished in three dierent Member States or associated countries or one EuropeanSME associaon/grouping. SME associaons/groupings are legal persons, composedmostly of and represenng the interests of SMEs (e.g. industrial associaons, naonalor regional industrial associaons and chambers of industry and commerce).

RTD performers: At least two RTD performers which must be independent from anyother parcipant and which can come from any country. Examples of RTD performersare universies, research organisaons and industrial companies, including researchperforming SMEs.

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The size of the consorum should typically be between 10 and 15 parcipants. In addi-on, the SME end-users group should be limited to 2 to 5 members. The overall budget ofthe project should typically range between 1.5 million to 4.0 million and the duraonof the project should normally be between 2 and 3 years. If a project deviates from these

recommendaons a juscaon is required.

Project example-Capacies

FP7 Specic programme: CapaciesResearch theme: Research for the benet of SMEs

Project name: A novel system for the treatment of milk based on the combinaon of

ultrasounds and pulsed electric eld technologies

This project will build on the research and will build prototype system on thermosoni-caon (TS) combined with pulsed electric eld (PEF). It will be tested and validated inmilk producon facilies. A key innovaon of the SmartMILK project will centre on op-mising the combinaon of TS and PEF, whereby TS can assist the treatment technol-ogy resulng in a lesser degree of thermal damage in milk, thereby retaining more ofthe organolepcally and nutrionally favourable characteriscs of the fresh product,while potenally achieving similar or superior shelf life to the convenonal treatment.

Project website: hp://www.smartmilk.euBudget Total Cost: 1,524,647 EUREU Contribuon: 1,146,043 EURProject coordinator: INNOVACIO I RECERCA INDUSTRIAL I SOSTENIBLE S, ESOther partners: GLYNHYNOD ORGANIC FARMERS PARTNERSHIP, UK JWC SERVICES LTD, UK HIGHLAND FINE CHEESES LIMITED, UK AGENCIA ESTATAL CONSEJO SUPERIOR DE INVESTIGACIONES CIENTIFICAS, ES ARLA FOODS AMBA, DK INGENIERIA Y MAQUINARIA PARA LA INDUSTRIA LACTEA SL, ES MURATBEY GIDA VE SUT URUNLERI PAZARLAMA SANAYI VE TICARET LIM-

ITED SIRKETI, TR ATASANCAK ACPAYAM TARM ISLETMESISANAYI VE TICARET AS, TR BIOCONNECT LTD, IR DUNREIDY ENGINEERING LIMITED, IR UNIVERSITY COLLEGE DUBLIN, NATIONAL UNIVERSITY OF IRELAND, IR EL PASTORET DE LA SEGARRA SL, ES

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3.1.4 Types of funding schemes

Funding of a grant applicaon under the FP7 programme can be implemented under dif-

ferent set of rules dened under something which is called funding scheme. All of theseschemes have its own rules, but we will here present only rst type of funding schemes, asthey have most importance for SMEs. Each of the call for proposal set the type of fundingscheme.

a) Collaborave Projects (CP) scheme represent support for research projects carriedout by consora with parcipants from dierent countries, aiming at developing newknowledge, new technology, products, demonstraon acvies or common resourcesfor research. The size, scope and internal organisaon of projects can vary from eldto eld and from topic to topic. Projects can range from small or medium-scale focused

research acons to large scale integrang projects for achieving a dened objecve. Proj-ects should also target special groups such as SMEs and other smaller actors.

PurposeDeveloping new knowledge, new technology, products, includ-ing scienc coordinaon. Demonstraon acvies or commonresources for research.

Specic

programmes

concerned

Cooperaon, Capacies

Minimum condi-ons

At least 3 independent legal enes, each of which is estab-lished in 3 dierent Member States (MS) or associated country(AS)

Target audience Research instutes, universies, industry, SMEs.

Size and resources

The number of parcipants and volume of resources shouldbe compable with overall objecve and manageability of thewhole endeavour. A disncon between dierent forms ofcollaborave projects, based on budgetary thresholds, may bemade on a call-by-call basis. Projects can range from small ormedium-scale focused research acons to large-scale integrat-ing projects for achieving a dened objecve. Any such limits

will be applied as eligibility criteria and will be specied in thecall text.

Duraon 2460 months, no formal minimum duraon

Acvies Research, demonstraon, management of the consorum,other acvies such as disseminaon, training

Form of funding Based on eligible costs or other forms of grants as specied inthe work programme

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b) Networks of Excellence (NoE) support acvies implemented by a number of researchorganisaons integrang their acvies in a given eld, carried out by research teams inthe framework of longer term cooperaon. The implementaon of this Joint Programmeof Acvies will require a formal commitment of the organisaons integrang part of

their resources and their acvies.

PurposeDurable integraon of the parcipants research acvies/capacies with a view to creang a European virtual centre ofresearch in a dedicate eld.

Specic

programmes

concerned

Cooperaon, Capacies

Minimum condi-ons

At least 3 independent legal enes, each of which is estab-lished in 3 dierent MS or AC

Target audience Research instutes, universies and companies

Size and resources Once the minimum condions have been sased, a range be-tween 3 and 7 parcipants would seem to be opmal for a NoE.

Duraon 4860 months

Acvies

Joint programme of acvies (JPA):

Combinaon and complementary use of resources ofthe parcipants such as mutual access to infrastructure,equipment, material, data and knowledge; exchanges ofresearchers, managers and technicians; redesign of theresearch porolios and the research priories, and real-locaon of the resources in a way to allow increase of thenumber and the quality of the results produced, whileopmising the use of the parcipants capacies.

Management of the consorum and where appropriate,training, disseminaon and communicaon acvies



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c) Coordinaon and Support Acons (CSA) represents support for acvies aimed atcoordinang or supporng research acvies and policies (networking, exchanges, trans-naonal access to research infrastructures, studies, conferences, etc.). These acons mayalso be implemented without calls for proposals. Under Coordinaon and Support Ac-

ons we have two types of acvies funded: coordinaon and supporng.

c1) Coordinaon and Support Acons: Coordinang (CSACA)

Purpose

No funding of actual work on the research, development ordemonstraon acvies;

Focusing of the scheme is to support coordinaon of researchacvies and policies

Specic

programmesconcerned

Cooperaon, People, Ideas, and Capacies

Minimum condi-ons

At least 3 independent legal enes, each of which is estab-lished in 3 dierent MS or AC

Target audienceResearch organisaons; universies; industry, including SMEs;research programme managers and owners (ERA-NET and Re-search Infrastructure acons)

Size and resourcesThe size, scope and internal organisaon of coordinaon aconsand support acons can vary from research theme to researchtheme and from topic to topic.

Duraon Few months 48 months

Acvies

Networking, coordinaon and disseminaon acvies. Commontype of acvies are:

the organisaon of events including conferences, meengs,workshops or seminars, related studies, exchanges of personnel,exchange and disseminaon of good pracces, and, if neces-sary, the denion, organisaon and management of joint orcommon iniaves, together with management of the acon.



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c2) Coordinaon and Support Acons: Supporng (CSASA)

Purpose

No funding of actual work on the research, development ordemonstraon acvies;

Normally focused on one specic acvity and oen one spe-cic event

Specic

programmes

concerned

Cooperaon, People, Ideas, and Capacies

Minimum condi-ons At least one legal enty

Target audience

Research organisaons; universies; industry, including SMEs;

research programme managers and owners (ERA-NET andResearch Infrastructure acons)

Size and resourcesThe size, scope and internal organisaon of coordinaon ac-ons and support acons can vary from research theme toresearch theme and from topic to topic

Duraon Few months 48 months

Acvies

monitoring and assessment; conferences; seminars; work-shops; working or expert groups or

individual expert appointment leers; studies; fact nd-ing; monitoring; strategy development; high level scienc

awards and compeons; operaonal support; data accessand disseminaon, informaon and communicaon acvies;management acvies; specic services acvies related toresearch infrastructures, such as for example transnaonalaccess; preparatory technical work, including feasibility stud-ies for the development of new infrastructures; contribuonto the construcon of new infrastructures; cooperaon withother European research schemes; or a combinaon of these.


Calls for 2013All calls for FP7 programme can be found on the webpage of the

Parcipant portal on the address

hp://ec.europa.eu/research/parcipants/portal/page/capacies&state=open


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3.1.5 Common financial rules for FP7 Programme

Beneciaries of EU funds under FP7 programme may charge eligible direct and indirectcosts. Direct costs are those costs directly related to the project, which can be clearly

idened and jused by the accounng rules and principles of the beneciary. Overheadcosts (also referred to as Indirect costs) are those costs which are not directly relatedto the project, not idened as direct costs and which do not include any costs alreadydirectly charged to the project. They are determined in accordance with the accounngprinciples of the beneciary but must be related to the project, subject to audit trail andbe real.

Eligible costs are actual costs occurred during duraon of project in accordance with itsusual accounng and management principles and recorded in accounts of beneciary. Un-der the actual costs beneciaries are expressing also average personnel costs which must

be consistent with the management principles and accounng pracces and they do notsignicantly dier from the actual personnel costs, idened according to a methodologyapproved by the Commission.

p://p.cordis.europa.eu/pub/fp7/docs/fp7-average-personnel-costs_en.pdf

Examples of eligible direct costs are: Actual personnel costs Equipment/ Consumables Subcontracng

Business trips

Examples ofindirect costs: Costs for general administraon and management; Oce or laboratory space, including rent or depreciaon of buildings and equipment

and all related expenditures such as water, electricity; maintenance; insurance andsafety costs

Communicaon expenses, network connecon charges, postal charges and oce sup-plies;

Depreciaon of common oce equipment such as PCs, laptops, oce soware;

Various consumables

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Non eligible costs are:

idenable indirect taxes including VAT dues

interest owed, provisions for possible future losses or charges, exchange losses, cost related to return on capital, costs declared or incurred, or reimbursed in respect of another EU funded projects,

(avoiding double funding), debt and debt service charges, excessive or reckless expenditure

Reimbursement rate for projects funded under FP7 programme depend on the type offunding scheme. However it is important to consult relevant call for proposals for exactrules and eligibility of costs.

Reimbursement rates according to funding schemes and type of acvies for SMEs arethe following:

Type of acvies/

Type of funding scheme

Research and techno-logical development

(*)

Demonstraonacvies

Managementof the consor-um acvies

Network of excellence50%

75% (***)100%

Collaborave project50%

75% (***)50% 100%

Coordinaon and supportacon

100% (****)

(*) Research and technological development includes operaonal acvies directly re -

lated to the protecon of foreground and coordinaon of research acvies.(**) Other acvies means any specic acvity covered by Annex I.(***) For beneciaries that are non-prot public bodies, secondary and higher educaonestablishments, research organisaons and SMEs(****) The reimbursement of indirect eligible costs, in the case of coordinaon and sup-port acons, may reach a maximum 7% of the direct eligible costs, excluding the directeligible costs for subcontracng and the costs of reimbursement of resources made avail-able by third pares which are not used on the premises of the beneciary.

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3.2.1. Aout the programme (ojectives and components)

The Compeveness and Innovaon Framework Programme (CIP) focuses on supporngsmall and medium-sized enterprises (SMEs) in the area of energy eciency and renew -able energy sources, environmental technologies, entrepreneurship and a beer use ofinformaon and communicaon technology (ICT).

The CIP provides the following types of support:

Beer access to nance through the nancial instruments Services to companies through the centres under the Enterprise Europe Network Grants to pilot and market replicaon projects in the area of ICT or eco-innovaon Grants for policy makers for networking and exchange of best pracces on innovaon

policy Support to the elaboraon of studies to analyse latest trends in SMEs or innovaon

policies in EU Member States or dierent industrial sectors at European or global level

The CIP, with an overall budget of 3,621 million, covers 2007-2013 period and comprisesthree operaonal sub-programmes aimed at contribung to the compeveness of en-terprises and their innovave capacity in their own areas:

1. The Entrepreneurship and Innovaon Programme (EIP) focusing on SMEs2. The Informaon Communicaon Technologies Policy Support Programme (ICT-PSP)

to support the adopon of ICTs in businesses, administraons and public sector ser-vices

3. The Intelligent Energy Europe Programme (IEE) to support the use, disseminaon andexchange of related knowledge and know-how for improving energy sustainability

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3.2 COMPETITIVENESS AND INNOVATION

FRAMEWORK PROGRAMME (CIP)


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CIP indicave budget overview for 2007 - 2013 ( mio)

Entrepreneurship and Innovaon Programme

(EIP) 2166

of which eco-innovaon 430

of which nancial instruments 1,130

of which Enterprise Europe Network 338

ICT Policy Support Programme (ICT-PSP) 728

Intelligent Energy Europe Programme (IEE) 727

TOTAL 3,621

All three operaonal sub-programmes of CIP are managed by the European Commission,which is assisted by separate commiees consisng of Member States representaves.Each operaonal programme has a separate annual work programme which needs to beadopted by the European Commission aer receiving a favourable opinion of the respec-ve commiee. Work programmes are public and available on the websites of the threeCIP programmes. Besides work programmes, the EC also adopts annually the support mea-sures, such as analysis, studies, conferences and communicaon, which are not coveredby the annual work programmes. By consulng the work programmes and the supportmeasures potenal beneciaries can have a clear idea about the acons covered by theCIP every year before the calls are published.

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Compeveness andInnovaon Framework

Programme (CIP)

Entrepreneurship andInnovaon Programme

(EIP)

Informaon and Com-municaon Technologies

Policy Support Pro-gramme(ICT-PSP)

Intelligent EnergyEurope

Programme (IEE)*

Access to nance for SMEs

Creaon of an environmentfavourable to SME coopera-

on

Innovaon in enterprises

The eco-innovaon

Entrepreneurship and in-novaon culture

Enterprise and innovaon-related economic andadministrave reform

ICT for smart cies

Digital content, opendata and creavity

ICT for health, ageingwell and inclusion

Innovave governmentand public services

Trusted eServices andother acons

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*IEE is not ocially open to Serbia


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3.2.2 Country criteria

The CIP is open for the parcipaon of EEA countries (EU countries

plus Iceland, Liechtenstein and Norway) and the following non-EU-member countries: Entrepreneurship and Innovaon Programme (EIP): Croaa,

the former Yugoslav Republic of Macedonia, Montenegro, Tur-key and Serbia fully parcipate in the EIP; Israel and Albaniaparcipate in certain parts.

ICT Policy Support Programme (ICT-PSP): Croaa, Montenegro,Turkey and Serbia.

Intelligent Energy Europe Programme (IEE): the former Yugo-slav Republic of Macedonia, and Croaa.

The calls for proposals are published on the

CIP website hp://ec.europa.eu/enterprise/contracts-grants/calls-for-proposals/index_en.htm.

There is no specic deadline for publicaon of proposals. The web-site of each CIP programme also host a list of projects funded so far.

Eligible SMEs under terms that are dened for CIP by the Euro-pean Commission are those which employ less than 250 personsand which have either an annual turnover not exceeding 50 millioneuro, or an annual balance sheet total not exceeding 43 million.

3.2.3 CIP Suprogrammes

3.2.3.1 The Entrepreneurship and Innovaonprogramme (EIP)

The Entrepreneurship and Innovaon programme (EIP) is the larg-est sub-programme of CIP with a budget of 2.17 billion for 2007-2013. Serbia joined EIP at the end of 2008. Current 2012 is the hyear of Serbian parcipaon in this Programme with 820,000worth annual contribuon. EIP 2013 Work Programme sll beingin its dra stage, we will illustrate the scope of EIP intervenons byfocusing on the previous Work Programme for 2012.

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NCP for CIP-EIP inSerbia is

Ministry ofFinance and

Economy

Contacts can be

found on CIP Serbiawebiste

hp://www.cip-srbija.rs


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EIP 2012 Work Programme aims to achieve its objecves given in the CIP legal base (De-cision No. 1639/2006/EC of the European Parliament and of the Council of 24 October2006, establishing a Compeveness and Innovaon Framework Programme 2007-2013)through the following acons:

Access to nance for SMEs through CIP nancial instruments and investment in innova-on acvies with 181.6 million (including 39 million for eco-innovaon), which targetSMEs needs for nancing at various stages of development and support investments intechnological development, innovaon and eco-innovaon, technology transfer and thecross border expansion of business acvies. More informaon are available on page 38.

Creaon of an environment favourable to SME cooperaon with 63.3 million supportsnancing of the contracts with partners of the Enterprise Europe Network ( 47.9 million)and the animaon of this network ( 3.2 million), acons to enhance a favourable environ-

ment for SMEs ( 4.2 million), the compeveness and sustainability in European tourism(6 million), and SME and Cra Enterprises Parcipaon in European Standardisaon (2million).

Innovaon in enterprises acon worth 33.8 million supports the following: key technolo-gies and e-skills (14.5 million), measures broadening the concept of innovaon, e.g. de -sign iniaves and social innovaon (7.5 million), innovaon partnerships on raw materi-als and on water (3.1 million), innovaon analysis and promoon, such as the InnovaonUnion Scoreboard and a European service innovaon centre (6.5 million), and promoonof electric vehicles technologies ( 2.3 million).

The eco-innovaon acon worth 39 million supports innovave products, processesand services that are not fully marketed due to residual risks and aim to reduce envi-ronmental impacts, prevent polluon or achieve a more ecient and responsible useof natural resources. Out of total budget, 35 million are foreseen for the rst applica -on and market replicaon projects, 3 million for the Sustainable Industry Low CarbonScheme (SILC) and 1 million for an EU Environmental Technology Vericaon (ETV) Pilotprogramme.

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Entrepreneurship and innovaon culture acon with 11.2 million budget is directedtowards promong entrepreneurship ( 10.2 million), such as Erasmus for Entrepreneursand the European SME Week, and the promoon of Corporate Social Responsibility (1

million).

Enterprise and innovaon-related economic and administrave reform worth 6.3 mil-lion supports the implementaon of the Small Business Act for Europe (SBA) (4 million),such as the SME Performance Review and the monitoring and exchange of good pracces,as well as internaonal cooperaon in the eld of enterprise policy (1.7 million) and ad-ministrave burden studies (0.6 million).

Evaluation criteria

As for the selecon and award criteria, each proposal will be evaluated on the basis of cri-teria specied in the respecve call for proposals. Essenally, selecon criteria are basedon the following:

(a) nancial capacity to complete the proposed operaon;(b) stable and sucient sources of nance to ensure the connuity of the organisaon

throughout the project and to play a part in nancing it;(c) operaonal (technical and management) capacity to complete the operaon;(d) capacity to manage acvies corresponding to the size of the project for which a

grant is requested;

(e) adequate professional qualicaons and experience of the team responsible for theproject/operaon.

An evaluaon of the quality of proposals, including the proposed budget, will be based onthe following award criteria:

(a) relevance of the acons proposed in view of the objecves established in the call;(b) quality of the proposed acons;(c) impact on target audience;(d) budget and cost-eecveness.

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Eco-innovation initiative under EIP component

Eco-innovaon iniave is a part of the EIP component. It supportsenvironment friendly ideas for innovave products, services and

processes commercially ready to use for business and industry. Itsnot only helping EU to meet its environmental objecves but alsoto boost economic growth.

ObjecveEco-innovaon strives to reduce environmental impact and makebeer use of resources in the following areas: Materials recycling and recycling processes; Sustainable building products; Food and drink sector;

Water eciency, treatment and distribuon; Greening business.

The EU aims to maximise the impact of Eco-innovaon in a waythat the best Eco-innovaon projects can be replicated across theEU. It is important to emphasise that Eco-innovaon projects arenot research projects, but those whose ideas are developed, fea -sible and viable on the market in the long-term.

SMEs play a major role in this regard which is why priority is given

to their projects. Funding is made available in form of grants.

Co-nancing ratesThe nancial contribuon under CIP eco-innovaon takes the formof a grant o-seng part of the eligible costs of the project, underthe following maximum rate:

50 % if the beneng company is a medium enterprise; 60% if the beneng company is a small enterprise.

If the project involves industrial or commercial acvies, the rulesgoverning the funding from CIP follow the Community guidelinesfor State aid for environmental protecon. This includes in parcu-lar:

Costs eligible for funding should correspond to the extra in-vestment costs necessary to achieve a level of proteconhigher than the level required by the Community standards,and should be directly related to the innovave technique ormethod proposed.

Eligible costs must be calculated net of any operang benetsand costs incurred during the rst ve years of the life of theinvestment.

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Eco-innovaoniniave

hp://ec.europa.eu/environment/eco-

innovation/about/index_en.htm


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If the project receives funding from other public sources of funding, their contribuonshould be deducted from the maximum rate indicated above, which applies to the sum ofall public funding.

If the project does not involve industrial or commercial acvies, the total cost of theproject may be considered eligible, with the excepons listed below:

land purchase or any other related costs; studies not specically addressing the objecve stated in the nanced proposals; investments in major infrastructure or investments of a non-innovave nature, including acvies already conrmed on an industrial scale; research and technological development acvies; land remediaon costs, which are subject to the polluter-pays principle;

any cost incurred for acon which benets from aid under other Community nancialinstrument,

Eco-innovaon has been open for Serbia since 2009 with no successful projects so far. Theiniave is promoted by Enterprise Europe Network in Serbia (see page 43 for more infor-maon). The biggest problems for applicants thus far can be summarized in the following: lack of European value-added; poor budget/business plan preparaon lack of adequate partners from other European countries and lack of projects/product ideas stemming from public-private partnerships/academic

instuons and spin-o/spin-out companies

Project example - Eco-innovaonCIP - Entrepreneurship and Innovaon Programme (EIP)Eco-innovaonProject type:Market Replicaon Project

Project name: Used tyresvalorisaon as lightweight ller for embankmentsThe project aimed at contribung to reducon of the impact of tyres wastes treat-ment using scraped tyres as ller for road embankments. The rst step of the projectwas the design of the embankment, substung the tradional parameters of designfor natural soil for those needed for the calculaon and design with synthec ller.Project website: hp://www.rectyre.solintel.eu/Budget Total Cost: 1.29MEUREU Contribuon: 0.58MEURProject coordinator: ACCIONA INFRAESTRUCTURAS, ESOther partners: SOLINTEL, ES MOSTOSTAL WARSZAWA, PL CONSTRUCTION CLUSTER OF SLOVENIA, SI DAPPOLONIA, IT

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Due to low level of interest of Serbian banks to take an ac-ve role in EU supported nancial instruments, EU backed loansare available in Serbia only through one nancial intermediary- aanska banka a.d. Loans are extended with a purpose to

enhance micro-enterprises access to nance, with parcularfocus on entrepreneurs starng up their business. Eligible bor-rowers are entrepreneurs and micro enterprises which employfewer than 10 persons and whose annual turnover and/or an-nual balance sheet total does not exceed EUR 2 million. Loanscan go up to 25,000 with a minimum maturity of 12 monthsand a minimum grace period of up to 12 months. Loans for xedassets are provided without addional collateral other than se -curity over the asset which is being acquired through the loanand without any contribuon, while loans for working capital

require no addional collateral and have an increasing maxi-mum maturity from 3 to 5 years.

Access to finance

The main funding schemes under the CIP available to Serbian SMEsare the following:

Community nancial instrumentsThe nancial instruments, managed by the European InvestmentFund (EIF) on behalf of the European Commission, aim to lowermarket gaps in the supply of debt and equity nance to SMEs.These instruments are implemented solely through nancial inter-mediaries or specialised funds (hp://www.access2nance.eu).

The nancial instruments which target the needs of SMEs at vari-ous stages of their life-cycle (the seed, start-up, expansion andbusiness transfer phases) are the following:

38

!EU backed

loansin Serbiafor SMEs

TYPE OF

INSTRUMENT

FOCUS

High Growth andInnovave SMEFacility - GIF1

Provides venture capital for innovaveSMEs for their early stage investments.

High Growth andInnovave SMEFacility - GIF2

Provides capital for innovave SMEs in theirexpansion stage investment.

SME GuaranteeFacility - SMEG

Guarantees loans to SMEs, including micro-credit and mezzanine nance. The guaran-tees are given to nancial intermediarieswho provide the nance to SMEs.


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Calls for 2013EU Programme name: Compeveness and Innovaon Framework

Programme (CIP)

Subprogramme: Entrepreneurship and Innovaon Programme/Eco-innovaon inia-

ve

The last call of the eco-innovaon iniave with a foreseen budget of approximatelyEUR 40 million is expected to be launched in May 2013 and to be closed in September

2013.

Call will be published on this page:

hp://ec.europa.eu/environment/eco-innovaon/geng-funds/call-for-

proposals/index_en.htm

Erasmus for Young Entrepreneurs under EIP component

CIP cross-border exchange programme Erasmus for Young Entrepreneurs aims at enhanc-

ing entrepreneurship, developing the internaonal outlook and compeveness of Euro-pean SMEs and fostering potenal start-up entrepreneurs and newly-established microand small enterprises. This programme is to help new entrepreneurs enrich their experi-ence, deepen their knowledge and expand their network by spending periods of me of 1to 6 months in enterprises run by experienced entrepreneurs in other EU Member Statesand in other countries parcipang in the Compeveness and Innovaon Programme.

As part of their registraon, new entrepreneurs and host entrepreneurs have to choosean Intermediary Organisaon (IO) that is ocially appointed by the European Commissionto handle applicaons, establish exchanges and provide guidance and support. Serbian

eligible instuons applied (some by forming consora) to become IOs for the implemen-taon of Erasmus for Young Entrepreneurs for the rst me in 2012.

Currently, applicaons are sll in the evaluang process. Regardless of whether Serbianbids for IOs get accepted or rejected, Serbian new entrepreneurs (NEs) and host entre -preneurs (HEs) will be able to apply for parcipaon. In case there are no approved IOs inSerbia, NEs and HEs can apply to other countries with established structures on the list oflocal contact point which can be found on the ocial programme website

hp://www.erasmus-entrepreneurs.eu/page.php?cid=5.


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3.2.3.2 ICT Policy Support Programme (ICTPSP)

The second pillar of CIP, the ICT Policy Support Programme (ICT

PSP), with an overall budget of 730 million over 7 years, is themajor nancial instrument used at the EU level for smulang sus-tainable and inclusive growth by smulang the wider uptake andbest use of innovave digital technologies and content by cizens,governments and businesses, in parcular SMEs. Serbia joined thisprogramme in 2010 with an annual contribuon of 272,733.

The ICT-PSP has as its objecves: to develop the Single Europe-an Informaon Space and strengthen the market for ICT and ICTbased products and services; to smulate innovaon through in-

vestment in ICT and their wider adopon; and to develop an inclu-sive informaon society and more ecient and eecve servicesin areas of public interest.

More specically, the 2012 work programme focuses on 5 themes,each of which has its own objecves:

ICT for smart cies. Total funding available for this themeis 27 M and it is intended to fund projects under the threeobjecves: smart urban digital services for energy eciency;

cooperave transport systems for smart mobility; open Inno-vaon for Internet-enabled services and next generaon ac-cess (NGA) services in smart cies.

Digital content, open data and creavity. The total fundingavailable for this theme is 41 M, encompassing three objec -ves: Europeana and creavity; open data and open access tocontent; eLearning.

ICT for health, ageing well and inclusion. The total fundingavailable for this theme is 24 M and acons will be fundedunder the following objecves: wide deployment of integrated

care services; towards open and personalised soluons for ac-ve and independent living; digital capacity and skills; fall pre-venon network for older persons; large scale deployment oftelehealth services for chronic condions management; adop-on, taking up and tesng of standards and specicaons foreHealth interoperability; community building on acve andhealthy ageing.

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NCP for CIP-ICT

PSP in Serbia is

Ministry of Foreignand Internal Trade

andTelecommunica-

onsDigital AgendaAdministraon

Phone:+381 (011) 2020 081


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Innovave government and public services. The total available funding for thistheme is 20 M, encompassing three objecves: basic cross sector services; exten-sion of eCodex (on eJusce); Extension of HeERO (on eCall).

Trusted eServices and other acons. The total EU funding available for this theme

is 15 M and it is intended to fund projects under the following three objecves:cybersecurity with a parcular focus on ghng botnets; mobile cloud for businessapplicaons; satellite contribuon to 100% EU broadband coverage.

These themes and acons are supported by a limited number of high impact pilot or bestpracce projects, as well as themac networks. The projects are selected through a callfor proposals, dene the following:

In addion, support is given through calls for tender for studies, analysis, benchmarkingacvies, conferences and events that help monitor and promote the development of theDigital Agenda.

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Project example - ICT PSP

CIP - Entrepreneurship and Innovaon Programme (EIP)Informaon Communicaon Technologies Policy Support Programme(ICT-PSP)Project type:Pilot Acon

Project name: Central and South European Language ResourcesThe project intends to enhance, upgrade, standardise and cross-link a wide variety oflanguage resources and tools and make them available, thus contribung to an openEuropean linguisc infrastructure. The project will make available a comprehensiveset of language resources and tools, covering the Hungarian, Polish, Croaan, Serbian,Bulgarian and Slovak languages.Project website: hp://www.meta-net.eu/projects/cesar/Budget Total Cost: 4.16 MEUR; EU Contribuon: 2.08 MEURProject coordinator: Hungarian Academy of Sciences, HUOther partners: Instute of Computer Science Polish Academy of Sciences, PL University of d, PL University of Zagreb, HR University of Belgrade, RS Pupin Instute, RS Instute for Bulgarian Language, BG Slovak Academy of Sciences, SK

CIP ICT PSP

Theme

ObjecveFunding

instrument


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3.2.3.3 Intelligent Energy Europe

The Intelligent Energy Europe (IEE) with a budget of 730 million for 2007-2013 is a sub-programme of CIP for the promoon of energy eciency and use of renewable energy

sources. The sub-programme is aiming towards a secure, clean and sustainable energy forEurope, by at the same me enhancing European compeveness.

The Intelligent Energy Europe programme objecves are as follows: to promote energyeciency and smulate the raonal use of energy sources; to promote the use of newand renewable energy sources and to encourage energy diversicaon; to promote en-ergy eciency and the use of new and renewable energy sources in the eld of transport.

This component is not available to Serbia.

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3.3 ENTERPRISE EUROPE NETWORK

IN SERbIA

Enterprise Europe Network (EEN) is a network of business support organizaons frommore than 50 countries connected through databases. EEN, co-nanced through the CIPhas been launched in 2008 by the Commissions Directorate-General for Enterprise andIndustry. The EEN provides integrated business and innovaon support services to helpmake enterprises more compeve. It provides enterprises with up-to-date informaonon European direcves and regulaons, public sector contract opportunies, businessopportunies, funding, and research and development iniaves.

EEN services are tailored to SMEs and comprise the following:

Going internaonal Technology transfer Access to nance Research funding Advice on EU law and standards Intellectual property and patents Speak up on EU law

For more informaon please visit

hp://portal.enterprise-europe-network.ec.europa.eu/.

and Serbian portal

hp://www.een.rs/

!Enterprise Europe Network in Serbia

informs you through the Newsleer about all events withinthe Network. In the EEN Newsleer you can nd informaonabout foreign companies which are interested in nding Ser-bian partners and willing to establish business cooperaon.

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The Republic of Serbias Naonal Agency for Regional Development (NARD) coordinatesthe EU project Enterprise Europe Network (EEN), which is jointly implemented with thepartners listed below:

LOCATION CONTACT POINT

Belgrade Mihailo Pupin Instute

Belgrade Serbian Investment and Export Promo-on Agency

Belgrade Naonal Agency for Regional Develop-ment

Belgrade University of Belgrade

Belgrade Serbian Chamber of Commerce

Nis University of Nis

Novi Sad University of Novi Sad

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Aer you have idened the desired Call for proposal you need toread carefully the Informaon Package for the Call you have ex-pressed the interest for. The package is consisted of the Call che,Work Programme and Guide for Applicants (depending on whattype of acvity you choose to apply for - Types are dened in theCall che).

Once you have thoroughly introduced yourself with these informa-on you can begin the process of preparing the proposal. Propos-als are submied through the Parcipants portal.

The Parcipant Portal is an Internet portal for the parcipants tothe 7th Framework Programme (FP7) and the Compeveness andInnovaon Programme (CIP).

https://ec.europa.eu/research/participants/portal/page/

home

The Submission system allows electronic submission of proposals,via the web. The system helps you in selecng the Funding scheme,managing the list of parcipants and contact details, communicat-ing with partners on the proposal, uploading the necessary lesand lling the administrave forms. Once the proposal is com-pleted, it can be submied mulple mes if revisions are neededbefore the call deadline.

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Parcipant Portalfor CIP and FP7

3.4 HOW THE PROPOSALS FOR FP7 AND CIP ARE

SUbMITTED TO THE EUROPEAN COMMISSION?


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STEP 1

First it is important to register on the ECAS (European Commission Authencaon Service)

hps://webgate.ec.europa.eu/cas/eim/external/register.cgi

Here you will insert basic informaon about your organizaon/yourself. Aer complengregistraon you will obtain login informaon necessary for login on the Parcipant Portal.

STEP 2

Aer registraon it is necessary to obtain the Parcipant Idencaon Code (PIC) which isa 9 digits unique idener for every validated legal enty. Each parcipant in the proposal

(member of the consorum) needs to have its own PIC number. Follow the registraonand validaon process from the following page

hp://ec.europa.eu/research/parcipants/portal/page/myorganisaons#

Once you have obtained the necessary registraon, it is of utmost importance that youread thoroughly the User manuals for the usage of the Portal.

STEP 3

Once you have completed step 2 you can start preparing your proposal. Proposals areusually consisted of two parts: Part A and Part B (somemes part C as the Budget is in -cluded).

Part A

The Part of a proposal is dealing with administrave data, contact details, summary ofthe proposal, summary of the budget and all other ideners necessary to determineyour eligibility.

Part BPart B is the heart of the proposal and diers from call to call. This part of the proposalexplains the work to be carried out and the roles and capacies of the parcipants in theconsorum. This part is uploaded to the Submission system as a PDF le.

We will present here simplied contents of Part B: one for one FP7 project and one for CIP.

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EXAMPLE: PART B-FP7

Type of funding scheme: Research for SMEs

Secon 1 (15 pages, plus the tables)

1. Scienc and/or technological excellence, relevant to the topics/acvies addressedby the calla. Soundness of concept and quality of objecvesb. Innovave character in relaon to the state-of-the-artc. Contribuon to advancement of knowledge/technological progressd. Quality and eecveness of Scienc/Technological methodology and associ-

ated work plan (following type of acvies) Research, technological development and innovaon acvies

Demonstraon acvies Other acvies

Tables:Work package list and deliverables list (must be interlinked)Summary of sta eort (linked with work packages and essenal for budget design)List of milestones (including ming and means of vericaon)

Secon 2 (around 10 pages and the table)

2. Quality of the Consorum as a wholea. Descripon of project management structure and proceduresb. Descripon of the consorumc. Appropriate allocaon and juscaon of the resources to be commiedd: Indicave breakdown of the oer from the RTD performers to the SME parci-

pants

Secon 3: (10 pages plus table)

3. Impact. The potenal impact through the development, disseminaon and use of

project resultsa. Contribuon, at the European and/or internaonal level, to the expected impacts

listed in the work programme under the relevant acvityb. Appropriateness of measures envi

Download - EU Funding Opportunities for SMEs in Serbia

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