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 nancin