Janez Potočnik gave a speech at the opening of a conference on research and small and medium enterprises (SMEs), held in Paris yesterday. The focus was on ways to improve research and innovation policies and programmes so that they can help SMEs improve and grow – and find ways to integrate the ‘SME’ dimension into a wider range of policies and programmes.
“SMEs are the DNA of the European economy,” said Potočnik. “They are the basis of our future growth and prosperity. Why? Because in Europe that growth and prosperity must be based on knowledge, and it is SMEs that are most capable of turning knowledge into growth, of turning bright ideas into commercial success, of turning research into rewards.”
Although he commended existing initiatives as being well designed and targeted, there is a need to improve the impact of initiatives through better coordination between programmes and initiatives at regional, national European levels.
Indeed, R&D initiatives can be a source of confusion for SMEs, he said. “They don’t know where to start.”
“In short, we need to avoid duplication of efforts. We need better, more efficient use of available resources. We need maximum synergies between public and private investment.”
His comments hold particular relevance for the European food and drink industry, 99 per cent of which is made up of SMEs – around 280,000 in total.
According to the Confederation of the Food and Drink Industries of Europe, these businesses employ about 61 per cent of food and drink workers, and generate about 50 per cent of revenues. (The food and drink sector had a turnover of €870bn in 2007).
The CIAA has argued that the framework for the industry must be flexible and business-friendly for the needs of SMEs.
At a conference held in Brussels in July, it noted that SMEs have considerably fewer resources to invest in R&D and to participate in joint research projects than larger companies.
It would like to see more knowledge and technology transfers, as well as access to EU funding, training, networking, and the encouragement of partnerships.
In addition, the cost of compliance with new legislation can be burdensome for SMEs. The CIAA would like a flexible, business-friendly framework that takes SME’s capabilities into consideration.
CIAA president Jean Martin called the establishment of a high level group on competitiveness in the agro-food industry and the Small Business Act, both launched in June, “steps in the right direction”.
But he said: “These initiatives have to lead to concrete results, and this is how we will measure their success.
It will be most important to develop a holistic and integrated food policy that focuses on the needs and role of the sector as a whole, and SMEs in particular.”