WRITTEN QUESTION E-2059/97 by Marjo Matikainen-Kallström (PPE) to the Commission (16 June 1997)

Subject: SMEs and the 5th Framework Programme

Small and medium-sized enterprises account for 66% of employment in the EU. They have a very important role to play particularly in terms of innovation and research. In the European Parliament's Committee on Research, Technological Development and Energy we have discussed the position of SMEs particularly in connection with the EU's 5th framework programme on research, technological development and demonstration.

Because the term 'small and medium-sized enterprises' has not been sufficiently clearly defined, it also remains unclear in what capacity they can participate in the 5th Framework Programme. I should like to ask the Commission how it defines SMEs and how it intends to take account of these firms in the implementation of the 5th Framework Programme.

Answer given by Mr Papoutsis on behalf of the Commission (31 July 1997)

On 3 April 1996, the Commission adopted a Recommendation concerning the definition of small and medium-sized enterprises (SMEs) ((OJ L 107, 30.4.1996. )). Thanks to this Recommendation, clear and precise rules now exist for defining SMEs, small enterprises and micro-enterprises in both Community programmes and instruments and those of Member States. In adopting this definition, the Commission sought in particular to introduce greater clarity, coherence and visibility into Community programmes which previously had often used different definitions of SMEs.

In order to qualify as an SME, an enterprise must, under this Recommendation, meet a workforce-size criterion (fewer than 250 employees), a financial criterion (turnover less than ECU 40 million or an annual balance-sheet total of less than ECU 27 million) and an independence criterion (i.e. the enterprises must not be owned as to 25 % or more of the capital or the voting rights by one or several enterprises which are not SMEs themselves.

Lower thresholds apply in the definitions of small enterprises and of micro-enterprises.

The Recommendation cited above provides for a transitional period for the Community programmes which defined SMEs according to different criteria. At the end of this period, 31 December 1997 at the latest, all Community programmes will, in principle, have to apply the definition of SMEs contained in the Recommendation.

As far as the involvement of these enterprises in the implementation of the fifth framework programme is concerned, the objectives of Community action were defined in the Proposal for a Council Decision concerning the fifth framework programme for research, technological development and demonstration activities (1998-2002), adopted by the Commission on 30 April 1997 ((OJ C 173, 7.6.1997. )). These objectives are to stimulate the participation of SMEs in the research programmes, to help them enhance their technological capabilities and to facilitate the access of SMEs taking part in research programmes to instruments which finance innovation and support the creation of innovative enterprises. These objectives will have to be achieved in the dual framework of the various Community research actions and actions devoted specifically to innovation and SMEs.