H2020: European funding, a unique opportunity for SMEs

25 February 2021

SMEs are central to the European economy, accounting for 99% of EU enterprises and more than half of Europe’s GDP. They span several sectors, providing innovative solutions to challenges such as climate change, resource efficiency and social cohesion, and contribute to spreading this innovation across all regions of Europe. They are therefore central to the EU’s twin transition to a sustainable and digital economy.

Role of SMEs in H2020

SMEs have occupied a very relevant role in the strategy and objectives of the Framework Programme that is coming to an end. They were not only the protagonists of one of the eleven thematic objectives for the period 2014-2020, which was improving the competitiveness of SMEs; they were also included in the rest of the identified themes: in research and innovation, low carbon economy and information and communication technologies.

Now that H2020 is coming to an end, we can look at the SME results and confirm the key role of SMEs in Europe.

Of the total number of organisations participating in H2020, 21,462 have been SMEs. In other words, 42% of the organisations involved in projects funded in Europe have been SMEs. This figure is particularly relevant, if put in perspective and compared to other types of organisations: the second place is occupied by Large Corporations, with an average participation per country of 20.7% of organisations involved in European projects; followed by Research Centres with 12.0% and Associations and Non-Governmental Organisations with 11.3%. Public Administrations close the ranking with 8.7% participation and Universities with 8.4%.

If we analyse this data by country, the statistics are surprising, since 2,011 of the 15,643 SMEs that have participated in total European projects are Spanish. Italy would be the country with the second highest number of SMEs present in European programmes (1,806) and Germany comes in third place with 1,790.

Most funded SMEs in Horizon Europe

SMEs received a total net funding from Europe of €10.49 billion, 16.68% of the total. But which SMEs received the most money and how many projects did they fund?

1. Geant Vereniging

Funding received: €146,221,148
Number of projects: 23 approved projects

Leading the ranking is GEANT VERENIGING, partner in 23 of the projects funded by H2020. GEANT, a Dutch SME, is the pan-European data network for the research and education community and interconnects national research and education networks (NRENs) across Europe. It has received net funding of €146,221,148 from 2014 to 2020.

2. Fundingbox Accelerator SP ZOO

Funding received: €60,597,586
Number of projects: 38 approved projects

The runner-up is Polish, FUNDINGBOX ACCELERATOR SP ZOO, an accelerator that connects global brands and investors with start-ups to accelerate their innovation processes. This SME has been involved in 38 projects and received €60,597,586.

3. Geant Limited

Funding received: €36,880,965
Number of projects: 13 approved projects

GEANT LIMITED, with an eta contribution of €36,880,965 and thirteen participations, from the United Kingdom is in third place.

4. ICLEI – European Secretariat GMBH

Funding received: €27,276,919
Number of projects: 72 approved projects

German SME with a net funding of €27,276,919 and participation in 72 European projects, is in third place. ICLEI stands for International Council for Local Environmental Initiatives and is the world’s leading network of local and regional governments committed to sustainable development.

5. Iris Technology Solutions, S.L.

Funding received: €26,918,593
Number of projects: 58 approved projects

With 58 approved projects and a net funding of €26,918,593 IRIS TECHNOLOGY SOLUTIONS,S.L. is a company specialised in the currently key area of Digital Transformation.

6. Virtual Vehicle Research GMBH

Funding received: €25,655,644
Number of projects: 72 approved projects

We close this ranking with VIRTUAL VEHICLE RESEARCH GMBH, an Austrian SME that researches and develops innovation and new technologies for vehicles and which has taken forward 72 projects; through which it has obtained €25,655,644 net between 2014 and 2020.

What role will SMEs play in Horizon Europe

Horizon Europe, the new framework programme starting in 2021, recognises the key role of SMEs in the European innovation ecosystem and continues to support their growth with various funding instruments.

EIC Accelerator, the European Innovation Council’s (EIC) flagship programme for SMEs, offers a range of complementary funding through the EIC Pathfinder (novel ideas for radically new technologies), EIC Transition Activities (transforming research results into innovation) and EIC Accelerator (deploying innovation to the market) programmes.

A total budget of around €10 billion is expected to be allocated to the EIC for 2021-2027, with a large majority of the funds allocated to the EIC Accelerator programme, as well as some new features that will be integrated in this new Framework Programme:

Calls for “EIC Accelerator Challenges” projects will be published to fund breakthrough innovations, especially in the fields related to digitalisation, health and the EU Green Deal.
Limiting the number of project resubmissions by establishing a 12-month latency period after the submission of 2 consecutive proposals.
Simplification of the evaluation system by applying a “go/no go” 4-step approach to the selection process.

Although Horizon Europe dates and calls have not yet been officially published, we are starting hear of some key dates: the first EIC Accelerator call will open in the first half of 2021: the first deadline for the full application phase is estimated for 9 June 2021 and the second for 6 October.

Source: Kaila and https://webgate.ec.europa.eu