Unclaimed fortune in EU coffers
Millions of pounds in
aid from Brussels is going begging because British technology firms are simply
not aware that it is available. The EC Framework programme is aimed at encouraging
small firms to collaborate with larger businesses and academics in order to share
ideas for research and development projects.
The scheme pairs the resources and financial strength
of large corporations with the agility and flexibility of small firms, and adds
the cutting-edge research skills of academia to develop products and ideas.
It
was launched in the early Nineties and the current round of lucrative funding
-- called Framework Six -- has been responsible for allocating more than 3.5 billion
a year to a mixture of projects run by small and medium businesses, as well as
large corporations.
But it has emerged that British technology firms have
been missing out on their share of the spoils.
The UK allocation in the
IT category has been less than 12 per cent of the total while German companies
have cornered 21 per cent. This is not favouritism -- it is just because many
British businesses simply have not applied.
Zarlink Semiconductor made
its first application for a share of the funding in 2003. It joined partners,
including a German medical technology firm and a Belgian hearing implant company,
to apply for aid for several projects.
The microelectronics division of
the firm, based in Caldicot, Monmouthshire, received more than 500,000 for one
project alone. Its first tranche of funding meant that it could treble its research
team.
Martin McHugh, Zarlink's business development head, says: "We
had been vaguely aware of the opportunities, but from the outside the projects
looked cumbersome and bureaucratic.
"By aligning with the right partners,
it became easier. We are currently preparing for Framework Seven and know the
people to work with, which projects are suited to us and how we will structure
our bid."
Small and medium enterprises can apply for one of seven categories
of funding. The next round of handouts, Framework Seven, which starts in January,
will offer even greater financial support.
Aid for Framework-funded projects
across Europe ranges from 70,000 to 21 million.
Peter Walters, of the Department
of Trade and Industry, advises businesses on preparing applications. "Read
the available guidelines carefully, then talk to potential partners and the National
Contact Point, who will guide you through the process," he says. "But
start early."
Firms must demonstrate that they can fund half of the
costs of each project. It is important that they vet their potential partners
because if one party defaults on its commitment, the remaining members of the
consortium may be held liable.
Small companies can find partners and academic
links through a website and advice lines.