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OSEO and the funding of French SMEs in FP7

Michel Ganoote, International Department, European Delegate, Strategy and Development FP7 SMEs National Contact Point email: michel.ganoote@oseo.fr

With a background as Economist, and after 13 years as Project Officer in ANVAR the French public organisation for SME and Innovation regional offices (Lille, Strasbourg, Paris), , Michel Ganoote has been now working for 10 years as OSEO European Delegate, for Strategy and Development, in charge of relationships with the European Commission and other stakeholders, managing strategic European initiatives such as “Technology rating”, “INNET”: transnational initiative for involvement of SMEs in clusters in Europe, and more recently “TACTICS” the new network aiming to develop better cluster policies and practical tools for clusters and their firms in the EU, under the PRO INNO/CIP.
Michel Ganoote is also NCP SME (French National Contact Point for SMEs) for FP5, FP6 and FP7.
In 2008, he has been responsible for the implementation of the “EU Research for SMEs: Innovation in motion” event under the French EU presidency.

1. Can you briefly present us your activity within OSEO and your connection to FP7?


OSEO is the National Contact Point for SMEs in FP7, and is also a member of the EEN European Network which aims to reinforce European technological partnerships.

As NCP for FP7 SME, OSEO informs, educates and supports French SMEs participating and setting up potential projects under FP7.

For more details on FP7, see the OSEO website, in French:

http://www.oseo.fr/votre_projet/international/aides_et_financements/partenariats_technologiques/financement_de_projets_en_europe/le_7e_pcrdt

2. In general, are there many SMEs in FRANCE which show interest in FP? What motivates them to participate to this programme?


Up until the 1st of April 2010, 561 French SMEs have participated in the 7th Framework Programme contracts (source: European Commission) with an overall participation of SMEs in calls for proposals 5 to 6 times higher.

The average financing of SMEs is 280 000 euros for 3 years of R&D activities; the Ile de FRANCE is a leading region in Europe from this point of view.

SMEs applicants are interested in these projects of technological partnership because of their advantages in terms of networks and results of research developed jointly (SMEs are project partners nine times out of ten, and 4 times out of 10 they play a major role - leaders of \\\"work packages\\\"). Also, they show real leadership and visibility (1 times out of ten, SMEs are project leaders) in order to subsequently insure an industrial and commercial development on new markets.

FP7 PROGRAMME Germany United Kingdom Italy France Spain Rang FR
COOPERATION 714 495 432 443 304 3rd
CAPACITIES 130 168 158 88 208 5th
PEOPLE 36 34 10 30 11 3rd
TOTAL 880 697 600 561 523 4th



3. How is the selection process of the European Commission perceived by the French project leader?


The selection rate and therefore the funding opportunities are often considered inappropriate in relation to SMEs’ expectations, as well as the quality of projects in which SMEs are involved.

Indeed, over 40% of these projects are good projects and only half of them were finally selected for funding. Hence the urgent need for a genuine approach to reposition these unfunded good projects and a better coordination between European and national systems. This can be particularly achieved through \\\"rating\\\" mechanisms that can be understood by everyone, thus allowing the creation of bridges, particularly towards the bankers and businessmen.

Very important, there is also the criterion of economic impact which is often considered to be misperceived by EC (whose experts are perceived too scientific and insufficiently industrial).

The Eureka, Eurostars and ERANET initiatives add flexibility and complementarity in the financing arrangements, but the overall FP budgets, available for SMEs are considered insufficient.

The approach of a two-step selection for certain EC calls for proposals is often perceived as a too long indecision, poorly adapted to the logic of project management and time to market.


4. What are the main activities that you have developed within OSEO for the release of the next calls for proposals under FP7, scheduled for mid-July?


Beyond the specific activity of information and monitoring developed by the team of SME NCP on the dedicated Eurosfaire website containing all French NCPs, a strong information activity has been developed in conjunction with the Enterprise Europe Network. Monthly information bulletins are sent to the clusters’ governorships, and to other dedicated networks such as RETIS and the corresponding \\\"KIT Europe Training” in a complementary approach between national and regional networks.

Most importantly, OSEO, through its regional network of offices is in direct contact with companies and their partners to optimize a particular targeted support through the implementation of an aid to technological partnerships (APT) dedicated to helping project leaders become coordinators or partners in the setting up of collaborative projects.

Nearly 200 aids, like the one mentioned above are funded annually by the regional directorates of OSEO.

OSEO has initiated an action to significantly increase the integration of French SMEs as partners in FP collaborative projects.

Remember also, at this stage that OSEO is much more than an institution bringing support to FP or financing innovation projects! Indeed, with its presence every step of the way in the SME’s risk generating, development stages (innovation certainly, but also international development, investment, treasury, etc), OSEO, the Entrepreneurs Enterprise, thanks to its various tools brings answers for every situation (guarantees, financing, mezzanine loans ....) and takes over much of the risk, allowing contractors to move faster and grow with confidence.


5. How do you see the evolution of FP7 in the coming years and the participation of French SMEs to it?


The major change in FP probably requires a genuine SME program strengthened in term of budget, with a more comprehensive approach to R&D (funding for feasibility and market approaches ... support for the stages before the commercialisation of the product) and above all, a simplification of evaluation and negotiation procedures.... with strengthened links between national (public and private) and European initiatives.