€3bn fund launched for SME product development

New product development contractor Pera Technology said manufacturing and engineering firms were most likely to benefit from the €3 billion fund, which is worth more than twice the value of its €1.2bn predecessor. The Dedicated SME Instrument is part of the €82bn research and innovation programme, Horizon 2020. Horizon 2020 does not require SME businesses to join larger consortiums; the application process has been made simpler and the European Commission will be obliged to provide a response to funding applications within six months of submission. In order to be applicable for the larger research and development fund businesses must demonstrate market demand and there is a further €50,000 lump sum available to business for this purpose. SMEs can also claim for up to 15 days free of charge coaching to help drive their product to market. Paul Tranter, chief executive of Pera Technology, said: "The European Commission has rightly identified small and medium sized business as the key engine for economic growth and rightly so. There are 20 million SME businesses in the EU and 4.8 million in the UK alone; growing each of these businesses by even just one or two employees will have a significant impact on the economy." Horizon 2020 will go live on 1 January, 2013 and will run for the seven years.