Skills for innovative SMEs

Expected Outcome:

• Establishment of an SME support scheme through the Enterprise Europe Network, which delivers transnational skills-matching, recruitment support, and innovation management services to innovative SMEs across Europe.
• This support scheme has the following expected outcomes: Innovative SMEs have reduced labour and skill shortages through a transnational mobility scheme, which allows them to recruit and train highly skilled researchers from abroad;
• SMEs have improved innovation capacity to support research and innovation (R&I) projects and increased participation of highly skilled staff employed in R&I through recruitment and training;
• Researchers gain new knowledge and skills in industrial innovation and business management, through employment and training in innovative companies.

Scope:

To facilitate the innovation to investment journey and boost competitiveness, the EU needs to promote skills and quality jobs and help SMEs strengthen their innovation potential, by addressing labour and skills shortages, as highlighted in the Competitiveness Compass for the EU. Europe faces a growing challenge in meeting the demand for skilled talent in strategic sectors like clean and circular technologies, energy, health, biotech, agriculture, bioeconomy, digital technologies, aerospace and civil security. The progressive loss of women in science, technology, engineering and mathematics (STEM) careers, also known as the ‘leaky pipeline’, is further increasing these skills shortages. Nearly four in five SMEs say they cannot find the talent they need. The lack of access to skills, including the latest scientific knowledge and capacity to manage innovation processes effectively, have been identified as major barriers for innovation in SMEs, especially among start-ups and scale-ups.

In line with the 'Choose Europe for Science' initiative, this action is expected to set up a transnational mobility scheme to provide lump sum grants (via FSTP) to innovative SMEs who have experienced skill shortages and difficulty in recruiting innovation talent.

The action builds on the successful results of the ‘European SME innovation associate pilot’, which was launched in three consecutive calls under the Horizon 2020 work programmes 2016 – 2020. An evaluation study^[1] of this pilot found that the grant was instrumental for most SMEs to recruit an innovation associate and that most supported SMEs were able to bring the results of their innovation projects to market. The insights from this earlier action should be reflected in any proposal. The action also complements Marie Skłodowska Curie Actions (MSCA), by providing additional work opportunities for researchers/early-career professionals holding a PhD, including but not limited to those who completed the MSCA fellowship, and aim to gain further experience in the private sector. Existing structures, such as the European Universities alliances, may offer SMEs further access to trainings, resources, networks, facilities and infrastructures across Europe.

The selected consortium shall organise and manage the SME support scheme. In particular, the consortium is expected to:

• Ensure the sound design and implementation of the SME support scheme, including launching the call, eligibility checks, evaluations, and business support, where necessary.
• Promote the scheme to secure quality applications, monitor impact (including on skills development) and disseminate success stories of the innovation-to-investment journey.
• Provide support to funded SMEs for the transnational recruitment of researchers, including through the EURAXESS network and assistance with visa applications;
• Organise networking events and training on industrial innovation and business management, and promote cooperation among the community of researchers and funded SMEs;
• Ensure equal access across EU Member States and Horizon Europe Associated Countries and balanced distribution of strategic sectors.

Eligible third parties to the FSTP scheme are SMEs that have an innovation idea and can demonstrate that the relevant skills cannot be found on the national labour market (e.g. by providing data on labour and skills shortages on the national context). SMEs should include in their application to an FSTP call a description of their innovation idea, a vacancy notice specifying the knowledge and skills needed for the development of the project, and a recruitment plan, which offers equal opportunities to researchers of all genders. Upon successful evaluation organised by the consortium, selected SMEs are expected to advertise their vacancy on the EURAXESS portal and other relevant platforms, with clear indication that the grant was awarded, in order to recruit the researchers.

The scheme encourages transnational mobility of PhD knowledge holders, including MSCA fellows who have completed their fellowships at the date of recruitment. In the case of MSCA fellows, since they have already met the MSCA mobility rule, they do not need to move again if selected by an SME in their current country of residence. Additionally, SMEs may hire researchers with the nationality of the country in which the SME is located, as long as those researchers are currently employed and residing abroad.

Moreover, the scheme should be open to recruit researchers both from STEM disciplines and social sciences and humanities (SSH) background, who could bring social innovation practices or an interdisciplinary perspective to the innovation capacity of the SMEs.

These essential specificities are expected to be built into the SME support scheme:

• Competitive salary of the researcher / total employers’ costs including full social security according to national legislation for the researcher for a minimum duration of 12 months and a maximum duration of 24 months (including the salaries actually paid if the researcher leaves before 12 months).
• Relocation costs of the researcher, which may include removal cost, travel cost of the researcher and their immediate family (if applicable) to the new place of employment, visa cost (if applicable), translation cost of certificates (if applicable), a temporary transition allowance to cover extra costs upon arrival in the place of employment, cost for the relocation in the country of origin after the project (if applicable), a family and childcare allowance (if applicable), as well as other clearly justified expenditure directly related to relocation.
• Travel to conferences and workshops, as well as access to and use of technological and research infrastructures, or other activities relevant to the SME’s innovation idea.

[1] European Commission: Executive Agency for Small and Medium-sized Enterprises, Ramboll, LE Europe, DIW, CARSA, ECORYS, Botnari, A., Hahn, F., Juskevicius, R., Lübbers, T., Muller, P., Riviere, M., Savickaite, I., Sierra, N.Weström, P., Accompanying study to the European SME Innovation Associate – Pilot action – Final report, Publications Office, 2019, https://data.europa.eu/doi/10.2826/645018