Involvement of the supply chain and SMEs in aeronautics European R&TD projects

1. The 6th EU Framework Programme for RTD Involvement of the supply chain and SMEs in aeronautics European R&TD projects

2. The actions of the aeronautics NCPs should aim at better integrate the entire supply chain in the projects. • The “Guiding principles for setting up NCP systems for FP6” indicates the vital role of NCPs for assuring transparency and equal access to the new structures and instruments of FP6, by providing information and assistance to potential participants. • Aeronautics is a very well structured sector with a small number of major players that coordinate, trough structure like IMG³, and lead most of the EU funded RTD project. • The role of aeronautics NCPs is then even more important, in order to facilitate access to these projects to the entire supply chain.

3. 1 Involvement of the supply chain under FP5 2 SMEs stimulation actions funded by the EC Table of Contents 3 Conclusions

4. The aeronautics sector is very well structured • During the last few years, the European aeronautics industry experienced major reorganisations leading to a reduced number of final customers. • In addition, the main player have set-up organisations, like the IMG³, which role is to co-ordinate the research effort of the main players done at European level. • The consequence is that, in FP5, • most of the Critical Technologies projects and all Technology Platforms were led by one of the major players of the sector, • with a low participation of the whole supply chain from 2d tiers to SMEs.

5. The supply chain is poorly involved • The big industries represent by far the largest number of participations, together with the national aeronautics centers and some universities.

6. Most of the participations are coming from the same originations. ORGANIZATIONS PARTICIPATIONS In the first cal, 48 organizations (10%) represent more that 50% of the participations. 90% 11 UNIVERSITIES 9 R&T CENTERS 28 COMMERCIAL ORGANIZATIONS

7. Compared to other organizations, an SME will participate to less projects and its contribution to a project will be lower. • In consequence, the funding received by one SME is much lower that the funding received by a major player. The financial contribution of an SME is typically 3 times smaller that the contribution of a large company. Very few SMEs participate to more than 1 proposal.

8. In order to achieve a significant funding share for SMEs, it is necessary to combine the participation of a very large number of SMEs together with a limited number of major players. • In order to achieve an important SME funding share, projects have to combine the involvement of a very large number of SMEs together with a limited number of major players. • On the other hand, the composition of the projects consortia should not be to far from the real situation of the supply chain where the trend is to limit, at each level, the number of direct suppliers. • The direct involvement of SMEs in projects with big players presents a limit above which this involvement could become artificial. • In consequence, the entire supply chain must be better involved in order to increase the share of SMEs avoiding artificial situations.

9. SME share (excluding CRAFT) is around 5%, even much more that 10% of the participating organisation are SME. • In FP5, about 6 % (including CRAFT) of the 700 M€ aeronautic budget has been spend on SMEs, mainly through participation of SMEs to critical technologies projects. There was also 12 SME led projects.

10. SMEs participation has increased from call to call iin FP5 • Several measures have been taken during FP5 by the EC and the industry to stimulate the participation of SMEs, amongst other, the funding of different stimulation actions.

11. 1 Involvement of the supply chain under FP5 2 SMEs stimulation actions funded by the EC Table of Contents 3 Conclusions

12. Stimulation actions will continue under FP6. • During FP5, the EC has funded different accompanying measure in order stimulate the participation of SMEs and the whole supply chain. • Amongst those, 2 measures have been particularly efficient, AeroSME an SCRATCH: • AeroSME aims mainly at exchanging information between the supply chain and the major players. • SRATCH aims principal objective is to set up SME led CT projects. • AeroSME and SCRATCH will continue to operate under FP6.

13. AeroSME is a joint activity between the aerospace industry and the European Commission coordinated by AECMA • Objectives • Support and improve SMEs participation in EU funded aeronautic RTD projects • Facilitate co-operation among SMEs and with aeronautics related bodies in order to improve SMEs position in the supply chain

14. AeroSME is covering a large number of countries. • 20 countries participate in AeroSME: • 15 EU Member States, Czech Republic, Iceland, Israel, Norway and Switzerland • Activities envisaged also in the New Accession States, particularly Poland, Hungary and Romania

15. AeroSME support SMEs by disseminating information • AeroSME target first aeronautic SMEs, but other organisations can be supported when possible. • Main services • Web site • Database of European aeronautic SMEs • Newsletter and RTD Flash • Help desk • Workshops

16. The AeroSME database, a tool for partner search http://www.aerosme.com • To date the database has nearly 600 entries on it (mainly SMEs) • Why to use the AeroSME database? • to find partners for European RTD projects • to find partners for joint commercial activities • The AeroSME database is free and has a high visibility in the Aeronautics Industry and the Commission • To register: • fill in the AeroSME Questionnaire • Registration on-line, by e-mail, fax, post

17. The AeroSME database, a tool for partner search • Newsletter and R&TD Project Flash are used to disseminate information by e-mail to a large population (over 700 recipients) • Brief info on: • invitations to events / conferences • delivery dates for proposals • relevant R&TD possibilities • new trends • partner searches / information on projects for which partners (and other types of co-operation) are sought

18. The AeroSME help desk provide a free-of-charge consulting service and facilitate passage of information to SMEs • The help desk provide (from Brussels) support to proposal preparation : • Individual consulting • Partner search and support to the initial setting up of a proposal • The help desk support the dissemination of information from the large companies to he supply chain: • Publication of lists of technologies required by large companies • Support to large companies in their effort to present their proposals to SMEs (ex: today’s workshop on IP for the 1st call), …

19. AeroSME Project Office c/o AECMA – European Association of Aerospace Industries Gulledelle 94-b.5 B-1200 Brussels Belgium Tel: +32 2 775 82 98 Fax: +32 2 763 35 65 E-Mail: paola.chiarini@aecma.org Web site: www.aerosme.com

20. Scratch provides individual support to SMEs in building their proposals • The SCRATCH team is present in 9 countries : France, Belgium, Spain, Germany, Italy, The Netherlands, United Kingdom, Israel, Greece • Their main actions: • Awareness campaigns to raise SME interest, • In situ audit of SMEs, • Identification of potential RTD projects, • Servicing of proposals (help to consortium set up, proposal writing, …) • web site http://www.aero-scratch.net

21. 1 Involvement of the supply chain under FP5 2 SMEs stimulation actions funded by the EC Table of Contents 3 Conclusions

22. Aeronautics NCPs have a clear role to play in order to better integrate the supply chain into RD projects and especially IPs. • The effort to better integrate SMEs and the whole supply chain started under FP5 has to be pursued and further developed in order to contribute to the challenge of allocating to SMEs 15% of the budget of the thematic priorities. • In particular, the action of NCPs in aeronautics should be reinforced and present the following characteristics : • focus on the supply chain and specially the SMEs, • work in close relationship with the running accompanying measures AeroSME (major players proposals (IPs)) and SACTCH (for STP).

23. Jean - Pierre LENTZ DIRECTORATE GENERAL RESEARCH H.3 - Aeronautics Addresse : Mail : European Commission B7 2/31 B-1049 Brussels - Belgium Office location: Rue Béliard 7, 2/31, B-1050 Brussels Telephone : +32-2-296.65.92 Fax : +32-2-296.33.07 e-mail : Jean-Pierre.Lentz@cec.eu.int