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GENERAL INFORMATION

POP 6 0800_SME_brochure_MEP5.indd cov1 1/06/07 16:54:20

 Interested in European research?

RTD info is our quarterly magazine keeping you in touch with main developments (results, programmes, events, etc.). It is available in English, French and German.
A free sample copy or free subscription can be obtained from:
European Commission
Directorate-General for Research
Information and Communication Unit
B-1049 Brussels
Fax (32-2) 29-58220
http://ec.europa.eu/research/rtdinfo/index_en.html

Europe Direct is a service to help you find answers to your questions about the European Union

Freephone number (*):

00 800 6 7 8 9 10 11
(*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed.

LEGAL NOTICE
Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information.
The views expressed in this publication are the sole responsibility of the author and do not necessarily reflect the views of the European Commission.

A great deal of additional information on the European Union is available on the Internet.
It can be accessed through the Europa server (http://ec.europa.eu).

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities, 2007

ISBN 978-92-79-05073-2

© European Communities, 2007

Reproduction is authorised provided the source is acknowledged.

Printed in Belgium
PRINTED ON WHITE CHLORINE-FREE PAPER

POP 6 0800_SME_brochure_MEP5.indd cov2 1/06/07 16:54:22

 Foreword:
SMEs have a role to play in European aeronautics

In the European aeronautics
sector, big players dominate,
but alongside the well-known
names are thousands of smal-
ler companies, often at the
cutting edge of innovation but
facing serious problems ac-
cessing and benefiting from
pan-European research pro-
grammes.
Micro, small and medium-sized enterprises (SMEs) play a central role in the
European economy. They are a major source of entrepreneurial skills, innovation and
employment. In the enlarged European Union of 27 countries, some 23 million SMEs
provide around 75 million jobs and represent 99% of all enterprises. However, SMEs
are often confronted with market imperfections. They frequently have difficulties
in obtaining capital or credit, particularly in the start-up phase. Their restricted
resources may also reduce access to new technologies. For all of these reasons,
targeted support for SMEs has become a major EU priority.
Carrying out aerospace research is widely recognised as a difficult and high-risk
endeavour, even for the sector’s biggest players. The task is even greater for small
companies with only a fraction of the financial resources of the big spenders. The payoff
for such research often comes only after many years of effort and expenditure. Long
lead times, high costs and the preference of big companies to deal with tried and tested
suppliers, all tend to work against small companies and newcomers. The marked
consolidation within the sector is another factor that can squeeze out small firms.
Yet, in spite of all this, aeronautics SMEs are getting on with their work. This brochure
presents just a few of Europe’s shining examples – SMEs providing real contributions
in the field of aeronautics. Make no mistake – as key partners in major research
initiatives or as project leaders in their own rights, SMEs are helping Europe to define
its priorities and tackle its most pressing issues, leading the way to a new and better
air transport future.
Janez Potočnik
EU Research Commissioner

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 SMEs on the rise
According to European Commission Vice-President Günter Verheugen, SMEs are, “...the
engine of the European economy, an essential source of jobs, create entrepreneurial spirit and
innovation in the EU and thus are crucial for fostering competitiveness and employment.”
In the European aeronautics sector, where innovative technologies are especially
important, SMEs can indeed play a central role. However, such firms have limited
financial resources, and therefore their investment choices must be carefully
scrutinised and made in accordance with strict business plans.
SMEs have helped develop fixed trailing edge secondary structures for Airbus.
POP 6 0800_SME_brochure_MEP5.indd 2
What is an SME?
The category of micro, small and medium-sized enterprises (SMEs) includes
companies that employ fewer than 250 persons and that have an annual turnover
not exceeding 50 million euro, and/or an annual balance sheet total not exceeding
43 million euro.
(http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/
sme_user_guide.pdf)
Thanks to Commission support, there has been strong increase in SME participation in
industrial research and development over successive EU Research Framework Programmes.
Under the current Sixth Framework Programme (FP6), SMEs are contributing to European
aeronautics R&D initiatives both as partners and as full-fledged project leaders.
Keys to success
According to Kevin Corti of the European Federation of High-Tech SMEs, access to
larger firms is crucial to European SME success. “It’s about doing business,” he says,
“and doing business, for SMEs, means linking up and partnering with big companies.
The big companies, for their part, have to resist the temptation to keep going back to
the same SME partners over and over. It is certainly necessary but not necessarily
easy for big European firms to find and work with smaller partners.” Doing so, he
says, is the only way to ensure that our European industries remain dynamic and at
the forefront of technological innovation.
1/06/07 16:54:27
 European Commission- Meanwhile, Axel Krein, Airbus’ Senior Vice-President for Strategic Developments has
funded initiatives such commented on his company’s ongoing collaboration with Eastern European players,
as AeroSME, ECARE and including Russia and the New Member States, saying, “We now have considerable
SCRATCH have already pro- experience in partnerships with their excellent research institutes, but we can do a lot
vided a major positive impe- more in terms of identifying and working with their SMEs.”
tus, creating opportunities
for SMEs and larger firms
to link up and move forward
with important research
actions (see page 7).

Kevin Corti (left) stresses business sense for high-tech SMEs.

Enlargement a positive step

Identification of high-potential SMEs in the New European Member States is now a
major priority and a major opportunity for European research. François Quentin of
Thales has said, “We are constantly looking for new ways of including more players
who can contribute to increasing efficiency and innovation. The SMEs just as New
European Member States are very relevant in this sense, with a lot to offer and still
many unidentified potential partners out there.” Quentin is currently serving as
Co-Chairman of ACARE, the highly influential European Technology Platform for
aeronautics research. Technician riveting part of the pressure bulkhead of an Airbus aircraft. Photographed at Deutsche Aerospace
(DASA), Bavaria, Germany.

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 SMEs in FP7

Some 400 SMEs are already participating in FP6 aeronautics research projects. The decision also called for the reintroduction of the 15% threshold for SME
Under the final FP6 call for proposals, SME garnered almost 12% of EC funding. participation in co-operative research programmes, sending what many believe to be
the right message to small firms.
In a December 2006 decision(1), the EU Competitiveness Council urged the European
Commission and Member States to ensure that small companies can benefit from the To stimulate SME participation, the Commission has now raised the funding rate for
Seventh Framework Programme for Research and Technological Development (FP7) SMEs from 50% under FP6 to 75% under FP7.
and the Competitiveness and Innovation Programme (CIP).
For an overview of funding opportunities available to European SMEs, consult the
The European Parliament following internet page:
SME participation in aeronautics and the Council reaffirmed europa.eu.int/comm/enterprise/entrepreneurship/sme_envoy/index.htm
(Retained proposals before negotiation)
the importance of SMEs

;E+ &-!' for Europe’s economy and FP7 responds in the affirmative
;E* stressed that particular Liam Breslin, the European Commission’s Head of Aeronautics Research, has
 attention should be paid to remarked that, under the Framework Programmes, the Union has already committed
the adequate participation itself to increase SME participation in aeronautics.
.!- .!'
 of SMEs, in particular
k n o w le d g e - i n t e n s i v e “The effect of this commitment,” he says, “is demonstrated by the steady increase in
)!- SMEs in transnational participation of SMEs since the Fifth Framework Programme; while the number of

co-operation. participating SMEs was 40 for the first call of FP5, it reached 150 for the last call of
FP6. Over the same period, the budget share for SMEs increased from 4.8% to 9.8%.”

=hWdjCE FWhj_Y_fWj_ed

The SMEs participation has doubled in FP6 compared to FP5

SME participation in EU-funded research takes two forms:
This doubling results from: • As key partners in major industrial research initiatives;
• the actions undertaken by the Commission to promote SMEs participation
• As project leaders in their own rights.
• and the increasing support from the big industry players (IMG4)

1
Decision n° 1982/2006/EC of the European Parliament and of the Council of 18 December 2006
4

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 Critical opportunities: how FP7 can help

Under FP7 (2007-2013), says Liam Level 2 projects, also open to SME participation, involve development to a higher
Breslin, EU commitment to SMEs technological readiness and with a high level of integration. Here, EC grants typically
will only increase. The Union range between €8 million and €60 million. Topics will vary from one call to another.
will continue to work towards
more SME involvement in critical Additional opportunities should be available under the ‘Clean Sky’ Joint Technology
research initiatives, FP7 will Initiative (JTI), which has set aside 12% of the EC contribution for SMEs.
seek to stimulate the ongoing
restructuring of the aeronautics
© EUROLIFT II

industry, including the integration How to Participate

of the supply chain and, in For up-to-date information on calls, participation rules, guidelines for proposals, etc.
particular, SMEs. see the Cordis website:
SMEs deliver state-of-the-art CFD methods. http://cordis.europa.eu

Call for proposals

The total EC grant available for collaborative research in aeronautics over FP7 (2007-
2013) is on the order of €1 billion. This opens a vast number of opportunities for SMEs.

The first FP7 call for proposals was issued on 22 December 2006. Research in the
How to get involved in Aeronautics research
field of aeronautics is addressing ‘greening’, time efficiency, customer satisfaction
and safety, cost efficiency, protection of aircraft and passengers, and pioneering air • Stay informed about running projects that are of interest to you:
transport systems of the future. http://ec.europa.eu/research/transport/transport_modes/aeronautics_en.html
• Find out if a continuation of a project is planned
Topics for Level 1 projects, i.e. projects oriented towards
wards upstre
upstream research with an EC gran
grant • Explain to coordinators what you can bring to their project
typically below €8 million, include production,
uction, maintenance
tenance aand repair, design systems and • Be ready to act
tools, systems and equipments, fligh cs, ae
ight physics, aero structures, propulsion and avionics.
onics.

POP 6 0800_SME_brochure_MEP5.indd 5 1/06/07 16:54:49

 SMEs Getting in the game
AROSATEC’ improving turbine engine maintenance

The EU-funded AROSATEC project (Automated Repair and Overhaul
System for Aero Turbine Engine Components), composed largely of
SMEs, has developed new processes for the automated repair and
overhaul of aeroengine blades, discs and ‘blisks’ (bladed discs).
Today, maintenance, repair and overhaul (MRO) of aero engine components involves
a chain of processes, including inspection, de-coating/coating, welding, milling and
polishing. Most of these processes are still carried out manually, and while the supply
industry is developing improved and automated machining equipment, the individual
steps remain separate and unconnected.
Improving and integrating
“Our first objective was to improve existing repair methods for aero-engine
components,” explains Thomas Kosche of BCT GmbH. This was to be achieved through
adaptive machining technologies to compensate for part-to-part variation in complex
turbine components.
“The second goal,” he says, “was to develop a new data management system which
would constitute the core of a fully automated overhaul process, integrating individual
steps into a comprehensive automated repair chain.”
To achieve its objectives, AROSATEC coordinator BCT GmbH enlisted several
international SME partners, including BCT GmbH itself.
Targeting key technologies
Research on scanning technologies was one of the main focuses of the project.
Reliable scanning results for engine components serve as the basis for inspection
and for subsequent adaptive laser welding and milling processes. Kosche says the
AROSATEC project improved optical scanning methods so that even shiny materials
can now be assessed easily and automatically.
The integration of systems was another important issue addressed by the project.
“All of the new processes are equipped with interfaces for communicating with a
database”, explains Kosche.

AROSATEC Demonstrated success

• Seven partners • Total Cost: €2.3 million The final AROSATEC meeting took place in Leuven in 2006. BCT GmbH President
• Coordinator: BCT GmbH • EU funding: €1.1 million Claus Bremer says, “Our company has generated two business collaborations with
(www.bct-online.de) • www.arosatec.com two AROSATEC partners, we are now planning a new proposal for FP7 and we may
• Duration: 33 months join a larger project. In summary, AROSATEC is a big success for our company.”

POP 6 0800_SME_brochure_MEP5.indd 6 1/06/07 16:54:52

 Helping SMEs participate in EU research

“Participating in EU Collaborative Research Project is a challenge,” says Rémy Dénos,

Project Officer in charge of SMEs at DG RTD’s Aeronautics unit. “If we want to promote the
participation of SMEs, we need to provide them with specific support. With this in mind, AeroSME
we are funding several complementary support actions to tackle different issues.” Informing SMEs about Possibilities
Coordinators of ‘small’ Collaborative Projects can find SMEs here
Specific information for SMEs, including latest information events and workshops can http://www.aerosme.com
be found at the AEROSME Helpdesk ( http://www.aerosme.com).

ECARE
ECARE can help SMEs to establish contacts at regional level, including liaison with
Clustering Aeronautics Regions
nearest regional associations.
Coordinators of large collaborative projects can find SMEs here
http://www.ecare-sme.org/plus
Coordinators looking for qualified SMEs to participate in collaborative projects can
contact AEROSME for Level 1 projects or ECARE for Level 2 projects.
SCRATCH
The SCRATCH consortium is providing free support to potential participants looking to Setting-up collaborative research projects led by SMEs
set up projects with an SME dimension under future calls for proposals. This includes http://www.aero-scratch.net
developing a partnership, calculating costs and durations that an SME or SMEs can
reasonably handle. Note that the AROSATEC and LIGHTNING projects described in
Don Q Air
this booklet were incubated by SCRATCH.
Promoting SMEs from Poland, Romania and Turkey
contact: Zbigniew.Turek@kpk.gov.pl
Finally, the Don Q Air project is now providing specific support to a small group of
countries where R&D investment in aeronautics is particularly low – Poland, Romania
and Turkey.

POP 6 0800_SME_brochure_MEP5.indd 7 1/06/07 16:54:55

 More project success
Tenacious SME forges ahead

“Our major difficulty has been getting people to invest in our business,” says Angus
Flemming of the UK’s Aviation Enterprises Ltd. “Today’s investors want a quick return,
to double or triple their money in a year. Basically, they’re out of touch with reality.”

Aviation Enterprises is a specialist design, development and manufacturing

organisation specialising in the light aviation industry and the application of lightweight
and high performance composite materials. The company is now playing a critical

© Stock.Xchng
role as coordinator of the EU-funded LIGHTNING project (Lightning protection for
structures and systems on aircraft utilising lightweight composites).

Unconventional composite aircraft need special lightening protection systems.

“The European Aviation Industry has been quick to use lightweight composite materials,
especially carbon fibre, for primary structures and flight control surfaces,” explains
Flemming. Composites are lightweight, stiff, and provide smooth, aerodynamically
efficient surfaces. Carbon fibre is particularly attractive because it has good corrosion
and fatigue properties. This results in enhanced efficiency and performance and a
significant weight reduction.
Developing lightning protection for small aircraft
However, lightning protection is difficult to incorporate into a composite aircraft
compared to conventional aluminium ones. Composite airframes also provide less
electromagnetic shielding compared to aluminium, making it more difficult to protect
avionic systems. Both of these problems are exacerbated in light aircraft by their
small size and low weight.
The LIGHTNING project is addressing the need to optimise lightning protection systems
for aircraft with lightweight composite structures. It will allow manufacturers to make
safe use of the performance advantage provided by such materials, says Flemming.
”This kind of work requires time, foresight, and a huge amount of effort and, of course, long-
term funding. Although we came up with the idea for the LIGHTNING project, as a small
company we could not have carried out the work on our own. We identified potential partners
like Airbus Spain and Diamond Aircraft Industries in Austria and were able to convince them
to help us, but it wasn’t easy. As an SME, you need to be bold, you need to have a clear
message, and, in some cases, you need luck on your side. But you can succeed.”
Flemming says the LIGHTNING project aims to reduce by 50% the current 1.5% to
2.5% weight penalty for adding lightning protection to an empty aircraft.

For more information:

LIGHTNING project:
8 http://ec.europa.eu/research/transport/projects/article_3703_en.html
Aviation Enterprises: www.aviationenterprises.co.uk/avent/

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 SMEs broadening horizons

Large Collaborative Projects are New vision

among the main EU instruments for TATEM (Technologies and techniques for new maintenance concepts) is developing
co-operative industrial R&D. They are and validating philosophies, technologies and techniques that can turn unscheduled
aimed at addressing major societal aircraft maintenance into scheduled maintenance, aiming to deliver a 20% reduction
needs by mobilising a critical mass of in airline operating costs within ten years and a 50% reduction over 20 years.
research and technological develop-
ment resources and competences. With “The TATEM project includes quite a number of SMEs, all contributing to the project
clearly defined strategic research ob- and some of which are really quite outstanding,” says Worsfold. “I would cite Oration
jectives they focus on obtaining specific S.A. as just one example.”

© James King-Holmes / Science photo library

applicable results.
Oration is an Athens-based SME providing speech-enabled interactive voice response
SMEs can play an important role in large (IVR) applications that allow the automation of contact centre functions. The company
Collaborative research Projects bringing offers solutions to a wide range of vertical markets, from voice banking to retail and
specialised skills and knowledge, new healthcare speech applications.
blood and new ideas. “What it really
comes down to is individuals,” says “Although they don’t have a lot of experience in the aeronautics sector per se, Oration
Martin Worsfold of Smiths Aerospace. and other small groups like it have been a valuable asset to our project,” says
“Whether you’re big or small, if your Worsfold. “In a way, our project is quite basic in nature; we are looking for new ideas
SMEs bring specialised people with specialised skills.
people have something to contribute, and solutions and SMEs such as Oration can sometimes find new and fresh ways to
then you’re worth bringing on board.” look at things.”

Smiths Aerospace is a leading global provider of technologies and systems to builders “Another important aspect of this this kind of large project is the way it brings together
and operators of military and civil aircraft and engines and is coordinator of the EU partners from all corners of Europe. It forces us to learn and expand, both in technical
funded TATEM project. terms but also in cultural terms.”

For more information:

Smiths Aerospace: www.smiths-aerospace.com/
9 TATEM project: www.tatemproject.com/
Oration S.A.: www.oration.gr/

POP 6 0800_SME_brochure_MEP5.indd 9 1/06/07 16:55:00

 KI-77-07-147-EN-C
How to Participate
Calls for proposals in aeronautics are published on
http://cordis.europa.eu/fp7
under ‘Find a call’, FP7-AAT (AAT: Aeronautics and Air Transport)

Contact:
L. Breslin
R. Dénos
Directorate-General for Research
Directorate H: ’Transport’

GENERAL INFORMATION
Unit H3: ‘Aeronautics’
1049 Brussels
Tel: +32 2 298 64 81

POP 6 0800_SME_brochure_MEP5.indd cov4 1/06/07 16:54:16