Small and medium-sized enterprises (SMEs) are the lifeblood of the European economy, accounting for two thirds of GDP and providing 75 million jobs in the private sector. They are crucial to the EU's drive for innovation and technological development as it seeks to build a dynamic knowledge based economy. In the face of increasing globalisation, accelerating technological change and environmental challenges, European-wide assistance allows SMEs to develop new products and services through innovation and investment in research.

The first source of funding for transnational research is offered to SMEs through the Community Seventh Framework Programme for Research (FP7, which 'Capacities' programme gives large opportunities to SMEs. The broad objectives of FP7 have been grouped into four categories: Cooperation, Ideas, People and Capacities. For each type of objective, there is a specific programme corresponding to the main areas of EU research policy. All specific programmes work together to promote the creation of European poles of excellence.

New additionnal opportunities are now being developed through the coordination of national and regional funding programmes, with support of FP7 funding. This will mutually reinforce these programmes and help SMEs to access transnational research via their established national and regional partner agencies.