Additionally, administrative burden and project complexity must be taken into account. For these reasons, companies, especially SMEs, may have difficulties participating in and benefiting from these types of projects.
Therefore, the European Commission has increasingly used the funding mechanism called Financial Support to Third Parties (FSTP) or Cascade Funding in favour, mainly, of European SMEs and startups. This funding modality is based on a mechanism for distributing funds to third parties through calls managed by the consortium of a project funded by the European Commission.
The open calls are primarily aimed at SMEs and startups, making them an excellent opportunity for these entities to initiate their internationalisation process in the field of R&D&I in a conducive environment, as they involve the following aspects: reduced administrative burden, both in the preparation of the proposal and in the justification of the project compared to other European projects such as those of Horizon Europe; greater agility for the development and management of the project as they are individual projects or carried out in collaboration with a reduced number of partners, and are of short duration, with a maximum of 18 months and; a clear focus on the company's needs or challenges.
Additionally, they offer: funding and advice for the integration of new technologies and processes within the company, usually in the form of grants ranging from €60,000 to €250,000; simple justification and payment processes, mostly through the lump sum method, based on results-based justifications; access to new international networks and the ease of collaborating with organisations and companies that are at the forefront of knowledge in new technologies relevant to SMEs and; experience, recognition, and improvement of the company's reputation both in the local market and in the global business community through participation in internationally focused European projects.
The use of this mechanism has not only continued to grow in the new period of the European Framework Programme for Research and Innovation, Horizon Europe (2021-2027), but it has also been extended to other European programmes that allocate a higher percentage of the European budget to this mechanism globally. This mechanism can also be found in the DIGITAL Programme, I3 Programme, Single Market Programme, LIFE Programme, and EURATOM.
Considering the benefits of these types of calls, EURADA has developed a methodology to identify cascade funding projects early, facilitating their dissemination in their respective regions. This methodology has been specifically designed for one of our members, SPRI, which has launched an initiative to promote SME participation in cascade funding calls.
Should you be interested in knowing more about this methodology and how this can be replicated in your respective regions, we invite you to join our webinar on "Promoting Internationalisation of R&D&I in SMEs through Cascade Funding Calls", which will be held on 12 June 2024 from 10:00 to 11:00 CEST. You may check the agenda of the webinar here and register here.
You may also get in touch with us if you are interested in this methodology and we will provide you with detailed information.
