The EU is fully aware of the importance of research to small and medium-sized enterprises (SMEs) and since the 1980's have encouraged them to participate in the "thematic" part of the EU's research framework programmes, offering them an excellent way to participate in research projects that lead to the development of new products or services. Projects funded under these parts of the programme address specific research priorities in fields such as health, environment and information and communications technology (ICT) for example. SMEs can take part in such "themes" if relevant to their area of expertise. This study focuses on SMEs that participate under the "thematic" programmes of FP5 and the "thematic" areas of FP6. It sheds new light on the role SMEs play in such projects and what social and economic impacts project participation has on the SMEs themselves. It reveals the reasons why SMEs embark on EU-funded projects, the skills they bring and the factors influencing the extent to which SMEs benefit from the projects. Crucially it highlights the need for the creation of an integrated SME strategy covering the entire framework programme.
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