Technology Stimulation Measures for Small and Medium-sized Enterprises


This glossary deals with concepts that are central within the Fifth Framework Programme.

Acknowledgement of Receipt

official confirmation that the CRAFT Project proposal has been received by the European Commission

pre-existing know-how

the knowledge each partner brings into the project

Call for Proposals

a notice published in the Official Journal of the European Communities inviting researchers to submit proposals for carrying out work to implement a specific RTD programme

Consortium Agreement

a contract defining the Intellectual Property Rights (IPR) and the obligations of the project partners; it takes care of aspects not covered by the CRAFT Contract (see CRAFT Contract)

Contract Negotiation Form

a form that is designed to elicit essential information for use during negotiations with the European Commission for an RTD Contract.

contract negotiations

are carried out between the submission of a CRAFT Project proposal and the start of the project and before signing of a CRAFT Contract; the Project Co-ordinator is responsible for these negotiations

contract signature

when all contract details have been finalised, the Commission will send the CRAFT Contract to the SME Co-ordinator for signing


participant who contributes to the costs and/or carries out the work on the project

CORDIS database

an EU database for partner search, for on-going RTD projects and for project results


Cooperative Research Action For Technology

CRAFT Contract

a standard contract laying down the terms and conditions for Commission support, of which most is non-negotiable; it clearly states the responsibility of the project towards the Commission, but it does not specify how the liability is divided between the partners (see Consortium Agreement)

CRAFT Focal Points

neutral observers in each EU Member State who inform the Commission about potential problems and try to look for structural solutions; they know what kind of projects can be successful and give information to SMEs on CRAFT


see project deliverables


means to spread the results of the project to interested parties. The project partners decide themselves how and which parts of the results to disseminate.

end user

an SME partner who acts as a first user to test and evaluate the new technology and guarantees the professional expertise and follow-up

European Framework Programme

a multi-annual (normally five year) programme of EU RTD policy defining broad priorities and the overall sums of money to be allocated; implemented through specific RTD programmes


see proposal evaluation

Evaluation Summary Report

a Commission report with ratings, remarks and recommendations concerning the project proposal; it is attached to a letter to the Project co-ordinator about whether the project has been selected for financial support or not

Technology Implementation Plan

a plan dealing with legal protection of intellectual property and how the consortium intends to exploit the results of the work.

Exploratory Award

gives SMEs funding to prepare a proposal for an EU RTD project; Proposal expansion and a Research feasibility study can be included in the preparatory work

favourable conditions

preferential commercial conditions (open market payment and other conditions)


all information generated by any contractor, or third party, in the performance of the project

indirect costs

see overhead costs

information package

a brochure from the European Commission giving the necessary information on how to prepare an EU RTD proposal

Innovation Relay Centre

a network of RTD liaison offices set up by the Commission in 1993 in order to assist in the utilisation of the results of EU research; promote and provide information and exchange of partner profiles


Intellectual Property Rights


see Innovation Relay Centres

Letter of Approval

all Project Co-ordinators receive a letter informing them about the outcome of the evaluation procedure

Letter of Delegation

a letter signed between the SME Co-ordinator and all the other contractors; it gives the SME Co-ordinator the right to sign a CRAFT Contract on behalf of the other project partners

Model Contract

see CRAFT Contract

overhead costs

costs for internally funded research, administration, support personnel, office supplies, infrastructure, utilities, services etc., which cannot be referred to any special product or customer

SME Co-ordinator

the Co-ordinator is responsible for the management of the CRAFT Project and should have the appropriate managerial and technical expertise to direct the project; the Co-ordinator can be either an SME or a third party outside the consortium

project deliverables

technical verifications which include access for the Commission to sites or premises used for the work on the project and to documents concerning the project management, progress, and reviews

project milestones

specific and measurable deliverables that are defined at intermediate stages during and at the end of the project execution period

proposal evaluation

the Commission’s judging of project proposals; aconfidential, fair and equitable judging is guaranteed


Project Technical Advisor


Research and Development


Research and Technological Development

RTD Performers

organisations that have adequate R&D capacity to carry out the required research on behalf of the SMEs; and they can be small or large enterprises, universities, research centres, industrial laboratories, technical centres, etc.

Small and Medium-sized Enterprise

an enterprise with no more than 250 employees; it has an annual turnover less than 40 million euro or has an annual balance-sheet of a total not exceeding 27 million euro; it is not more than 1/4 owned by one or more non-SMEs, except an investment/venture capital company that does not exercise control; it is not a research centre, research institute, contract research organisation or a consultancy.


see Small and Medium-sized Enterprise

Stage 1

see Exploratory Award

Stage 2


Standard Model Contract

see CRAFT Contract

Start of Project

normally the first day of the month following the signature of the CRAFT Contract by the Commission


a contractual arrangement between a contractor and a third party for the third party to carry out work on the project


a third party having concluded a subcontract with a contractor

transfer conditions

conditions that have a value lower than favourable conditions, normally the cost of making the access rights available


Technology Stimulation Measures for small and Medium-sized Enterprises


Value Added Tax