SMEs as drivers of innovation in EU research and innovation projects

15. April 2026

Companies in Baden-Württemberg tend to prefer to stay within the region or collaborate at a national level. They rarely venture onto the European and international stage. This is a point that comes up time and again when speaking to representatives from the worlds of politics and business development.

Steinbeis Europa Zentrum has been working to change this for over 35 years and has achieved significant success. Through more than 90 ongoing EU projects, it brings together international innovation stakeholders. Unfortunately, there are still too few people from Baden-Württemberg involved.

To remain competitive, the European Union needs innovative, pioneering companies – including those from Baden-Württemberg. The EU supports this through a range of funding schemes, the most significant of which is Horizon Europe.

Identifying companies’ needs

Companies very often come to us with questions about reducing costs, improving quality, developing new product and service functionality, and innovation partnerships with organisations in other countries. Developing innovative products and services is a risky business. We help to minimise these risks. To do this, our clients need know-how, resources and funding. Whether start-ups, SMEs or large corporations, we support all businesses and find suitable funding programmes and partners.

Financing innovation

We help to identify suitable funding opportunities and support them in drafting funding applications. We provide comprehensive information on current calls for proposals, funding criteria and administrative requirements. Our consultancy services range from programme screening, partner search and proposal submission through to project coordination, and the exploitation, dissemination and communication of project results. Clients can expect a 60% probability of success with us.

International cooperation

Another key focus is strategic partnerships. Our clients are keen to build networks and enter into partnerships with foreign businesses, research institutions and public agencies. We help them initiate and implement international partnerships, especially in the fields of innovation, research and technology transfer. As an Enterprise Europe Network partner, we can provide access to the largest technology transfer network worldwide, as well as promoting transnational cooperation.

SMEs are driving innovation in EU research and innovation projects

As partners in an innovation project, small and medium-sized enterprises often can provide important impetus by contributing agile working methods, practical solutions and a high degree of flexibility. Their direct proximity to the market and to customers enables them to test innovative ideas quickly and translate them into applications, products and markets. In this way, they make a significant contribution to the development of new technologies and solutions by identifying and specifically addressing practical challenges.

We can address these capabilities right from the proposal beginning, thereby ensuring that the proposal takes into account the so-called impact on the international market. The participation of innovative companies helps to make European value chains broader, more diverse and more resilient. SMEs take on specialised roles, for example such as software components, high-tech niches, consultancy or manufacturing services, which are crucial to complex innovation processes.

SMEs as partner in EU projects - Best Practices

SMEs face challenges such as limited financial and human resources and complex regulatory requirements. In particular, coordinating an EU project with more than 20 partners and ensuring their own visibility within the consortium can be demanding.

At Steinbeis Europa Zentrum, we have seen that there are certainly companies that are willing to take on the coordination of an EU project.

Novis BioBased Technology GmbH, based in Tübingen, is a partner in the EU project CAPTUS, which is dedicated to the production of renewable liquid fuels from carbon dioxide emissions. In addition, we have brought Novis on board as a partner in the EU project FABULOSE. The project is working on new sustainable bio-based production routes for animal-free leather alternatives. Novis is working on optimising and scaling up bacterial cellulose production from waste streams such as rapeseed oil residues, grape marc and paper waste.

SME is a partner in the major textile research project FABULOSE - Steinbeis EN

Harms & Wende GmbH & Co KG took on the role of coordinator in the EU project RECLAIM. This innovative medium-sized company, headquartered in Hamburg with a branch in Karlsruhe, is a long-standing partner and client of Steinbeis Europa Zentrum. Together, we can look back on a whole series of successful projects, all of which were coordinated by Harms & Wende. The SME conducts research and development in the field of welding systems and provides bespoke solutions.

13 million euros boosting circular economy in the manufacturing industry - Steinbeis EN

MANN+HUMMEL coordinated the EU project Aerosolfd, which was successfully completed in August 2025. Together with other European partners, MANN+HUMMEL brought three solutions to market: a retrofit filter for petrol engines, brake dust particle filters for urban areas, and air purifiers for underground stations.

Steinbeis Europa Zentrum supported MANN+HUMMEL GmbH in its innovation and transformation projects - Steinbeis EN

Start-ups

EU projects can serve as a springboard for SMEs to enter new international markets. This can lead to the creation of start-ups during the course of an EU project. For example, Spartha GmbH was founded in 2019 as part of the IMMODGEL project. Hypromag GmbH developed its portfolio over the course of several EU projects on rare-earth magnets and was founded in 2018 to bring a hydrogen-based process for processing magnetic scrap to market. EIFHYTEC benefited enormously as a project partner in the COSMHYC series on hydrogen compression. In 2025, the start-up received the Hy-fcell Product & Market Award for its compression solution.

Melina Bucher is collaborating with Novis on the FABULOSE textile project. The Mannheim-based start-up produces handbags made from 100% bio-based, plastic-free, vegan, leather-like material.

Driving innovation in EU-funded projects: EIFHYTEC demonstrates its breakthrough hydrogen compression in COSMHYC DEMO and receives hy-fcell Award 2025 - Steinbeis EN

Bio-based leather alternatives drive the leather industry towards a circular economy – Steinbeis Europa Zentrum supported German Start-up with proposal writing - Steinbeis EN

EU-funded research project leads to founding of company - Steinbeis EN

A Circular Economy for Rare Earth Permanent Magnets - Project partners of SUSMAGPRO present results - Steinbeis EN

Project example Flex4Fact - Optimisation of industrial processes and energy management

The EU project Flex4Fact (2022–2025) involved 23 partners, including five European companies that acted as technology implementation partners and contributed specialist expertise in areas such as the Internet of Things (IoT), automation, renewable technologies and cluster management. The project achieved key milestones in making industrial energy processes more flexible. One of the highlights was the development of a modular system reference architecture that integrates physical assets, data layers, digital twins and management layers. Building on this, digital twins were created for five industrial use cases. Overall, the pilot projects achieved a 17% reduction in energy consumption and a 64% increase in the share of renewable energy. At TRL 7, the solutions reached market readiness and demonstrated scalability.

In particular, SMEs contributed practical technological developments to this major research project. Their tools and modules enable companies to reduce their energy costs and integrate renewable energy more quickly. They supported SMEs in accessing markets for new digital product and service solutions within the European context. In doing so, they played a crucial role in accelerating the digital and energy transition of European industry.

More efficient, flexible use of electricity for industry - Steinbeis EN

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Anette Mack
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Contact us!

Anette Mack

Customer references