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SMEs are THE new paradigm for innovation in healthcare

06 Mar 2008 - EuropaBio championed the innovative role that Small and Medium-sized Enterprises (SMEs) have the potential to play in the European economy at the Drug Information Association's 20th EuroMeeting 3-5 March in Barcelona. Academics, policy makers and industry representatives attended the session "If the Future of Treatment Is in the Hands Of SMEs, How Can We Unlock Their Potential?". EuropaBio's Secretary General, Dr. Johan Vanhemelrijck spoke on "What Needs Joining Up in Europe to Help SMEs Deliver Their Promises to Patients?".
 
EuropaBio has identified several incentives for unlocking innovation in European SMEs, including: economical and robust Intellectual Property Rights; predictable, quick and economical market access that generates confidence in the financial community and improvement in access to private and public finances thanks to better coherence of policies and rules. However, SMEs still need support from improved public research funding; and, in the biotechnology sector, they need well educated people not only in life sciences but also in entrepreneurship, contract negotiation and finances.
 
The EU has responded to these needs by allowing Member States to offer State aid to SMEs with a series of incentives in favour of research, development and innovation in the biotech industry and in particular for SMEs and Young Innovative Enterprises. The need still remains for more international finance and venture capital investment. SMEs would also benefit from a decrease bureaucracy and a de-fragmentation of the national interpretations of Europe's legislation e.g. for clinical trials in Europe.
 
"Big breakthroughs do not always come from big companies. Indeed, it is often small & medium-sized enterprises working on new technologies that can offer new solutions to sometimes very old problems, hidden under the radar of larger companies," said Dr. Vanhemelrijck. He continued, "This means they have the potential to bring new treatments to patients and also contribute to a thriving European knowledge bio-economy. SMEs urgently need more coherence in policies in a less fragmented Europe to be able to boost their value in a unique market. Europe needs to understand the challenges that SMEs face and step up to address them, thus stimulating their medical innovations and increasing the competitiveness or Europe."