Tips for research organisations on collaborating with SMEs
This blog post was originally published in Finnish on Business Finland’s website, and was written by Business Finland’s Leading Expert, Sanna Piiroinen.
Business Finland funds research projects that encourage collaboration between companies and research organisations. The underlying idea is that access to cooperation with research organisations accelerates the competitiveness and renewal of small and medium-sized enterprises (SMEs).
Research organisations, including universities and universities of applied sciences, provide access to the latest research-based knowledge as well as national and international networks. These assets can be valuable also for SMEs that have not previously been involved in large-scale research and development projects. Engaging new companies and industries in goal-oriented RDI activities and strengthening innovation collaboration are among Business Finland’s strategic objectives.
Over the years, valuable lessons have been learned from funding calls targeted at research organisations. These experiences can help applicants prepare stronger proposals in future calls. The current call remains open until 18 December 2026, and high-quality applications are warmly encouraged.
Tips for researchers planning projects
Demonstrate a clearly identified business need for the research topic.
Describe concretely how the project will encourage and enable SMEs to increase their R&D activities.
Explain how the project advances research and knowledge creation within the field.
Ensure that a sufficient number of SMEs are involved and genuinely committed to the project.
Make sure that the companies’ contribution meets the minimum requirement of 10%.
Why are applications rejected?
Under the Cooperation between research organizations and SMEs funding is granted for Co-Research projects carried out by one or more research organisations. The research topic must address a recognised need among SMEs. At the same time, the participating companies may not yet have the capabilities or vision to directly utilise the resulting expertise in their product development or business operations.
Several applications rejected in previous funding rounds were nevertheless considered promising, provided that both the industry collaboration and the project focus were further strengthened.
Common reasons for rejection include:
While some rejected applications contained interesting content and involved a reasonable number of companies, they lacked sufficient industry commitment. In particular, SMEs did not contribute the required minimum of 10% of the project funding. In some cases, the number of participating companies was also too low.
When company participation and investment remain limited, the project’s impact on the SME sector is often insufficient, even if the formal minimum requirements are met. Limited interest from companies may also indicate that the proposed research topic does not address a clearly recognised industry need. Naturally, the project must also offer scientific novelty, and researchers need to justify the relevance of the topic in the application.
Some applications were not well aligned with the objectives of this specific funding call. They failed to demonstrate how the project would encourage a broader group of SMEs to engage in research and development activities and strengthen their capabilities for international growth and exports. An application may also be rejected if the research primarily serves the needs of only one or two companies, as such projects cannot be funded as public research. Strong applications provide a convincing plan for the wider dissemination and utilisation of results across the business community.
Investing effort in company engagement pays off
Many researchers report that recruiting SMEs into projects can require considerable effort. However, long-term engagement is worthwhile. Companies clearly show an interest in participating in large research projects with a relatively modest investment.
“It appears that the collaborative project model between research organisations and SMEs is becoming better known and more widely utilised.”
It was encouraging to see that the number of participating companies increased in the most recent funding round compared with the previous year:
Every funded project included more companies than the minimum number required in the call.
Nine projects involved at least ten beneficiary companies. The remaining projects included between four and nine companies.
Participating companies represented a broad range of industries. Some projects focused on a specific sector, while others attracted companies from several different industries.
These observations suggest that the collaborative model between research organisations and SMEs continues to gain recognition and is being adopted more widely. This provides a strong foundation for further development.
Funding decisions at a glance
Cooperation between research organizations and SMEs funding call 2025:
25 research projects were funded, of which 10 were parallel projects involving two to four research organisations.
Total funding applications amounted to approximately EUR 26 million, of which around EUR 15,5 million was granted.
The average budget per participating research organisation was approximately EUR 500,000.
The largest number of projects focused on artificial intelligence and biomaterials. Other funded themes included robotics and automation, health technology, food technology, business expertise, battery value chains, renewable energy and cybersecurity.