SMEs and open strategic autonomy : final report

Open Strategic Autonomy (OSA) is a political concept that refers to the European Union's ability to act independently in strategically important areas while seeking multilateral cooperation when possible. Initially mentioned in European Council conclusions in December 2013, OSA gained prominence after the COVID-19 pandemic, and it is now shaping the design of future industrial policies. The success of the OSA paradigm is strictly interrelated with SMEs active participation in strategic sectors. This study aims to analyse to what extent and through which means SMEs are involved in such strategic industries, and to provide recommendations for policy actions aimed at maximising the benefits of SMEs participation in OSA while limiting risks. It builds on the outcomes of extensive desk research and stakeholders' engagement. Results show that SMEs presence in strategic sectors is pervasive, although their contribution in terms of value added is limited. They oversee different stages along the value chains analysed, and they play a crucial role in R&D activities and in developing critical innovations and solutions even in industries dominated by large firms. In recent years, all major economies have implemented policies aimed at achieving strategic autonomy goals. Yet, limited emphasis has been put on supporting SMEs. The study concludes with the presentation of an Action Plan centred on two key points. First, recommended measures strike a balance between enhancing EU economic interests and resilience, and improving EU SMEs participation in an open international trading system. Second, the proposed actions comply with the need for the EU to lead in high-value technologies and productions. The Action Plan builds on five policy pillars and a foundational pillar that addresses general framework conditions to enable SME growth.