EU bureaucracy is frightening off small firms from accessing research funding, Business Voice WM has warned.

And it has urged the Government to persuade the European Commission to streamline the system.

In a letter to the Department for Business, Innovation and Skills, responding to a consultation exercise, James Watkins, executive director, said: "We believe the procedures that are currently in place are far too onerous, especially for small and medium sized enterprises who have little time and resource to invest in these applications.

"For a small business to obtain research and development funding, it can not simply put in a request, with a clear business case supporting its application. Instead, the small business first needs to find a company or academic institution to team up with that would be able to undertake the research work.

"That is because projects are structured as a collaboration between a group of partners who share tasks and responsibilities.

"The drawbacks are twofold. It does not allow for investment in a company's existing R&D capability and it is a time consuming process for a small business that cannot spare much time and may not wish to go down this path if, after much effort, there is a possibility its funding application could be refused."

Mr Watkins said regional development agency Advantage West Midlands, now being wound up, had commissioned a private company, Beta Technology, to provide a match-making service between the potential applicant for funds and a research partner.

However, the service was little known and "did not address the unnecessary hurdles in place to try and access these funds". 

He went on: "The European Commission should reverse its procedures and allow a business to make an application for funding - in principle. If agreed then the applicant could seek a research partner before resources are released."

Mr Watkins admits it would be impractical and unrealistic for the EC to process applications at such an early stage. Therefore a body based in each member state - possibly at a sub national level - could do so for it in the first instance.

He noted: "This is a far more efficient way to ensure that public money is spent wisely, while not wasting the valuable time and resources of an SME in what could be a fruitless application.

"If we are to ensure that there is a bigger take up of R&D grants then it is critical that the process to access these funds is improved."