“Research for the Benefit of SMEs” is a programme in the 7th Framework Programme for Research and Technological Development (FP) of the EU. Small and Medium sized Enterprises (SMEs) can apply to the scheme and receive up to € 2.8 million in funding for realising innovative projects. The programme is a public incentive with objective to strengthen the innovative capacity of European SMEs who do not have the ability of providing their own R&D. Only a hundreds of Europe''s 23 million SMEs apply to the scheme annually. Norwegian actors are well represented in the programme. This is an analysis of how the programme operates in Norway. With use of innovation approaches it tries to reveal obstacles, advantages and pitfalls which may emerge during the process. After a thematic presentation of relevant subjects it operationalises the innovation process step-by-step through a case-study. In the latter part you will find a discussion of decisive elements for success or failure of project based upon statements from the informants. This book will not only provide you with a general understanding of how the 7th FP works in practice, but also with a comprehension of how to innovate.