EU-28 SMEs made a significant contribution to the recovery and subsequent expansion of the EU-28 economy. They accounted for 47% of the total increase from 2008 to 2017 in the value added generated by the non-financial business sector, and for 52% of the cumulative increase in employment in the sector. In fact, their contribution exceeded what would have been expected on the basis of their relative importance in the economy. The internationalisation of SMEs is this year's special theme. SMEs can expand internationally in a number of different ways. Examples include exporting or importing goods and services, making outward foreign direct investment or attracting foreign investors to their business, becoming part of a national value chain which has an international focus, or being part of a global value chain, engaging in cross-border R&D and innovation collaboration, or licencing or franchising products or services. Thus, innovation management plays a key role at this respect and the Basque Country is not an exception at all. Programs supporting SME exports benefit directly only a sub-set of SMEs. However, indirectly, all SMEs benefit to some extent from growth in exports as higher exports raises a) overall income levels, and hence the demand for goods and services sold by domestic demand facing SMEs, and b) the demand for goods and services originating from exporting- oriented enterprises. Some of the main drivers for a high competitiveness score can be linked to the presence of strong skills and innovation capacity and capability, entrepreneurship and easy access to finance. In the Basque Country we are very much aware of this scenario and that is why the Basque Node has designed an implementation plan aiming at contributing to the objectives of COSME. Facilitating access to European and international markets for Basque SMEs and by providing growth-oriented, integrated business and innovation support services that help strengthen the competitiveness.

The EU considers SMEs and entrepreneurship as key to ensure economic growth, innovation, job creation and social integration in the European Union. SMEs are the backbone of Europe’s economy since they represent 99% of all businesses in the European Union, employing 93 million people and generating 57 % of value added in the sector. The general macro-economic environment in the EU-28 in 2016 strengthened SME activity in all industries due to the expansion of all categories of final demand. In previous years, the main driver of SME recovery was exports. The year 2016 marked the third consecutive year of steady increases in EU-28 SME employment and EU-28 SME value added. As a result of the recent upturn, EU-28 SME employment has finally recovered from the 2008/2009 economic and financial crisis and even slightly exceeded the 2008 level in 2016. The level of value added generated by EU-28 SMEs showed even greater recovery, at 11 % higher than in 2008. This has also been the trend of Basque SMEs during the same period. Programs supporting SME exports benefit directly only a sub-set of SMEs. However, indirectly, all SMEs benefit to some extent from growth in exports as higher exports raises a) overall income levels, and hence the demand for goods and services sold by domestic demand facing SMEs, and b) the demand for goods and services originating from exporting- oriented enterprises. Some of the main drivers for a high competitiveness score can be linked to the presence of strong skills and innovation capacity and capability, entrepreneurship and easy access to finance. In the Basque Country we are very much aware of this scenario and that is why the Basque Node has designed an implementation plan aiming at contributing to the objectives of COSME. Facilitating access to European and international markets for Basque SMEs and by providing growth-oriented, integrated business and innovation support services that help strengthen the competitiveness and sustainability.