xBUILD-EU project today announced the publication of its comprehensive policy paper, summarizing key insights and recommendations from its three-year initiative aimed at empowering European Small and Medium-sized Enterprises (SMEs). The paper targets EU policymakers, particularly within the European Commission and DG GROW, offering actionable strategies to enhance SME competitiveness through strengthened industrial cluster cooperation and effective funding mechanisms.

Funded by the European Union, the xBUILD-EU project focused on fostering cross-sectoral and cross-border collaboration between the Textiles, Construction, and Advanced Manufacturing industries. Recognizing that innovation, agility, and targeted support are crucial for SMEs navigating market volatility, the project utilized cascade funding to directly support SME initiatives. A total of €1.05 million was distributed to 45 SMEs across two funding calls, enabling projects focused on innovation, green and digital transitions, and international market expansion. Overall, the program benefited more than 100 SMEs through direct funding, webinars, and pilot projects.   

The policy paper underscores the critical role of cluster collaboration as an effective enabler for SME growth. By connecting SMEs with research institutions, diverse industry actors, and public stakeholders across sectors and borders, clusters create ecosystems that drive innovation, resource sharing, and sustainable development. The project facilitated numerous successes, including the development of AI-powered textile inspection, smart sensor systems for building health, the use of recycled textile fibres in sustainable construction mortar, and the creation of real-time carbon emission monitoring systems. Furthermore, cluster networks proved instrumental in supporting SME internationalization efforts into middle East markets.   

Addressing persistent challenges, the project conducted detailed skill gap analyses in partner regions (Spain, Portugal, Ireland, Slovenia), identifying shortages in areas like digital technologies, green skills, advanced manufacturing, and specialized construction techniques. Based on its findings and experiences, the xBUILD-EU policy paper advocates for specific actions, including: expanding cascade funding programs, strengthening financial and structural support for cross-border cluster networks, improving SME accessibility to EU networks, integrating funding schemes, and investing in targeted SME skills development, potentially leveraging practical formats like hackathons and building on learnings from previous EU projects.   

These recommendations aim to align future EU funding frameworks and policies more effectively with the needs of SMEs, reinforcing their resilience and contribution to Europe's green and digital transition goals and the New Industrial Strategy for Europe.   

About xBUILD-EU: The xBUILD-EU project is an EU-funded initiative that aims to foster cross-sectoral collaboration between the textile, construction, and advanced technologies industries. Its primary goal is to promote sustainable and digital solutions, embracing a circular economy approach and supporting the deployment of the New Industrial Strategy for Europe. The project focuses on green and digital transitions, innovation, and internationalization to generate growth opportunities globally.