The CIP was based on Decision No 1639/2006/EC of the European Parliament and of the Council of 24 October 2006 establishing a Competitiveness and Innovation Framework Programme (2007 to 2013).
[1] The Commission noted during the recession which occurred from 2007 onwards that small businesses needed additional support and so the implementation of the programme's financial instruments was speeded up and its approval procedures were simplified.
The EIP aimed to facilitate access to finance for the start-up and growth of SMEs and to encourage investment in innovation activities and to create an environment favourable to SME cooperation, particularly in the field of cross-border cooperation, thereby promoting and assisting in all forms of innovation in enterprises.
There were over 500 regional teams across Europe and beyond in 40 countries, making it the world's largest business and innovation support network.
In addition to the new Network, DG Enterprise & Industry have established other initiatives such as the European Investment Fund (EIF),[7] which provisions for venture capital aimed at SMEs - in particular high-tech early-stage companies.